New Wave Group Annual Report 2021 - EN | Seite 66

NWG // FINANCIAL INFORMATION

Other operating income and other operating expenses

Other operating income decreased by SEK 34.7 million to SEK 111.5 ( 146.2 ) million . Government grants linked to COVID-19 amount to SEK 61.9 ( 75.7 ) million for the period , where this year ' s figure includes forgiveness of government loans ( referred to as PPP loans ) in the USA of SEK 44.2 million . See also Note 26 regarding information related to COVID-19 . In addition to these grants , other operating income also includes the operating exchange rate gains and must be set against the income statement item other operating expenses where the operating exchange rate losses are reported . Other operating expenses decreased by SEK 26.6 million and amounted to SEK -21.7 ( -48.3 ) million . The net of the above-mentioned items amounted to SEK 89.8 ( 97.9 ) million .

Costs and depreciations

External costs increased by SEK 92.2 million and amounted to SEK -1,067.9 ( -977.1 ) million , which is attributable to volume- related costs . Personnel costs increased by SEK 34.3 million and amounted to SEK -1,016.9 ( -982.6 ) million . The increase took place mainly during the second half of the year and is related to the Group returning to more normal operations after last year ' s sharp savings in the workforce .

Exchange rate fluctuations have reduced the above costs by SEK 66.6 million .

Depreciation and write-downs were on a par with the previous year and amounted to SEK -227.3 ( -229.5 ) million .

Operating result

Operating result increased by SEK 460.0 million and amounted to SEK 1,005.9 ( 545.9 ) million . The improvement is related to higher net sales and an improved gross profit margin .

Net financial items and taxes

Net financial items amounted to SEK -43.0 ( -64.9 ) million , which is attributable to lower net debt and thus lower interest expenses .

The tax expense for the year amounted to SEK -202.9 ( -118.0 ) million . The effective tax rate was 21.1 ( 24.5 )%, where last year was negatively affected by the adjustment of deferred tax assets and the year was positively affected by non-taxable income in connection with forgiveness of government loans in the USA .

Result for the year

Result for the year amounted to SEK 760.0 ( 363.0 ) million and earnings per share amounted to SEK 11.46 ( 5.51 ).

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

Net sales for the year amounted to SEK 2,971.6 ( 3,104.8 ) million . The regions of Southern Europe and Other countries decreased due to lower trading activities , while other regions increased compared with the previous year . The sales channel promo decreased its net sales which is due to the lower trading business while the sales channel retail increased . Operating result improved by SEK 91.8 million and amounted to SEK 440.8 ( 349.0 ) million . The higher result is mainly related to a higher gross profit margin .

Sports & Leisure

Net sales for the period January-December increased by 29 % and amounted to SEK 2,792.5 ( 2,168.5 ) million . Sales increased in all regions and in both sales channels . Operating result increased by SEK 295.6 million and amounted to SEK 466.0 ( 170.5 ) million . The improvement is related to the higher net sales and improved gross profit margin . The segment ' s other income was positively affected by forgiveness of the government loans ( PPP loans ) in the USA of SEK 35.0 million .

Gifts & Home Furnishings

Net sales for the year increased by 16 % and amounted to SEK 954.5 ( 825.5 ) million . Sales increased in both sales channels . The higher net sales are mainly related to Sweden , but all regions improved their sales . Operating result improved by SEK 72.6 million compared with the previous year and amounted to SEK 99.1 ( 26.5 ) million , which is mainly attributable to the higher net sales and improved the gross profit margin .

Net sales and operating result per operating segment

066 // ANNUAL REPORT