Munters is on a journey delivering on the strategy set forth early 2020. As part of this, business area FoodTech has completed a strategic review outlining measures to strengthen its digital offering and climate solutions part of the business. Implementation will start in the second quarter 2021.
At the start of 2020 Munters launched a new strategy. Following this, a strategic review of the two business areas has been made. As a consequence, measures to sharpen the customer offering and optimize the footprint, mainly related to the business area AirTech, were announced in July 2020. Following the finalization of the strategic review of business area FoodTech, measures related to its strategy implementation will start in the second quarter of 2021.
FoodTech has outlined a clear direction for the future regarding both the digital offering and the climate solutions part of the business. The overall focus is to create a unique connected offering throughout the food production value chain. In digital solutions it is aiming at accelerating growth in IoT and SaaS solutions by leveraging the current strong market position and to strengthen our capabilities in software development. Within climate solutions focus on value based selling will increase as well as strengthening the market positioning for equipment by continued innovation, product rationalizations and efficiency improvements. All measures are expected to be implemented within the next 18 months.
Costs are estimated to approximately MSEK 140, of which approximately MSEK 110 are estimated to have a cash flow impact. In addition, there will be capex investments made amounting to an estimated MSEK 20. The full-year positive impact on adjusted EBITA in 2023 is estimated to be approximately MSEK 70.
In the second quarter of 2021, Munters will incur Items Affecting Comparability (IACs) amounting to approximately MSEK 85, whereof approximately MSEK 60 with cash flow impact. The remaining costs will be booked as IACs and reported as incurred.
On May 11, Munters Group Management will describe the Munters strategic journey more in detail at the Capital Markets Update, starting at 14.00 CET. Find more details on munters.com, investor relations.
