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EQS-News: Brödernas Group AB
/ Key word(s): Restructure of Company
Press release Stockholm 16 October 2024 Brödernas applies for company restructuring Restaurant group Brödernas has today applied for company restructuring in order to secure the group's future. During the restructuring process, Brödernas' restaurants will be open as normal. Brödernas, including Brödernas Group AB (publ), has today applied for company restructuring. The purpose of the restructuring is to secure the group's long-term financial stability and handle the economic challenges that have emerged in the wake of inter alia the pandemic, inflation, increased interest rates and increased rental costs. Brödernas' application for company restructuring requires approval by the district court. The restructuring process is thereafter expected to be carried out during the next three to six months. During this time, both financial and operational changes will be implemented in order to return to a sustainable and profitable business. In connection with this, Brödernas also publishes a long-term financial plan including a turnover and profitability forecast for 2024, 2025 and 2026 based on the objectives of the company restructuring. Background and reasons for Brödernas' company restructuring Brödernas was founded in 2017 and today operates approximately 70 restaurants across the country with approximately 500 employees and more than four million guests yearly. The last few years have been marked by a series of unforeseen events that have created difficult conditions for the restaurant industry. The pandemic and consequences of Russia's invasion of Ukraine have led to severe inflation with substantially increased costs for raw materials and other operating costs. This, together with rising interest rates and consumers' reduced purchasing power, has changed the conditions for the group and the restaurant industry in general. Brödernas' restaurants have also been affected by significant rent increases. The average increase over the past two years has amounted to 18% due to index adjustments in the rental agreements. In addition, the increased use of third-party home delivery services has negatively impacted profit margin. "Despite extensive measures to address these challenges, including disposals of unprofitable restaurants, renegotiation of supplier agreements, streamlining staffing and launching a loyalty program, the financial situation has unfortunately become unsustainable for us", says Brödernas' CEO Richard Forsshéll. Brödernas therefore believes that company restructuring is a necessary step to secure the group's future and protect the jobs that Brödernas creates. "Brödernas has a solid foundation and a strong brand. With the right measures, I see good opportunities for the group to regain its strength and continue to be an important player in the Swedish restaurant market", says Lars-Henrik Andersson, the proposed administrator from Cirio Advokatbyrå. Long-term financial plan including turnover and profitability forecast In connection with the application for company restructuring, Brödernas also publishes certain preliminary estimates regarding the group's financial development for the remainder of 2024 and for the full years 2025 and 2026. These figures are Brödernas' estimates based on some very uncertain assumptions, inter alia that the company reorganisation is completed as intended. The figures have neither been revised nor reviewed by Brödernas' auditor and the final outcome may differ significantly from Brödernas' estimates. Brödernas preliminary estimates that the group's turnover for 2024 will be approximately SEK 542 million and that EBITDA will be approximately SEK -26 million. For the full year 2025, Brödernas estimates that the turnover will be approximately SEK 563 million and that EBITDA will be approximately SEK 7 million. For the full year 2026, Brödernas estimates that the turnover will be approximately SEK 597 million and that EBITDA will be approximately SEK 36 million. For more information, please contact: Richard Forsshéll, CEO Brödernas E-mail: press@brodernas.nu This information is such that Brödernas Group AB (publ) is obliged to make public according to the EU's market abuse regulation (EU no. 596/2014). The information was submitted, through the provision of the specified contact person, for publication on 16 October 2024 at 09:00 CEST.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
16.10.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | Brödernas Group AB |
| Stockholm | |
| Sweden | |
| ISIN: | NO0013250597 |
| EQS News ID: | 2009171 |
| End of News | EQS News Service |
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2009171 16.10.2024 CET/CEST
