Arjo announces financial consequences of terminated distribution agreement with Bruin Biometrics
In line with previous communication, Arjo has during the fourth quarter terminated the distribution agreement with Bruin Biometrics and has now accordingly divested related assets. Consequently, exceptional items will be charged with 55 million SEK in the fourth quarter related to this. The amount consists of a non-cash book value of 70 million SEK related to inventory, rental assets and remaining distribution rights, as well as a positively cash flow affecting compensation of approximately 15 million SEK from the divestment of these to Bruin Biometrics.
As previously communicated, the parties decided earlier this year not to extend the distribution agreement for the SEM Scanner that was entered into in 2020, when Arjo also acquired a minority equity stake of 10 percent in Bruin Biometrics. Arjo’s ambition is to divest the minority stake in Bruin Biometrics and therefore Arjo conducts a reclassification of assets that, starting in the fourth quarter, will be reported as assets held for sale. This means that Bruin Biometrics’ result will not be part of Arjo’s income statement as of the fourth quarter 2024.
Based on the above considerations, the following financial impact will be reported in the fourth quarter of 2024:
|
Income statement effects |
SEK M |
|
Exceptional items |
-55 |
|
Tax effects |
12 |
|
Profit after tax |
-43 |
|
Cash flow effects |
|
|
Received exceptional items |
15 |
Contact information:
Maria Nilsson, EVP Communications & Public Relations
+46 734 244 515
maria.nilsson@arjo.com
Niclas Sjöswärd, CFO
+46 734 244 655
niclas.sjosward@arjo.com
This information is information that Arjo AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13:00 CET on December 12, 2024.
About Arjo
At Arjo, we are convinced that good conditions for mobility in healthcare environments are a central part of offering high-quality care. Our products and solutions for patient transfer, hygiene, disinfection, diagnostics, treatment of leg ulcers, prevention of pressure ulcers and venous thrombosis, as well as our healthcare beds, are designed to promote mobility, safety and dignity in all healthcare situations. With over 65 years of experience in improving everyday life for patients and caregivers, and a global team of over 6,500 people, we are constantly working to create better outcomes for people facing mobility challenges. www.arjo.com