Polygiene Group Delivers Financial Update Ahead of Year-End Report
Polygiene Group is pleased to present a comprehensive update on our current status, the long-term five-year plan, future focus, and the goodwill impairment.
In the light of the external factors impacting the business climate in recent years, such as the post Covid decline, destocking and Ukraine we have chosen not to provide long-term guidance at this juncture. This decision entails a postponement of the previously communicated sales target of SEK 1 billion by 2026.
Looking ahead to 2024, our strategic focus will be directed towards expanding on the awarding winning new technologies that were launched in November 2023 and refocussing the Protection business, where we will relaunch a dynamic new Addmaster website with refreshed design and content. The UK organization has been reinforced with additional sales and marketing resources, setting the stage for growth. To uphold cost control measures, resources have been reallocated from Freshness, resulting in a one-time cost of SEK 2.6 million in the fourth quarter.
As part of the annual financial statements, the company has decided to write down goodwill by appx SEK 295 million, including tax, of which appx SEK 47 million attributed to currency differences. This goodwill impairment reflects the recent developments, aligning the company's valuation with the current market capital. This adjustment is purely an accounting measure and has no impact on our operational activities or cash flow.
"We are witnessing clear signs of recovery, with both sides of the business and our primary focus now is to support and maintain profitable growth. The Q4 outlook indicates we are on the way to grow quarter by quarter, and the January forecast is positive. With new products in our portfolio, a revitalized Addmaster, and a more streamlined organization, there is substantial evidence that 2024 will mark the turning point after a challenging 2023," states Ulrika Björk, CEO of Polygiene Group.
This disclosure contains information that Polygiene Group is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 21-12-2023 09:10 CET.