Interim Reports Q2 2023 – Presentation

Highlights of the second quarter of 2023

  • Net sales amounted to SEK 32,653m (33,749). The organic sales decline of 8.4% was driven by the continued weak market demand with consumers shifting to lower price points, resulting in significantly lower volumes. Supported by the competitive product offering, mix was flat despite the decline in market demand being particularly evident in key product categories for the Group. Price was somewhat positive although promotions increased significantly.
  • Operating income amounted to SEK -124m (560), corresponding to a margin of -0.4% (1.7). Operating income included a previously announced non-recurring item of SEK -643m, referring to a provision mainly related to a French antitrust case. Excluding this non-recurring item, operating income amounted to SEK 519m, corresponding to a margin of 1.6% (1.7).
  • The Group-wide cost reduction and North America turnaround program progressed well, resulting in a positive year-over-year impact of approximately SEK 1.6bn, a substantial sequential step-up in savings. This contributed positively to the underlying operating income year-over-year, while the volume decline impacted negatively.
  • Income for the period amounted to SEK -648m (257) and earnings per share were SEK -2.40 (0.93).
  • Operating cash flow after investments improved materially to SEK 3,137m (403).
  • Preparations to divest non-core assets with total potential value of approximately SEK 10bn have been initiated as part of the ongoing strategic sharpening. Further structural simplification and complexity reductions are also being evaluated.