Note 9 – Restructuring costs – Allocation to restructuring reserve

Restructuring costs amounted to SEK 31 m (0). In October 2018, an efficiency-improvement program was launched with a focus on cutting indirect costs. The program extends to Duni’s entire business, all business areas, and its measures include downsizing. Around 60 people are affected and the total restructuring cost of is estimated at SEK 33 m, of which SEK 31 m was recognized in 2018. The annual savings of this program are estimated to exceed SEK 35 m with full effect as of Q3 2019. In 2017, restructuring costs were incurred for efficiency improvements in marketing and sales. The Company also received damages attributable to the period before Duni was listed. This revenue is also attributable to the Parent Company.

Restructuring costs are included in each function as follows:

Group Parent Company
SEK m 2018 2017 2018 2017
Cost of goods sold 11 1 – –
Selling expenses 12 4 0 –
Administrative expenses 8 3 6 –
Other operating expenses – -7 – -7
Total restructuring expenses 31 0 6 -7

Allocation to restructuring reserve:

Group Parent Company
SEK m 2018 2017 2018 2017
Opening balance, restructuring reserve 6 12 2 6
Utilized reserves -8 -14 -2 -4
Reversal of reserve – – – –
Allocations for the year 31 8 6 –
Closing balance, restructuring reserve 29 6 6 2
Of which short-term 23 6 6 2