SUMMARY OF THE QUARTER JANUARY - MARCH
Net sales in the first quarter amounted to SEK 1,272.8 million, which was 1 % (3 % in local currency) higher than
last year (SEK 1,264.2 million). The quarter’s sales have been affected by the fact that Easter this year, unlike the
previous year, was in the first quarter (the so called calendar effect).
The Corporate Promo segment increased its sales by 5 %. The improvement occurs mainly in USA
and Other countries (Canada and Asia) and it is the promo sales channel that is increasing.
Sports & Leisure sales decreased by 4 % and occur mainly in Sweden, Nordic countries (excl. Sweden) and
USA. USA was affected negatively by exchange fluctuations when converted into SEK and sales in local
currency have increased. The Sport & Leisure segment had an increase in the promo sales channel while
retail decreased. Gifts & Home Furnishings sales was on par with last year and even here it is the promo sales
channel that increased while retail decreased.
Of our sales channels, promo increased by 7 % and retail decreased
by 7 %.
Operating result amounted to SEK 18.6 million, which was SEK
24.6 million lower compared to last year (SEK 43.2 million).
The decrease is attributable to the higher costs in relation to invest-
ments in sales and marketing. Financial expenses have decreased
which is attributable to an improved interest net.
Our gross profit margin improved and amounted to 46.8 (45.2) %.
We have a good level of service and the margin for each segment
shows improvement in Corporate Promo and Sports & Leisure but
Gifts & Home Furnishings has a lower margin.
Inventories increased by SEK 256.2 million to SEK
2,810.3 (2,554.1) million. The increase is related to an extended
product range and our new warehouse in Canada. Cash flow
from operating activities was lower compared with last year and
amounted to SEK 6.6 (33.6) million. This is attributable to the
lower operating result. Net debt decreased slightly and amounted
to SEK 1,692.2 (1,714.3) million. The net debt to equ ity ratio
decreased by 6.1 percentage points and as of March 31 amounted
to 54.5 (60.6) %.
The Group's external costs have increased compared to last year,
which is related to investments in sales and marketing. The invest-
ments are primarily done in North America but the Group is
also continuing its activities in the Nordic countries and Central
Europe. The increase in personnel costs is related to more employees,
primarily in sales. These costs will increase in the coming quarters
as we get the full-year effect of earlier employments.