New Wave Group AB Annual_report_2018_EN_HQ | Page 61

NWG // FINANCIAL INFORMATION
Net sales and EBITDA per operating segment
SEK million
Corporate
Net sales
EBITDA 2018
3 069.0
353.1 2017
2 648.7
289.7
Sports & Leisure
Net sales
EBITDA 2 573.7
218.2 2 311.5
230.3
647.8
-10.6 637.1
14.4
6 290.6
560.7 5 597.3
534.4
Gifts & Home Furnishings
Net sales
EBITDA
Total Net sales
Total EBITDA
Capital tied up
Capital tied up in stock amounted to SEK 3,230.9
million and increased by SEK 587.5 million,
compared with last year (SEK 2,643.4 million).
The increase is related to the Group's continued
build-up of stock in North America as well as new
product lines. In addition, the currency exchange
effects increased the value by SEK 93.5 million.
The Group has a well-balanced stock and the level
of service is good. The stock value is expected to be
at a higher level even during the coming quarter due
to our extended promo range. Stock turnover is on
par with last year and amounted to 1.1 (1.2) times.
SEK million
Raw materials
Work in progress
Goods in transit
2018-12-31 2017-12-31
40.3
14.0 34.9
8.7
222.6 144.0
Goods for resale in stock 2 954.0 2 455.8
Total 3 230.9 2 643.4
Inventories were written down by SEK 121.5 (106.0)
million. Write-down related to goods for resale in
stock amounted to 4.0 (4.1) %.
Accounts receivable amounted to SEK 1,084.1
(982.8) million and the increase is turnover related.
Investments, financing and
liquidity
The cash flow from operating activities improved
somewhat and 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. Cash flow from investing
activities amounted to SEK -163.2 million, which is
SEK 52.6 million higher than last year (SEK -110.6
million). The increase is mainly due to investments
in distribution centers and IT.
Net debt increased by SEK 193.7 million
and amounted to SEK 1,831.0 (1,637.3) million.
However, the decline in the net debt to equity ratio
and net debt in relation to working capital amounted
to 53.3 (54.1) % and 57.0 (57.4) % respectively.
The equity ratio decreased somewhat compared
to last year and amounted to 48.6 (50.9) %.
The Group signed a new funding agreement as
of 11 April 2018. The total credit facility under this
agreement amounted to SEK 2,765 million as of 31
December, of which SEK 2,000 million runs until
and including March 2022 and USD 30 million
has a maturity which runs until and including
January 2024. The other SEK 500 million has a
term of between three months and six years. The
credit facility amount is limited to and dependent
on the value of some underlying assets. The funding
agreement means that financial ratios (covenants)
must be fulfilled in order to maintain the credit
facility.
Based on the present forecast, management
estimates that the group will be able to meet these
ratios with a satisfactory margin.
Intangible assets
The Group's intangible fixed assets consist mainly
of goodwill and trademarks. The trademarks with
greater value recorded at cost are well-known trade-
marks such as Orrefors and Kosta Boda within Gifts
& Home Furnishings as well as mainly Cutter & Buck
within Sports & Leisure. The Group’s book values
are tested annually to assess whether any need for
impairment exists.
ANNUAL REPORT // 061