In early July, Footway announced that it would split its e-commerce and platform businesses. For some time, the company has been building up a logistics service for e-retailers called Footway+ while operating several online stores in different areas.
On July 17, Footway Group AB announced its financial figures for the second quarter and, at the same time, that it would sell Footway+.
The group’s Board of Directors decided to sell Footway+ with preferential rights for the company’s shareholders as part of the previously announced strategic review. The separation is meant to strengthen the e-commerce business’s finances to reduce bank loans and ensure a faster return on agreed supplier credits. It also allows the platform business to operate separately in an environment better suited to the company’s risk profile, Footway wrote in a commentary to the interim report.
The platform business will be sold for a purchase price of SEK 57 million (€4,9m) The transaction is subject to the approval of the parties to the demerger.
The demerger means that the company’s platform business will be transferred to a wholly-owned subsidiary and subsequently offered for sale with preferential rights to the company’s shareholders.
At the same time, the decline in sales is explained by the company’s recent reorganization, which has affected purchase credits and resulted in deliveries not being made according to the agreed terms.
Footways Q2 2024 in numbers:
- Net sales decreased to SEK 114.9 million (€9,9m)
- Operating profit (Ebita) decreased to SEK 0.5 million (€0,043m)
- Gross margin increased to 55.8 percent (50.9)
The company also reports a positive cash flow of just over SEK 4 million (€0,34m) for Q2 and that it has reached 40 customers for Footway+.
