Slides
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Q3 REPORT 2025 1 Gustaf Öhrn, CEO Jesper Flemme, CFO
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2 Double-digit growth and significant profitability improvement Strong progress in delivering our tactical priorities for 2025 Increased market share in a strengthening market Maintained cost levels to leverage our fixed costs and increase profitability Continued improvement in customer satisfaction
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3 SALES SEK 2,597m +10.3% vs. LY Organic growth: +13.4% vs. LY Earnings SEK 92.3m +39.8m vs. LY Cash flow SEK 51.9m Net Sales (SEK) Adj. EBIT (SEK) Cash flow from operating activities (SEK) -51.4m vs. LY • Double-digit organic growth in all segments in Q3 • Adj. EBIT improved by 76% YoY • Cash flow development in line with our seasonal pattern Double-digit organic growth in all business areas, while also increasing our profitability by SEK 40m
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4 The central bank of Sweden forecasts strong development in disposable income in the coming years Household income is rising Real disposable income Graph taken from the central bank of Sweden – Sources: Medlingsinstitutet, SCB and the central bank of Sweden Long-term trend remains intact, and the underlying market continues to improve Increased real disposable income in Sweden driven by an expansive fiscal policy going into 2026 will likely improve demand We asses that our addressable market has grown in 2025 Real disposable income in Sweden Continued increased activity in the Swedish housing market - favorable for our product categories
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0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,0% 3,5% -15% -10% -5% 0% 5% 10% 15% Org growth % Adj. EBIT % R12 Q4 2023 Q1 2024 Q2 2024 Q3 2023 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Strategic execution delivering continued growth and profitability 3.2% +13.4% Two years of improved profitability YoY Organic growth & Adj. EBIT % R12
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Indoor furnishings, Home decorations and Garden, also among our best performing categories Strong development in the Bathroom category CategoriesMarkets The market recovery has progressed the furthest in Sweden. Significant growth in our key markets Norway and Germany Market recovery in Finland trails the rest of the Nordics - Solid organic growth delivered We grew more than the addressable market and delivered 13.4% organic growth in the third quarter
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Expanding Total Market Increased Online Penetration Operational Excellence Strategic Initiatives M&A 7 1. 2. 3. Profitable growth strategy - Three layers, on top of a structurally growing market Strategy to grow more than the market and improve profitability Disciplined and proactive bolt-on acquisition process to accelerate growth and strengthen our platforms Expansion of assortment, geography, and customer segments, combined with ongoing improvements in cost, efficiency, and customer experience External factors Unique assortment Additional revenue streams Cost Structure Data & AI
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Double digit growth in all segments as we continue to strengthen our market leading position 8 -9% 1% 8% 5% 13% -10% -5% 0% 5% 10% 15% - 500 1 000 1 500 2 000 2 500 3 000 3 500 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Home Improvement Value Home Premium LivingBHG Group Organic growth for the fourth quarter in a row – driven by a double-digit growth in all segments We grow more than the market – Sweden continues to be main growth driver, Germany and Norway also strong -8% 2% 10% 4% 14% -10% -5% 0% 5% 10% 15% 20% - 200 400 600 800 1 000 1 200 1 400 1 600 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 -15% -8% 10% 10% 10% -20% -15% -10% -5% 0% 5% 10% 15% - 100 200 300 400 500 600 700 800 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 1% 5% 4% 3% 14% 0% 2% 4% 6% 8% 10% 12% 14% 16% - 100 200 300 400 500 600 700 800 900 1 000 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Net Sales and organic growth %
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Consistent operational execution delivering improved EBIT 9 Q3 23 Q3 24 Q3 25 12.5 (0.4%) 52.5 (2.2%) 92.3 (3.6%) Home Improvement Value Home Premium LivingBHG Group We improved our profitability by SEK 40m during the quarter, corresponding to a 76% YoY increase Adj.EBIT and Adj.EBIT% Q3 23 Q3 24 Q3 25 27.3 (1.9%) 37.7 (3.0%) 62.5 (4.6%) Q3 23 Q3 24 Q3 25 -3.6 (-0.4%) 24.8 (4.0%) 37.6 (5.5%) Q3 23 Q3 24 Q3 25 4.5 (1.0%) 3.4 (0.7%) 12.1 (2.2%) Improvement driven by increased profitability in all segments
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EBIT margin improvement driven by accelerating growth and improved cost structure 2.2% 3.6% Adj. EBIT margin Q3 '24 Product margin Inventory handling Last-mile & Other DSC Marketing Organisational cost Depreciation & Amortization Adj. EBIT margin Q3 '25 10 EBIT margin in the quarter improved by 1.3 percentage points compared to last year The negative development on Product margin is related to mix effects within Home Improvement, where about half is explained by the divestment of IP Agency. The lower gross margin was also attributable to clearing of seasonal products to ensure healthy inventory levels of these going out of the year Improvements in cost structure continued to give leverage on Organizational cost The significant margin-movement in Marketing was driven by efficiency improvements in all segments
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Cash Flow in line with seasonal pattern 11 473,0 261,8 312,1 (168,0) (355,2) Q4 2024 Cash and cash equivalents CF from operating activities CF to investing activities CF to financing activities* Q3 2025 Cash and cash equivalents 175,6 51,9 (11,1) (112,5) EBITDA and Adjustments for items not included in cash flow Income tax paid Change in working capital Cash flow from operating activities Cash Flow development driven by change in working capital, consistent with BHG’s usual seasonal trend Liquidity remains solid Jul-Sep 2025 (SEKm) SEKm * Including translation differences
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0,0x 0,5x 1,0x 1,5x 2,0x 2,5x 3,0x 3,5x 4,0x 4,5x 5,0x 0 500 1 000 1 500 2 000 2 500 3 000 Q3 - 2024 Q4 - 2024 Q1 - 2025 Q2 - 2025 Q3 - 2025 Interest-bearing liabilities, Cash & Leverage Bank debt Leasing liabilities Acquisition related liabilities Cash Leverage Sharp improvement in leverage compared to last year 12 EBITDAaL LTM Net debt = 3.36x 1,238.2m 368.6m Leverage improved by 1.2x compared to Q3 last year Unutilised facilities of SEK 800m Acquisition related liabilities amounts to SEK 204m whereof SEK 100m short-term 3.36x 3.02x 3.92x 3.33x 4.56x
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Summary 13 Double-digit organic growth in all three business units We are making strong progress on what we set out to do – our focus on the profitable growth phase remains unchanged Market recovery in 2025 – expected to continue Increasing profitability by SEK 40 million, or 76%, year on year
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The leading consumer E-commerce company in the Nordics 14