New Wave Group's first ever Capital Market Day,
held at the showroom in Stockholm on August 21.
JANUARY - SEPTEMBER
NET SALES
Net sales amounted to SEK 4,879.3 million, which was 12 %
higher than the previous year (SEK 4,347.2 million). Exchange
rate effects had a positive impact on sales of SEK 212.4 million,
corresponding to 5 %.
to SEK -969.0 (-945.8) million. Accounting in accordance
with IFRS 16 has reduced external costs by SEK 94.9 million.
Excluding IFRS 16, costs have increased, which is mainly related
to previously decided sales and marketing initiatives such as
increased storage capacity and improved service level as well
as marketing. The higher net sales have also increased volume-
related costs. Personnel costs increased by SEK 87.2 million and
amounted to SEK -852.2 (-765.0) million, which is related to more
employees in primarily warehousing and sales, but also in areas
such as marketing, product development and customer service.
Exchange rate changes have increased the above costs by SEK 86.0
million.
Net sales in Sweden increased by 8 % and the improvement was
achieved in the retail sales channel. The US grew by 17 % 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 7 %. The Nordic region excluding
Sweden increased by 8 % and both sales channels increased.
Net sales in Central and Southern Europe increased by 9 % and
16 % respectively, which is related to both promo and retail sales
channels. Again, exchange rate changes have had a positive impact
and sales in local currencies have improved by 6 % and 13 %,
respectively. Other countries increased by 16 %, which is related to
operations in Asia and Canada as well as the promo sales channel.
Amortizations, depreciations and write-downs were higher
compared to last year and amounted to SEK -159.5 (-56.3) million.
The increase is primarily a result of IFRS 16, which affected
depreciations by SEK -87.7 million.
OPERATING RESULT
GROSS PROFIT
Operating result improved by SEK 21.2 million and amounted
to SEK 294.6 (273.4) million. However, the operating margin
decreased compared to the previous year and amounted to 6.0
(6.3) %. The decrease is related to the Group's higher costs due to
sales and marketing activities.
The gross profit margin was slightly lower than last year and amounted
to 46.3 (46.7) %. Corporate as well as Gifts & Home Furnishings had
a slightly lower margin than last year, while Sports & Leisure was at
the same level.
OTHER OPERATING INCOME AND OTHER
OPERATING EXPENSES
NET FINANCIAL ITEMS AND TAX
Net financial items amounted to SEK -46.9 (-28.2) million.
Accounting in accordance with IFRS 16 affected financial
expenses by SEK -13.9 million. The Group has slightly higher
interest expenses due to a higher net debt.
Other operating income decreased by SEK 0.9 million to SEK
45.6 (46.5) million. Other operating income is mainly attribu-
table to the operating currency gains, but also other remunerations
and must be set against the result row Other operating expenses,
where primarily the operating currency losses are reported. Other
operating expenses decreased by SEK 7.9 million and amounted
to SEK -27.2 (-35.1) million. The net of the above items amounted
to SEK 18.4 (11.4) million and the improvement is attributable to
other remunerations.
The tax expense for the period is on a par with last year and
amounted to SEK -43.5 (-44.1) million.
RESULT FOR THE PERIOD
Result for the period amounted to SEK 204.1 (201.1) million and
earnings per share amounted to SEK 3.13 (3.06).
COSTS AND DEPRECIATIONS
External expenses increased by SEK 23.2 million and amounted
7