NWG // CEO COMMENTS
" We remain strongly equipped for continued profitable growth ."
- Torsten Jansson CEO
T o r s t e n J a n s s o n comments
2023 was another very good year for the New Wave Group . Despite continued unrest in the outside world ; increased interest rates ; and high inflation in most markets , we delivered new all-time high results both in net sales at SEK 9,512.9 million , and in operating result at SEK 1,577.2 million .
We performed far better than most of our competitors , especially in operating result . I am proud of our employees and organization that managed to deliver this result despite the conditions in our environment .
Net sales
We increased net sales from SEK 8,843.6 million to SEK 9,512.9 million , which is the highest ever . However , the growth was in the first half of the year and the second half of the year was significantly weaker . This was a reflection of the economic situation becoming more and more impactful during the year . I anticipate that the first half of 2024 may be weaker but that the second half will be strong . We also have a number of new product launches to strengthen quarters three and four , which I expect will contribute to continued growth during 2024 .
Operating result
We again increased the operating result and reached SEK 1,577.2 ( 1,505.1 ) million . This means a marginal decline in operating margin from 17.0 % to 16.6 %. It was the third year in a row that we delivered on our previous target of 15 % or above the last two years , which I am pleased about . This also resulted in us raising our long-term target for the operating margin to 20 % after the end of the year , which is reachable in the long term .
Cash flow and balance sheet
We had previously communicated that we expected a strong cash flow in 2023 . The actual cash flow amounted to SEK 963.8 million , an improvement of SEK 1,323.8 million compared to the previous year . As a result of this strong cash flow , we continued to strengthened our balance sheet and ended the year with an equity ratio of 60.2 ( 53.8 ) %. This gives us considerable opportunities for future expansion .
The future
We remain strongly equipped for continued profitable growth , both through acquisitions and organic growth . I believe we will have continued growth in 2024 , but I anticipate that the first half of the year will be challenging however the second half of the year will have good growth . We have excellent growth opportunities in both promo and retail . Both our organization and myself are more enthusiastic than ever and have the desire to achieve bigger and better profits ! Overall , we are more competitive than ever , and our journey has only just begun ! During my more than 25 years as CEO in the stock exchange , I have experienced everything - from being a celebrated hero - to a complete loser in a company without future . We have always delivered in the end and we intend to continue to do so ! Most of the questions we receive about the last quarter ’ s results and from long-term investors concern expectations about the next quarter . I am most proud of what we have delivered over time . At the time of this writing , our share price has increased by 486 % in 10 years , 259 % in 3 years and 52 % in ear - this plus dividends . We intend to continue on this path !
Many thanks to all employees , to our resellers , to all end consumers , companies and organizations that buy our products and finally , many thanks to the board !
Torsten Jansson CEO
008 // ANNUAL REPORT