We hosted DistIT’s CEO Robert Rosenzweig at today’s ABGSC Investor Day seminar. Mr. Rosenzweig highlighted, among other things, that DistIT has handled crises and external headwinds well before. For example, DistIT has been able to grow revenues during previous crises (see one of the slides from the presentation on the next page). External factors such as inflation, supply chain problems, and rising transportation costs are course affecting DistIT. However, the company is taking actions to handle the current external headwinds, for example by rising prices.
Restructuring and exports among many strategic initiatives
The company’s main focus, in the past and going forward, was presented in an overview of the key strategic activities for each of the five divisions (see the second slide on the next page). The merger of Aurora and Deltaco started in 2019 and have since then continued with different elements as the key focus. In 2022, the main focus will be to conclude the merger by building processes and a common platform for Aurora Deltaco, something that is currently underway. The company expects this to lead to annual cost savings of SEK 22m annually, which was announced at the end of April. In the next year, 2023, the key focus for Aurora Deltaco will be to build more technology into its own products. This is something we believe could possibly lead to higher margins for DistIT’s own products. Moreover, the export of DistIT’s own brand labels has had strong market momentum, with growth of ~62% in 2021 to SEK ~50m according to the company. We expect that a continued growth of the export of own brands will also lead to a higher gross margin.
The company’s clear strategic agenda will improve margins To summarise today’s presentation and Q&A with DistIT: the current ...
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