BHG Group AB (publ) (BHG) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome, and good morning. My name is Gustaf Horn, CEO of BHG, and thank you for joining our q '1 earnings call. With me today is our CFO, Jesper Flemmer. I'll begin with an overview of the quarter, followed by Jesper, who will take us through the financials in more detail. I will summarize the port, and then we will open up for questions. Next slide, please. Let me start with the key takeaways. We have in the first quarter of the year delivered a strong improvement to profitability while continuing to grow and significantly reduced leverage. Adjusted EBIT year on year more than doubled in the quarter driven by improved gross margins, disciplined cost control and continued organic growth, a clear indication that our strategy and focus on operational execution is driving tangible results. The profit improvement in combination with a strong cash flow enabled us to end the quarter with a significantly lower leverage than last year. Next slide, please. Financial performance and looking at the key numbers. Net sales amounted to SEK 2,246,000,000 corresponding to a plus 4% organic growth in the quarter. Adjusted EBIT reached SEK 44,000,000, a doubling of profit and a significant improvement versus last year. Cash flow from operations was minus SEK 50,000,000 in the quarter. This follows the normal seasonal pattern for BHG with a negative cash flow in the first quarter from the inventory buildup for the larger second quarter. Cash flow improved by more than SEK 50,000,000 year on year, and this is to be regarded as a very strong cash flow for the quarter. One of the key highlights in this quarter is the improvement in gross margin, where the team has done a great job. In an unchanged price challenging market, our focus on price matching and unique assortment has driven the ...