When visiting Kosta, you can stay
at the Kosta Lodge, or enjoy a spa
weekend at Kosta Boda Art Hotel.
JANUARY - MARCH
NET SALES
COSTS AND DEPRECIATIONS
The Group has previously decided to increase the level of service
and to continue with a high level of sales and marketing activities.
These activities have resulted in higher costs and are expected to
affect even the coming quarters.
Net sales amounted to SEK 1,504.9 million, which was 18 % higher
than last year (SEK 1,272.8 million). Exchange rates affected sales
positively by SEK 85.9 million, which corresponds to 7 %.
Net sales in Sweden increased by 11 % and the improvement
occurred in both sales channels. USA increased by 20 % and it
was primarily the promo sales channels that had good growth.
Exchange rate changes when converted into SEK, affected net
sales positively and sales in local currencies increased by 7 %.
Nordic countries excluding Sweden had growth of 19 % and
both sales channels increased. Net sales in Central and Southern
Europe increased by 16 % and 20 % respectively, which is related
to both promo and retail. Here too, changes in exchange rates
impacted positively and net sales in local currency increased by
12 % and 16 % respectively. Other countries increased by 32 %,
which is related to the operations in Asia and Canada as well as
the promo sales channel.
External costs increased by SEK 21.2 million to SEK -338.4
(-317.2) million. The increase is mainly related to the above-
mentioned activities but also volume related costs have
contributed. Personnel costs increased by SEK 36.6 million
and amounted to SEK -283.0 (-246.4) million, which is mainly
due to an increase in the number of employees, mostly in sales,
warehousing and customer service. Exchange rates have increased
the above costs by SEK 37.2 million, while accounting according
to IFRS 16 has reduced external costs by SEK 30.6 million.
Amortizations, depreciations and write-downs were higher than
last year and amounted to SEK -51.0 (-17.6) million. The increase
is primarily an effect of IFRS 16, which affected depreciation by
SEK -28.1 million.
GROSS PROFIT
The gross profit margin improved and amounted to 47.1 (46.8) %.
It is Sports & Leisure and Gifts & Home Furnishings that have an
improved margin while Corporate had a slightly lower margin than
last year.
OPERATING MARGIN
The operating margin increased compared to last year and
amounted to 3.1 (1.5) %. The increase is related to higher net
sales growth.
OTHER OPERATING INCOME AND OTHER
OPERATING EXPENSES
NET FINANCIAL ITEMS AND TAXES
Other operating income increased by SEK 1.3 million to SEK
17.2 (15.9) million. Other operating income is mainly attribu-
table to operating currency gains but also other remunerations and
should be compared to the result row Other operating expenses
where mainly currency losses are reported. Other operating
expenses decreased by SEK 3.6 million and amounted to
SEK -8.2 (-11.8) million. The net total of above items amounted
to SEK 9.0 (4.1) million and the improvement is attributable to
other remunerations.
Net financial items amounted to SEK -14.0 (-10.2) million.
Accounting according to IFRS 16 affected financial costs by SEK
4.5 million.
Tax expense for the period amounted to SEK -6.0 (-2.4) million
and the change is attributable to the improved result.
RESULT FOR THE PERIOD
Result for the period amounted to SEK 26.0 (6.0) million and
earnings per share amounted to SEK 0.41 (0.10).
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