Business continuity, risks and uncertainties

Lindex Group’s Interim Report 1 January – 31 March 2024, published on 26 April 2024

Lindex Group is exposed to risks that arise from the operating environment, risks related to the company’s own operations and supply chain as well as financial risks. The Group’s key risks are related to the macroeconomic situation and its possible negative effects on consumer behaviour as well as currency exchange rate fluctuations. As the Group’s supply chain is global, unexpected logistics problems could increase freight costs and lead times. In addition, Lindex Group’s business is affected by normal, seasonal fluctuations during the year. More detailed information on Lindex Group’s risks is given in the Financial Review 2023 at https://report.stockmanngroup.com/year2023/.

Lindex Group plc’s restructuring programme is proceeding according to plan, which means that all of Stockmann’s department store properties have been sold and all interest-bearing debt has been paid except for a bond of EUR 71.9 million. At the end of March, there were two remaining disputed claims regarding the termination of lease agreements that must be settled before the restructuring process can end. After the review period, one of them was settled.

Risk management in the lindex Group

The goal of risk management is to secure the Group’s earnings development and to ensure that the company operates without any disturbances by controlling risks in a cost efficient and systematic manner in all divisions.