At the beginning of 2024, Fragbite Group initiated a cost reduction programme consisting of financial and operational measures to increase the Company's efficiency, reduce capital expenditure and contribute to stronger cash flow in the short and long term. An initial reduction of costs was initiated in the first quarter of 2024 and has thus already taken effect, after which a larger share of costs was reduced towards the end of the second quarter and will reach full effect in the current period. The reductions that have now been implemented come to a total of approximately SEK 0.95 million per month, out of which just over SEK 0.5 million on Group level. From 1 July 2024 onwards, the company expects total savings of over SEK 11 million on an annual basis.

”The most important task ahead is to ensure that the healthy profitability that characterises large parts of the Fragbite Group business is extended to all units, on a subsidiary level as well as the Group level. With these cost reductions now implemented, we are well on our way,” says Stefan Tengvall, President and CEO, Fragbite Group

In parallel with cost reductions, the Company has reviewed opportunities for restructuring and increasing overall efficiency within the Group, a process that will continue during the fall. More information will follow in the interim report for the second quarter, which will be published on 20 August.