– The sales development improved in the third quarter compared with the first half of the year, and we are seeing signs of a gradual increase in demand, while also boosting our profitability significantly year on year

“Our strategic focus in 2023 and 2024 has been on adapting our operations to a challenging market situation in an effort to strengthen our profitability and ensuring that we command an even stronger position when the market rebounds. Thanks to the robust measures we have taken to consolidate and streamline our operations, we achieved a year-on-year improvement in profitability for the fourth consecutive quarter. BHG is now better positioned as a group to achieve its growth and profitability targets” says Gustaf Öhrn, President and CEO.

Highlights
1 July-30 September

• Net sales declined -17.7% to SEK 2,354.1 million (2,861.9). Organic growth was -9.8%
• Adjusted gross profit amounted to SEK 579.4 million (687.2), corresponding to an adjusted gross margin of 24.6% (24.0
• Adjusted EBIT amounted to SEK 52.5 million (12.5), corresponding to an adjusted EBIT margin of 2.2% (0.4)
• Cash flow from operating activities amounted to SEK 103.3 million (223.7)
• Earnings per share amounted to SEK -0.37 (-7.3) before dilution and SEK -0.37 (-7.3) after dilution

Key events during the third quarter and after the period

• The inventory consolidation process in Value Home has proceeded faster than planned, and we successfully reduced our warehouse space by 23,390 square metres (earlier 17,000 square metres communicated) in the third quarter and plan to cut a final 3,900 square metres (earlier 10,000 square metres communicated) in the fourth quarter of 2025.
• Work on Nordic Nest’s warehouse automation continued according to plan during the quarter. The automation solution has been expanded to further automate previously manual workflows. This part of the automation solution will be deployed in the fourth quarter in time for the Group’s all-important peak season, which will have a positive impact on efficiency.
• As part of consolidating the Nordic DIY business through the scalable platform Bygghemma Nordic in the Home Improvement business area, we implemented a new business system during the quarter to enable future consolidation and enhance the customer experience.

CONFERENCE CALL IN CONNECTION WITH PUBLICATION OF THE INTERIM REPORT
Gustaf Öhrn, President and CEO, and Jesper Flemme, CFO, will hold a conference call at 10:00 a.m. on Thursday, 24 October in connection with the publication of the interim report.
The call will be held in English. Use the following link to participate in the webcast:https://ir.financialhearings.com/bhg-q3-report-2024. There will be an opportunity to ask questions in writing at the webcast. If you wish to ask questions verbally during the conference call, please register via the following link: https://conference.financialhearings.com/teleconference/?id=50048675. Once you have registered you will receive a telephone number and conference ID to log in to the conference. There will be an opportunity to ask questions verbally at the webcast.
The presentation will be available from the Group’s website: https://www.wearebhg.com/investors/presentations/

INTERIM REPORTS ON WWW.WEAREBHG.COM
The full interim report for the period January to September 2024 and previous interim and year-end reports are available at https://www.wearebhg.com/investors/financial-reports/