The rapidly developing global situation related to the coronavirus has led to a more negative view of the effects on the business, with the conclusion that there will be a material financial impact in 2020. The company is therefore taking mitigating actions to protect earnings and cash flow.
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In the subsequent days, several additional authorities globally have imposed strict countermeasures, including the closure of industrial activities, retail shops and cross-border transit. This development has caused a sharp decrease in demand and to some extent the possibility to produce products.
Given the severity of the situation, which has led to that a number of retailers has stopped all business for the coming weeks, as well as a majority of the customers making large order revisions from retailers in recent days, the company expects a material financial impact in 2020. Management sees a minor impact in first quarter, as previously communicated, with a significantly larger impact starting from the second quarter, which is normally the peak season for the company.
It is not, at this point in time, possible to quantify or predict the full impact and
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-We are in close dialogs with our supplier and customers. It is a priority for
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