NWG // FINANCIAL INFORMATION
As of 2020 , some trademarks have been reclassified from Corporate to Gifts & Home Furnishings . The comparative figures have been recalculated .
Net sales and operating result per operating segment
SEK million Corporate |
2020 |
2019 |
Net sales |
3 104.8 |
3 219.6 |
Operating result |
349.0 |
325.4 |
Sports & Leisure |
|
|
Net sales |
2 168.5 |
2 887.4 |
Operating result |
170.4 |
235.8 |
Gifts & Home Furnishings |
|
|
Net sales |
825.5 |
796.5 |
Operating result |
26.5 |
-26.2 |
Total Net sales |
6 098.8 |
6 903.5 |
Total operating result |
545.9 |
535.0 |
Capital tied up
Capital tied up in stock decreased by SEK 674.9 million and amounted to SEK 2,883.0 ( 3,557.9 ) million . The decrease is related to lower merchandise purchases and an adjustment to the lower net sales . Exchange rate effects have decreased the stock value by SEK 153.9 million . Inventory turnover rate is in line with the previous year and amounted to 1.1 ( 1.1 ) times .
SEK million 31 Dec 2020 31 Dec 2019
Raw materials |
36.0 |
49.3 |
Work in progress |
7.9 |
12.6 |
Goods in transit 128.2 195.0 Finished goods 2 710.9 3 301.0 Total 2 883.0 3 557.9
The total obsolescence deductions , as an expression of the difference between the lower of cost and fair value , amounted to SEK 144.2 ( 136.7 ) million and the provision in relation to finished goods amounted to 5.0 ( 4.0 ) %.
Accounts receivable amounted to SEK 1,059.3 ( 1,192.8 ) million , where the decrease is mainly related to the lower net sales .
Investments , financing and liquidity
Cash flow from operating activities amounted to SEK 1,206.6 million , which was SEK 1,107.1 million better than the previous year ( SEK 99.5 million ). The higher cash flow is mainly related to lower merchandise purchases , but also a reduction of current receivables . Net debt decreased by SEK 1,147.2 million , and amounted to SEK 1,817.6 ( 2,964.8 ) million . The Group ’ s net debt to credit institutes decreased by SEK 1,085.1 million and the leasing liabilities by SEK 62.0 million . The net debt to equity ratio and net debt in relation to working capital amounted to 47.1 ( 78.6 ) % and 59.5 ( 77.1 ) %, respectively .
As of December 31 , the Group ’ s total credit limit was SEK 2,845.0 million , of which SEK 2,150 million runs through March 2022 , USD 18.3 million through January 2024 and SEK 295.3 million has maturities extending until August 2027 . The remaining SEK 250.0 million has a maturity of between three months and six years . The credit limit is limited in amount to and dependent on the value of certain underlying assets . The financing agreement means that key ratios ( covenants ) must be met for maintenance of the credit limit . Based on the current forecast , management estimates that the Group will be able to meet these key ratios with a satisfactory margin . Net debt to credit institutes amounted to SEK 1,075.9 ( 2,161.0 ) million , which gives an available credit of SEK 1,769.1 million .
The equity ratio improved by 8.5 percentage points compared to the previous year and amounted to 53.4 ( 44.9 ) %.
Intangible assets
The Group ' s intangible fixed assets consist mainly of goodwill and trademarks . The trademarks with the largest book values are well-known trademarks such as Orrefors and Kosta Boda within Gifts & Home Furnishings as well as mainly Cutter & Buck within Sports & Leisure . The Group ’ s book values are tested annually , or more often if required , to assess whether any need for impairment exists .
The assets ' value in use is determined by discounting cash flow forecasts for the next five years , including a terminal growth period , using a weighted average cost of capital ( WACC ). The most important assumptions in determining the value in use include growth rate , operating margin and WACC .
Based on the tests and analyzes that have been carried out during the year , there is currently no need for impairment . Last year , a write-down of goodwill of SEK 11.4 million was made in the Gifts & Home Furnishings segment . For more information about the Group ' s intangible fixed assets and impairment testing , see note 8 .
Personnel , organization and remuneration
The average number of employees was 2,064 ( 2,579 ), of which 49 % were women and 51 % were men . Of the total number of employees , 385 ( 588 ) work in production . The production within the New Wave Group is attributable to AHEAD ( embroidery ), Cutter & Buck ( embroidery ), Dahetra , Kosta Boda , Orrefors , Seger , Termo and Toppoint .
ANNUAL REPORT // 061