Pandemic-induced DIY boom sends profits surging at Sweden's BHG

STOCKHOLM (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 crowns (239.13 million pounds), 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.

(Reporting by Johannes Hellstrom and Helena Soderpalm. Editing by Carmel Crimmins)