GARO to adapt its organization in light of prevailing market conditions and report sales and preliminary EBIT for the fourth quarter of 2023
In its interim report for the third quarter, GARO announced that net sales for the fourth quarter were predicted to be in line with the year-earlier quarter. GARO E-mobility reported growth of 16%, while GARO Electrification declined 17% compared with the year-earlier quarter. All in all, this results in net sales for the fourth quarter amounting to approximately MSEK 311 (341).
“Net sales were mainly negatively impacted during the end of the quarter. The prevailing market situation with macroeconomic uncertainty has impacted purchasing patterns and investment decisions. Sales of new plug-in electric vehicles in Sweden currently display weaker growth than previously. Overall, this means that we are now adapting the organization to the prevailing market conditions,” says Patrik Andersson, President and CEO of GARO.
GARO will carry out an additional action and efficiency program resulting in the reduction of about 50 employees – both employees under collective agreements and white-collar employees – in the Group, primarily in the GARO E-mobility business area.
GARO’s EBIT for the fourth quarter is expected to amount to approximately MSEK 0 (9). EBIT was charged with non-recurring costs of about MSEK 10 as the result of the impairment of the inventory of residual components in the GARO E-mobility business area. At the same time, EBIT includes non-recurring income of about MSEK 18 related to the divestment of industry properties.
The 2023 year-end will be published on February 21, 2024.
For more information, please contact:
Patrik Andersson, CEO: +46 (0)76 148 44 44
Helena Claesson, CFO: +46 (0)70 676 07 50
This information is such information that GARO AB is obligated to publish in accordance with the EU Market Abuse Regulation. The information was published by the abovementioned contact persons on January 30, 2024, at 8:30 a.m. CET.
GARO AB (publ) Corp. Reg. No. 556071–7772 is a company that develops, manufactures and markets innovative products and systems for the electrical installations market under its own brand. GARO’s customer offering is to provide complete solutions in the product areas of Electrical distribution products, E-mobility, Project business & Temporary Power with a focus on electrical safety, user-friendliness and sustainability. GARO was founded in 1939, has its head office in Gnosjö and is today an international company with operations in six countries with around 480 employees. The company’s production units in Sweden are located in Gnosjö and Hillerstorp in Sweden and in Szczecin in Poland. GARO is listed on Nasdaq Stockholm under the ticker name GARO. For more information, see www.garo.se