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(Alliance News) - Currys PLC on Thursday bemoaned a tough consumer environment in the Nordics, as it appointed a new chief executive officer for the region amid ongoing performance challenges.
The London-based electronics and electrical goods retailer replaced Nordics CEO Erik Sonsterud with Fredrik Tonnesen, who was at the time serving as chief operating officer in the region.
"I'm excited to appoint Fredrik. He's an exceptional leader, with an outstanding track record, including as Managing Director of Norway for four years of profitable growth and recently as Nordics Chief Operating Officer, where he's driven big improvements in cost efficiency and customer experience in a short time. As we move on, I'd like to take this opportunity to thank Erik Sonsterud for his dedicated leadership in challenging circumstances, as well as for his pivotal role in laying many foundations on which we can now build. I wish Erik every future success," said Group Chief Executive Alex Baldock.
The switch, which has immediate effect, accompanies several other initiatives undertaken by Currys in an attempt to restore the Nordics business to its previously healthy levels of profit.
The group told investors that Nordics performance remains "very challenging", as the group faces a tough consumer environment, high cost inflation, and "unrelenting competitive intensity".
Other cost saving initiatives include reduced marketing spend and promotional intensity, removed spend on contractors and external consultants, and reduced head office and back-office headcount.
Total cash exceptional restructuring costs are expected to be in the GBP15 million to GBP20 million range, predominantly incurred in financial 2023 and 2024.
"Our Nordics performance is not where we want or expect it to be. The intensity of competition may be unrelenting, but we're no stranger to tough markets and aggressive competitors wanting to knock us off our #1 position as the go-to destination for all things tech. We now need to go further and faster to improve our performance," said Baldock.
Looking ahead, Currys expects to deliver financial 2023 adjusted profit before tax broadly in line with consensus of GBP104 million. This is at the lower end of its previously guided range of between GBP100 million and GBP125 million.
It anticipates finishing the year with GBP100 million to GBP150 million of net debt, from its previous guidance of less than GBP100 million.
Currys shares 3.6% lower at 69.05 pence each in London on Thursday at noon.
By Holly Beveridge, Alliance News reporter
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