NWG // FINANCIAL INFORMATION
F i n a n c i a l i n f o r m a t i o n
Board of Directors ' report
The Board of Directors and CEO of New Wave Group AB ( publ ), 556350-0916 , based in Gothenburg , hereby submit the financial statements and consolidated financial statements for the financial year 1 January 2022 to 31 December 2022 .
New Wave Group is a growth company that creates , acquires and develops brands .
Our brands are categorized into three operating segments : Corporate , Sports & Leisure and Gifts & Home Furnishings .
The Group will achieve synergies by coordinating the design , purchasing , marketing , warehousing , and distribution of the product range .
To ensure good allocation of risks , the Group will offer its products in the promo market and the retail market .
New Wave Group ’ s competitiveness lies primarily in its strong brands , considerable expertise , high level of service , and a well-developed overall concept . Products are primarily manufactured in Asia , and to a lesser extent in Europe . Thanks to its relative size , New Wave Group has good purchasing prices and efficient logistics . The Group ’ s most well-known wholly-owned brands include AHEAD , Auclair , Clique , Cottover , Craft , Cutter & Buck , Grizzly , J . Harvest & Frost , James Harvest Sportswear , Jobman , Kosta Boda , Orrefors , PAX , Projob , Sagaform , Seger and Toppoint .
Summary of 2022
The first quarter of the year delivered a record quarter . Net sales increased by 41 % ( excl . currency 36 %) and amounted to SEK 1,774.9 million , which was a record for a first quarter . The recovery in the market was rapid after restrictions were reduced or removed in Europe and the USA . Both of our sales channels increased and all three segments had growth . All geographic regions also showed growth . The group more than doubled operating result from SEK 100.1 million to SEK 209.1 million . However , there was no shortage of challenges in the short term . The war in Ukraine started as well as the development of COVID-19 in China with large and long lockdowns . Both of these exacerbated the strained situation that has existed in the previous year and continues to impact product supply and logistics . We were able to successfully manage through these challenging conditions . We continued to gain market share in most areas and we noted a strong recovery in the US for all companies . Craft signed agreements with the Norwegian national teams in cross-country skiing and biathlon and extended the agreement with Hammarby Fotboll for another 5 years ( until 2028 ).
The group ' s strong development continued during the second quarter , which was another record quarter with great growth both in terms of net sales and earnings . Net sales showed an increase for the eighth consecutive quarter and a growth of 36 % ( local currencies 30 %). Both sales channels increased and all markets showed growth except for the region Other countries , which was due to reduced trading in Asia . The US was once again our largest market , increasing the most with a growth of 62 %. Operating result increased from SEK 241.3 million to SEK 351.0 million , an increase of SEK 109.7 million , and the operating margin amounted to 17.4 %. Our investments continue to bring success despite a troubled time in our world . The group increased its inventory during the second quarter , as additional inventory was needed to meet the increasing demand . We had solid growth in Craft ' s base orders for the fall , which increased by 42 %, due to more and more retailors starting to sell Craft shoes . The Teamwear investment also continued to produce favorable results . Clique increased strongly in promo and Cutter & Buck showed good growth both in Europe and the USA . The group continues to gain market share .
The third quarter of the year also delivered very strong performance . Net sales and earnings significantly improved compared to the previous year . The improvement was due to strong growth in the
ANNUAL REPORT // 063