Brief: Clas Ohlson To Deliver Cost Savings Of About SEK 110 Mln In 2023/24

Clas Ohlson AB

07/12/2022 06:21

Dec 7 (Reuters) - Clas Ohlson AB  CLASb.ST :
    * Q2 ONLINE SALES SEK 258 MILLION VERSUS SEK 202 MILLION
YEAR AGO
    * SALES IN NOVEMBER INCREASED BY 6% TO 1,085 MSEK (1,021),
UP 3%
ORGANICALLY
    * SIMILAR TO Q1, HIGH PURCHASING AND TRANSPORT COSTS AND A
WEAKER
SEK IMPACTED Q2
    * ONLINE SALES IN NOVEMBER INCREASED BY 27% TO 154 MSEK
(121)
    * USD IS AT AN HISTORICALLY HIGH LEVEL IN RELATION TO SEK,
WHICH
PUTS US AT A DISADVANTAGE SINCE WE PURCHASE MAJORITY OF OUR
GOODS IN USD
    * CUSTOMERS ARE INCREASINGLY ON LOOKOUT FOR SALES AND
CAMPAIGNS,
WHICH NEGATIVELY AFFECTED MARGIN
    * USD IS AT A HISTORICALLY HIGH LEVEL IN RELATION TO THE
SEK,
WHICH PUTS US AT A DISADVANTAGE SINCE WE PURCHASE THE MAJORITY
OF OUR GOODS IN USD
    * WE ARE REDUCING WORKFORCE AT OUR OFFICES BY ABOUT 85
FULL-TIME
EMPLOYEES
    * ACTIONS INITIATED WILL DELIVER COST SAVINGS AND REDUCED
DEPRECIATION TOTALLING APPROXIMATELY 110 MSEK WITH FULL EFFECT
IN 2023/24 FINANCIAL YEAR
    * WE WILL ALSO RATIONALISE OUR IT SYSTEMS TO BETTER REFLECT
STRATEGY, SIMPLIFIED WORK PROCESSES
    * IN SHORT-TERM, THIS WILL ENTAIL NON-RECURRING COSTS OF
APPROXIMATELY 120 MSEK TO BE RECOGNISED IN Q3 OF 2022/23

Source text for Eikon:  ID:nWkr1VpXjM 
Further company coverage:  CLASb.ST 
 (Gdansk Newsroom)
 ((gdansk.newsroom@thomsonreuters.com;))