New Wave Group AB Annual_report_2018_EN_HQ | Page 58

NWG // FINANCIAL INFORMATION
All segments have improved their gross profit
margins and for the Group as a whole this amounted
to 46.6 (46.1) %.
The Group has continued its high level of
marketing activities and new employments within
sales, warehousing and customer service. Gifts &
Home Furnishings has made start-ups in Kosta.
Besides the above-mentioned activities, even volume
related costs have contributed to the total cost
increase compared to last year.
Net financial items improved due to a new
funding agreement which contributed to lower
interest rates. The tax expense for the year has
increased compared to last year. Last year included
a positive change in deferred tax liabilities, which is
related to a lower corporate tax rate in the United
States. The periods result amounted to SEK 360.0
(354.0) million.
Cash flow from operating activities amounted
to SEK 222.6 (207.8) million. This is partly due to
a higher operating result but also a higher influx of
goods resulting in an increased debt to suppliers.
Stocks have risen due to continued stock build-up
in Canada as well as new product lines, primarily
within Craft and workwear and amounted to SEK
3,230.9 (2,643.4) million. Cash flow from investing
activities amounted to SEK -163.2 (-110.6) million,
which is mainly related to our investments in distri-
bution centers and IT.
As a result of our stock increase, equity ratio
decreased slightly to 48.6 (50.9) %. Net debt
increased by SEK 193.7 million and amounted to
SEK 1,831.0 (1,637.3) million. Net debt to equity
ratio and net debt in relation to working capital
decreased and amounted to 53.3 (54.1) % and 57.0
(57.4) % respectively.
Net sales
Net sales amounted to SEK 6,290.6 million, which
was 12 % higher than last year (SEK 5,597.3 million).
Exchange rates have affected the turnover positively
by SEK 185.4 million which corresponds to 3 %. Of
the Group's sales channels, promo increased by 16 %
and retail by 8 %.
The Group had turnover growth in all regions. Of
our sales channels, promo had growth in all regions,
while retail increased in five out of six regions
(only retail in Southern Europe decreased slightly).
Turnover in Sweden increased by 5 %, the United
States increased by 11 %, other Nordic Countries
increased by 11 %. Turnover in Central and Southern
Europe increased by 11 % (5 % in local currency)
and 14 % (8 % in local currency) respectively, as well
as Other countries which increased by 46 %. The
improvement in Other countries is related to Asia
and Canada.
Net sales
SEK million
USA
Sweden
Central Europe
Nordic countries excl. Sweden
Southern Europe
Other countries
Total
058 // ANNUAL REPORT
2018 Share of
net sales 2017 Share of
net sales Change Percentage
change
1 579.7
1 529.9
986.4
807.1
716.5
670.9
6 290.6 25%
24%
16%
13%
11%
11%
100% 1 423.7
1 463.8
891.1
727.7
630.8
460.2
5 597.3 25%
26%
16%
13%
11%
8%
100% 156.0
66.1
95.3
79.4
85.7
210.7
693.3 11%
5%
11%
11%
14%
46%
12%