The second quarter of 2022 was to some extent business as usual when looking back at the past couple of years. Challenging external environment stemming from various factors, such as supply chain constraints, shift in demand, strengthening of the US dollar and Covid-19 looming over us. All of these prolonging the uncertainty and creating an environment where change is somewhat the only constant. STRAX was nevertheless able to steer through the headwinds and we delivered reasonable results in the quarter.
More importantly however, we continued to prepare STRAX for the future in a leaner and simpler operating structure, where we will have two fully independent businesses, STRAX Distribution and Xstra Brands, previously referred to as House of Brands. We expect that the business split will ultimately provide investors with better transparency of the performance of each business, enabling them to independently value the businesses, rather than as a consolidated group. We are also hopeful that the two business segments will develop more favorably on their own and create better foundation for each part to reach their full potential.
We are tirelessly working at stabilizing our business which is forcing us to reassess the opportunities and risks ahead, as well as rearranging our priorities. In line with this we are rationalizing our own brands portfolio and as of this date it´s likely that we will reduce the number of brands and the type of businesses we engage in. Ultimately this will provide for increased focus on fewer brands that will lead to faster growth. Additional benefits are reduced operational complexity and improved transparency, both internally as well as towards all external stakeholders.
