NWG // FINANCIAL INFORMATION
Capital tied up
Capital tied up in inventory increased by SEK 49.1 million compared to the previous year , amounting to SEK 5,346.8 ( 5,297.7 ) million . Exchange rate changes have reduced the inventory value by SEK 67.1 million and acquired operations increased the value by SEK 57.6 million . The inventory ' s turnover rate decreased compared to last year and amounted to 0.9 ( 1.1 ) times .
SEK million 31 Dec 2023 31 Dec 2022
Raw materials |
59.8 |
63.4 |
Work in progress |
0.7 |
1.8 |
Goods in transit 365.9 544.4 Finished goods 4 920.4 4 688.1 Total 5 346.8 5 297.7
As of 31 December 2023 , total obsolescence reserves ( the difference between the lowest of acquisition value and fair value ) for inventory amounted to SEK 152.9 ( 164.4 ) million and obsolescence reserve in relation to finished goods inventory amounted to 3.0 ( 3.4 ) %.
Accounts receivable amounted to SEK 1,475.2 ( 1,664.1 ) million , where the decrease is primarily related to the lower net sales in the fourth quarter .
Investments , financing and liquidity
Cash flow from operating activities amounted to SEK 963.8 million , which was SEK 1,323.8 million higher than the previous year ( SEK -360.0 million ). The improved cash flow is mainly related to lower merchandise purchases . The cash flow from investing activities amounted to SEK -220.9 ( -522.2 ) million , where last year included SEK -398.7 million related to business acquisitions .
Net debt decreased by SEK 300.7 million , of which SEK 166.9 million referred to credit institutions , and amounted to SEK 2,028.9 ( 2,329.6 ) million . The net debt to equity ratio and net debt through working capital decreased and amounted to 31.4 ( 39.5 ) % and 37.2 ( 44.7 ) % respectively .
The equity ratio improved by 6.4 percentage points and amounted to 60.2 ( 53.8 ) %.
During the fourth quarter , the group extended one of its financing agreements by one year , until December 2026 . The total credit line as of December 31 amounted to SEK 2,753.2 million , of which USD 1.4 million is in effect through January 2024 , SEK 2,150.0 SEK million is in effect through December 2026 , SEK 164.1 million is in effect through August 2027 and SEK 175.0 million has a term that extends to December 2030 . The other SEK 250.0 million has a term of between three months and four years . The credit line is limited in amount to and dependent on the value of certain underlying assets . The financing agreement means that key figures ( covenants ) must be met in order to maintain the credit line . The group ’ s key figures ( covenants ) were fulfilled as of December 31 , 2023 .
Acquisition
On July 1 , New Wave Group acquired 100 % of the shares in the Swedish outdoor company Tenson AB . The purchase price amounted to SEK 1 , which was based on equity at the time of acquisition on July 1 , 2023 amounting to at least SEK 6.5 million , where the brand was valued at SEK 30.9 million . This resulted in a positive profit effect of SEK 6.5 million , which was reported under other operating incom , see note 26 .
Tenson , the Swedish outdoor & lifestyle brand with roots on the Swedish west coast ( founded in Varberg in 1951 ) has , during the last four years , undergone a restructuring & repositioning process that included the entire spectrum of brand , product , market , sales and channel strategies . New Wave Group , through the acquisition and integration of the company , will give Tenson access to the resources and synergies required to enter the next phase of the above- mentioned process , to scale up operations and profitability .
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 . Nor was there any need for impairment for the comparison year . For more information about the Group ' s intangible fixed assets and impairment testing , see note 8 .
Personnel , organization and remuneration
The average number of annual employees as of December 31 amounted to 2,450 ( 2,313 ) people , of which 49 % were men and 51 % were women . Of the number of employees , 502 ( 481 ) people work in production . The production within the New Wave Group is attributable to AHEAD ( embroidery ), Cutter & Buck
ANNUAL REPORT // 067