NWG // 2020 |
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The cost savings resulted in improvements in both operating result and operating margin compared to the previous year . |
2020 |
Sports & Leisure has been negatively affected by COVID-19 due to cancelled sport events with reduced sales as a result and the sport retailers ’ high inventory levels have also negatively affected the segment ’ s sales . Despite these negative effects , investments in the Craft brand have continued during the year and a cooperation with the Gothenburg football club IFK Göteborg was announced at the beginning of the year . The US market was hit hard by the pandemic , causing several of our companies in the segment to shut down during a period . The companies have made large cost savings and adjusted their business according to the current volumes . The segment as a whole reduced its net sales by 25 % compared to the previous year .
Gifts & Home Furnishings increased net sales by 4 %. The segment has had a split development during the year . Due to COVID-19 , Destination Kosta has had a lower number of visitors and thus significantly lower net sales . The other brands have had a better development and are on par with or better than the previous year . In this segment , cost savings have also been implemented and together with improved net sales the operating loss last year has been turned to an operating profit this year .
The Group ’ s gross profit margin decreased compared to the previous year and amounted to 43.2 ( 46.4 ) %.
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The Group quickly took actions and implemented cost savings , as well as adjusted the business to a lower volume . External costs and personnel costs have decreased by SEK 514.3 million or 20.8 %. In addition to the measures the companies themselves have implemented , several companies have received government support . Such supports are recorded as other operating income and are reported in note 26 . The cost savings resulted in improvements in both operating result and operating margin compared to the previous year .
The capital tied up in stock has been adjusted to the lower sales volume , which has positively affected cash flow during the year . This resulted in a lower net debt and reduced interest expenses . The tax expense for the year increased slightly , mainly related to a negative adjustment of deferred tax . Result for the year amounted to SEK 363.0 ( 370.1 ) million .
Cash flow from operating activities amounted to SEK 1,206.6 ( 99.5 ) million . The improved cash flow is mainly attributable to lower merchandise purchases . Investing activities decreased and amounted to SEK 57.5 ( 148.7 ) million .
The equity ratio improved and amounted to 53.4 ( 44.9 ) %, and the Group ’ s net debt decreased by SEK 1,147.2 million and amounted to SEK 1,817.6 ( 2,964.8 ) million .
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