NWG // 2022 |
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The higher net sales , improved gross profit margin and good cost control resulted in an operating result of SEK 1,505.1 million . |
2022 |
Furnishings decreased . The reduction was largely related to the fact that in Sweden , which is the dominant market , during 2020 and 2021 there was an extra tax deduction of SEK 2,000 per employee during the COVID-19 pandemic – this was removed in 2022 .
Corporate net sales increased by 40 %, of which acquired operations had a positive effect of 8 %. The segment has had favorable development throughout the year as events , conferences and other company activities returned after the pandemic . At the same time , costs have been kept at an appropriate level , which has increased the operating margin .
Sports & Leisure also had a strong development and increased by 35 %. The segment increased in all regions , but mainly in the US and European regions , where the recovery from last year has been favorable . Investments in Craft have continued and the brand is developing well . In this segment too , we had great cost control and an improvement in the operating margin .
Net sales for Gifts & Home Furnishings decreased by 5 %. The lower net sales is primarily related to Sweden and the fourth quarter . Companies in Sweden , which is the dominant market in the segment , had the opportunity during the COVID-19 pandemic in the years 2020 and 2021 for an extra tax-related gift deduction of SEK 2,000 per employee . This extra deduction was removed in 2022 and negatively affected results . The segment also had higher costs related to market investments , energy costs and more employees .
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The gross profit margin was higher than the previous year and amounted to 49.5 ( 48.1 ) %. It was mainly Corporate and Sports & Leisure that increased their margins . Gifts & Home Furnishings margins are at the same level as last year .
External costs increased , which was mainly due to volume-related costs but also higher marketing activities . Personnel costs increased and this year ' s increase is mainly due to savings being made in previous years and the business now being adapted to current volumes .
The higher net sales , improved gross profit margin and good cost control resulted in an operating result of SEK 1,505.1 million and an operating margin of 17.0 %. Inventory build-up and acquisitions have increased our indebtedness and this , together with a higher interest rate , resulted in a lower net financial position . Result for the year amounted to SEK 1,168.8 ( 760.0 ) million .
The cash flow from operating activities was negative and amounted to SEK -360.0 ( 1,204.4 ) million . During the year , the Group built up the inventory levels to meet forecasted demand and the higher turnover resulted in higher accounts receivable . The supply of goods improved , although there were some delays during the year . Investment activities increased due to the acquisition of B . T . C Activewear Ltd and amounted to SEK -522.2 ( -114.2) million . The equity ratio decreased and amounted to 53.8 ( 59.6 ) % and the Group ' s net debt increased by SEK 1,260.8 million and amounted to SEK 2,329.6 ( 1,068.8 ) million as of December 31 .
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