Will scale down VHP business to 5% of sales (from ~10%)
Nolato has announced it will scale down its vaporiser heating product (VHP, i.e. the tobacco business) to roughly 5% of group sales, down 50% from the current level of ~10% of sales. In conjunction with this, it will reduce its Chinese workforce by ~500 FTEs (8% of total workforce), which we estimate will incur gross cost savings of ~SEK 200m (this excludes under-absorption effects from the lower sales). The VHP subsegment has, by our estimation, been loss-making for the last three quarters. Finally, Nolato will take a SEK 60m one-off in Q3.
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