Rapala announces group-wide plan to save €10m
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Rapala VMC Corporation has announced a group-wide restructuring programme designed to deliver €10m in cost savings.
The plan is aimed at improving efficiencies, increasing internal synergies, decreasing operating expenses and reducing net working capital.
The Finnish company – one of the world’s big four tackle businesses – says the measures will ensure future profitability and enable sustainable growth.
The targeted savings are mainly related to European businesses and distribution, along with its Asian lure manufacturing operation.
The move, says Board Chairman and interim CEO Louis d’Alançon in a Stock Exchange release, is key to the group’s strategy to accelerate its transformation following the changes in the distribution agreement with Shimano and the recent acquisition of 49% of the share capital of DQC International Corporation, owner of the 13 Fishing brand in the US.
Rapala expects the cost savings to materialise ‘gradually’ from 2020 and to be in full effect after around two years. Planned restructuring measures will be negotiated locally in each affected country and costs relating to those measures will be reported under ‘items affecting comparability’ in its accounts.
“[Our] broad distribution network and a strong local presence in customer and market knowledge-related functions will remain one of our competitive advantages in the future,” said d’Alancon.
“Increased synergies, especially within our European distribution units, and centralisation of operations will enable better customer service and will create more value to our customers, partners in the Third Party Products business and other stakeholders.
“These measures will secure our profitability and enable sustainable growth.”
D’Alançon took on his interim role following the recent departure of former CEO Jussi Ristimaki. In an exclusive interview in the last issue of Angling International, Ristimaki said there was no disagreement over the direction he had taken the company, but the Board wanted to accelerate the process.