We achieved year-on-year sales growth for the second consecutive quarter, with a significantly higher growth rate of 8.2% organic growth compared with 0.5.% in the fourth quarter. We also continued to see the effects of the decisive measures we have taken to reduce our costs and inventory levels in recent years and, for the sixth consecutive quarter, reported significantly stronger profitability than in the preceding year.

Gustaf Öhrn, President and CEO

Q1 2025

2025/Q1

BHG Group AB (publ) Nasdaq Stockholm

BHG GROUP AB (PUBL) | 559077-0763 1

Interim report: 1 January–31 March 2025

Continued growth and improved profitability

– Year-on-year sales growth and improved profitability in all three business areas

HIGHLIGHTS

1 January-31 March

Net sales increased 9.7% to SEK 2,203.5 million (2,008.8). Organic growth was 8.2%
Adjusted gross profit amounted to SEK 558.0 million (534.7), corresponding to an adjusted gross margin of 25.3% (26.6)
Adjusted EBIT amounted to SEK 21.2 million (-0.6), corresponding to an adjusted EBIT margin of 1.0% (-0.0)
Cash flow from operating activities amounted to SEK 103.1 million (-110.8)
Earnings per share amounted to SEK 0.27 (-0.38) before dilution and SEK 0.27 (-0.38) after dilution

Key events during the first quarter and after the period

On 28 February, the outcome of the arbitration proceedings with IP-Agency Finland Oy ("IP-Agency") was announced. In accordance with BHG's claim, BHG is to pay EUR 2.5 million for the remaining 30% of the shares in IP-Agency and will also receive EUR 4.0 million in contractual penalties. The total claim from the minority owners amounted to EUR 18.0 million. Moreover, the minority owners are to reimburse BHG EUR 0.4 million for legal costs.
On 1 April, it was announced that BHG had completed the sale of 100% of the shares in IP-Agency. The buyer was IPA Holding Oy, a company wholly owned and controlled by the founders of IP-Agency. The consideration of EUR 5.0 million was paid in cash.

FINANCIAL SUMMARY

	Jan-Mar			Jan-Dec
SEKm (if not otherwise stated)	2025	2024	∆	2024
Net sales	2,203.5	2,008.8	9.7%	9,962.5
Gross profit	558.0	534.7	23.3	2,425.1
Gross margin (%)	25.3	26.6	-1.3 p.p.	24.3
Adjusted gross profit*	558.0	534.7	23.3	2,543.3
Adjusted gross margin (%)	25.3	26.6	-1.3 p.p.	25.5
Adjusted EBIT*	21.2	-0.6	21.8	257.8
Adjusted EBIT margin (%)	1.0	-0.0	1.0 p.p.	2.6
Operating income	50.0	-23.7	73.6	-442.9
Operating margin (%)	2.3	-1.2	3.4 p.p.	-4.4
Net profit for the period	29.5	-65.6	95.0	-640.1
Earnings per share before dilution, SEK	0.27	-0.38	0.65	-3.79
Earnings per share after dilution, SEK	0.27	-0.38	0.65	-3.79
Cash flow from operating activites	-103.1	-110.8	7.7	657.2
Net debt (+) / Net cash (-)	1,282.3	1,376.7	-94.4	1,027.0

* Refer to "Relevant reconciliations of non-IFRS alternative performance measures (APMs)" on page 28 of this report for a more detailed description.

Comments by Gustaf Öhrn

President and CEO, BHG Group

The positive market performance we noted at the end of last year continued in the first quarter of 2025. We achieved year-on-year sales growth for the second consecutive quarter, with a significantly higher growth rate of 8.2% organic growth compared with 0.5.% in the fourth quarter. We also continued to see the effects of the decisive measures we have taken to reduce our costs and inventory level in recent years and, for the sixth consecutive quarter, reported significantly stronger profitability than in the preceding year. While we still expect demand to improve during the year, we are now facing greater future uncertainty than at the end of 2024. At present, the impact of the US tariff policy and its effect on overall willingness to consume are difficult to assess. Nevertheless, we are confident in our strategy, and with the stable foundation we established during our restructuring phase and our market-leading position, we are well prepared for our continued journey of profitable growth.

Our aim is to grow more than our addressable market and to achieve an adjusted EBIT margin of 7% and to, with an initial target of returning to our pre-pandemic profitability level in the form of a 5% adjusted EBIT margin. We are active in a large and growing market with a low level of online penetration compared with many other product categories and more mature geographic regions, such as the US and UK. The size of the market and low online penetration offer attractive growth potential for the future. As the largest consumer-facing e-commerce company in the Nordic region, we command a strong position and will leverage our strategy for profitable growth to achieve our goals.

Our ambition is to achieve growth through both organic initiatives and acquisitions. BHG:s operations cover numerous markets and product categories, and we see potential in expanding our strong offering of external and proprietary brands into nearby geographic regions and related product categories. As a primarily e-commerce company, we have a cost advantage over physical stores since we have a lower share of fixed costs, which increases the scalability of our operations. Cost control has always been a fundamental part of BHG's model and will always remain a central component of our strategy to continuously provide customers with the best offering and improve our competitiveness. Going forward, we will strengthen our profitability by capitalising on our scale, consolidating our operations and further enhancing our efficiency. The cash flow we generate will primarily be used to strengthen our balance sheet in the short term and later be reinvested in growth in the form of strategic initiatives and M&A and dividends. Our main tactical priorities for 2025 can be summarised as follows:

Increase our market share in a gradually stronger market
Aim to maintain our cost levels in order to leverage our fixed costs and working capital, thereby increasing our profitability
Continued improvement in customer satisfaction

In the first quarter, we achieved growth in all three business areas and, based on available market data, our assessment is that we also outperformed the market. Sweden remains our engine of growth and is also the region that we believe has seen the strongest recovery, driven by favourable underlying macro factors. However, we also achieved growth in our key markets of Germany and Norway, where our assessment is that the market has not recovered to the same degree as in

Sweden. During the quarter, we noted a strong trend in several of our core categories, such as gardens, bathrooms, doors, windows and outdoor furniture. Profitability also improved year-on-year in all three business areas during the quarter, mainly as a result of our successful efforts in recent years to make our model more scalable, adjust our costs and enhance our efficiency. Finally, we noted a positive development in terms of customer satisfaction during the quarter.

With the first quarter behind us, we are pleased to report that we are making progress on our priorities for the year. We are now moving on from the restructuring phase we have been in for the past few years and entering the next phase with a focus on profitable growth. In closing, I would like to thank our employees for their outstanding dedication and our customers and shareholders for their trust.

Malmö, 25 April 2025

Gustaf Öhrn, President and CEO, BHG Group

Condensed consolidated information

	Jan-Mar			Jan-Dec
SEKm (if not otherwise stated)	2025	2024	∆	2024
Net sales	2,203.5	2,008.8	9.7%	9,962.5
Gross profit	558.0	534.7	23.3	2,425.1
Gross margin (%)	25.3	26.6	-1.3 p.p.	24.3
Adjusted gross profit*	558.0	534.7	23.3	2,543.3
Adjusted gross margin (%)	25.3	26.6	-1.3 p.p.	25.5
Adjusted EBITDA*	105.0	93.3	11.7	610.5
Adjusted EBITDA margin (%)	4.8	4.6	0.1 p.p.	6.1
Adjusted EBIT*	21.2	-0.6	21.8	257.8
Adjusted EBIT margin (%)	1.0	-0.0	1.0 p.p.	2.6
Items affecting comparability	52.3	-	52.3	-602.7
Operating income	50.0	-23.7	73.6	-442.9
Operating margin (%)	2.3	-1.2	3.4 p.p.	-4.4
Net profit for the period	29.5	-65.6	95.0	-640.1
Cash flow from operating activites	-103.1	-110.8	7.7	657.2
Total order value	2,279.9	2,079.4	9.6%	10,278.5
Orders (thousands)	915	837	9.3%	4,158
Average order value (SEK)	2,491	2,483	8	2,472

* Refer to "Relevant reconciliations of non-IFRS alternative performance measures (APMs)" on page 28 of this report for a more detailed description. ** As a result of regulatory changes for the processing of personal data and changes in tools from third-party suppliers for gathering data on online traffic, the data collected during the quarter is not comparable with the year-earlier period. We are therefore no longer presenting data for online traffic ("Number of visits") and the conversion rate since this would result in a misleading and inaccurate view of the development over time.

COMMENTS ON THE RESULT FOR THE PERIOD

First quarter of the year

The gradual improvement in the market that started in the second half of 2024 continued during the first quarter. We delivered year-on-year sales growth and improved profitability in all three business areas. This meant that we achieved sales growth for the second quarter in a row and a year-on-year improvement in profitability for the sixth consecutive quarter.

As in the fourth quarter of 2024, growth was mainly driven by our largest market, Sweden, which has also made the strongest recovery as a result of favourable underlying macro factors. We also noted robust growth in Germany and Norway, despite the divestment of DesignKupp. Finland delivered a slightly weaker performance, and according to our assessment, demand in the market remains challenging. During the quarter, we saw a broader recovery in demand across our product categories and achieved growth in all of our core categories in DIY, furniture and home furnishings. Capital-intensive product categories such as bathrooms, doors and windows continued to perform well. Furniture, home furnishings and garden products also delivered favourable year-on-year growth.

Based on available market data, our assessment is that the Group, on the whole, outperformed the market during the quarter in terms of sales in the product categories and geographic regions in which we operate.

We substantially improved our profitability during the quarter compared with last year by reducing and leveraging our fixed costs, depreciation and amortisation.

The Group's net sales amounted to SEK 2,203.5 million (2,008.8) for the quarter. Total growth amounted to 9.7% and organic growth to 8.2%.
Adjusted EBIT totalled SEK 21.2 million (-0.6) for the quarter, corresponding to an adjusted EBIT margin of 1.0% (-0.0).
Cash flow from operating activities amounted to SEK -103.1 million (-110.8) for the quarter, in line with our usual seasonal variation whereby we build up inventory for the high season in the second quarter.
Total interest-bearing liabilities at the end of the quarter amounted to SEK 2,801.5 million, down SEK 207.1 million compared with the same period last year.

Strategy for profitable growth

Our aim is to achieve an adjusted EBIT margin of 7% and to grow more than our addressable market. The decisive measures we have taken to reduce our cost base during our restructuring phase in recent years have enabled us to establish a solid foundation. We are the largest consumerfacing e-commerce company in the Nordic region, and thanks to our strategy for profitable growth, we are well positioned to continue consolidating our category leadership and capturing market share in the attractive and growing online markets for DIY, furniture and home furnishings.

Growth

We see good opportunities for continued cost-efficient growth, mainly through international expansion and product range development in all three business areas. We currently hold a market-leading position in several of our core categories and see good potential in further consolidating this position and securing leadership in more categories and geographic regions. We will value both organic initiatives and acquisitions as a means for growth.

During the first quarter, our initiatives to achieve geographic expansion outside our companies' home markets continued to progress well, mainly driven by Premium Living and Nordic Nest, but also by successful international expansion in Home Improvement. We have also experienced favourable effects from our efforts to develop our assortment of proprietary brands in Value Home and to increase the availability of stocked products, which was somewhat unbalanced in 2024 due to significant previous inventory reductions.

Cost leadership

Cost control has always been a central part of BHG's DNA and remains a central component of our strategy for profitable growth. Thanks to the work carried out during our restructuring phase in recent years, we have reduced our costs, invested in scalable solutions and enhanced our efficiency. We also see good opportunities to further improve our profitability going forward by reducing our costs. In addition to our daily focus on cost control across our operations, we believe that our continued work on consolidation and streamlining will offer the greatest potential.

We have made good progress on our consolidation journey, with the aim of achieving economies of scale. Having previously had 25 operating units in the Group, our goal now is to consolidate these into seven platforms. Six of these platforms are already in place. The remaining consolidation will take place in Home Improvement, focusing on consolidating our Nordic DIY operations through the scalable platform Bygghemma Nordic, with local one-stop-shop destinations within DIY in our Nordic main markets. This is a major project that is expected to lead to significant savings and synergies, and the work will continue over the next 12 months as we balance our resources between structural measures and day-to-day operations. The structure is now in place for the six platforms already created, and work is now focused on generating sales and cost synergies.

Continuing to streamline, partly by reducing warehouse space, automating inventory handling and developing the use of artificial intelligence in customer service, content and marketing. The final phase of Nordic Nest's warehouse automation was completed in the fourth quarter and has already contributed to increased efficiency in the logistics flow. In 2024, we began investing in AI-supported customer service and CRM tools in several of our platforms. This work will continue in 2025.

The market

Based on our assessment, the market recovery that began towards the end of 2024 strengthened somewhat during the first quarter. As at year-end, our assessment is that Sweden has seen the strongest recovery, driven by several favourable underlying macro factors, such as interest rate cuts, lower inflation, tax cuts and a higher rate of housing market activity. We also noted a positive market performance in the rest of the Nordic region, with the exception of Finland, and in Germany during the quarter.

Towards year-end, we started to see a recovery in previously strained capital-intensive product categories, such as bathrooms, floors, doors and windows. In the first quarter, a clearer return of demand was noted in these categories, and we saw a broader recovery in most of our core categories in DIY, furniture and home furnishings.

However, the declining trend in consumer confidence that emerged back in the fourth quarter of 2024 continued in the first quarter, and we believe this negative trend could have an adverse impact on consumers' willingness to invest.

Outlook

Our baseline scenario remains unchanged: although we expect a gradual market recovery in 2025 compared with 2024, the outlook for the rest of the year is highly uncertain. The implications of the US tariff policy are currently difficult to asses. It is also currently difficult to assess how the negative trend in consumer confidence will develop going forward and how this will impact consumption.

While our sales in the US are very limited, the tariff dispute could impact several other parts of our value chain – most importantly, consumer demand. A scenario of rising inflation due to increased tariffs and the possibility of subsequent interest rate hikes would likely have an adverse effect on demand.

A stronger SEK, particularly in relation to USD, would be advantageous for us in the form of lower costs for sea freight and purchases from Asia. While a stronger SEK in relation to the EUR would benefit us in the form of lower purchase prices from Europe suppliers, this would also a negative currency effect on our sales in EUR.

One positive signal that could bode well for demand going forward is the continued favourable trend in underlying macro factors, primarily in Sweden, which is our largest market. The increase in real wages and the positive trend in housing transactions continued in the first quarter.

Our assessment is that the long-term fundamental structural trends that have driven BHG's growth journey are continuing. The structural shift from physical stores to online and penetration within the product categories and markets where we operate are still lower than in more mature product markets and geographies. For further information, refer to the Group's financial targets (page 7).

Acquisitions

To grow through acquisitions is an important part of our strategy for profitable growth. Going forward, our focus will be on bolt-on acquisitions for our existing platforms – acquisitions that can help strengthen our offering with limited risk.

Dispute with minority owner of IP-Agency

As previously communicated, BHG was involved in arbitration proceedings with the minority owners of 30% of the shares in IP-Agency. The dispute concerned the calculation of the price that BHG is obliged to pay for the minority stake in IP-Agency under the put option issued in connection with BHG's acquisition of IP-Agency in 2021. Depending on the outcome of the dispute, the price for the shares was to be between EUR 2.1 million and EUR 13.9 million. The dispute also included a claim by the minority owners that BHG should pay a higher amount of EUR 18.0 million for the minority shares due to an alleged breach of a shareholder agreement between the parties. BHG, for its part, claimed damages of EUR 4.0 million from the minority owners for a breach of the shareholder agreement.

BHG received the results of the proceedings on 28 February 2025. The ruling was in favour of BHG, and the price for the remaining 30% of the shares in IP-Agency was set at EUR 2.5 million. In addition, according to the ruling, BHG is to receive EUR 4.0 million in contractual penalties and a reimbursement of EUR 0.4 million for legal costs.

During March 2025, the Group received a payment comprising both the contractual penalties and the reimbursement for legal costs, totaling SEK 51.0 million. The reimbursement received was recognised as an item affecting comparability in the quarter.

On 1 April 2025, after the end of the period, BHG completed the acquisition of the minority owners' shareholding for an amount corresponding to SEK 27,2 million as well as the completion of the sale of 100% of the shares in IP-Agency was for a consideration of EUR 5.0 million, corresponding to SEK 54.2 million. Following the divestment of IP-Agency, the above transactions and arbitration results provided the Group with liquidity corresponding to a net amount of SEK 79,8 million (after a deduction for cash and cash equivalents in the divested operations).

Distribution of net sales by country (%), Jan-Mar 2025

Net sales

Net sales grew in the first quarter compared with the yearearlier period. This marked our second consecutive quarter of organic growth. The growth rate improved significantly compared with the fourth quarter of 2024.

We continued to experience favourable growth in our largest market of Sweden, driven by all three business areas but mainly Value Home. The strongest performance was

noted in Germany, driven by Premium Living through Nordic Nest as well as the successful geographic expansion in Home Improvement. The remaining geographic markets also delivered growth, with the exception of Finland, where the market remains particularly challenging.

During the quarter, we saw a broader recovery in demand across our product categories and achieved growth in most of our core categories in DIY, furniture and home furnishings. Capital-intensive product categories such as bathrooms, doors and windows continued to perform well. Furniture, home furnishings and garden products also delivered favourable year-on-year growth.

Net sales increased 9.7% to SEK 2,203.5 million (2,008.8) during the quarter. Organic growth for the quarter was 8.2%.

Gross margin

Net sales (SEKm)

The adjusted product margin for the quarter was 37.9% (39.1). The adjusted gross margin (that is, the margin after deductions for direct selling costs, such as logistics, fulfilment, etc.) amounted to 25.3% (26.6) for the quarter.

The slightly lower gross margin for the quarter compared with the year-earlier period was mainly attributable to unusually high comparative figures due to mix effects in Home Improvement, strong sales of outdoor furniture with a generally lower product margin in Value Home, and high campaign pressure in Premium Living.

The stronger Swedish krona affects the three business areas in different ways, but overall the group has a negative currency effect in the quarter due to an increasing share of sales in foreign currency.

SG&A

Selling, general and administrative expenses (SG&A, defined as total personnel costs and other external costs adjusted for items affecting comparability) declined to SEK -451.9 million (-453.2), corresponding to 20.5% (22.6) of net sales for the quarter.

Earnings

The Group's operating income amounted to SEK 50.0 million (-23.7) for the quarter, corresponding to an operating margin of 2.3% (-1.2).

Depreciation, amortisation and impairment of tangible and intangible assets amounted to SEK -106.1 million (-112.2) for the quarter, of which SEK -51.1 million (-59.1) pertains to depreciation, amortisation and impairment of lease assets.

SEK 1.6 million of the 2024 impairment of the disposal group for IP-Agency were reversed during the period, which had a positive impact on earnings in the quarter.

The Group's adjusted EBIT amounted to SEK 21.2 million (- 0.6) for the quarter, corresponding to an adjusted EBIT margin of 1.0% (-0.0).

Items affecting comparability amounted to SEK 52.3 (0.0) million for the quarter and were entirely attributable to the dispute regarding the agreement on a possible sale of IP-Agency. SEK 1.6 million pertains to the aforementioned reversal of impairment related to the disposal group, SEK 44.3 million pertains to contractual penalties received and SEK 6.4 million pertains to the net of legal costs and reimbursement for legal costs.

The Group's net financial items amounted to SEK -28.3 million (-56.2) for the quarter and pertained to interest expenses of SEK -41.1 million (-50.8) for the quarter, of which SEK -4.3 million (-4.9) relates to lease liabilities in accordance with IFRS 16.

The Group's profit before tax was SEK 21.6 million (-79.8) for the quarter. Net income amounted to SEK 29.5 million (- 65.6) for the quarter. The effective tax rate for the quarter was 36.1% (-17.9), corresponding to SEK 7.8 million (14.3).

Cash flow and financial position

Cash flow from operating activities amounted to SEK -103.1 million (-110.8) for the quarter, primarily driven by the Group's EBITDA and a negative effect from changes in working capital. The negative development in working capital is a result of BHG's seasonal profile. Strong demand in the fourth quarter results in lower working capital due to low inventories and high accounts payable, with an inverse effect in the first quarter based on inventory build-up ahead of the outdoor season in the second quarter and an outflow of VAT and supplier payments.

Cash conversion (cash flow from operating activities before tax less investments in non-current assets in relation to adjusted EBITDA) was -115.8% (-150.5) for the quarter.

The Group's cash flow to investing activities amounted to SEK -31.4 million (-30.7) for the quarter, and during the period was mainly attributable to IT investments related to web platforms.

Cash flow from financing activities amounted to SEK 98.5 million (80.1) for the quarter and was primarily attributable to the uitlisation of the Group's revolving credit facility of SEK 200.0 million as well as repayment of lease liabilities and interest payments.

2025/Q1

The Group's cash and cash equivalents at the end of the reporting period, compared with the beginning of the year, amounted to SEK 417.7 million (473.0).

The Group's net debt, which is defined as the Group's current and non-current interest-bearing liabilities to credit institutions, less cash and cash equivalents and investments in securities, etc., amounted to SEK 1,282.3 million (1,376.7) at the end of the period, corresponding to net debt in relation to pro-forma adjusted EBITDAaL, LTM (see definition on page 38) of 3.92x, which exceeds the Group's medium-term capital structure target.

The Group's unutilised credit facilities amounted to SEK 600 million at the end of the period, compared with SEK 800 million at the beginning of the year.

FINANCIAL TARGETS

Sales growth

Continue to deliver organic growth above the addressable market.

Profitability

Return to an adjusted EBIT margin of 5%. Over time, further improve the adjusted EBIT margin to 7%.

Capital structure

Objective to strengthen the balance sheet and operate with a net debt/EBITDA target of below 2.5x, subject to flexibility for strategic activities.

Dividend policy

When free cash flow exceeds available investments in profitable growth, and provided that the capital structure target is met, the surplus will be distributed to shareholders.

Home Improvement

"Continued recovery in key categories such as bathrooms, floors, doors and windows resulted in growth in the first quarter, and with early indications of improved demand in the gardens category, we are hopeful ahead of our upcoming high season. Our work on streamlining and cost reductions are continuing as we implement AI into relevant processes, merge warehouses and consolidate smaller units," says Mikael Hagman, Deputy CEO and Head of Home Improvement.

Net sales increased 6.1% to SEK 1,064.8 million (1,003.2) for the quarter. During the quarter, we noted a continued positive trend in previously strained renovation and capital-intensive product categories such as bathrooms, doors and windows.
Organic growth for the quarter was 9.6%.
The adjusted gross margin for the quarter was 24.1% (25.0).
Adjusted EBIT amounted to SEK 0.4 million (-9.2) for the quarter, with an adjusted EBIT margin of 0.0% (-0.9). The improvement in the EBIT margin in the quarter was mainly attributable to lower fixed costs and depreciation/amortisation in combination with improved sales.

Net sales by business area,

Jan-Mar 2025

		Jan-Mar		Jan-Dec
SEKm (if not otherwise stated)	2025	2024	∆	2024
Net sales	1,064.8	1,003.2	6.1%	5,175.4
Gross profit	256.7	251.2	5.6	1,194.7
Gross margin (%)	24.1	25.0	-0.9 p.p.	23.1
Adjusted gross profit	256.7	251.2	5.6	1,237.2
Adjusted gross margin (%)	24.1	25.0	-0.9 p.p.	23.9
Adjusted EBITDA	38.9	36.7	2.2	325.4
Adjusted EBITDA margin (%)	3.7	3.7	0.0 p.p.	6.3
Adjusted EBIT	0.4	-9.2	9.6	163.0
Adjusted EBIT margin (%)	0.0	-0.9	1.0 p.p.	3.1
Items affecting comparability	52.3	-	52.3	-448.9
Operating income	38.4	-23.5	61.9	-343.2
Operating margin (%)	3.6	-2.3	6.0 p.p.	-6.6
Net profit for the period	21.4	-45.2	66.6	-508.3
Total order value	1,117.8	1,035.5	8.0%	5,277.4
Orders (thousands)	378	355	6.4%	1,857
Average order value (SEK)	2,956	2,914	42	2,842

COMMENTS ON HOME IMPROVEMENT

The Home Improvement business area accounted for 48% of the Group's total net sales for the quarter. Home Improvement operates almost exclusively in the Nordic market, and is largely based on a drop shipping model with a low level of tied-up capital, featuring a broad product range and price matching. Sweden is its largest market, making up approximately two thirds of the business area's sales in the first quarter.

The leading brand in Home Improvement is Bygghemma. The focus is on:

Driving growth through product and geographic expansion and increasing the share of sales from proprietary brands, which generally have higher margins, as well as broadening the assortment of additional services and fully leveraging the product range through all relevant sales channels, including intra-Group sales.
Creating a Nordic DIY powerhouse with a shared organisation to achieve economies of scale and improve profitability and customer value.
Streamlining purchasing processes, in part through joint purchasing.

Distribution of net sales by country (%), Jan-Mar 2025

Adjusted gross margin (%)

Adjusted EBIT margin (%)

Value Home

"During the quarter, we focused on sales and marketing activities to meet demand as the market gradually improved. In parallel, we continued to focus on strengthening the long-term performance of our assortment and improving the availability of stocked products. We are pleased to see that our efforts have yielded results – the organic sales trend improved clearly compared with the corresponding period last year," says Johan Engström, Head of Value Home.

Net sales increased 15.1% to SEK 587.4 million (510.5) for the quarter.
The business area's organic growth for the quarter was 9.5%.
The adjusted gross margin for the quarter was 29.5% (32.3).
Adjusted EBIT amounted to SEK 20.7 million (15.4) for the quarter, corresponding to an adjusted EBIT margin of 3.5% (3.0). The year-on-year improvement in the EBIT margin for the quarter was primarily attributable to increased sales, lower depreciation/amortisation due to reduced warehouse space, and thus lower rent, and reduced marketing costs. The lower gross margin was mainly driven by strong sales growth in outdoor furniture, with a lower gross margin than the business area average.

Net sales by business area, Jan-Mar 2025

	Jan-Mar			Jan-Dec
SEKm (if not otherwise stated)	2025	2024	∆	2024
Net sales	587.4	510.5	15.1%	2,458.3
Gross profit	173.5	164.8	8.7	704.2
Gross margin (%)	29.5	32.3	-2.7 p.p.	28.6
Adjusted gross profit	173.5	164.8	8.7	756.4
Adjusted gross margin (%)	29.5	32.3	-2.7 p.p.	30.8
Adjusted EBITDA	44.6	44.2	0.5	187.8
Adjusted EBITDA margin (%)	7.6	8.7	-1.1 p.p.	7.6
Adjusted EBIT	20.7	15.4	5.3	78.3
Adjusted EBIT margin (%)	3.5	3.0	0.5 p.p.	3.2
Items affecting comparability	-	-	-	-110.1
Operating income	17.6	12.4	5.3	-43.9
Operating margin (%)	3.0	2.4	0.6 p.p.	-1.8
Net profit for the period	13.9	-14.9	28.7	-120.0
Total order value	568.9	504.9	12.7%	2,421.3
Orders (thousands)	127	115	10.5%	536
Average order value (SEK)	4,469	4,383	86	4,517

COMMENTS ON VALUE HOME

Net sales in the Value Home business area accounted for 27% of the Group's total net sales for the quarter. Sales to customers from countries outside the Nordic region accounted for 40% of the business area's sales in the first quarter.

Value Home operates primarily in the Nordic and Eastern European markets. It is a value-driven model that focuses on offering competitive prices, enabled by private label products and a low cost base.

The focus continues to be on:

Driving growth through continuous development of our offering and geographic expansion, and strengthening the availability of stocked products that were negatively impacted by inventory imbalances following the sharp reduction in inventories carried out in 2023.
Integration of the newly formed Hemfint Group.
Building scalable platforms when it comes to technology, warehousing and organisation in order to maintain a competitive cost structure.

Distribution of net sales by country (%), Jan-Mar 2025

Adjusted gross margin (%)

Premium Living

"We started the year with strong sales and noted growth in many of our markets in the first quarter. While the gross margin was impacted by a high level of campaign activity in the market, this was fully offset by lower variable and fixed costs, contributing to a stable improvement in EBIT in the first quarter. Our efforts to boost our operational efficiency are continuing and will play key role in strengthening our profitability going forward," says Bank Bergström, Head of Premium Living.

Net sales increased 10.9% to SEK 561.7 million (506.4) for the quarter.
The business area's organic growth for the quarter was 3.8%.
The adjusted gross margin for the quarter was 23.0% (23.9).
Adjusted EBIT amounted to SEK 17.6 million (6.5) for the quarter, corresponding to an adjusted EBIT margin of 3.1% (1.3). The improvement in the EBIT margin in the quarter improved was mainly attributable to lower fixed costs combined with sales growth and to lower fulfilment costs as a result of efficiency enhancements in warehouse automation.

Net sales by business area, Jan-Mar 2025

	Jan-Mar			Jan-Dec
SEKm (if not otherwise stated)	2025	2024	∆	2024
Net sales	561.7	506.4	10.9%	2,377.4
Gross profit	129.3	120.8	8.4	534.9
Gross margin (%)	23.0	23.9	-0.8 p.p.	22.5
Adjusted gross profit	129.3	120.8	8.4	558.4
Adjusted gross margin (%)	23.0	23.9	-0.8 p.p.	23.5
Adjusted EBITDA	38.0	25.0	13.0	155.0
Adjusted EBITDA margin (%)	6.8	4.9	1.8 p.p.	6.5
Adjusted EBIT	17.6	6.5	11.0	76.9
Adjusted EBITmargin (%)	3.1	1.3	1.8 p.p.	3.2
Items affecting comparability	-	-	-	-40.5
Operating income	11.3	0.8	10.5	7.6
Operating margin (%)	2.0	0.1	1.9 p.p.	0.3
Net profit for the period	-0.4	-5.2	4.8	-24.4
Total order value	593.2	539.1	10.0%	2,579.8
Orders (thousands)	410	367	11.7%	1,765
Average order value (SEK)	1,448	1,469	-21	1,462

COMMENTS ON PREMIUM LIVING

Net sales in the Premium Living business area accounted for 25% of the Group's total net sales for the quarter.

Premium Living has a premium position and internationalises Scandinavian design in scalable way from its Nordic base, mainly by stocking external brands. From having almost exclusively focused on the Nordic markets until 2018, the business area has since successfully established a rapidly growing presence in the European market and in certain Asian markets. Sales to customers from countries outside the Nordic region accounted for 41% of Premium Living's sales in the first quarter. The leading brand in the business area is Nordic Nest.

The focus continues to be on:

Solidify Nordic Nest's position on international markets and continue to drive geographic expansion.
Continuing to develop Nordic Nest Group's three category specialists: Svenssons in furniture, KitchenTime in cookware and cooking, and Lightshop in lighting.
Continuing efficiency work, including fully leverage Nordic Nest's implemented warehouse automation.

Distribution of net sales by country (%), Jan-Mar 2025

Other

THE BHG SHARE

The BHG Group AB (publ) share is listed on Nasdaq Stockholm under the ticker BHG with the ISIN code SE0010948588.

The share price at the beginning of the year was SEK 19.2. On the last day of trading in the period, the share price was SEK 23.2. The highest price paid, quoted in February, was SEK 27.4, and the lowest price paid, quoted in January, was SEK 17.1.

During the period, 41,296,304 BHG shares were traded, equivalent to a turnover rate of 23%.

As of 31 March, BHG had approximately 11,500 shareholders, of which the largest were Ferd AS (17.8%), Entrust Global Partners LLC (12.8%), Fidelity Investments (8.2%), Mikael Olander (5.0%) and OP Asset Management (3.7%).

As of 31 March 2025, the number of shares issued was 179,233,563, all of which were ordinary shares.

PARENT COMPANY

The Parent Company's net sales for the quarter amounted to SEK 2.9 million (3.3). The Parent Company posted an operating loss of SEK -14.4 million (-13.4) for the quarter. The Parent Company's cash and cash equivalents totalled SEK 11.4 million at the end of the reporting period, compared with SEK 2.8 million at the beginning of the year.

2025/Q1

Malmö, 25 April 2025

Gustaf Öhrn President and CEO

This report has not been audited by the company's auditors.

BHG Group AB (publ) Neptunigatan 1 SE-211 20 Malmö, Sweden Corporate registration number: 559077-0763

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. CEST on 25 April 2025.

CONTACT INFORMATION

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

Gustaf Öhrn, President and CEO [email protected] +46 (0)70-420 44 36

Jesper Flemme, CFO [email protected] +46 (0)720-80 25 69

Jakob Nylin, Head of Investor Relations [email protected] +46 (0)760-48 02 38

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 Wednesday, 25 April 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: https://bhg.events.inderes.com/q1-report-2025/register. There will be an opportunity to ask questions in writing during the webcast. If you wish to ask questions verbally during the conference call, please register via the following link: https://events.inderes.com/bhg/q1-report-2025/dial-in. 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 during the webcast.

The presentation will be available from the Group's website: https://www.wearebhg.com/investors/presentations/.

INTERIM REPORTS ON WWW.WEAREBHG.COM

The full interim report for the period January-March 2025 and previous interim and year-end reports are available at https://www.wearebhg.com/investors/financial-reports/

FINANCIAL CALENDAR

18 July 2025	Interim report January-June 2025
24 October 2025	Interim report January-September 2025
27 January 2026	Year-end report January-December 2025

Condensed consolidated income statement

		Jan-Mar
SEKm	2025	2024	2024
Net sales	2,203.5	2,008.8	9,962.5
Other operating income	45.1	13.9	32.7
Total net sales	2,248.6	2,022.7	9,995.2
Cost of goods sold	-1,645.5	-1,474.1	-7,537.4
Personnel costs	-206.2	-206.5	-861.1
Other external costs and operating expenses	-239.3	-246.6	-1,121.3
Other operating expenses	-1.5	-6.9	-15.3
Depreciation and amortisation of tangible and intangible fixed assets	-106.1	-112.2	-903.0
Operating income	50.0	-23.7	-442.9
Profit/loss from financial items	-28.3	-56.2	-193.9
Profit before tax	21.6	-79.8	-636.8
Income tax	7.8	14.3	-3.3
Profit for the period	29.5	-65.6	-640.1
Attributable to:
Equity holders of the parent	18.9	-67.6	-678.8
Non-controlling interest	10.6	2.0	38.7
Net income for the period	29.5	-65.6	-640.1
Earnings per share before dilution, SEK	0.27	-0.38	-3.79
Earnings per share after dilution, SEK	0.27	-0.38	-3.79

* The formula for earnings per share is as follows: earnings per share = net profit/loss for the period/(average number of ordinary shares outstanding + dilution effect due to outstanding warrants and share savings programmes). At the end of the period, there was a total of 7,063,654 (8,263,660) warrants and share awards under the share saving programme outstanding, of which 0 (0) had a dilution effect during the quarter.

Condensed consolidated statement of comprehensive income

		Jan-Mar
SEKm	2025	2024	2024
Profit for the period	29.5	-65.6	-640.1
Other comprehensive income
Items that are or may be reclassified to profit or loss
Translation differences for the period	-37.7	33.0	30.8
Reclassification of foreign currency differences to profit or loss for the period	-	-	5.9
Other comprehensive income for the period	-37.7	33.0	36.7
Total comprehensive income for the period	-8.3	-32.5	-603.4
Total comprehensive income attributable to:
Parent Company shareholders	-7.9	-41.0	-647.8
Non-controlling interest	-0.4	8.5	44.3
Total comprehensive income for the period	-8.3	-32.5	-603.4
Shares outstanding at period's end	179,233,563	179,233,563	179,233,563
Average number of shares
Before dilution	179,233,563	179,233,563	179,233,563
After dilution	179,233,563	179,233,563	179,233,563

Condensed consolidated statement of financial position

	31 Mar		31 Dec
SEKm	2025	2024	2024
Non-current assets
Goodwill	5,632.5	5,917.3	5,641.1
Other intangible fixed assets	2,313.7	2,431.2	2,339.7
Total intangible fixed assets	7,946.1	8,348.5	7,980.9
Buildings and land	20.1	20.6	20.3
Leased fixed assets	500.7	585.0	555.6
Tangible fixed assets	82.7	108.8	88.2
Financial fixed assets	8.9	24.4	16.9
Deferred tax asset	70.7	89.7	76.1
Total fixed assets	8,629.3	9,177.0	8,738.1
Current assets
Inventories	1,279.3	1,424.6	1,102.6
Current receivables	530.7	553.1	496.8
Cash and cash equivalents	419.8	323.3	451.3
Assets held for sale	97.6	-	106.0
Total current assets	2,327.3	2,301.0	2,156.6
Total assets	10,956.6	11,478.0	10,894.7
Equity
Equity attributable to owners of the parent	5,772.9	6,262.6	5,789.0
Non-controlling interest	195.4	176.0	195.8
Total equity	5,968.3	6,438.5	5,984.8
Non-current liabilities
Deferred tax liability	444.8	474.7	450.0
Other provisions	22.9	17.8	29.0
Non-current interest-bearing liabilites to credit institutions	1,696.9	1,699.2	1,496.2
Non-current lease liabilities	318.9	394.2	374.3
Non-current acquistion related interest-bearing liabilities	200.5	246.7	198.6
Other non-current interest-bearing liabilities	130.1	-	172.1
Total non-current liabilities	2,814.1	2,832.7	2,720.3
Current liabilities
Current lease liabilities	219.2	250.3	233.1
Current acquistion related interest-bearing liabilities	148.7	160.0	149.4
Other current interest-bearing liabilities	85.0	258.2	85.0
Other current liabilities	1,677.9	1,538.3	1,673.6
Liabilities directly associated with assets held for sale	43.3	-	48.5
Total current liabilities	2,174.2	2,206.7	2,189.6
Total equity and liabilities	10,956.6	11,478.0	10,894.7

Condensed consolidated statement of cash flows

	Jan-Mar		Jan-Dec
SEKm	2025	2024	2024
EBITDA	156.0	88.5	460.1
Adjustments for items not included in cash flow	4.6	-38.4	-30.6
Income tax paid	-13.3	-8.2	-32.4
Cash flow from operating activities before changes in working capital	147.4	41.9	397.1
Changes in working capital	-250.5	-152.7	260.1
Cash flow from operating activites	-103.1	-110.8	657.2
Investments in operations	-6.0	-12.0	-49.9
Investments in other non-current assets	-31.7	-37.7	-135.1
Divestment of operations	-	9.6	74.9
Divestment of other tangible fixed assets	0.6	6.7	12.6
Received interest	5.6	2.8	19.9
Cash flow to/from investing activities	-31.4	-30.7	-77.6
Loans taken	202.1	200.0	500.0
Amortisation of loans	-64.7	-71.1	-784.9
Interest paid	-39.2	-48.8	-175.2
Transactions with non-controlling interest	-	-	0.0
Dividends to non-controlling interests	-	-	-17.2
Cash flow to/from financing activities	98.5	80.1	-477.4
Cash flow for the period	-36.1	-61.4	102.2
Cash and cash equivalents at the beginning of the period	473.0	370.3	370.3
Translation differences in cash and cash equivalents	-19.2	14.5	0.6
Cash and cash equivalents at the end of the period*	417.7	323.3	473.0

* Cash and cash equivalents at the end of the period include cash in the disposal group of SEK -2.1 million for 2025 and SEK 21.8 million for 2024.

Condensed consolidated statement of changes in equity

	31 Mar		31 Dec
SEKm	2025	2024	2024
Opening balance	5,984.8	6,510.0	6,510.0
Comprehensive income for the period	-8.3	-32.5	-603.4
Transactions with non-controlling interests	-	-	59.1
Issue of warrants	0.6	0.4	1.5
Dividends to non-controlling interests	-	-	-17.2
Remeasurement of liabilities to non-controlling interests	-8.8	-39.4	34.8
Closing balance	5,968.3	6,438.5	5,984.8

Notes

NOTE 1 ACCOUNTING POLICIES

This report has been prepared by applying the rules of IAS 34 Interim Financial Reporting and applicable regulations contained in the Swedish Annual Accounts Act. The interim report for the Parent Company has been prepared in accordance with Chapter 9 Interim Reports of the Swedish Annual Accounts Act. For the Group and the Parent Company, the same accounting policies and estimation techniques have been applied as in the 2024 Annual Report.

The Group also applies the European Securities and Markets Authority's (ESMA) guidelines for alternative performance measures. Definitions of alternative performance measures can be found in the relevant reconciliations on pages 28-40 of this report. The interim information on pages 1-15 is an integrated part of this financial report.

NOTE 2 SEASONAL VARIATIONS

The Group's operations are impacted by seasonal variations' effect on demand, especially for building products, outdoor furniture and home furnishings. As a rule, demand and thus the Group's sales and cash flow are highest in the second and fourth quarters. Demand in the second quarter is driven by the important gardening season, while demand in the fourth quarter is mainly driven by the Black Week period. Demand and thus the Group's sales are generally lower in the third quarter than in the second and fourth quarters. Demand has historically been lowest in the first quarter. Although seasonal variations do not normally affect the Group's relative earnings and cash flow from year to year, earnings and cash flow may be impacted in years with extremely mild or severe weather conditions, or with very high or low rainfall. Weather conditions may also have a significant impact on individual quarters.

NOTE 3 SEGMENTS

	Jan-Mar		Jan-Dec
SEKm	2025	2024	2024
Net sales
Home Improvement	1,064.8	1,003.2	5,175.4
Value Home	587.4	510.5	2,458.3
Premium Living	561.7	506.4	2,377.4
Total net sales	2,213.8	2,020.1	10,011.1
Other*	7.3	9.6	36.0
Eliminations	-17.5	-21.0	-84.6
Group consolidated total	2,203.5	2,008.8	9,962.5
Revenue from other segments
Home Improvement	0.3	1.2	4.0
Value Home	9.9	8.7	42.7
Premium Living	0.1	1.4	1.9
Other*	7.3	9.6	36.0
Total	17.5	21.0	84.6
	Jan-Mar		Jan-Dec
SEKm	2025	2024	2024
Operating income and profit before tax
Home Improvement	38.4	-23.5	-343.2
Value Home	17.6	12.4	-43.9
Premium Living	11.3	0.8	7.6
Total operating income	67.3	-10.4	-379.4
Other*	-17.4	-13.3	-63.5
Group consolidated operating income	50.0	-23.7	-442.9
Financial net	-28.3	-56.2	-193.9
Group consolidated profit before tax	21.6	-79.8	-636.8

* The Group's other operations primarily consist of Group-wide functions and financing arrangements. Accordingly, net sales consist in all material aspects of management fees.

	Jan-Mar 2025
	Home
	Improve		Value		Premium			Elim
SEKm	ment	%	Home	%	living	%	Other	ination	Group	%
Sweden	740.8	69.6%	306.4	52.2%	239.8	42.7%	7.3	-14.2	1,280.0	58.1%
Finland	235.6	22.1%	12.6	2.1%	16.0	2.8%	-	-2.3	262.0	11.9%
Denmark	18.1	1.7%	3.5	0.6%	12.0	2.1%	-	-	33.6	1.5%
Norway	42.7	4.0%	28.5	4.9%	64.9	11.6%	-	-	136.2	6.2%
Germany	14.6	1.4%	-	-	104.3	18.6%	-	-	119.0	5.4%
Rest of Europe	12.9	1.2%	236.4	40.2%	97.9	17.4%	-	-1.1	346.1	15.7%
Rest of World	-	-	-	-	26.7	4.7%	-	-	26.7	1.2%
Net sales	1,064.8	100%	587.4	100%	561.7	100%	7.3	-17.5	2,203.5	100%

		Jan-Mar 2024
	Home
	Improve		Value		Premium			Elim
SEKm	ment	%	Home	%	living	%	Other	ination	Group	%
Sweden	706.8	70.5%	214.4	42.0%	232.7	46.0%	9.6	-19.6	1,144.0	56.9%
Finland	230.8	23.0%	21.5	4.2%	12.8	2.5%	-	-0.2	264.9	13.2%
Denmark	12.7	1.3%	2.7	0.5%	11.0	2.2%	-	-	26.4	1.3%
Norway	44.8	4.5%	42.7	8.4%	42.6	8.4%	-	-	130.1	6.5%
Germany	1.9	0.2%	-	-	88.4	17.5%	-	-	90.3	4.5%
Rest of Europe	6.2	0.6%	229.2	44.9%	92.3	18.2%	-	-1.1	326.6	16.3%
Rest of World	-	-	-	-	26.6	5.3%	-	-	26.6	1.3%
Net sales	1,003.2	100%	510.5	100%	506.4	100%	9.6	-21.0	2,008.8	100%

	Full-year 2024
	Home
	Improve		Value		Premium			Elim
SEKm	ment	%	Home	%	living	%	Other	ination	Group	%
Sweden	3,535.9	68.3%	1,157.7	47.1%	1,019.8	42.9%	36.0	-70.8	5,678.6	57.0%
Finland	1,344.9	26.0%	65.9	2.7%	74.9	3.1%	-	-8.1	1,477.5	14.8%
Denmark	60.0	1.2%	23.2	0.9%	57.1	2.4%	-	-0.8	139.4	1.4%
Norway	161.3	3.1%	169.1	6.9%	260.3	11.0%	-	-	590.8	5.9%
Germany	16.4	0.3%	18.9	0.8%	445.9	18.8%	-	-	481.2	4.8%
Rest of Europe	57.0	1.1%	1,023.3	41.6%	411.1	17.3%	-	-4.8	1,486.6	14.9%
Rest of World	-	-	-	-	108.5	4.6%	-	-	108.5	1.1%
Net sales	5,175.4	100%	2,458.3	100%	2,377.4	100%	36.0	-84.6	9,962.5	100%

NOTE 4 BUSINESS COMBINATIONS

	2025
	Net			Cash and	Contingent/
	identifiable			cash	deferred
	assets and		Purchase	equivalent	purchase price,	Net cash
SEKm	liabilities	Goodwill	price	s	vendor loans	flow

Acquisition of non-controlling interests
Acquisition of shares in Nordic Nest Group AB	-	-	-	-	-	-6.0
	-	-	-	-	-	-6.0

NOTE 5 DIVESTMENT OF BUSINESSES

Divestment of IP-Agency

On 22 November 2024, BHG entered into an agreement with the minority owners of IP-Agency giving BHG the right to sell all of the shares in IP-Agency to the minority owners. The minority owners have a corresponding right to purchase all of the shares in IP-Agency from BHG. The minority owners, who are also the founders of IP-Agency, held 30% of the shares in the company.

On 1 April 2025, after the end of the period, BHG announced that the sale of 100% of the shares in IP-Agency had been completed (refer to Note 9) for a consideration of EUR 5.0 million, corresponding to SEK 54.2 million. IP-Agency is therefore recognised as a disposal group on the balance-sheet date, in accordance with IFRS 5.

In the fourth quarter of 2024, an impairment of SEK -399.0 million was recognised on the measurement of the disposal group at fair value, of which SEK 1.6 million was reversed during the first quarter of 2025, which had a positive impact on earnings for the quarter. As of 31 March 2025, the disposal group for IP-Agency comprised assets of SEK 95.5 million less liabilities amounting to SEK 41.2 million. The disposal group is included in the Home Improvement segment.

Assets held for sale

	31 Mar	31 Dec
SEKm	2025	2024
Inventory	79.5	66.2
Other short-term receivables	18.0	18.0
Cash and cash equivalents	-	21.8
Assets held for sale	97.6	106.0

Provisions	6.5	6.1
Accounts payable	13.9	13.7
Lease liabilities	1.6	4.2
Utilised overdraft facility	2.1	-
Other short-term liabilities	19.2	24.6
Liabilities directly associated with assets held for sale	43.3	48.5
Disposal group	54.2	57.4

NOTE 6 FAIR VALUE

Financial assets and financial liabilities measured at fair value in the consolidated statement of financial position comprise acquisition-related liabilities and currency forwards. The carrying amount for all financial assets and financial liabilities is deemed to be a reasonable approximation of the fair values of the items.

Acquisition-related interest-bearing liabilities

Acquisition-related interest-bearing liabilities pertain to contingent and deferred considerations attributable to the Group's acquisitions and liabilities to non-controlling interests. These are included in Level 3 of the valuation hierarchy, meaning the level applicable for assets and liabilities that are considered illiquid and difficult to value, and for which inputs for measuring fair value are unobservable inputs in the market. The fair value of contingent considerations is calculated by discounting future cash flows with a risk-adjusted discount interest rate. Expected cash flows are forecast using probable scenarios for future EBITDA levels, amounts that will result from various outcomes and the probability of those outcomes. The table below shows the carrying amounts for the Group's acquisition-related interest-bearing liabilities.

	31 Mar	31 Dec
SEKm	2025	2024	2024
Reported value on the opening date	348.1	374.2	374.2
Recognition in profit or loss	-	-	-5.7
Recognised in equity	7.2	44.5	-30.9
Utilised amount	-6.0	-12.0	-21.0
Acquisition value at cost	-	-	31.4
Reported value on the closing date	349.3	406.7	348.1

Currency forwards

The Group recognises currency forwards at fair value, which as of 31 December 2024 was SEK 0.8 million (0.2), of which SEK 0.0 million (0.2) comprised assets and SEK 0.8 million (0.0) comprised liabilities for the Group. The currency forwards are measured based on a discount comprising the difference between the contracted forward rate and the actual forward rate for a currency forward maturing on the same date. This measurement is included in Level 2 of the valuation hierarchy.

NOTE 7 RELATED-PARTY TRANSACTIONS

Transactions between BHG Group AB and its subsidiaries have been eliminated in the consolidated financial statements. All transactions between related parties have been conducted on commercial terms, on an arm's length basis. As of June 2024, Joanna Hummel is a member of the Board of Directors of the subsidiary Nordic Nest Group AB and receives an annual director fee of SEK 150,000 for this work.

NOTE 8 RISKS AND UNCERTAINTIES

There are several strategic, operational and financial risks and uncertainties that can affect the Group's financial results and position. Most risks can be managed through internal procedures, while others are largely driven by external factors. There are risks and uncertainties related to IT and management systems, suppliers, season and weather variations and exchange rates, while other risks and uncertainties may also arise in the case of new competition, changed market conditions or changed consumer behaviour for online sales. The Group is also exposed to interest-rate risk.

Other than the changes below, no significant changes to the Group's risks and uncertainties are deemed to have taken place compared with what is stated on pages 28-29 of the 2024 Annual Report.

NOTE 9 EVENTS AFTER THE BALANCE-SHEET DATE

On 1 April 2025, BHG announced that the sale of 100% of the shares in IP-Agency had been completed. The buyer was IPA Holding Oy, a company wholly owned and controlled by the founders of IP-Agency. The consideration of EUR 5.0 million was paid in cash. The divestment of IP-Agency is expected to give rise to an earnings effect of SEK 33.9 million in the second quarter, comprising a transfer of accumulated exchange-rate differences from the translation reserve in equity to the income statement. The net impact of the divestment on the Group's cash and cash equivalents is expected to amount to SEK 56.3 million (excluding penalties and the reimbursement for legal costs as well as BHG's acquisition of 30% of the minority owners' shares in the first quarter, see page 6)

Condensed Parent Company income statement

	Jan-Mar	Jan-Dec
SEKm	2025	2024	2024
Net sales	2.9	3.3	11.3
Total net sales	2.9	3.3	11.3
Personnel cost	-14.4	-13.4	-49.2
Other external costs	-2.9	-3.2	-22.5
Depreciation and amortisation of tangible and intangible fixed assets	-0.0	-0.1	-0.2
Operating income	-14.4	-13.4	-60.6
Profit/loss from financial items	-12.1	-20.4	-69.6
Group contributions	-	-	45.0
Profit/loss before tax	-26.6	-33.8	-85.1
Income tax	1.3	6.9	2.9
Profit/loss for the period	-25.3	-27.0	-82.3

A statement of other comprehensive income has not been prepared since the Parent Company did not conduct any transactions recognised as other comprehensive income.

Condensed Parent Company balance sheet

		31 Mar
SEKm	2025	2024	2024
Non-current assets
Other intangible fixed assets	0.2	0.4	0.3
Total intangible fixed assets	0.2	0.4	0.3
Financial fixed assets	-	15.2	7.7
Participations in Group companies	3,678.3	3,678.3	3,678.3
Long-term receivables from Group companies	4,964.5	4,955.5	4,764.5
Deferred tax asset	0.3	0.1	0.2
Total fixed assets	8,643.3	8,649.4	8,450.9
Current assets
Short-term receivables	12.2	10.7	5.7
Short-term receivables from Group companies	94.2	124.7	125.7
Cash and cash equivalents	11.4	32.7	2.8
Total current assets	117.7	168.0	134.2
Total assets	8,761.0	8,817.4	8,585.1
Equity
Restricted equity	5.4	5.4	5.4
Unrestriced equity	6,539.8	6,619.0	6,564.7
Total equity	6,545.2	6,624.4	6,570.1
Non-current liabilities
Other provisions	1.6	0.5	1.0
Long-term liabilties to Group companies	450.0	450.0	450.0
Non-current interest-bearing liabilites to credit institutions	1,696.9	1,699.2	1,496.2
Other non-current liabilities	9.1	-	9.1
Total non-current liabilities	2,157.6	2,149.7	1,956.3
Current liabilities
Other interest-bearing liabilities	2.3	13.7	4.6
Other current liabilities	56.0	29.6	54.1
Total current liabilities	58.2	43.3	58.7
Total equity and liabilities	8,761.0	8,817.4	8,585.1

Key ratios

		2025		2024
	Q1	Jan-Mar	Q4	Q3	Q2	Q1	Jan-Dec
THE GROUP
Net sales growth (%)	9.7	9.7	1.9	-17.7	-22.0	-23.3	-15.5
Organic growth (%)	8.2	8.2	0.5	-8.8	-13.5	-13.9	-9.2
Adjusted gross profit beofre direct selling costs (%)	37.9	37.9	37.6	37.1	37.6	39.1	37.8
Adjusted gross profit (%)	25.3	25.3	25.4	24.6	25.6	26.6	25.5
Adjusted EBIT (%)	1.0	1.0	3.7	2.2	3.6	-0.0	2.6
Earnings per share before dilution, SEK	0.27	0.27	-2.46	-0.37	-0.57	-0.38	-3.79
Earnings per share after dilution, SEK	0.27	0.27	-2.46	-0.37	-0.57	-0.38	-3.79
Equity/assets ratio %	54.5	54.5	54.9	55.2	55.1	56.1	54.9
Net debt (+) / Net cash (-)	1,282.3	1,282.3	1,027.0	1,233.4	1,161.2	1,376.7	1,027.0
Cash flow from operating activites (SEKm)	-103.1	-103.1	336.9	103.3	327.8	-110.8	657.2
Total order value (SEKm)	2,279.9	2,279.9	2,983.8	2,447.2	2,768.1	2,079.4	10,278.5
Orders (thousands)	915	915	1,412	939	970	837	4,158
Average order value (SEK)	2,491	2,491	2,113	2,607	2,854	2,483	2,472
Home Improvement
Net sales growth (%)	6.1	6.1	1.0	-11.0	-12.2	-16.2	-9.6
Organic growth (%)	9.6	9.6	2.1	-8.1	-11.9	-16.2	-8.6
Adjusted gross profit beofre direct selling costs (%)	34.3	34.3	34.0	33.2	33.5	35.2	33.9
Adjusted gross profit (%)	24.1	24.1	24.1	23.0	23.7	25.0	23.9
Adjusted EBIT (%)	0.0	0.0	4.0	3.0	5.2	-0.9	3.1
Total order value (SEKm)	1,117.8	1,117.8	1,347.5	1,319.3	1,575.1	1,035.5	5,277.4
Orders (thousands)	378	378	509	470	523	355	1,857
Average order value (SEK)	2,956	2,956	2,650	2,806	3,011	2,914	2,842
Value Home
Net sales growth (%)	15.1	15.1	-8.2	-38.1	-47.5	-45.9	-37.6
Organic growth (%)	9.5	9.5	-7.7	-14.7	-23.7	-17.6	-17.0
Adjusted gross profit beofre direct selling costs (%)	44.7	44.7	44.2	45.3	45.4	46.4	45.3
Adjusted gross profit (%)	29.5	29.5	30.0	30.1	30.9	32.3	30.8
Adjusted EBIT (%)	3.5	3.5	1.5	4.0	4.2	3.0	3.2
Total order value (SEKm)	568.9	568.9	644.8	617.1	654.5	504.9	2,421.3
Orders (thousands)	127	127	143	138	139	115	536
Average order value (SEK)	4,469	4,469	4,500	4,457	4,706	4,383	4,517
Premium Living
Net sales growth (%)	10.9	10.9	12.6	5.9	9.1	1.7	8.0
Organic growth (%)	3.8	3.8	5.0	1.2	5.8	-2.6	3.6
Adjusted gross profit beofre direct selling costs (%)	37.4	37.4	38.3	36.4	39.0	39.1	38.2
Adjusted gross profit (%)	23.0	23.0	24.1	21.4	24.0	23.9	23.5
Adjusted EBIT (%)	3.1	3.1	7.1	0.7	0.9	1.3	3.2
Total order value (SEKm)	593.2	593.2	991.4	510.8	538.5	539.1	2,579.8
Orders (thousands)	410	410	760	330	308	367	1,765
Average order value (SEK)	1,448	1,448	1,304	1,548	1,750	1,469	1,462

Relevant reconciliations of non-IFRS alternative performance measures (APMs)

Some of the data stated in this report, as used by management and analysts for assessing the Group's development, is not defined in accordance with IFRS. Management is of the opinion that this data makes it easier for investors to analyse the Group's development, for the reasons stated below. Investors should regard this data as a complement rather than a replacement for financial information presented in accordance with IFRS. The Group's definitions of these performance measures may differ from similarly named measures reported by other companies.

ADJUSTED EBIT, ADJUSTED EBITDA AND ADJUSTED GROSS PROFIT

Adjusted EBIT corresponds to operating income excluding amortisation of acquisition-related intangible assets, gains/losses on sales of non-current assets and, where applicable, items affecting comparability. In other words, adjusted EBIT, in accordance with the accounting rules, includes all depreciation and amortisation of tangible and intangible assets attributable to the business. The difference between adjusted EBIT and EBIT is that the amortisation which arises as a result of the accounting treatment of purchase price allocations in conjunction with acquisitions is added back to adjusted EBIT.

Using the estimation technique for adjusted EBIT facilitates the understanding of the Group's earnings and profit, since adjusted EBIT provides a correct picture of the Group's operating income, without deduction of the accounting-related amortisation arising due to the acquisition analyses in conjunction with the acquisitions (which are not related to the underlying operations). Furthermore, the measure simplifies peer comp analysis of companies that do not make acquisitions, while analysis and assessment of acquisition candidates becomes clearer and more transparent, since their EBIT contribution will then correspond to their actual contribution to the Group after consolidation. It is also important to note that the effect of acquisitions is already reflected in the Group's capital structure and net debt, in accordance with generally accepted accounting practices.

Adjusted gross profit and adjusted EBITDA correspond to gross profit and EBITDA adjusted for items affecting comparability.

Group