APRIL - JUNE
NET SALES
Net sales amounted to SEK 1,689.0 million, which was 11%
higher than the previous year (SEK 1,523.2 million). Exchange
rate effects had a positive impact on sales of SEK 71.9 million,
which is equivalent to 5%.
improvement measures have been taken at our distribution units.
These activities have resulted in higher costs and are expected to
also affect the coming quarters.
External expenses increased by SEK 25.1 million and amounted
to SEK -330.2 (-305.1) million. The increase is mainly related to
the above mentioned efforts, but also volume related costs have
contributed. Personnel costs increased by SEK 29.6 million and
amounted to SEK -290.5 (-260.9) million , which is related to more
employees in sales, warehousing and customer service. Exchange
rate changes have increased the above costs by SEK 28.4 million,
while reporting in accordance with IFRS 16 has meant a reduction
of external costs by SEK 31.2 million.
Net sales in Sweden increased by 6%. Retail increased while promo
decreased. The USA increased by 22% and both sales channels had
good growth. The exchange rate change when translated to SEK
had a positive impact on sales and sales in local currency increased
by 12%. The region Nordic countries excluding Sweden was on a
par with the previous year. Sales in Central Europe have increased
by 8%, which is mainly related to retail. Southern Europe grew
by 13% and the promo sales channel improved. Both regions
were positively affected by exchange rate fluctuations and sales
in local currencies improved by 5% and 10% respectively. Other
countries increased by 13%, which is related to operations in Asia
and Canada and the promo sales channel.
Depreciations and write-downs were higher compared to last
year and amounted to SEK -52.8 (-18.5) million. The increase is
primarily a result of IFRS 16, which affected depreciations by SEK
-28.7 million.
GROSS PROFIT
OPERATING RESULT
The gross profit margin was slightly lower than last year and amounted
to 46.5 (47.2)%. Corporate and Gifts & Home Furnishings had a
slightly lower margin, while Sports & Leisure was at the same level as
last year.
Operating result decreased to SEK 119.6 (137.3) million. The
operating margin was slightly lower compared to the previous year
and amounted to 7.1 (9.0)%. The decrease is related to the Group's
investments in sales, marketing and distribution units.
OTHER OPERATING INCOME AND OTHER
OPERATING EXPENSES
NET FINANCIAL ITEMS AND TAX
Net financial items amounted to SEK -16.0 (-6.3) million. The
Group's net debt has increased, which has contributed to higher
interest costs. Accounting in accordance with IFRS 16 affected
financial expenses by SEK -4.5 million.
Other operating income increased by SEK 4.2 million to SEK
15.5 (11.3) million. Other operating income is mainly attribu-
table to the currency gains but also other remunerations and
should be compared to the result row Other operating expenses,
where primarily the currency losses are reported. Other operating
expenses decreased by SEK 0.6 million and amounted to SEK
-7.7 (-8.3) million. The net of the above items amounted to SEK
7.8 (3.0) million and the improvement is attributable to other
remunerations.
Tax expense for the period amounted to SEK -19.9 (-24.2) million
and the change is related to the lower result.
RESULT FOR THE PERIOD
Result for the period amounted to SEK 83.7 (106.8) million and
earnings per share amounted to SEK 1.28 (1.60).
COSTS AND DEPRECIATIONS
The Group has previously decided to continue with a high level
of activities regarding sales and marketing efforts. In addition,
6