CAPITAL TIED UP
REPORTING OF
OPERATING SEGMENTS
Capital tied up in inventory amounted to SEK 2,988.5 million
and has increased by SEK 407.6 million compared to last year
(SEK 2,580.9 million). The increase is related to the Group's
continued buildup of inventories in Canada, Craft Teamwear as
well as new product lines in the promo sales channel. In addition,
the currency exchange rates increased the value by SEK 113.1
million. The Group has a well-balanced stock and a good level
of service. The stock value is expected to be at a higher level even
in the coming quarter due to our extended promo range. Stock
turnover is on the same level as last year and amounted to 1.1 (1.1).
New Wave Group AB divides its operation into the segments
Corporate Promo, Sports & Leisure, and Gifts & Home
Furnishings. The Group monitors the segments’ and brands’ sales
and EBITDA. The operating segments are based on the Group's
operational management.
CORPORATE PROMO
Net sales for the second quarter increased by 15 % and amounted
to SEK 783.4 (678.9) million. EBITDA increased by SEK 14.2
million and amounted to SEK 109.9 (95.6) million. It is the promo
sales channel that has increased. Sales increased in all regions.
The improved result is related to the increased net sales but also
includes higher overhead costs in the form of increased sales and
marketing activities.
SEK million
Raw materials
Work in progress
Goods in transit
Merchandise in stock
Total
Net sales for the period January-June increased by 11 % and
amounted to SEK 1,403.9 (1,268.6) million. EBITDA increased
by SEK 23.4 million and amounted to SEK 152.6 (129.2) million.
The increase in sales is due to increased sales and marketing
activities, as well as improved inventory structure and level of
service. It is the promo sales channel that has increased and the
improvement occurs in all regions. The improved result is mainly
related to the increase in sales.
2018-06
38.1
16.1
154.4
2 779.9
2 988.5
2017-06
28.5
8.3
170.9
2 373.2
2580.9
Inventories were written down by SEK 109.9 (101.8) million
and write-down related to merchandise in stock amounted to
3.8 (3.9) %.
Accounts receivable amounted to SEK 984.3 (823.9) million
where growth is mainly related to the higher turnover.
SPORTS & LEISURE
Net sales for the period April-June increased by 7 % and
amounted to SEK 585.1 (544.9) million. EBITDA improved by
SEK 13.3 million and amounted to SEK 42.2 (28.9) million. Sales
increased in both sales channels where promo increased by 16 %
and retail by 4 %. Even in this segment, we have growth in all
regions. The improved result is related to higher sales and a higher
gross profit margin but even higher costs for sales and marketing.
Net sales for the first six months of this year increased by 2 % and
amounted to SEK 1,115.7 (1,097.9) million. EBITDA decreased
by SEK 6.2 million and amounted to SEK 55.5 (61.7) million.
Sales increased in the promo sales channel, while retail decreased.
The segment has growth in all regions (local currency). The lower
result is related to higher costs but the segment even has a higher
gross profit margin.
GIFTS & HOME FURNISHINGS
Net sales for the second quarter increased by 5 % to SEK 154.7
(147.9) million. Sales increased in both sales channels. It is in the
regions of Sweden and the Nordic region (excluding Sweden) that
sales increased. EBITDA improved somewhat compared to last
year and amounted to SEK 3.7 (1.8) million, which is attributable
to the higher Net sales.
Net sales for the period January-June amounted to SEK 276.5
(269.4) million. Sales increased in both sales channels as well as in
the regions of Sweden and the Nordic region (excluding Sweden).
EBITDA amounted to SEK -16.2 million which was SEK
9.7 million lower than last year (SEK -6.5 million). The decrease is
mainly related to additional marketing activities and hence higher
costs but also a slightly lower gross profit margin.
8