REPORTING OF
OPERATING SEGMENTS
New Wave Group divides its operations into the segments
Corporate, Sports & Leisure and Gifts & Home Furnishings.
The Group monitors the segments’ and brands’ sales as well as
EBITDA. The operating segments are based on the Group's opera-
tional management. related to a positive result from business combinations of SEK 11.4
million and from IFRS 16 that had a positive impact on EBITDA
of SEK 4.0 million. Excluding the effects of these two items, the
result decreased slightly, which is related to lower net sales and a
lower gross profit margin.
CORPORATE Net sales for the year increased by 2% to SEK 660.0 (647.8)
million. Sales increased in Sweden, Central Europe and Asia,
while the Nordic countries (excluding Sweden) declined. Both
sales channels increased their net sales. EBITDA improved
compared to last year and amounted to SEK -1.5 (-10.6) million,
which is attributable to a positive result of SEK 11.4 million from
a business combination and that the new accounting standard
IFRS 16 had a positive impact on EBITDA with SEK 10.1 million.
Excluding these items, EBITDA decreased, which is related to
lower gross profit margin and higher costs in the form of more
market activities.
Net sales for the year increased by 9% to SEK 3,356.0 (3,069.0)
million. All regions increased their net sales except Sweden, which
decreased slightly compared to last year. It was mainly within the
promo sales channel that sales increased. EBITDA increased by
SEK 107.4 million and amounted to SEK 460.5 (353.1) million.
The improved result is related to the increased net sales, but the
segment also had higher costs. The higher costs were in the form
of more sales and marketing activities and higher costs for dist-
ribution units. The cost increase for the distribution units was
related to larger premises as well as other improvement measures
to increase the service level. IFRS 16 had a positive impact on
EBITDA of SEK 88.0 million. Capital tied up in stock amounted to SEK 3,557.9 million and
increased by SEK 327.0 million compared with the previous year
(SEK 3,230.9 million). The increase is mainly related to new
product ranges but also to exchange rate changes. When trans-
lated to SEK, inventory value increased by SEK 67.8 million. The
Group has a well-balanced inventory and the service level is good.
Inventory turnover is on par with the previous year and amounted
to 1.1 (1.1) times.
Net sales for the period October-December increased by 7% to
SEK 1,048.0 (977.5) million. Sales growth occurred in all regions
except Sweden, which had slightly lower net sales than last year.
It was mainly the promo sales channel that increased its sales.
EBITDA increased by SEK 40.1 million and amounted to SEK
185.1 (145.0) million. The improved result is related to higher net
sales but also to the new accounting standard IFRS 16, which had
a positive impact of SEK 28.2 million. However, the segment also
has higher costs in the form of more sales and marketing activities
and higher costs for distribution units. The cost increase for the
distribution units was related to larger premises as well as other
improvement measures to increase the service level.
CAPITAL TIED UP
SEK million
Raw materials
Work in progress
Goods in transit
Finished goods
Total
SPORTS & LEISURE
Net sales during the fourth quarter increased by 3% to SEK
771.7 (750.1) million. Sales increased in both sales channels.
The segment had growth in all regions except the US. EBITDA
increased by SEK 30.8 million and amounted to SEK 115.2 (84.4)
million. The improvement in result is related to higher net sales,
cost savings and that IFRS 16 had a positive impact on EBITDA
of SEK 8.8 million.
31 Dec
2019
49.3
12.6
195.0
3,301.0
3,557.9
31 Dec
2018
40.3
14.0
222.6
2,954.0
3,230.9
Accumulated write-downs of inventories amounted to SEK
136.7 (121.5) million and write-downs related to finished goods
amounted to 4.0 (4.0)%.
Net sales for the full year increased by 12% to SEK 2,887.4
(2,573.7) million. Sales increased in both sales channels, with
promo increasing by 10% and retail by 13%. The segment expe-
rienced growth in all regions. EBITDA increased by SEK 90.9
million and amounted to SEK 309.1 (218.2) million. The impro-
vement in result is related to higher net sales, but the segment also
had higher costs for sales, marketing and distribution units. IFRS
16 had a positive impact on EBITDA of SEK 37.9 million.
Accounts receivable amounted to SEK 1,192.8 M (1,084.1), where
the increase is related to higher net sales.
GIFTS & HOME FURNISHINGS
Net sales during the period October-December decreased by
5% to SEK 204.4 (215.7) million. The lower net sales are mainly
related to Sweden, but other Nordic countries also declined. Sales
decreased in both sales channels. EBITDA was higher than last
year and amounted to SEK 13.6 (1.8) million. The improvement is
10