The Orio AB, supplier of Saab original spare parts, publishes its Half-year figures, For the first 6 months, net sales decreased by 18%. Not all business units and markets developed consistently. It is therefore appropriate to take a closer look. One thing is certain: the new one CEO a mountain of work is waiting.
Particularly hard in the first half of the year is the logistics sector. Actually, he should be a mainstay of the business model. But after the expiry of the Opel contract and the integration of the Opel spare parts supply into the PSA organization, revenues plunge by 52% to 10 million SEK (1,06 million €). But Orio remains confident about the future and announces negotiations with new potential customers.
Worldwide sales of Saab spare parts were mixed. The decrease was 16% to 238 million SEK (25,17 million €). After the market in North America had already suffered a sharp decline 2018, the revenues fall by another 18% to 66 million SEK (6,98 million €) from. However, the phase of strong sales losses seems to be over, as 2019 only posted a minus of 10% in the second quarter. The UK is also in minus with 10%, the Nordic markets report - 11% to the first half of last year.
The German market is quite different. Although never one of the strongest markets for the brand, it has been a reliable pillar for Orio AB for years. In the first quarter of 2019, the German subsidiary was able to announce increasing sales, in the following months they declined again. With a modest decline of only 4%, which could also be defined as a regular fluctuation, Germany is bucking the trend and is therefore only just behind the sales in Great Britain. If one counts on 12 months, then the sales market on the island and Germany is the same, it seems only a matter of time until the former Saab flagship market is overtaken.
The Orio AB wants to risk more Saab
While the half-year loss widened to 12 million SEK (1,27 million €), Nyköping reports an unchanged high gross margin when trading Saab original spare parts. Orio AB will continue its strong commitment to the brand and align its strategy accordingly.
In addition to improvements in efficiency, the company aims to grow in a market that continues to shrink. To realize the Swedes want to regain lost market shares of competitors. A strategy that surprisingly reads after years of giving up positions without need. There are more and more gaps in the product range that are difficult to explain. The coming months will show if the announcement is followed by action. Workshops, partners and Saab drivers would certainly welcome that.