Q2 2026 BHG Group AB Earnings Call Transcript
Key Points
- BHG Group AB (STU:7B1) achieved an organic growth rate of almost 10% in the second quarter, marking the seventh consecutive quarter of organic growth.
- The company reported a significant improvement in adjusted EBIT, which increased by SEK60 million compared to the previous year.
- Operating cash flow was strong at SEK338 million, aligning with seasonal patterns and contributing to a stronger balance sheet.
- The acquisition of Hillerstorp is expected to strengthen BHG Group AB's product offerings and market position, particularly in the Garden category.
- BHG Group AB is leveraging AI initiatives to enhance customer experience and operational efficiency, which is expected to drive future growth.
- Profitability in the quarter was below expectations due to an unfavorable product mix, particularly in the Home Improvement business unit.
- The gross margin was negatively impacted by strong growth in low-margin categories like Gardening Equipment, diluting overall margins.
- Marketing efficiency was reduced due to uneven demand across categories, impacting profitability.
- The Finnish market remains challenging, with growth prospects less favorable compared to other regions.
- Increased freight costs and potential currency fluctuations pose risks to future profitability, with timing of impacts difficult to predict.
Good morning, everyone, and thank you for joining us today. I'm joined by our CFO, Jesper Flemme. I will walk you through the operational highlights and our strategic progress before Jesper covers the financials in more detail. I will come back to summarize, and then we will do our very best to answer your questions. Slide 2, please. Q2 highlights.
The second-quarter was another step forward for BHG. We delivered accelerating organic growth, continued to see improving profitability and generated strong cash flow, while at the same time, continuing to execute on the strategic priorities we communicated on our Capital Markets Day. The quarter was characterized by three main themes.
First, our operational performance continued to improve. Organic growth accelerated to almost 10% and adjusted EBIT improved for the 11th consecutive quarter. Second, we continue to execute our strategy. We further increased our share of unique assortment, accelerated our AI initiatives and completed the first acquisition in a long time with the
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