NWG // CEO COMMENTS
" We will manage 2021 in as good a way as 2020 ."
- Torsten Jansson
CEO
T o r s t e n J a n s s o n comments
2020 was one of the most turbulent years we have been through and the reason was of course the COVID-19 pandemic . However , I am very proud and happy about how we managed to handle it and actually achieved the best result ever .
For six years in a row , I have been able to begin the CEO comments with that it has been another year of growth - but in 2020 that suite was broken . Sales in local currencies fell 10 %, which is good considering how the outside world looked during the year . It shows that we have good products , strong brands and a good sales organization .
Operating result
Although the increase was marginal , we managed to increase from SEK 535.0 million to SEK 545.9 million and thus we made our highest operating result ever . I wrote in the CEO comments in 2019 that we would focus on the operating margin and despite COVID-19 , we managed to increase the operating margin from 7.7 % to 9.0 %, which is strong under current conditions .
Cash flow
Cash flow from operating activities amounted to SEK 1,206.6 million , which is very good . Sometimes you hear criticism of our stock , our capital tied up and that we do not generate sufficient cash flow during growth . 2020 was now the second time we created a record cash flow in a short time - the first time was the financial crisis in 2009 . As I have often said before ; New Wave Group is a relatively simple company that can quickly create large cash flows when required and our inventory is our greatest asset .
Balance sheet
Our balance sheet and all key figures are very strong . An equity ratio of 53.4 % and our indebtedness is at a record low . Net debt in relation to EBITDA , a key figure that I do not really think fits us , amounts to a record low 1.7 times ( excluding leasing ).
The future
On the positive side , there is a lot to list . Our strong brands , our good products , our strong balance sheet and last but not least our fantastic organization that has once again shown a strong drive and done a very good job . I am completely convinced that in the long term we will have good growth for both sales and earnings . My only concern is the COVID-19 pandemic and it makes it extremely difficult to assess developments in the short term . At the time of writing , lock-downs are prevailing in many of our markets and all our retailer customers there are simply closed . For sports , competitions , events etc . there are also shut-downs or severe restrictions , which makes it difficult to know in the short term , but we will manage 2021 in as good a way as 2020 .
In the long run , I am extremely positive - compared to many competitors , we will emerge stronger from the pandemic .
We are actually stronger than ever !
Torsten Jansson CEO
008 // ANNUAL REPORT