Pandemic-induced DIY boom sends profits surging at Sweden's BHG
23/07/2020 07:40
STOCKHOLM, July 23 (Reuters) - Online do-it-yourself and
home furnishing group BHG BHGF.ST reported a doubling in
second-quarter earnings on Thursday as consumers spending more
time at home and opting for e-purchases led to booming demand
for its products.
The Swedish company said quarterly sales grew 58% to 2.7
billion ($305.2 million) crowns, corresponding to 42% on an
organic basis. Adjusted operating earnings grew to 233 million
crowns from 102 million in the year-ago quarter.
The quarter was the firm's strongest to date as the peak
season was combined with changed customer behaviours due to the
COVID-19 pandemic, with consumers buying more products for the
home, CEO Adam Schatz said in a statement.
"Although we expect a return to more normal growth levels,
the exceptionally high demand we experienced was relatively
constant over the three months of the quarter and the third
quarter also started strongly," he said.
Schatz added that the company's financial position was
"stronger than ever", allowing it to execute organic growth
initiatives, while carrying out an active acquisition strategy.
($1 = 8.8470 Swedish crowns)
(Reporting by Johannes Hellstrom and Helena Soderpalm. Editing
by Carmel Crimmins)
((johannes.hellstrom@thomsonreuters.com; +46850242388; Reuters
Messaging: johannes.hellstrom.reuters.com@reuters.net))