Money Buzz! Europa

Category: Gothenburg

  • Stena RoRo almost completed the construction of the world’s largest civilian hospital ship

    Stena RoRo almost completed the construction of the world’s largest civilian hospital ship

    Swedish company Stena RoRo, after several years of design and construction, is ready to deliver Global Mercy, the world’s largest civilian hospital ship.

    The ship is now soon to be ready and leave the Tianjin Xingang shipyard in northern China.

    Stena RoRo has been responsible for the design, the contracting and the construction oversight of the complex vessel. In addition to the Chinese shipyard the project includes several European, American and Asian subcontractors.

    Mercy Ships, the international charity that ordered the vessel, expects it to enter service by the end of 2021, after transport to Africa.

    Mercy Ships has been providing medical care on ships for more than 40 years and its hospital ships are in a port in each country for about ten months.

    The Global Mercy is the organization’s first newly built hospital ship and will more than double the capacity of Mercy Ships to deliver aid.

  • Ikea online retail sales increased 45% this year

    Ikea online retail sales increased 45% this year

    Ikea published today some facts and figures for financial year 2020 (FY20). The financial year runs from 1 September to 31 August.

    Online retail sales increased 45% this year, and the Ikea website registered four billion visits. E-commerce expanded to three new markets, including China.

    Ikea retail sales reached EUR 39.6 billion, compared to EUR 41.3 billion in FY19 and the number of employees reached 217.000, compared to 211.000 in FY19.

    This year’s edition of the IKEA catalogue marks its 70th birthday. 

    During financial year 21, Ikea will expand to new markets like Mexico and the Philippines. Several locations will also open in existing markets.

  • Ikea to remove non-rechargeable alkaline batteries by 2021

    Ikea to remove non-rechargeable alkaline batteries by 2021

    All non-rechargeable alkaline batteries will be removed from the global home furnishing range of Ikea stores by October 2021.

    Several current comparative Life Cycle Assessment studies show that the environmental impact of alkaline batteries is higher compared to rechargeable nickel-metal hydride batteries (NiMH) when used in common household devices that have a high energy consumption and are therefore charged on a regular basis – such as toys, flashlights, portable speakers or cameras.

    Already after 10 charges of a rechargeable NiMH battery, such as the LADDA range sold in Ikea stores, greenhouse gas emissions are lower as compared to using alkaline batteries to obtain the same amount of energy.

    When about 50 charges are reached, the overall environmental impact of NiMH batteries is equal or even less than the impact of using alkaline batteries.

    Ikea sold about 300 million alkaline batteries globally last year

    Calculations indicate that if – hypothetically – all Ikea customers switched from ALKALISK alkaline batteries to LADDA rechargeable batteries, used them for high-drain devices and charged them just 50 times the global waste reduction would be as much as 5,000 tons on an annual basis.

    As one LADDA battery can be charged up to 500 times, the potential to reduce additional waste exists.   

  • H&M to close 250 stores next year, after the increase of online shopping

    H&M to close 250 stores next year, after the increase of online shopping

    H&M plans to close hundreds of stores next year after the coronavirus pandemic led to an increase online shopping, DPA and Reuters reported.

    H&M had 5.043 stores on August 31, in 74 markets, including franchises, worldwide.

    The Swedish company announced that it will reduce the number of stores by 250 in 2021, representing 5% of its current network. H&M also reported that sales continued to recover in September following the impact of the pandemic.

    On the Stockholm Stock Exchange, H&M shares were up 6% on Thursday.

    H&M financial results in Q2 2020

    Between June and August 2020, pre-tax profit fell to SEK 2.37 billion ($ 265.6 million) from SEK 5.01 billion a year ago.

    H&M local currency sales also fell by 5% in September, after declining by 19% between June and August 2020.

    Net profit halved in June-August 2020 to SEK 1.8 billion ($ 201 million) from SEK 3.8 billion a year ago. Quarterly sales fell to SEK 50.8 billion, while online local currency sales rose by more than a quarter.

    Sales fell in all major H&M markets, from 34% in the US to 16% in China and 10% in Germany.

    The Swedish group has seven brands: H&M, COS & Other Stories, Monki, Weekday, Arket and H&M Home.

  • European businesses are preparing for a historic recession

    European businesses are preparing for a historic recession

    Almost six in ten respondents at an Intrum survey say a Pan-European recession is a top three challenge when it comes to consumers paying on time over the next twelve months.

    In the survey, two measures among European companies clearly stand out. In order to protect their business in preparation for a recession and an economic upheaval, 38 per cent of respondents plan to cut costs, while 35 per cent will be more cautious about debt.

    29 per cent say they are looking to cut down on recruitment to prepare for a recession, compared to 18 per cent in 2019.

    ”Businesses are now taking necessary steps to prepare for a recession caused by the pandemic. Decreased revenues have reduced businesses’ cash flow and increased pressure on their outgoing payments”, says Mikael Ericson, President and CEO of Intrum.

    The payment gap is widening

    The estimated time between the agreed payment term and the actual duration of pay is now 14 days compared to 6 days in 2019 in B2B corporate payments.

    More than four in ten respondents (43 per cent) see risk from debtors increasing over the next twelve months and 19 per cent say it will increase significantly. Businesses are under increasing pressure by reduced liquidity, leaving many of them to search for alternative ways to free up cash.

    Nearly half (46 per cent) say the widening gap is a real risk to the sustainable growth of their business. During the crisis, more than half (51 percent) said that late payments threatened a liquidity squeeze for their business, compared to 35 percent of those surveyed before the crisis

    Real estate and construction hit hardest by late payments

    Intrum report highlights that businesses in the real estate and construction sector have been hit hardest by late payments. 41 per cent of these businesses say they now have accepted longer payments to avoid bankruptcy, whereas the European average is 35 per cent.

    At the same time, as previously reported, companies within hospitality and leisure still struggle with different government restrictions across Europe.

    Within this sector, four in 10 respondents (42 per cent) say that a recession will have a severe impact on their businesses – the highest figure of the 11 industries Intrum surveyed.

    Intrum has gathered data from 9.980 companies across 29 European countries covering 11 industry sectors. The survey was conducted during February to May 2020 (pre and during Covid-19).

  • Storytel to launch in Belgium in the fourth quarter of 2020

    Storytel to launch in Belgium in the fourth quarter of 2020

    Storytel will be launching its service in Belgium during the fourth quarter of 2020. The Belgian service will be operated from Netherlands. 

    The app will be curated in Dutch. A wide range of Dutch and French titles available in the app will be augmented with a substantial range of Belgian literature – fiction, thrillers, feelgood, children’s books, self-development, business literature, and much more.

    English and German titles will also be available within the service.

    “Bringing Storytel’s offering of great stories and user-friendly technology to Belgium is really something we are looking forward to, especially with the positive experience we have from the Netherlands, where Storytel has been available since 2013”, says Ingrid Bojner, Chief Communication Officer at Storytel.

    Storytel is one of the world’s leading audiobook and e-book streaming service and offers unlimited listening and reading of more than 500 000 titles on a global scale.

  • Swedish giant to acquire 13.000 hectares of forest land in Latvia

    Swedish giant to acquire 13.000 hectares of forest land in Latvia

    Svenska Cellulosa Aktiebolaget (SCA) has signed an agreement to acquire forest land in Latvia. The acquisition comprises an area of 19.150 hectares, of which 13.100 is forest land.

    The purchase price is EUR 44.5m, approximately SEK 450m.

    The standing timber volume amounts to 1.8 million m3fo. Some areas of the acquired land that are not forest land, will be divested.

    SCA has so far acquired 30.000 hectares of forest land in Estonia and Latvia.

    The seller is Isnaudas Forest Holding AB and the acquisition is expected to be closed in the fourth quarter of 2020.

  • Svenska Cellulosa Aktiebolaget issues bonds for SEK 2.5 billion

    Svenska Cellulosa Aktiebolaget issues bonds for SEK 2.5 billion

    Svenska Cellulosa Aktiebolaget (SCA) issued new bonds under the companys’ Medium Term Note programme (MTN).

    The total issuance amounted SEK 2.5 billion, of which SEK 1.3 billion with a 5 year maturity with fixed and floating rates, and SEK 1.2 billion with a seven year maturity with fixed rates.

    The interest rate margin was 0.80% per annum on the five year bond and 1.10% per annum on the seven year bond.

    The proceeds from the bond issue will be used for general corporate purposes, including the re-financing of outstanding bonds and other short term debt.

    Handelsbanken Capital Markets and Swedbank acted as Joint Bookrunners for the transaction. The bonds will be listed on Nasdaq Stockholm.

  • Stora Enso to shut down one newsprint paper machine in Hylte Mill

    Stora Enso to shut down one newsprint paper machine in Hylte Mill

    Stora Enso will start codetermination negotiations with employees at its Hylte Mill in Sweden regarding a plan to reorganise the mill, including permanent closure of paper machine PM3 and the deinking plant (DIP).

    After the planned restructuring, the mill would run on 100% thermomechanical pulp (TMP), improving the competitiveness of the unit. 

    The planned closure of PM3 and the reorganisation of the mill would impact a maximum of 140 persons. PM3 is planned to be closed by the end of 2020 and the DIP latest in Q2 2021.

    No decisions regarding the planned reorganisation or employee impact will be taken until the codetermination negotiations have been concluded.

    Impact on Stora Enso’s annual newsprint capacity

    Hylte Mill currently operates two newsprint machines with an annual capacity of 480.000 tonnes. Production at Hylte Mill would continue on one line, PM4 for standard newsprint paper.

    The planned shutdown would decrease Stora Enso’s annual newsprint capacity by 26% or 235.000 tonnes, which represents 4% of total European newsprint paper capacity.

    The planned shutdown would reduce Stora Enso’s total paper capacity by 5%.

    Stora Enso will continue to produce standard newsprint at Hylte, Langerbrugge and Sachsen mills. The closure of Hylte Mill PM3 would not impact Stora Enso’s newsprint product offering.

    The plan would result in annual cost savings of EUR 14 million

    Stora Enso will book restructuring costs of approximately EUR 12 million as an item affecting comparability (IAC) in its Q3 2020 results, of which about EUR 8 million will have a cash impact.

    The planned closure would not have material impact on Stora Enso’s sales or operational EBIT.

    ”The decline in global newsprint demand continues due to changes in consumer behaviour, and it is not expected to recover. This has led to global overcapacity, low operating rates, and poor profitability at the Hylte Mill,” says Kati ter Horst, EVP, Paper division.

  • Klarna, $650M funding round. It’s now the highest-valued fintech in Europe

    Klarna, $650M funding round. It’s now the highest-valued fintech in Europe

    Klarna announced it has raised $650 million in an equity funding round, at a post money valuation of $10.65 billion, which ranks Klarna as the highest-valued private fintech in Europe and the 4th highest worldwide.  

    The funding round is led by Silver Lake, alongside GIC – Singapore’s sovereign wealth fund – as well as funds and accounts managed by BlackRock and HMI Capital.

    Concurrently, Merian Chrysalis, TCV, Northzone and Bonnier have acquired shares from existing shareholders.

    They will join current investors such as Sequoia Capital, Dragoneer, Permira, Commonwealth Bank of Australia, Bestseller Group and Ant Group in supporting Klarna’s future growth.

    The funding will help Klarna further invest in its unique shopping offering, continue to grow its global presence, and accelerate its strong momentum across all markets, especially in the US where the company is growing particularly rapidly and now has more than 9 million consumers. 

  • H&M, collection inspired by a nineteenth-century writer Violet Paget

    H&M, collection inspired by a nineteenth-century writer Violet Paget

    H&M presents its Studio AW20 collection, ”The Refined Rebel”, inspired by those whose style is as daring as their attitude.

    The collection takes cues from the brave nineteenth-century writer Violet Paget (pen name Vernon Lee) and her residency in palatial Florence, and encapsulates her radically fearless style.

    The H&M Studio AW20 campaign will break from tradition by inviting Studio muses, Barbie Ferreira, Veronika Heilbrunner, Celeste, Alton Mason, Young Emperors and Mia Kong to co-create the campaign from their corners of the globe.

    Each talent will capture their unique interpretations of the collection; their style and individuality taking centre stage.

    Campaign has an exclusive social media filter

    The campaign’s exclusive social media filter hopes to encourage H&M’s audience to get involved.

    Customers are invited to share their personal styling of the collection, just as the campaign’s talents will be. Giphy stickers hope to inspire playful customisation too.

    The collection will be available at hm.com from 24th September.

  • Volvo’s buses batteries to be reused as energy storage units

    Volvo’s buses batteries to be reused as energy storage units

    After the batteries are removed from Volvo’s buses, they are reused as energy storage units for a number of years, for instance in buildings and charging stations.

    This is possible after a new cooperation between Volvo Buses and Stena Recycling subsidiary Batteryloop.

    Bus batteries are used for many years in regular traffic before they need to be replaced. However, when new batteries are fitted to the vehicle, the old ones still have considerable capacity left to offer.

    This capacity is too limited to efficiently propel a bus, but it is more than sufficient for static use for energy storage purposes.

    The new recently signed agreement has a global reach. It covers all the batteries for which Volvo Buses is responsible in its electric buses the world over.

    To date most of these buses are to be found in Europe, but the number of electrified buses is expected to increase in other parts of the world too. 

    Volvo bus batteries are used as energy storage units to provide electricity to one neighbourhood in Gothenburg

    Batteryloop and Volvo Buses have already previously been involved in a joint project with Stena Fastigheter, whereby bus batteries are used as energy storage units to provide electricity to the Fyrklövern residential area in Gothenburg.

    The electricity that is stored in these units comes from solar panels fitted to the apartment buildings’ rooftops.

    The demand for local energy storage units is expected to increase in the future. Not least, an energy storage unit offers new scope for storing renewable energy, which can be used to meet peaks in electricity demand. Any surplus can be sold, delivered straight into the grid.