CEO COMMENTS
APRIL - JUNE
THE FUTURE
Our second quarter was very strong, with growth of 11%
(9 % in local currency). Our investments are rapidly being paid off
and despite significantly higher costs our operating profit for the
quarter increased by 24 % to SEK 137.3 million.
We will now enter autumn with good order stocks, well balanced
inventories, larger sales forces, continued intensive marketing
with better range and products than ever.
Our strong balance sheet contributed to our net financial items
improving further, where the result for the period increased by
39 % to SEK 106.8 million. Looking at how the growth was
distributed, promo sales channel increased by 15 % and retail by
5 %. Looking at the different segments, Corporate Promo
increased by 15 %, Sports & Leisure by 7 % and Gifts & Home
Furnishings by 5 %. We should remember that during this
quarter we had a positive calendar effect - but it is no coincidence
that this is the 16th quarter in a row that we had growth. This
proves that our market investments are paying off.
I would like to mention in particular Craft Teamwear, where
we have major growth potential. We are the sports clubs'
best friend - and even if it is among the many small clubs and
associations that the largest market is found, it still makes us
proud and delighted that we managed to get big clubs like
KAA Gent, Pec Zwolle, Dynamo Dresden, Darmstadt among
others to choose Craft. There are more major clubs and national
teams in a number of sports that are already under contract.
These will be published at a later date.
Craft has also made its largest contract ever with Spartan USA.
Spartan stages 287 obstacle course races per year in 32 countries,
of which about 150 are in the United States. There is approximately
1 million starters each year and has 502 million views on social
media. The contract covers both clothes and shoes, and has an
estimated sales value of USD 30 million over the three-year
contract term. We regard the contract as a breakthrough for Craft
in the United States.
Especially gratifying is also that promo sales channel increased by
9 % in North America in local currency.
JANUARY - JUNE
When we sum up the first half of the year, sales increased by
6 % to SEK 2,796.0 million. Even at mid-year all segments are
showing growth. Gross profit was strong at 47.0 %. The increase
in sales and the strong gross profit meant that, despite continued
heavy investments in sales and marketing, we could still increase
operating result to SEK 155.9 million and net profit by 11 % to
SEK 112.7 million.
We head towards an exciting future!
BALANCE SHEET AND CASH FLOW
Torsten Jansson. CEO
Cash flow from operating activities was SEK 131.2 million
compared to SEK 83.7 million last year. This gives us a strong
balance sheet and room for continued expansion - both
organically and via possible acquisitions.
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