REPORTING OF
OPERATING SEGMENTS
GIFTS & HOME FURNISHINGS
Net sales during the period July - September increased by 8 % to
SEK 168.5 (155.6) million. The improvement is related to Sweden
and the retail sales channel. EBITDA was slightly higher than
last year and amounted to SEK 4.2 (3.9) million. IFRS 16 had
a positive impact on EBITDA of SEK 2.1 million and excluding
the effects from the new accounting standard, earnings decreased
slightly. This is related to a lower gross profit margin.
New Wave Group divides its operations into segments Corporate,
Sports & Leisure and Gifts & Home Furnishings. The Group
monitors the segments’ and brands’ sales as well as EBITDA.
The operating segments are based on the Group's operational
management.
CORPORATE
Net sales for the period July - September increased by 6 % to SEK
731.1 (687.6) million. Sales growth occurred mainly in the US and
Southern Europe regions. Sweden had slightly lower net sales than
last year. It was mainly the promo sales channel that increased its
sales. EBITDA increased by SEK 17.2 million and amounted to
SEK 72.6 (55.4) million. The improved result is related to IFRS
16 and excluding the effects from the new accounting standard,
the result decreased slightly. This is due to higher costs in the form
of increased sales and marketing activities and higher costs for
distribution units. The cost increase for the distribution units was
related to larger premises as well as other improvement measures
to increase the service level. IFRS 16 had a positive impact on
EBITDA of SEK 20.3 million.
Net sales for the period January - September increased by 5 % to
SEK 455.6 (432.1) million. Sales increased in both sales channels.
Growth is mainly in Sweden. EBITDA decreased slightly
compared to last year and amounted to SEK -15.2 (-12.3) million,
which is attributable to a slightly lower gross profit margin and
higher costs in the form of more market activities. IFRS 16 had a
positive impact on EBITDA of SEK 6.1 million.
CAPITAL TIED UP
Capital tied up in goods amounted to SEK 3,791.2 million and
increased by SEK 510.6 million compared with the previous year
(SEK 3,280.6 million). The increase is mainly related to new
product ranges and exchange rate changes. When translated
to SEK, inventory value increased by SEK 146.1 million. The
Group has a well-balanced stock and the level of service is good.
Inventory value is expected to remain at a high level also in the
coming quarters due to our expanded product range. Inventory
turnover rates are on a par with the previous year and amounted
to 1.0 (1.0) times.
Net sales for the first nine months of the year increased by
10 % to SEK 2,308.0 (2,091.5) million. All regions had growth,
but the US, Southern Europe and Other countries had higher
percentage growth than the segment as a whole. It was mainly
within the promo sales channel that sales increased. EBITDA
increased by SEK 67.2 million and amounted to SEK 275.3
(208.1) million. The improved result is related to the increased net
sales, but the segment also had higher costs. The higher costs were
in the form of increased sales and marketing activities and higher
costs for distribution units. The cost increase for the distribution
units was related to larger premises as well as other improvement
measures to increase the service level. IFRS 16 had a positive
impact on EBITDA of SEK 59.8 million.
SEK million
Raw materials
Work in progress
Goods in transit
Merchandise on stock
Total
SPORTS & LEISURE
Net sales in the third quarter increased by 11 % to SEK 785.9
(707.9) million. Sales increased in both sales channels. The segment
saw growth in all regions but mainly in Sweden and Southern
Europe. EBITDA increased by SEK 29.6 million and amounted to
SEK 107.9 (78.3) million. The improvement in earnings is related
to higher net sales, but the segment had higher costs for sales,
marketing and distribution units. IFRS 16 had a positive impact
on EBITDA of SEK 10.8 million.
30 Sep
2019
52.2
12.9
189.3
3 536.8
3 791.2
30 Sep
2018
39.6
15.7
227.9
2 997.4
3 280.6
Accumulated write-downs of inventories amounted to SEK
141.5 (120.2) million and write-downs related to merchandise in
stock amounted to 3.8 (3.9) %.
Accounts receivable amounted to SEK 1,164.3 (1,089.1) million,
where the increase is related to higher sales.
Net sales for the period January-September increased by 16 %
to SEK 2,115.7 (1,823.6) million. Sales increased in both sales
channels, where promo increased by 12 % and retail by 18 %. The
segment experienced growth in all regions. EBITDA increased by
SEK 60.0 million and amounted to SEK 193.9 (133.9) million.
The improvement in earnings is related to higher net sales, but
the segment also had higher costs for sales, marketing and distri-
bution units. IFRS 16 had a positive impact on EBITDA of SEK
29.1 million.
8