After reviewing its logistics, Bubbleroom has now decided to cease operating its own warehouse. The e-commerce retailer is selling its warehouse facility to Hökerum Square Auto 4 AB. Simultaneously, the lease agreement for the property in Borås is being transferred to Logent AB.
In the future, Bubbleroom will instead rent a specific area within the same building.
A more flexible and scalable logistics solution gives the company better conditions to increase turnover in a long-term profitable manner, says CEO Magnus Månsson.
More Money in the Cash Register
The sale of the warehouse system provides Bubbleroom with a net capital injection of 32 million Swedish krona, and the total purchase price amounted to 48.4 million Swedish krona. This will give the company a positive earnings effect of 14 million Swedish krona, which will be reflected in the next quarterly report.
The released capital creates increased space to finance further investments, including our continued expansion into the European market, says Magnus Månsson.
In addition to the cash injection, the e-commerce retailer expects reduced fixed costs in the future. The annual positive effect is estimated at between 4 and 7 million Swedish krona from next year.
Building on a Positive Quarter
The new solution follows a historically strong second quarter for the company.
Turnover increased by 15.2 percent to 145.9 million Swedish krona. Operating profit also improved, reaching 6.4 million Swedish krona. The company's own e-commerce drove sales, while the company reduced volumes on external marketplaces.
The adjustment of our range has been well received by customers and, combined with our cost measures, we see that this is now translating into improved profitability, commented Magnus Månsson in a previous report.