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Bhg Interim Report Q4 January December 2023
Prenumeration
Beskrivning
| Land | Sverige |
|---|---|
| Lista | Mid Cap Stockholm |
| Sektor | Handel & varor |
| Industri | Detaljhandel |
Significantly strengthened balance sheet and reduced inventory levels during the year and improved profitability in the quarter
– During the year, we generated SEK 1.6 billion in cash flow from operating activities, reduced our total interest-bearing liabilities by SEK 1.6 billion and carried out several structural changes in order to simplify and streamline our operations in line with our strategy.
“Our focus has been on strengthening our balance sheet and cash flow by reducing inventory and implementing changes that simplify, lower the cost base and consolidate our structure. There has been significant progress in all of these areas in 2023 and we are now financially, structurally and commercially stronger. Our strategy is working and yielding results. We set a goal to reduce our inventory by SEK 600m in 2023 and I am pleased to conclude that we have exceeded the goal with a reduction of SEK 900 during the year. In a continued challenging market, we improved our profitability in the fourth quarter compared with the previous year for the first time since mid-2021.” says Gustaf Öhrn, President and CEO.
Highlights
1 October – 31 December
- Net sales declined -14.5% to SEK 2,828.8 million (3,307.9). Organic growth was -10.6% and pro-forma organic growth was -10.6%
- Adjusted gross profit amounted to SEK 718.1 million (804.9), corresponding to an adjusted gross margin of 25.4% (24.3)
- Adjusted EBIT amounted to SEK 54.8 million (30.7), corresponding to an adjusted EBIT margin of 1.9% (0.9)
- Cash flow from operating activities amounted to SEK 348.9 million (67.5)
- Earnings per share amounted to SEK -0.89 (-1.20) before dilution and SEK -0.89 (-1.20) after dilution
1 January – 31 December
- Net sales declined -12.2% to SEK 11,790.2 million (13,433.6). Organic growth was -11.2% and pro-forma organic growth was -11.1%
- Adjusted gross profit amounted to SEK 2,944.8 million (3,368.4), corresponding to an adjusted gross margin of 25.0% (25.1)
- Adjusted EBIT amounted to SEK 96.7 million (374.9), corresponding to an adjusted EBIT margin of 0.8% (2.8)
- Cash flow from operating activities amounted to SEK 1,550.2 million (-105.6)
- Earnings per share amounted to SEK -8.73 (0.25) before dilution and SEK -8.73 (0.25) after dilution
The Board of Directors proposes to the Annual General Meeting that no dividend be paid to the shareholders for 2023.
Key events during the fourth quarter and after the period
- On 13 December, it was announced that EQT Public Value Fund had sold its entire remaining holding in BHG Group and as a consequence Vesa Koskinen, partner at EQT, had left his position on the Board of Directors of BHG Group.
- On 21 December, a number of structural changes were announced: the consolidation of our Danish operation Frishop into HYMA Skog & Trädgård, the integration of the Lindström & Sondén warehouse structure with Hafa Brand Group, and the consolidation of inventory in Arc E-commerce AB from two warehouses into one.
- On 11 January 2024, BHG announced it was strengthening its market-leading position in the Premium segment through Nordic Nest’s acquisition of the KitchenTime brand in an asset purchase transfer and consolidation of LampGallerian.
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 Friday, 26 January 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-q4-report-2023. 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=50046772. 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-December 2023 and previous interim and year-end reports are available at https://www.wearebhg.com/investors/financial-reports/