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UPDATE 1-Stockmann sells its grocery business in Finland
June 30, 2017 / 6:14 AM / 3 months ago

UPDATE 1-Stockmann sells its grocery business in Finland

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June 30 (Reuters) - Stockmann:

* Finnish department store and fashion chain group Stockmann Oyj said on Friday it will sell its grocery business to Finland’s largest food retailer S Group for 27 million euros ($30.85 million)

* Company said the deal will improve Stockmann Group’s profitability from 2018 onwards, with positive cash flow of around 20 million euros and one-time capital gain of around 3 million euros

* “To generate profitable growth, Stockmann must make strategic choices. Changes particularly in the food procurement and logistics market in Finland have affected Stockmann Delicatessen’s competitiveness”, Stockmann Chief Executive Lauri Veijalainen said in a statement

* The grocery business represented 12 percent of Stockmann Group’s merchandise sales in 2016, making 127 million in revenue and an operating loss of 11 million euros

* Stockmann kept its outlook for 2017 unchanged Source text for Eikon: Further company coverage: ($1 = 0.8752 euros) (Gdynia Newsroom and Tuomas Forsell, editing by Terje Solsvik)

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