“The first quarter was characterised by weak demand and high inventories in the market, which put pressure on sales and margins. Profitability was weak but improved during the quarter. Our ambition is to free up approximately SEK 600 million from inventory in full-year 2023. We see that the underlying trends for our operation remain intact, and that prospects are good for returning to the profitability and cash flow we had in the years before the pandemic as a first step” says Gustaf Öhrn, President and CEO.

HIGHLIGHTS

• Net sales declined -15.9% to SEK 2,617.5 million (3,110.6) Organic growth was -16.8% and pro-forma organic growth was -15.5%
• Adjusted gross profit declined -23.8% to SEK 641.3 million (841.7), corresponding to an adjusted gross margin of 24.5% (27.1)
• Adjusted EBIT amounted to SEK -68.9 million (134.2), corresponding to an adjusted EBIT margin of -2.6% (4.3)
• Cash flow from operating activities amounted to SEK 210.8 million (121.7)
• Earnings per share amounted to SEK -0.66 (0.89) before dilution and SEK -0.66 (0.88) after dilution

Key events during the first quarter and after the period

• On 12 January 2023, Sara Sterner took over as Head of HR, Communication and ESG. Sara Sterner is a member of the executive management team. She succeeds Maria Morin, who left BHG for a position outside the company at the end of 2022.
• An Extraordinary General Meeting was held on 13 January 2023. The Meeting approved the Board of Directors’ proposal to introduce a long-term incentive programme for the company’s CEO by issuing warrants (LTIP 2023/2026) as well as the Nomination Committee’s proposed changes to the Board of Directors to apply until the end of the next Annual General Meeting, including the election of new Board members Kristian Eikre and Vesa Koskinen, with the latter replacing current Board member Niklas Ringby. Election of Christian Bubenheim (appointed acting Chairman of the Board by the Board of Directors in August 2022) as Chairman of the Board of Directors.
• On 31 January, it was reported that the number of shares and votes in BHG Group had changed due to the directed issue completed in December 2022 and now amounted to 179,233,563 shares and votes.
• On 21 March, it was announced that adjusted EBIT for the first quarter of 2023 was expected to be negative, ranging from SEK -70 million to SEK -105 million.
• Notice of BHG Group’s Annual General Meeting to be held on 3 May in Malmö was published on 4 April.
• BHG Group AB’s Annual Report for 2022 was published on 11 April.
• In April, our two customer loyalty programs within the Premium Living segment, The Nest and c/o Svenssons, reached one million members. Both programs were started as late as September 2022.

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, 27 April 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-q1-2023. 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=200667. 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-March 2023 and previous interim and year-end reports are available at https://www.wearebhg.com/investors/financial-reports/