FINANCIAL INFORMATION
GROSS PROFIT CORPORATE PROMO
The gross profit margin was at the same level as last year and
amounted to 46.1 (46.0) %. Turnover increased by 11 % to SEK 2,648.7 (2,388.6) million
and EBITDA amounted to SEK 289.7 (250.8) million. The higher
turnover was mainly due to increased marketing activities but
also a good service level. Growth is occurring in all regions. The
improved result is related to the increased turnover.
OTHER OPERATING INCOME
AND OTHER OPERATING COSTS
Other operating income increased by SEK 0.2 million to SEK 51.2
(51.0) million. Other operating income is mainly attributable to
operating currency gains but also other remunerations and should
be compared to the result row "Other operating expenses" where
mainly currency losses are reported. Other operating expenses
decreased by SEK 0.5 million to SEK -25.2 (-25.7) million. The
net total of above items amounted to SEK 26.0 (25.3) million.
COSTS AND DEPRECIATION
External costs have increased by SEK 31.1 million and amounted
to SEK -1,128.9 (-1,097.8) million. The cost increase is related to
more sales oriented activities. Personnel costs increased by SEK
58.7 million and amounted to SEK -940.3 (-881.6) million. The
increase is due to an increase in the number of employees, mostly
in sales, warehouses and customer service.
Exchange rates have increased costs SEK 10 million.
Depreciation and write-down losses increased and amounted to
SEK -65.3 (-55.9) million. The increase is primarily related to
investments in IT systems.
OPERATING MARGIN
The operating margin amounted to 8.4 (7.6) % where impro-
vement was mainly related to the increase in turnover.
NET FINANCIAL ITEMS AND TAXES
Net financial items decreased by SEK 8.0 million and amounted
to SEK -51.9 (-59.9) million, which is related to an improved net
interest.
Income taxes in absolute terms amounted to SEK -63.2 (-63.6)
million and the tax rate amounted to 15.1 (18.7) %. The lower
tax rate for the current year is mainly due to a change in deferred
tax liabilities, which is related to a lower corporate tax rate in the
United States.
RESULT FOR THE YEAR
Result for the year improved by SEK 77.3 million and amounted
to SEK 354.0 (276.7) million. Earnings per share amounted to
SEK 5.34 (4.16).
REPORTING OF OPERATING SEGMENTS
New Wave Group AB divides its operations into segments
Corporate Promo, Sports & Leisure and Gifts & Home
Furnishings. The group monitors the segments’ and brands’ sales
and EBITDA. The operating segments are based on the group's
operational management.
52 | NWG 2017
SPORTS & LEISURE
Turnover amounted to SEK 2,311.5 (2,260.8) million, resulting
in a growth of 2 %. EBITDA improved by SEK 35.8 million to
SEK 230.3 (194.5) million. Sales increased mainly in Sweden and
Central Europe as well as the promo sales channel. The higher
result is related to higher turnover but also a better gross profit
margin contributed.
GIFTS & HOME FURNISHINGS
Turnover amounted to SEK 637.1 million, which was 8 % higher
than last year (SEK 587.7 million). EBITDA improved by SEK 3.6
million to SEK 14.4 (10.8) million. Sales grew in the retail sales
channel and mainly in the Swedish market. The improvement is
mainly turnover related but the segment has even higher costs for
sales and marketing investments, as well as a slightly lower gross
profit margin.
NET SALES AND EBITDA PER OPERATING SEGMENT
SEK million
Corporate Promo
Net sales
EBITDA
Sport & Leisure
Net sales
EBITDA
Gifts & Home Furnishings
Net sales
EBITDA
Total net sales
Total EBITDA
2017
2 648.7
289.7 2016
2 388.6
250.8
2 311.5
230.3 2 260.8
194.5
637.1
14.4 587.7
10.8
5 597.3
534.4 5 237.1
456.1
CAPITAL TIED UP
The Group has during the year increased merchandise on stock in
its basic range but also with new basic collections. Inventories are at
a good level and we have had a good level of service throughout the
year. Capital tied up in goods has increased by SEK 147.0 million
and total inventories amounted to SEK 2,643.4 (2,496.4) million.
The turnover rate in inventories was slightly higher compared to
last year and amounted to 1.2 (1.1). The inventory value is expected
to increase in the coming quarters which is primarily related to
an extended product range within Craft and a new warehouse in
Canada.