Sweden · Delayed Price · Currency is SEK BHG Group AB Earnings Call Transcripts
Fiscal Year 2026
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Profitability more than doubled year-over-year, driven by improved gross margins, cost control, and organic growth. Strong sales momentum and order intake support a positive Q2 outlook, while refinancing and AI initiatives strengthen the foundation for continued growth.
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Financial targets have been raised to 10%-15% annual growth and a 7% medium-term EBIT margin, driven by operational excellence, AI-enabled efficiency, unique assortment, and renewed M&A activity. The group leverages a scalable, decentralized model and is well-positioned for above-market growth in improving market conditions.
Fiscal Year 2025
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Organic growth reached 9% for the year and 10% in Q4, with profitability up 50% year-over-year. All business units contributed to growth, cash flow and margins improved, and the outlook for 2026 remains positive, supported by rising disposable income and digital trends.
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Double-digit organic growth and a 76% year-over-year earnings increase were achieved, with all segments contributing to improved profitability and market share gains, especially in Sweden and Germany. The outlook remains positive, targeting a 7% EBIT margin.
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Q2 delivered 5% organic growth and a 19% earnings increase, with all segments contributing and strong cash flow. Profitability improved for the seventh consecutive quarter, and the outlook remains positive as market recovery continues, especially in Sweden.
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Strong organic growth and profitability improvements were achieved in Q1, led by Sweden and supported by cost control, despite margin pressure and increased market uncertainty. Strategic focus shifts to profitable growth, with cash flow and leverage expected to improve in Q2.
Fiscal Year 2024
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Q4 2024 saw a return to growth with sales up 2% and adjusted EBIT nearly doubling year-over-year. Profitability improved across segments, restructuring is nearly complete, and 2025 will focus on market share gains and cost discipline amid a gradually recovering market.
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Sales declined 10% organically year-over-year, but profit and cash flow improved due to margin gains and cost savings. Early signs of market recovery are visible, especially in Sweden, with continued focus on consolidation, efficiency, and profitability targets.
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Q2 saw a 22% sales decline but improved EBIT margin to 3.6% and strong cash flow, driven by cost reductions and inventory management. The outlook for 2024 remains cautious, with a rebound expected in 2025.