New Wave Group Annual Report 2023 | Page 6

NWG // 2023
The higher net sales , improved gross profit margin and appropriate cost control resulted in an operating result of SEK 1,577.2 ( 1,505.1 ) million .
2023
of the year but weaker development during the second half of the year . Overall the segment gained market share during the year . Costs increased slightly , resulting in the operating margin remaining at the same level as last year .
Sport & Leisure had strong development during the first quarter , although net sales decreased compared to last year . For the year as a whole , the segment increased by 2 % ( of which acquired operations was 2 %). The segment increased in the US , Sweden and Europe and decreased in other regions . Investments in Craft continued including brand development . The segment posted an improved gross profit margin but higher marketing activities and related costs caused the operating margin to decline .
Net sales for Gifts & Home Furnishings decreased by 3 %. The lower net sales is mainly related to the first and second quarter and occurred in all regions . The decrease in net sales had a negative impact on the operating profit and the segment also had higher costs and more employees , resulting in an operating margin lower than last year .
The gross profit margin was higher than the previous year and amounted to 50.3 ( 49.5 ) %. It was Sports & Leisure that increased its margin , while Corporate and Gifts & Home Furnishings were at the same level as last year .
External costs increased because of volume-related and rental expenses including increased marketing activities . Personnel costs increased due to acquired units and the savings implemented
in previous years . The business has now adapted to current volumes .
The higher net sales , improved gross profit margin and appropriate cost control resulted in an operating result of SEK 1,577.2 ( 1,505.1 ) million and an operating margin that amounted to 16.6 ( 17.0 ) %. Last year ' s inventory build-up and acquisitions increased our indebtedness during the end of last year and the beginning of 2023 . This , together with a higher interest rate , has resulted in a lower financial net . The year ' s profit amounted to SEK 1,119.0 ( 1,168.8 ) million .
Cash flow from operating activities improved by SEK 1 323.8 million and amounted to SEK 963.8 ( -360.0) million . The group increased its inventory levels during last year and the beginning of the year to meet forecasted demand . The inventory is now adjusted for current sales volumes . The supply of goods worked well during the year . Investing activities amounted to SEK -220.9 ( -522.2) million , where last year includes SEK -398.7 million regarding the acquisition of B . T . C Activewear Ltd . The equity ratio improved by 6.4 percentage points and amounted to 60.2 ( 53.8 )%, and the group ' s net debt decreased by SEK 300.7 million and amounted to SEK 2,028.9 ( 2,329.6 ) million as of December 31 .
Key figures 2023 2022
Operating result per operating segment ,
Net sales , SEK million 9 512.9 8 843.6 Gross profit margin , % 50.3 49.5 EBITDA , SEK million 1 840.4 1 754.3 Operating result , SEK million 1 577.2 1 505.1 Result for the year , SEK million 1 119.0 1 168.8 Equity , SEK million 6 460.4 5 890.5 Return on equity , % 18.7 25.0 Return on capital employed , % 18.1 20.7 Net debt to equity ratio , % 31.4 39.5 Net debt in relation to working capital , % 37.2 44.7 Equity ratio , % 60.2 53.8 Average number of employees 2 450 2 313 Earnings per share , SEK 8.43 8.81 Equity per share , SEK 48.68 44.39
SEK million
1000 900 800 700 600 500 400 300 200 100
0
Corporate
Sports & Leisure
Gifts & Home Furnishings
* Recalculated taking into acccount the 2:1 split carried out in June 2023 . For definitions of alternative performance measures , see pages 128-129 .
2023 2022
006 // ANNUAL REPORT