In the first quarter of 2024, Solteq experienced a significant drop in profit and a decrease in turnover compared to the same period last year. Despite keeping instructions unchanged, the company announced a 3.5 million euro savings program that could result in the termination of up to 35 employees.
Initially, Solteq had expected cautiously positive results at the beginning of the year, but the actual results turned out to be negative. The company reported a comparable operating result of -0.7 million euros in January-March, compared to -0.2 million euros in the previous year. Turnover for Solteq in January-March was 16.9 million euros, down from 14.7 million euros in the same period last year despite a forecasted turnover of 16.9 million euros.
Earnings per share for Solteq at the beginning of the year was EUR -0.01 per share, compared to EUR 0.04 in the previous year. The company reaffirmed its instructions for the future, expecting growth in comparable turnover and a positive operating result. However, weaker sales and lower demand led to lower turnover than expected despite positive profitability gains.
To address these challenges, Solteq announced an efficiency and cost-saving program aimed at annual cost savings of approximately 3.5 million euros through reorganizing and enhancing operations within their Retail & Commerce segment’s Commerce & Data business unit and group administration.
As part of this program, Solteq will initiate change negotiations that may result in employment termination for a maximum of 35 people. The company aims to adjust its cost structure to adapt to current market conditions and improve overall profitability.
Change negotiations are set to begin on May 6th and are expected to conclude by June 17th, with an aim to reduce costs through restructuring operations efficiently while improving profitability within their organization’s retail commerce segment’s data business unit and administration services.
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