CAPITAL TIED UP
REPORTING OF
OPERATING SEGMENTS
Capital tied up in stock amounted to SEK 3,230.9 million
and increased by SEK 587.5 million, compared with last year
(SEK 2,643.4 million). The increase is related to the Group's
continued buildup of stock in North America as well as new
product lines. In addition, the currency exchange rates increased
the value by SEK 93.5 million. The Group has a well-balanced
stock and the level of service is good. The stock value is expected
to be at a higher level even during the coming quarter due to our
extended promo range. Stock turnover is on par with last year and
amounted to 1.1 (1.2) times.
New Wave Group AB 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 fourth quarter increased by 18 % and amounted
to SEK 977.5 (828.9) million. EBITDA increased by SEK
34.4 million and amounted to SEK 145.0 (110.6) million. It is
the promo sales channel which increased and this occurred in all
regions. The improved result is related to the increased turnover
but the segment also has higher costs in the form of increased sales
and marketing activities, as well as costs for the expansion and
improvement of distribution centers.
SEK million
Raw materials
Work in progress
Goods in transit
Merchandise on stock
Total
Net sales for the period January - December increased by 16 % and
amounted to SEK 3,069.0 (2,648.7) million. EBITDA increased
by SEK 63.4 million and amounted to SEK 353.1 (289.7) million.
The improved turnover 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 increased and the
improvement occurs in all regions. The improved result is mainly
related to the increase in turnover.
2018-12
40.3
14.0
222.6
2 954.0
3 230.9
2017-12
34.9
8.7
144.0
2 455.8
2 643.4
Inventories were written down by SEK 121.5 (106.0) million
and write-down related to merchandise on stock amounted to
4,0 (4.1) %.
Accounts receivable amounted to SEK 1,084.1 (982.8) million
where growth is mainly related to the higher turnover.
SPORTS & LEISURE
Net sales for the period October - December increased by 26 %
and amounted to SEK 750.1 (596.8) million. EBITDA increased
by SEK 14.7 million and amounted to SEK 84.4 (69.7) million.
Sales increased in both sales channels whereby promo sales
increased by 20 % and retail by 28 %. We had growth in all
regions. The improved result is related to the increased turnover
but the segment also has higher costs in the form of increased sales
and marketing activities.
Net sales for the year increased 11 % and amounted to SEK
2,573.7 (2,311.5) million. EBITDA decreased by SEK 12.1 million
and amounted to SEK 218.2 (230.3) million. Sales increased in
both sales channels. The segment had growth in most regions.
The lower result is related to higher costs, but the segment also had
a higher gross profit margin.
GIFTS & HOME FURNISHINGS
Net sales increased 5 % during the fourth quarter and amounted
to SEK 215.7 (204.7) million. Sales increased in the retail sales
channel and decreased slightly in promo. Growth is occurring
in all regions except Sweden which was on par with last year.
EBITDA was lower compared with last year and amounted to
SEK 1.8 (10.4) million, which is attributable to higher costs.
Net sales for the period January - December amounted to
SEK 647.8 (637.1) million. Sales increased in both sales channels.
However, the retail sales channel was affected negatively in Kosta
during the warm summer months. EBITDA amounted to SEK
-10.6 million which was SEK 25,0 million less than last year
(SEK 14.4 million). The decrease is mainly related to additional
marketing activities and hence higher costs but also a slightly
lower gross profit margin.
* The segment Corporate Promo has been renamed to Corporate.
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