CEO COMMENTS
OCTOBER - DECEMBER
The fourth quarter goes down in history as the best so far for
New Wave Group. 19 % growth (14 % in local currency) are
strong figures. All three segments grew. Corporate* have, for
a long time, enjoyed good growth, which also continues, but
during this quarter I would like to especially point out: Sports
& Leisure with growth of 26 %. Both of our sales channels have
good growth, retail by 22 % and promo by 18 %. Operating result
increased by 21 %, from SEK 172.5 million to SEK 209.4 million.
A positive cash flow from operating activities of SEK 174.4 million
is very pleasing, and we are of course with our closing stock 2018,
positioned for continued good growth in 2019. Growth for the
18th consecutive quarter with increased annual income each year
is very good!
In 2018, we have made great strides in most of our areas but
especially interesting is of course Craft right now. With Craft we
have made tremendous progress with our Teamwear/Club invest-
ments. Amazingly enough, we were named by the German sports
magazine SAZ Sport to Germany's best supplier of Teamwear/
Club already 18 months after we launched, which really should
not be possible.
The first out in the men’s Swedish Football Premier Division
was Hammarby, which we are very proud of, and this agreement
applies to both men, women and youth. We are also equally proud
of all the smaller clubs within cycling, athletics, soccer, running,
skiing, wrestling, volleyball and others, which is the base of our
business, and we are very proud to operate from grass roots level
to elite.
Geographically, I would also like to mention the United States.
Growth there is now starting to gather good speed and we obtain
a good return on our investments. During the fourth quarter the
United States grew by 33 % (24 % in local currency) which is
very strong.
While much focus right now is on Craft, I would also point out
the fine development in Corporate* as well as in our promo sales
channel. In Kosta, we also saw a change for the better in autumn
after the bad summer.
FULL YEAR 2018
Sales increased by 12 % (9 % in local currency) and amounted to
SEK 6,290.6 million which is the highest yet. Operating result,
result before tax and result for the period continue to increase.
All three segments had growth, and even both channels i.e.
promo and retail. I’m even pleased with our positive cash flow.
SEK 59.4 million after investments may not sound all that
impressive but with 12 % growth during the year, and the fact
that closing stock 2018 has increased in order to have continued
growth 2019, I find this gratifying and a sign of strength in my
eyes.
We leave 2018 with a 48.6 % equity ratio, a strong balance sheet
and historically low net debt to equity ratio.
THE FUTURE
I will start with a little history. We went public for exactly
21 years ago, in December 1997. Since then we have had growth
in turnover from SEK 351.4 million to SEK 6,290.6 million which
is 1,690 % or approximately SEK 283 million per year. Operating
result during the same period increased from SEK 29.4 million
to SEK 482.8 million, an increase of 1,542 %. This despite the
fact that we basically lost the years 2009-2011 due to financing
problems.
It was the fourth year in a row with good growth, from
SEK 4,273.6 million 2014 to SEK 6,290.6 million 2018, which
gives an organic growth of SEK 2,017.0 million for the period. At
the same time, operating result increased from SEK 250.0 million
2014 to SEK 482.8 million 2018 which is almost a doubling.
* The segment Corporate Promo has been renamed to Corporate.
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