KH Group Plc
Press Release 15 January 2025 at 1:00 pm EET
Indoor Group continues efficiency measures to improve profitability.
In connection with this, CEO Lauri Veijalainen will leave the company.
On 15 August 2024, KH Group announced an operating model reform programme aimed at improving the group company Indoor Group's profitability, with Indoor Group seeking to improve its annual operating profit by at least EUR 10 million. Change negotiations related to the reform ended in December, and as a result, 162 employment relationships will be terminated in the company.
The change negotiations that have now been concluded are part of Indoor Groups extensive operating model reform, which is focused on the nationwide consolidation of the operations of Asko and Sotka stores that are located adjacent to each other. Taking comprehensive advantage of the two strong Finnish brands, shared business premises, an efficient sales organisation and the new ERP system enables a better customer experience and a broader product range, while improving the company’s competitiveness in the long term.
The company’s profit performance has not been satisfactory and, following the change negotiations, the company has decided to investigate further measures to improve profitability and the efficiency of operations in a market situation that remains very challenging.
At the same time, it has been mutually agreed that CEO Lauri Veijalainen will leave his position. Kati Kivimäki, Chair of the Board of Directors of Indoor Group, will act as an interim CEO until a new CEO is elected. The recruitment process for a new CEO will start immediately.
The Board of Directors of Indoor Group would like to thank Lauri Veijalainen for his valuable contribution to the company. During his term as CEO, the company deployed the ERP system and initiated a comprehensive operating model reform programme to improve competitiveness.
KH GROUP PLC
FURTHER INFORMATION:
CEO Ville Nikulainen, tel. +358 40 045 9343
Chair of the Board of Directors of Indoor Group Kati Kivimäki, tel. +358 46 876 1500
DISTRIBUTION:
Nasdaq Helsinki Ltd
Major media
www.khgroup.com
KH Group Plc is a Nordic conglomerate operating in the business areas of KH-Koneet, Indoor Group and Nordic Rescue Group. We are a leading supplier of construction and earth-moving equipment, furniture and interior decoration retailer as well as rescue vehicle manufacturer. The objective of our strategy is to create an industrial group around the business of KH-Koneet. KH Group’s share is listed on Nasdaq Helsinki.
