JANUARY - MARCH
RESULT FOR THE PERIOD
Result for the period amounted to SEK 6.0 (24.9) million and
earnings per share amounted to SEK 0.10 (0.38).
NET SALES
Net sales amounted to SEK 1,272.8 million, which was 1 % higher
than last year (SEK 1,264.2 million). Exchange rates affected sales
negatively by SEK 23.2 million, corresponding to 2 %. The quar-
ter´s sales have also been affected by the fact that Easter this year
occurred in March instead of April.
REPORTING OF
OPERATING SEGMENTS
New Wave Group AB divides its operations into the segments
Corporate Promo, Sports & Leisure, and Gifts & Home
Furnishings. The Group monitors the segments’ and brands’
net sales and EBITDA. The operating segments are based on the
Group's operational management.
Net sales in Sweden decreased by 3 % compared with last year,
attributable to the retail sales channel. The USA decreased by
4 %. The decrease is related to foreign exchange fluctuations when
converted into SEK. Turnover in local currency increased by 5 %
and the improvement occurs in the promo sales channel. The Nordic
countries (excl. Sweden) were on par with last year. However,
the sales in the promo channel increased while retail decreased.
Net sales in Central Europe and Southern Europe increased by
3 % and 8 % respectively. Sales growth in Central Europe is attri-
butable to foreign exchange fluctuations when converted into SEK.
Turnover in local currency was on par with last year. Southern Europe
increased in the promo sales channel. Other countries increased
by 11 %. The improvement occurs in Canada and Asia as well as
the promo sales channel.
CORPORATE PROMO
Net sales for the first quarter amounted to SEK 620.5 (589.7)
million. The increase in turnover is due to increased sales and
marketing activities. It is the promo sales channel which increased
and mainly the regions USA and Other countries (Canada, Asia).
EBITDA amounted to SEK 42.8 (37.4) million. The improvement
in EBITDA is related to the increased turnover and higher gross
margin. The segment has also been adversely affected by increased
costs for sales and marketing.
GROSS PROFIT
SPORTS & LEISURE
Gross profit margin improved and amounted to 46.8 (45.2) %.
The improvement is related to the segments Corporate Promo and
Sports & Leisure while Gifts & Home Furnishings decreased.
Net sales decreased somewhat and amounted to SEK 530.5 (553.0)
million. Sales increased in the promo sales channel but decreased
in retail. It is mainly in the regions of Sweden and Nordic countries
(excl. Sweden) that the increase occurs. EBITDA amounted to
SEK 13.2 (29.2) million. The lower result is primarily related
to lower turnover and higher costs for marketing. However, the
segment has improved its gross profit margin compared with last
year.
OTHER OPERATING INCOME AND OTHER
OPERATING EXPENSE
Other operating income increased by SEK 5.0 million to SEK 15.9
(10.9) 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 operating currency losses are reported. Other operating
expenses increased by SEK 4.0 million to SEK -11.8 (-7.8) million.
The net total of above items amounted to SEK 4.1 (3.1) million.
GIFTS & HOME FURNISHINGS
Net sales in the segment was on par with last year and amounted
to SEK 121.8 (121.5) million. The segment increased its sales in the
promo sales channel and decreased in retail. EBITDA amounted
to SEK -19.9 million which was SEK 11.4 million lower than last
year (SEK -8.5 million). The lower result is related to a lower gross
profit margin and higher costs for marketing activities.
COSTS AND DEPRECIATION
External costs increased by SEK 28.6 million to SEK -317.2
(-288.6) million. The increase is related to increased investments
in sales and marketing.
CAPITAL TIED UP
Personnel costs amounted to SEK -246.4 million which is SEK
18.3 million higher than last year (SEK -228.1 million). The
increase is related to more employees, mostly in sales.
Capital tied up in inventories has increased by SEK 256.2 million
compared to last year's first quarter and amounted to SEK
2,810.3 (2,554.1) million. The increase is related to our extended
product range and the construction of our warehouse in Canada.
The turnover rate in inventories has therefore decreased slightly
and amounts to 1.0 (1.1) times. The inventory value is expected to
be at a higher level than before even in the coming quarters.
Depreciation was slightly higher compared to last year and
amounted to SEK -17.6 (-15.0) million.
Currency exchange rates decreased costs by SEK 11.8 million.
OPERATION MARGIN
SEK million
Raw materials
Work in progress
Goods in transit
Merchandise in stock
Total
Operating margin amounted to 1.5 (3.4) % where the decrease
is related to higher costs in connection with increased sales and
marketing activities.
NET FINANCIAL ITEMS AND TAXES
Net financial items amounted to SEK -10.2 (-12.5) million. The
improvement was related to lower interest expenses.
Tax on profit for the period amounted to SEK -2.4 (-5.8) million.
6
2018-03
34.5
10.3
146.7
2 618.8
2 810.3
2017-03
27.3
7.0
116.2
2 403.6
2 554.1