Boho Group launches efficiency plan adapted to current operations - annual savings of SEK 10 million
Boho Group AB (publ) ("Boho Group" or the "Company") has had a successful summer with increased sales at Boho Club and the completion of new facilities, which are expected to contribute to continued growth in the fourth quarter with full impact in 2025. The Company's objective is now to build on these successes and ensure a stable operating profit and cash flow from operations. To this end, the company is continuing its plan to align its organisation and costs with its current streamlined strategy and business model focused on hotel development and operations. In 2024, cost savings equivalent to 25% of the central administration for 2023 have already been implemented, and these efforts will now be expanded to include annualised central administration savings of in total approximately 50% compared to 2023, equivalent to approximately SEK 10 million per year. The changes are expected to be fully implemented by the end of 2024.
The Company's plan to continue to grow the business with more properties that can be operated and developed under the Boho Club brand remains intact. The efficiency improvements are mainly due to savings associated with the more focused organisation that the Company has today, following the reduction in the number of business units, as well as the review and renegotiation of certain contracts. The leaner structure is expected to generate positive operating income in 2025.
To further strengthen the Company's long-term competitiveness and profitability, Boho Group will also focus on improving digital solutions and customer experience, as well as optimising the operations of existing businesses. These actions, combined with planned efficiency plans, are expected to create a more agile and sustainable organisation that is better prepared for future challenges and opportunities.
We see great potential in Boho Club and the direction we have chosen for the future. By continuing to focus on our core business and streamlining our cost structure, we are confident that we can create long-term value for both our customers and shareholders,' says Andreas Bonnier, CEO of Boho Group.
If you have any questions, please contact:
Boho Group AB (publ)
Andreas Bonnier, CEO
E-mail: andreas@bohogroup.com
Phone: +46 733 36 65 77
Website: www.bohogroup.com
About the company
Boho Group is a hotel development and operating company at the top end of design and quality, operating on the Spanish Costa del Sol. The company was founded in 2014.
Boho Group owns and operates Boho Club, a boutique resort on the Golden Mile in Marbella that is award-winning for its design and architecture. Since its launch in 2019, both the hotel and restaurant have established themselves as a leading player in Marbella. Visit the Boho Club website, www.bohoclub.com, to book a hotel room or a table in the restaurant. The restaurant is open every day and serves breakfast, lunch and dinner.
Mangold is the Company's Certified Adviser. Mangold can be reached on telephone number 08-503 015 50 or e-mail ca@mangold.se.