Following the pandemic, purchasing behavior changed for many, leaving BHG Group with high volumes of products in its inventory. Since then, the e-commerce player has been working to streamline operations. Inventory value has decreased by 59 percent, from SEK 3.2 billion to SEK 1.3 billion.
For 2025, the group closed the books with a turnover of SEK 10.6 billion and an operating profit of SEK 386.7 million. This represents a turnaround from a previous loss.
The strategy going forward is based on a platform model. Several of the company's brands and digital services now share systems for logistics, purchasing and technology. The aim is to create economies of scale. To increase efficiency, the company is now integrating AI solutions into the purchase journey.
Through collaborations with external agencies, digital advisors and agents are being built to handle customer service issues and answer product questions. The goal is annual growth of 10 to 15 percent and an operating margin of 5 percent, with a long-term target of 7 percent.
Own Brands Yield Highest Margin
However, if you look at profitability, it varies between the different business areas. The highest margins are found within the category for cheaper furniture, where Trademax, Chili and Furniture1 are included, where there is considered to be potential to reach 10 percent.
The reason is that sales are largely made under own brands, which makes it possible to purchase the goods directly from the factory.
The most important driver of profitability is growth. If we get growth, we scale our costs. We have now had ten consecutive quarters of improved profitability and six quarters of growth, says Gustaf Öhrn, CEO of BHG Group, to Market.
Ready for New Acquisitions
In the spring, the company signed a new loan agreement of SEK 2 billion without collateral. The agreement lowers the e-commerce player's financing costs and creates room for growth.
With lower borrowing costs, BHG Group is looking for new acquisitions. Unlike previous years, the purchases will be more selective.
The focus is on finding add-on acquisitions that work in the company's platform model and complement the current range.
It is important that every new company we bring in really adds something to the whole. We have learned a lot from previous acquisitions, both what works and what we should avoid going forward, says Gustaf Öhrn.