In a challenging environment we act strongly to strengthen profitability and cash flow – Inventories declined further by 238 million in Q4 and cash flow improved compared with the previous year. Profitability challenged, due to weak demand and price pressure in the market.
“Yet another difficult quarter, but we are convinced that our hard work is now beginning to produce results. We are pleased to report that we continue to reduce our inventories and have further strengthened our balance sheet thanks to completed financing, two important parameters for ensuring that BHG will emerge from this challenging period stronger than ever. We act strongly both strategically and structurally, with our revised strategy and consolidation of operations and closure of unprofitable operations, as well as operationally with cost savings” says Gustaf Öhrn, President and CEO.
1 October-31 December
- Net sales declined -5.1% to SEK 3,307.9 million (3,487.2) Organic growth was -3.7% and pro-forma organic growth was -5.5%
- Adjusted gross profit declined -13.3% to SEK 804.9 million (927.9), corresponding to an adjusted gross margin of 24.3% (26.6)
- Adjusted EBIT amounted to SEK 30.7 million (186.4), corresponding to an adjusted EBIT margin of 0.9% (5.3)
- Cash flow from operating activities amounted to SEK 67.5 million (-251.2)
- Earnings per share amounted to SEK -1.2 (0.93) before dilution and SEK -1.2 (0.92) after dilution
1 January-31 December
- Net sales increased 6.1% to SEK 13,433.6 million (12,666.0). Organic growth was -5.0% and pro-forma organic growth was -4.5%
- Adjusted gross profit increased 0.3% to SEK 3,368.3 million (3,357.1), with an adjusted gross margin of 25.1% (26.5)
- Adjusted EBIT amounted to SEK 374.9 million (812.7), corresponding to an adjusted EBIT margin of 2.8% (6.4)
- Cash flow from operating activities amounted to SEK -105.6 million (-27.6)
- Earnings per share amounted to SEK 0.25 (4.01) before dilution and SEK 0.25 (3.97) after dilution
The Board of Directors proposes to the Annual General Meeting that no dividend be paid to the shareholders for 2022.
Key events during the fourth quarter and after the period
- On 27 November, BHG announced that Gustaf Öhrn had been appointed as permanent President and CEO of BHG Group, after having served as acting CEO since 12 August 2022.
- On 6 December, BHG Group carried out a directed issue and on 30 December, an Extraordinary General Meeting was held that approved the Board of Directors’ decision to issue new shares, see page 17
- On 22 December, a change in BHG Group’s Nomination Committee was announced due to a change in the ownership structure, with Oscar Severin, a representative of Vitruvian, replacing Handelsbankens Fonder’s representative.
- On 12 January 2023, Sara Sterner took over as Head of HR, Communication and ESG. Sara Sterner is a member of the executive management team. She succeeds Maria Morin, who left BHG for a position outside the company at the end of 2022.
- An Extraordinary General Meeting was held on 13 January 2023. The Meeting approved the Board of Directors’ proposal to introduce a long-term incentive programme for the company’s CEO by issuing warrants (LTIP 2023/2026) as well as the Nomination Committee’s proposed changes to the Board of Directors to apply until the end of the next Annual General Meeting, including election of new Board members Kristian Eikre and Vesa Koskinen, with the latter replacing current Board member Niklas Ringby. Election of Christian Bubenheim (appointed acting Chairman of the Board by the Board of Directors in August 2022) as Chairman of the Board of Directors.
CONFERENCE CALL IN CONNECTION WITH PUBLICATION OF THE INTERIM REPORT
Gustaf Öhrn, President and CEO, and Jesper Flemme, CFO, will hold a conference call at 10:00 a.m. on Friday, 27 January in connection with the publication of the interim report.
The call will be held in English. Use the following link to participate in the webcast:
BHG Q4 Report 2022 (financialhearings.com)
There will be an opportunity to ask questions in writing at the webcast. If you wish to ask questions verbally during the conference call, please register via the following link:
Call Access (financialhearings.com)
Once you have registered you will receive a telephone number and conference ID to log in to the conference. There will be an opportunity to ask questions verbally at the webcast.
The presentation will be available from the Group’s website: Presentations (wearebhg.com)
INTERIM REPORTS ON WWW.WEAREBHG.COM
The full interim report for the period January-December 2022 and previous interim and year-end reports are available at
Financial Reports (wearebhg.com)