BHG organic growth declining, amid big changes

The Nordic online home improvement and furnishing company BHG has been a tremendous growth success over the last years.

Since 2017 BHG has grown its Q2 revenue by 260%!

The company grew rapidly even after the exceptional growth period during the pandemic. A big part of that growth has come from inorganic growth through acquisitions. Over the last four quarters, organic growth has slowed down. In Q2/2022, it declined by -8%.

Of the different BHG geographic segments, the older countries, such as Finland, have declined more.

The decline of organic growth is a serious challenge for the company. The company will need to find a new CEO to resolve these problems as the former CEO, Adam Schatz, is stepping down after two years as CEO.

The growth driver for the business, especially in the future, is the big markets outside the Nordics.

Germany has become the third biggest market for BHG. Most probably, it will surpass Finland this year. The non-Nordic markets are critical for the Home Furnishing business segment, where 41% of business already comes outside the region.

This provides vast opportunities for future growth for the company. However, the company in Germany and other big European markets is also more intense.