NWG // FINANCIAL INFORMATION
Gross profit
The gross profit margin was lower than the previous year and amounted to 43.2 ( 46.4 ) %. The lower margin is mainly related to increased trading business in the Corporate segment . However , Sports & Leisure and Gifts & Home Furnishings also had lower margins than the previous year .
Other operating income and other operating expenses
Other operating income increased by SEK 68.3 million to SEK 146.2 ( 77.9 ) million . The increase is attributable to government support in connection with COVID-19 , see note 26 . In addition to these supports , other operating income include the operating currency gains and must be set against the income statement item other operating costs , where primarily operating currency losses are reported . Other operating costs increased by SEK 8.7 million and amounted to SEK -48.3 ( -39.6 ) million . The net of the above mentioned items amounted to SEK 97.9 ( 38.3 ) million .
Costs and depreciations
External costs decreased by SEK 337.0 million and amounted to SEK -975.7 ( -1,312.7 ) million . The decrease is related to savings and volume-related costs . Personnel costs decreased by SEK 177.3 million and amounted to SEK -982.6 ( -1,159.9 ) million , which is attributable to temporary lay-offs and reduced number of employees . Exchange rate effects decreased the above mentioned costs by SEK 31.8 million .
Amortizations , depreciations and write-downs were lower compared to last year and amounted to SEK -229.5 ( -233.1 ) million . Depreciations on right-of-use asset for leasing had a negative effect of SEK 8.4 million and the previous year includes a write-down of goodwill of SEK 11.4 million .
Operating result
Operating result improved and amounted to SEK 545.9 ( 535.0 ) million and the operating margin improved by 1.3 percentage points and amounted to 9.0 ( 7.7 ) %.
Net financial items and taxes
Net financial items amounted to SEK -64.9 ( -68.2 ) million , which is related to the Group ’ s lower net debt and reduced interest expenses .
Tax expense for the year amounted to SEK -118.0 ( -96.7 ) million . The increase is mainly related to a negative change in deferred tax assets . Hence , the effective tax rate increased and amounted to 24.5 ( 20.7 ) %.
Result for the year
Result for the year amounted to SEK 363.0 ( 370.1 ) million and earnings per share amounted to SEK 5.51 ( 5.66 ).
Reporting of operating segments
New Wave Group divides its operations into the segments Corporate , Sports & Leisure and Gifts & Home Furnishings .
The Group monitors the segments ’ and brands ’ sales as well as operating result . The operating segments are based on the Group ’ s operational management .
Corporate
In the Corporate segment , sales have been primarily affected by cancelled events , conferences and other corporate activities as well as problems within the business world generally , reducing the demand for promo products .
Net sales for the year amounted to SEK 3,104.8 million , which was a decrease of 4 % compared to the previous year ( SEK 3,219.6 million ). Southern Europe and Other countries experienced growth , while all other regions decreased compared to the previous year . Sales in the promo channel decreased by 2 %. Increased sales in the trading business partially offset the negative effects of the reduction of the ordinary promo business due to COVID-19 . The retail sales channel decreased compared to the previous year . Operating result increased by SEK 23.6 million and amounted to SEK 349.0 ( 325.4 ) million . The improvement is attributable to cost savings .
As of 2020 , some trademarks have been reclassified from Corporate to Gifts & Home Furnishings . The comparative figures have been recalculated .
Sports & Leisure
Cancelled sport events have led to reduced sales and the sport retailers ’ high inventory levels have negatively affected the segment ’ s sales in combination with the current situation caused by COVID-19 .
Net sales for the year decreased by 25 % and amounted to SEK 2,168.5 ( 2,887.4 ) million . Sales decreased in both sales channels . The segment had lower net sales in all regions , but mainly in the US . The Group ’ s American operations were , among other things , shut down for one and a half months during the second quarter . Operating result decreased with SEK 65.4 million and amounted to SEK 170.4 ( 235.8 ) million . The lower result is attributable to lower net sales , but has been positively affected by savings .
Gifts & Home Furnishings
The majority of the segment ’ s brands have recovered well after being largely affected by COVID-19 in previous quarters . However , Destination Kosta has been negatively affected by COVID-19 also during the fourth quarter . The segment as a whole has seen an improvement and has experienced growth in both net sales and operating result .
Net sales for the year increased by 4 % to SEK 825.5 ( 796.5 ) million . Sales increased in the promo sales channel , but retail decreased slightly . Operating result improved by SEK 52.7 million compared to the previous year and amounted to SEK 26.5 ( -26.2 ) million , which was attributable to savings but also to higher net sales .
060 // ANNUAL REPORT