Note 38 – Events after the balance sheet date

The Duni Group announced on January 16, 2020 that it will initiate negotiations to change its sales and marketing organization and focus on two brands: Duni and BioPak. The current segment reporting in four business areas will instead become two segments aligned with the Duni and BioPak brands. The reorganization results in restructuring costs estimated at approximately SEK 40 m, the majority of which are estimated to be charged to the first quarter of 2020. Annual savings of SEK 20 m are expected as a result of this reorganization. For more information, see the press release.

On March 5, 2020, the Nomination Committee published its board composition proposals for the 2020 Annual General Meeting. Magnus Yngen and Pia Rudengren have declined re-election. Morten Falkenberg, Sven Knutsson and Pia Marions are proposed for election as new directors and Thomas Gustafsson is proposed for election as the new Chairman of the Board. In addition, the Nomination Committee proposes the re-election of the other directors: Pauline Lindwall and Alex Myers. Other elections, information about all directors proposed for the board and the Nomination Committee’s complete proposals and opinions substantiating their proposals will be presented in the notice of the Annual General Meeting.

The Duni Group announced on March 20, 2020, that the company is taking action to deal with the effects of the COVID-19 pandemic. This includes a cost-cutting program with shortened working hours, deferred investments, a freeze on new hires and consulting expenses, and a ban on travel. The purpose of this is to meet the significantly decreased demand primarily from the hotel and restaurant industry, which is expected to have negative sales effects in the second quarter. COVID-19 highlights the relevance of and partially increases the risks described in Notes 33 and 34 and in the Operational and financial risks section of the Directors’ Report.

Another action was the announcement that the Board of Directors proposes that the Annual General Meeting in May cancel the dividend.