After the divestment, the company will primarily concentrate on its core brands: Urbanista, Clckr, Planet Buddies, and Richmond & Finch. Nevertheless, the Distribution business segment will continue to play a role in generating revenue.

Returning to Strax's to-do list, there are still things to do. According to management, it should be able to close the divestment of Health & Wellness and Telecom Lifestyle Fashion during the year, at the latest, to start with a clean slate in 2024.
 

Sales from the Own Brand segment were soft this quarter, leading us to take down our short-term sales projections. However, management anticipates a revitalized market by late 2023, transitioning into 2024, and expects sales momentum to increase as the year progresses. With an anticipated rise in sales and reduced operating expenses, we forecast a positive EBITDA margin of 3.5% in 2024. This upward trajectory is set to persist in the following years, benefiting from the scaling effect and a leaner cost structure.
Our base case value stands at SEK 2.50 (2.8), with a bear case of SEK 1 (0.6) and a more optimistic bull case of SEK5 (6).