• Home
  • Journal
  • Public Companies
  • Oboya carries out relocation of operations and warehouses, which entails an annual cost saving of SEK 5.0 million

Oboya carries out relocation of operations and warehouses, which entails an annual cost saving of SEK 5.0 million

Oboya Horticulture Industries AB (“Oboya” or “The Company”), through wholly-owned subsidiaries in Sweden and Denmark, carries out relocation of operations and warehouses. The change entails an annual cost saving of MSEK 5.0 with full effect from the first quarter of 2020. The relocation is part of previously communicated profitability improvement and the Company’s strategic plan to achieve a net margin of 5-7 percent.Oboya has previously announced that the focus for the coming years is to achieve sustainable profitability. In order to achieve the stated target of a net margin of 5–7 percent, the Company initiated a rationalization- and savings program during the second quarter of 2019 focusing on mergers and rationalization with the aim of reducing the Company’s operating costs. As part of this strategy, Oboya has through its wholly-owned subsidiaries in Sweden and Denmark initiated the relocation of operations and warehouses, which entails an annual cost savings of a total of SEK 5.0 million. The relocation changes do not affect the subsidiaries operational activities and daily work continues during the relocation period.Centralization of warehouse logistics in Sweden
The relocation places in Sweden is from Trångsund to Motala, where the Swedish subsidiary already has a smaller warehouse. Thus, the move aims to centralize warehouse logistics and reduce the number of warehouses. The cost savings are attributable to reduced rental costs for premises and amount to approximately SEK 3.0 million annually with effect from January 2020.
Relocation of operations in Denmark
In the Danish subsidiary, all own production was discontinued during third quarter of 2019. Production has instead been placed on an external party, which improves the Oboya Group’s working capital and reduces its cost base. The savings are thus attributable to reduced costs for premises, personnel and energy consumption and amounted to approximately SEK 2.0 million annually with full effect from the January 2020. Following the change in operations, the Danish subsidiary will move to nearby and smaller premises that are better adapted to the new operations.
Erik Penser Bank is Oboyas Certified Adviser at Nasdaq First North Growth Market. Tel: + 46 8-463 83 00, E-mail: certifiedadviser@penser.seFor any inquiry regarding this press release, kindly contact:Robert Wu, CEO of Oboya Horticulture Industries AB (publ)Phone: + 46 (0)735 63 09 35
E-mail: robert.wu@oboya.cc
Homepage: www.oboya.se
About Oboya Horticulture Industries ABOboya Horticulture aims to become a world-leading total supplier of consumables and logistics products for the cultivation industry as well as consumer products for home cultivation and indoor environments. Production takes place in factories in China, Poland, Vietnam and Kenya. More information about the company is available at www.oboya.se.AttachmentPressrelease – Oboya carries out relocation of operations and warehouses, which entails an annual cost saving of 5 MSEK

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Cookie Notice

We use cookies to improve your experience on our website

Information we collect about your use of Goldea Capital website

Goldea Capital website collects personal data about visitors to its website.

When someone visits our websites, we use a third party service, Google Analytics, to collect standard internet log information (such as IP address and type of browser they’re using) and details of visitor behavior patterns. We do this to allow us to keep track of the number of visitors to the various parts of the sites and understand how our website is used. We do not make any attempt to find out the identities or nature of those visiting our websites. We won’t share your information with any other organizations for marketing, market research or commercial purposes and we don’t pass on your details to other websites.

Use of cookies
Cookies are small text files that are placed on your computer or other device by websites that you visit. They are widely used to make websites work, or work more efficiently, as well as to provide information to the owners of the site.