In accordance with the strategy to build a common platform for Aurora Deltaco, the companies are now entering the next phase of realising efficiency improvements, which is expected to lead to annual cost savings of 22 MSEK in total and related one-off costs of 9 MSEK in total split between the second and third quarters of 2022.

In 2019, a relatively extensive restructuring and cost rationalisation was carried out that related to management functions, and at that time DistIT communicated that further streamlining was to be expected in the future. The measures being implemented in this phase of the merger are:

  • Reorganisation within the category and sales departments, which is estimated to lead to 16 MSEK in annual cost savings with start in the second quarter 2022.
  • Merger of the two companies' third-party warehouses, which is estimated to lead to 6 MSEK in annual cost savings with start in the third quarter 2022.
  • One-off costs for these projects are estimated to 9 MSEK in total split between the second and third quarters of 2022.

Furthermore, the measures are expected to lead to improved commercial proficiency as well as more efficient logistics and inventory management. This will strengthen Aurora Deltaco's business, competitiveness and cost efficiency during continued growth.

The IT integration of Aurora Deltaco will continue and is expected to be completed in the latter part of 2022, with further efficiency gains as a result.

The above measures are also part of the creation of DistIT Services, which, in addition to acting as a base platform for Aurora Deltaco, is also being developed as a synergy platform for other DistIT companies within product development, procurement, logistics and marketing.

Contacts:

Robert Rosenzweig, CEO DistIT AB
Phone: +46 70 768 50 42
Email: robert.rosenzweig@distit.se

Philip Gunnarsson, CFO DistIT AB
Phone: +46 73 086 96 82
Email: philip.gunnarsson@distit.se

About DistIT AB

DistIT acquires, owns and develops niche distributors of IT, mobility, consumer electronics, networking and data communications products in Europe. Companies within the DistIT Group deliver B2B as well as B2C products to the IT markets in Europe. The DistIT stock is listed on the Nasdaq First North Premier Growth Market exchange and DistIT's Certified Adviser is Erik Penser Bank AB, e-mail certifiedadviser@penser.se, phone +46 8 463 83 00.

This information is information that DistIT is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2022-04-29 08:00 CEST.

Attachments

DistIT AB (publ): cost synergies within Aurora Deltaco in connection with the merger of the companies

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