OCTOBER - DECEMBER
NET SALES
Net sales amounted to SEK 2,024.1 million, which was 4% higher
than last year (SEK 1,943.4 million). Exchange rate effects had a
positive impact on sales of SEK 63.7 million, corresponding to
3%.
by SEK 40.7 million, but cost savings have also contributed to
the reduction. Personnel costs increased by SEK 9.6 million and
amounted to SEK -307.6 (-298.0) million. The increase is related
to exchange rate changes. Exchange rate changes increased the
external costs and personnel costs by SEK 20.7 million.
Net sales in Sweden decreased by 1%, which is related to the
promo sales channel. Retail were at the same level as last year.
The US increased its net sales, which is related to the exchange
rate change when translated to SEK. Net sales in local currency
decreased by 5%. The retail sales channel decreased while the
promo sales channel increased compared to the previous year.
The Nordic countries excluding Sweden had sales growth of 4%
and both sales channels increased. Net sales in Central Europe
have increased by 10%, which is related to both promo and retail.
Southern Europe increased by 8% and the promo sales channel
improved. Other countries increased by 10%, which is related to
the operations in Canada and Asia and the promo sales channel.
The Group's costs as a proportion of sales decreased (also
excluding IFRS 16), which applies to both external costs and
personnel costs.
Amortizations, depreciations and write-downs were higher
compared to last year and amounted to SEK -73.6 (-21.6) million.
The increase is primarily an effect of IFRS 16, which affected depre-
ciations by SEK -38.7 million, but also impairment of goodwill
in the Gifts & Home Furnishings segment had an impact of SEK
-11.4 million.
OPERATING RESULT
GROSS PROFIT
Operating result improved by SEK 30.9 million and amounted to
SEK 240.3 (209.4) million. The operating margin also improved
in relation to the previous year and amounted to 11.9% (10.8%).
The gross profit margin was slightly better than the previous year and
amounted to 46.7 (46.4) %. Corporate as well as Sports & Leisure
improved their margin while Gifts & Home Furnishings had a lower
margin.
NET FINANCIAL ITEMS AND TAXES
Net financial items amounted to SEK -21.3 (-12.8) million.
Accounting in accordance with the new accounting standard
IFRS 16 affected financial expenses by SEK -6.1 million. The
Group's net debt has increased, which has also contributed to
higher interest costs.
OTHER OPERATING INCOME AND OTHER
OPERATING EXPENSES
Other operating income increased by SEK 4.0 million to SEK
32.3 (28.3) million. Other operating income is mainly attribu-
table to currency gains, but also other remunerations, and should
be compared to the result row Other operating expenses, where
mainly currency losses are reported. Both years include a positive
result from business combinations that amounted to SEK 11.4
million (SEK 8.4 million). Other operating expenses increased
by SEK 2.6 million and amounted to SEK -12.4 (-9.8) million.
The net of the above items amounted to SEK 19.9 (18.5) million.
Tax on result for the period in absolute terms amounted to SEK
-53.1 (-37.7) million and the effective tax rate was 24.2 (19.2)%.
The higher tax rate is related to changes in deferred tax.
RESULT FOR THE PERIOD
Result for the period amounted to SEK 165.9 (158.9) million and
earnings per share amounted to SEK 2.53 (2.42).
COSTS AND DEPRECIATIONS
External expenses decreased by SEK 46.8 million and amounted
to SEK -343.8 (-390.6) million. The decrease is mainly related
to the new accounting standard IFRS 16, which reduced costs
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