Interim report: 1 January-31 December 2021

SEK 12 billion in net sales surpassed
- Strategic initiatives, strengthened market shares and successful integration of acquired businesses resulted in growth for the quarter of 48.1% despite a weak overall market.

highlights

1 October-31 December

• Net sales increased 48.1% to SEK 3,487.2 million (2,354.6). Organic growth was 1.8% and pro-forma organic growth was 9.3%
• Gross profit increased 45.0% to SEK 927.9 million (640.0), with a gross margin of 26.6% (27.2)
• Adjusted EBIT amounted to SEK 186.4 million (194.1), corresponding to an adjusted EBIT margin of 5.3% (8.2)
• Operating income amounted to SEK 157.4 million (183.4), corresponding to an operating margin of 4.5% (7.8)
• Cash flow from operating activities amounted to SEK -246.8 million (220.7)
• Net profit for the period amounted to SEK 118.3 million (91.9)
• Earnings per share amounted to SEK 0.93 (0.85) before dilution and SEK 0.92 (0.83) after dilution

1 January-31 December

• Net sales increased 41.2% to SEK 12,666.0 million (8,968.2). Organic growth was 12.8% and pro-forma organic growth was 17.9%
• Gross profit increased 44.3% to SEK 3,357.1 million (2,362.2), with a gross margin of 26.5% (25.9)
• Adjusted EBIT amounted to SEK 812.7 million (700.8), corresponding to an adjusted EBIT margin of 6.4% (7.8)
• Operating income amounted to SEK 710.6 million (657.8), corresponding to an operating margin of 5.6% (7.3)
• Cash flow from operating activities amounted to SEK -23.2 million (994.3)
• Net profit for the period amounted to SEK 495.2 million (420.3)
• Earnings per share amounted to SEK 4.01 (3.87) before dilution and SEK 3.97 (3.80) after dilution

The Board of Directors proposes to the Annual General Meeting that no dividend be paid to the shareholders for the 2021 financial year

Key events during and after the period

• M&A and PMI (Post Merger Integration): Successful integration of completed acquisitions
  - The six acquisitions completed in 2021, three in each segment, performed well and the integration process was successful, for example, in the form of product assortment exchange, improved traffic generation, consolidation of selected DIY proprietary brands and coordination of warehouse and logistics infrastructure.
   - Sellers’ valuation expectations, which do not adequately reflect the prevailing market circumstances, however meant that we discontinued a couple of advanced acquisition processes.
   - A strong M&A pipeline for 2022 will ensure that our acquisition journey continues.
• Growth initiatives: Progress on central organic initiatives
   - Investments in technology platforms for product and customer data, and first automation of warehouse infrastructure launched.
   - The ultimate aim of the initiatives above is to complement the customer offering and create a leading customer experience through further product range expansion and exchange between the operating units, geographic expansion of proprietary brands and by strengthening BHG’s digital leadership and infrastructure. Customer satisfaction improved considerably during the period.
    - Commenced data collection based on the EU taxonomy. This data will also form the basis of defining ESG targets in the 2021 Sustainability Report.

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 28 January 2022.

CONTACT INFORMATION

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, 28 January in connection with the publication of the interim report. The call will be held in English. To participate, please call +46850558368 or visit https://tv.streamfabriken.com/bhg-q4-2021. The presentation will be 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 2021 and previous quarterly and year-end reports are available at https://www.wearebhg.com/investors/financial-reports/e presentation will be available from the Group’s website: https://www.wearebhg.com/investors/presentations/.

ABOUT THE GROUP
BHG is the number 1 consumer e-commerce company in the Nordics. In addition to our Nordic operations, we also have a significant presence in the rest of Europe, as well as in selected markets outside of Europe. Our strong position in these markets makes us the largest European online 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 close to 1 million unique products and encompassing a complete offering within DIY, leisure, furniture and furnishings.
The Group includes over 100 online sites – including sites like www.bygghemma.se, www.trademax.se, www.chilli.se, www.furniturebox.se and www.nordicnest.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 2,000 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.