Q1 2025 BHG Group AB Earnings Call Transcript
Key Points
- BHG Group AB (STU:7B1) reported a strong organic growth of 8% in Q1 2025, with all three business units showing growth.
- The company achieved a sixth consecutive quarter of profitability improvements year-on-year.
- Adjusted EBIT improved significantly, reporting SEK21 million at the group level, marking a substantial improvement from a small loss last year.
- The arbitration proceedings with IP-Agency were resolved in BHG's favor, resulting in a favorable financial outcome.
- BHG Group AB (STU:7B1) is well-positioned for future growth, having exited the restructuring phase and entering a phase focused on profitable growth.
- Cash flow from operating activities was negative at minus SEK103 million, following the normal seasonal pattern.
- The company's gross margin was not entirely satisfactory, affected by campaign pressure and mix effects, particularly in the Premium Living segment.
- There is increased market uncertainty due to geopolitical and financial unrest, which could impact consumer confidence.
- The company faces currency effects, with a stronger SEK negatively impacting the group as a whole.
- Despite strong top-line growth, the drop-through to earnings was lower than expected, with adjusted EBIT significantly below consensus estimates.
Hi, and welcome. My name is Gustaf Ohrn, CEO of BHG. I'm here together with Jesper Flemme, CFO, to present our Q1 report. We will also be available after the presentation to do our best to answer your questions. Slide 2, please.
We are happy to present a strong start of the year for BHG. In the last quarter of last year, we showed a small growth after a long period of declining sales. And now in the first quarter of 2025, we report a strong organic growth of 8%, and all three business units showing growth versus previous year.
Based on our available data points, we are confident that we have taken market share during the quarter. Earnings also continued to improve, now with a sixth consecutive quarter of profitability improvements year-on-year.
This quarter, all business units show improvements in earnings. In this quarter, the first quarter of the year, which is also the smallest quarter of the year, we see a positive development in earnings, going from a small loss last year to a significant improvement and
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