Regulatory press releases

On this page, you can find Byggmax’s regulatory press releases, i.e. press releases containing financial information that may affect the share price. Other press releases can be found under the heading non regulatory press releases.

18 January 2018
Byggmax Group restructures Skånska Byggvaror to execute the strategy for profitable growth
Press release 2018-01-18 at 1 pm
Skånska Byggvaror restructures its cost base and moves towards a modern leader within “Garden Living”. Initiatives are launched to focus the business on the profitable core, strengthen digital competence, and decrease operational cost. The restructuring of Skånska Byggvaror impacts Byggmax Group’s financial results for Q4 2017 with a non-recurring cost of ca SEK 50 million, of which ca half in cash effect. Pay-off time is 2-2.5 years. For 2018, Skånska Byggvaror expects decreased operational costs, decreased revenues as marketing of non-core categories is reduced, and to end the year with a stronger, more profitable core business. 
Skånska Byggvaror is a leading Nordic e-commerce company with a strong and profitable business within its core categories of garden related buildings, such as conservatories and greenhouses. However, the last few years’ efforts to broaden the business have been coupled with increased complexity, higher costs, and less focus on developing the core business.

-          There is enormous potential in our core business. We have a market leading position in the Nordics, strong portfolio of own design products, a proprietary e-commerce infrastructure, and a broad base of very satisfied customers, says Oscar Tjärnberg, CEO of Skånska Byggvaror since October 1, 2017. We are now taking actions to pivot the business, building on these core strengths in order to drive profitable growth.

Skånska Byggvaror is now moving towards a modern leader within “garden living”, i.e., conservatories, green houses, and related accessories for the garden. Several initiatives have already been initiated, including:

· Investments to build best in class e-commerce capabilities, and to strengthen the product portfolio of own design products with in core categories such as conservatories and green houses
· Reduce sales of less profitable non-core products, as a first step executed through reduced marketing and product exposure. Non-core product categories include e.g., doors, windows, garage doors, filing cabinets, bathroom installations, saunas, storage, and closets
· Restructuring the cost base to reduce operational costs. This includes reorganization to a smaller head office organization, remodeling of the Danish Pavillon business, consolidation of logistic and office sites, and increased store efficiency trough reduced assortment display and staffing

The restructuring of Skånska Byggvaror impacts Byggmax Group’s financial results for Q4 2017 with a non-recurring cost of ca SEK 50 million, of which ca half in cash effect. The largest non-recurring cost component is rent costs, coupled with reduced office, logistics, and showroom space. The actions taken have a pay-off time of 2-2.5 years, measured as annual cost savings in relation to non-recurring costs. These changes to reduce operational costs will have some impact in 2018, and full impact in 2019.

-          The actions we now take are an important step towards creating a modern leader within “garden living”, says Mattias Ankarberg, CEO of Byggmax Group. I’m impressed by how quickly Oscar and his team has put a clear plan in place. 2018 will be a transformation year for Skånska Byggvaror. We expect decreased revenues as a result of reduced presence in non-core product categories, investments to execute the strategic plan, and to end 2018 with a stronger core business and lower operational costs. I look forward to see this unique business develop under Oscar’s leadership.

This information is information that Byggmax Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of Mattias Ankarberg, at 13:00 on January 18, 2017