Interim report: 1 January-31 December 2020

Strong end to record year
– Operational successes, acquisition of Nordic Nest and updated financial targets

HIGHLIGHTS 
1 October-31 December

  • Net sales increased 43.2% to SEK 2,354.6 million (1,644.6). Organic growth was 35.5%
  • Gross profit increased 54.8% to SEK 641.3 million (414.3), with a gross margin of 27.2% (25.2)
  • Adjusted EBIT amounted to SEK 194.1 million (90.0), corresponding to an adjusted EBIT margin of 8.2% (5.5)
  • Operating income amounted to SEK 183.4 million (79.6), corresponding to an operating margin of 7.8% (4.8) 
  • Cash flow from operating activities amounted to SEK 220.0 million (51.9) 
  • Net profit for the period amounted to SEK 91.9 million (64.1), an increase of 43.4% on the prior year
  • Earnings per share amounted to SEK 0.85 (0.58) before dilution and SEK 0.83 (0.58) after dilution
  • In conjunction with this report, new medium-term financial targets are being announced: to achieve SEK 20 billion in net sales, with an adjusted EBIT margin of not less than 7%

1 January-31 December 

  • Net sales increased 44.4% to SEK 8,968.2 million (6,212.5). Organic growth was 33.7%
  • Gross profit increased 56.4% to SEK 2,330.8 million (1,490.5), with a gross margin of 26.0% (24.0)
  • Adjusted EBIT amounted to SEK 700.8 million (330.1), corresponding to an adjusted EBIT margin of 7.8% (5.3)
  • Operating income amounted to SEK 657.8 million (282.0), corresponding to an operating margin of 7.3% (4.5) 
  • Cash flow from operating activities amounted to SEK 994.3 million (422.2) 
  • Net profit for the period amounted to SEK 420.3 million (179.9), an increase of 133.6% on the prior year
  • Earnings per share amounted to SEK 3.87 (1.64) before dilution and SEK 3.80 (1.64) after dilution
  • The Board of Directors´ proposal to the Annual General Meeting is that no dividend is to be paid for the 2020 financial year

Key events during and after the period

  • Acquisition of 97.5% of Nordic Nest announced on 13 December, the Group’s largest acquisition to date. Through this acquisition, BHG further strengthens its position as the largest online player within home furnishings in the Nordics and creates a platform for growth in new geographic markets
  • Strengthening of the Group management team: Jesper Flemme was appointed permanent CFO on 10 December. After the end of the period, on 4 January 2021, Mikael Hagman was appointed COO, while Mikael Olander assumed a newly established position as Head of Commercial. As previously, the Group’s Senior Executive Management is comprised of the CEO, CFO and COO
 

This information is information that BHG Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out below, at 7:00 a.m. CET on 29 January 2021.

CONTACT INFORMATION
For further information, visit www.wearebhg.com or contact:
   

Adam Schatz, President and CEO
adam.schatz@bhggroup.se
+46 (0) 709-32 43 00
Jesper Flemme, CFO
jesper.flemme@bhggroup.se
+46 (0) 720-80 25 69
  
Johan Hähnel, Head of Investor Relations
johan.hahnel@bhggroup.se
+46 (0) 70-605 63 34

CONFERENCE CALL IN CONNECTION WITH PUBLICATION OF THE QUARTERLY REPORT
Adam Schatz, President and CEO, and Jesper Flemme, CFO, will hold a conference call at 10:00 a.m. on Friday, 29 January in connection with the publication of the interim report. The call will be held in English. To participate, please call +46(0)8 5055 8369 or visit https://tv.streamfabriken.com/bhg-q4-2020. The presentation is available from the Group’s website: https://www.wearebhg.com/investors/presentations/

QUARTERLY REPORTS ON WWW.WEAREBHG.COM
The full year-end report for the period January-December 2020 and previous quarterly and year-end reports are available at https://www.wearebhg.com/investors/financial-reports/

ABOUT THE GROUP
BHG is the number 1 consumer e-commerce company in the Nordics. We’re also present in most of Eastern and Central Europe. Our strong position in these markets makes us the largest European pure-play within the Home Improvement space, meaning Do-It-Yourself and Home furnishings. With an ecosystem of online stores, supported by physical destinations and services, such as last-mile deliveries and installation, we offer the market’s leading range of well-known external and strong own brands, totalling just under 1,000,000 unique products in the Group and encompassing a complete offering within DIY, leisure products, furniture and home furnishing.
The Group includes over 85 online destinations – including sites like www.bygghemma.se, www.trademax.se, www.chilli.se and www.furniturebox.se – and over 70 showrooms. We are headquartered in Malmö, Sweden, with operations throughout Europe. Our share is traded on Nasdaq Stockholm, under the ticker BHG.
The BHG brands employ more than 1,900 people, working every day to create the ultimate online shopping experience by combining an unbeatable product range with smart technology, leading product expertise and a broad range of services.

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