NWG // FINANCIAL INFORMATION
has struggled throughout the year. The segment had lower net sales in most regions but was at the same level in Sweden. Lower sales together with a lower gross profit margin as well as more marketing activities and higher personnel costs have caused operating profit to decrease compared to last year.
The Group ' s operating result amounted to SEK 1,262.3 million, which was a decrease of SEK 314.9 million compared to the previous year( SEK 1,577.2 million). The lower gross profit margin and increased costs for marketing initiatives and personnel also resulted in a decrease in the operating margin, amounting to 13.2( 16.6)%. Net financial income improved during the year as our net debt and interest has decreased. The result for the year amounted to SEK 880.0( 1,119.0) million. In line with a weaker market, the Group has adjusted its inventory to current volumes and demand. The inventory reduction has also contributed to the cash flow from operating activities improving by SEK 314.5 million, amounting to SEK 1,278.3( 963.8) million, and to the debt level decreasing to 25.2( 31.4)%. The Group has continued to invest in its warehouse operations and investment activities increased by SEK 75.8 million and amounted to SEK-296.8(-220.9) million. The equity ratio improved and amounted to 63.7( 60.2)% and the Group ' s net debt decreased by SEK 210.1 million and amounted to SEK 1,818.8( 2,028.9) million as of December 31.
Net sales
Net sales amounted to SEK 9,528.7 million, which was in line with the previous year( SEK 9,512.9 million). Exchange rate effects negatively impacted sales by SEK 13.5 million. Last year ' s acquisitions affected net sales by SEK 34.1 million.
Net sales in the USA increased by 2 % and the improvement occurred in Corporate and Sports & Leisure while Gifts & Home Furnishings decreased. Sweden decreased by 3 % compared to last year which was attributable to Corporate and Sports & Leisure. Central Europe increased by 4 % which was related to Sports & Leisure. The Nordic region( excl Sweden) increased by 2 % where the increase occurred in Sports & Leisure while Corporate and Gifts & Home Furnishings decreased. Southern Europe decreased by 5 % and was due to the Corporate and Sports & Leisure segments. Other countries decreased by 1 %. The Corporate segment increased its net sales while Sports & Leisure and Gifts & Home Furnishings decreased.
Both sales channels- promo and retail- were at the same level as last year. However, promo increased in Sports & Leisure but decreased in Corporate and Gifts & Home Furnishings. Retail was overall at the same level as last year but decreased slightly in Gifts & Home Furnishings.
Gross profit
The gross profit margin was slightly lower than the previous year and amounted to 49.4( 50.3) %. It is mainly Corporate and Gifts & Home Furnishings that have decreased, while Sports & Leisure is at the same level as last year.
Five Year Summary
SEK million 2024 2023 2022 2021 2020
Net sales |
9,528.7 |
9,512.9 |
8,843.6 |
6,718.6 |
6,098.8 |
Goods for resale |
-4,822.7 |
-4,730.2 |
-4,468.4 |
-3,489.3 |
-3,461.5 |
Gross profit |
4,706.0 |
4,782.6 |
4,375.2 |
3,229.3 |
2, 637.3 |
Other operating income |
95.3 |
130. 7 |
123.9 |
111. 5 |
146.2 |
External costs |
-1,749.3 |
-1,663.0 |
-1,470.3 |
-1, 067.9 |
-975.7 |
Personnel costs |
-1,430.0 |
-1,352.8 |
-1,205.3 |
-1,016.9 |
-982.6 |
Amortizations, depreciations and write-downs |
-307.9 |
-263.2 |
-249.2 |
-227.3 |
-229.5 |
Other operating costs |
-48.5 |
-54.5 |
- 67.4 |
-21.7 |
-48.3 |
Share of associated companies’ result |
-3.1 |
-2.7 |
-1.8 |
-1.1 |
-1.4 |
Operating result |
1,262.3 |
1, 577.2 |
1,505.1 |
1,005.9 |
545.9 |
Net financial items |
-128.9 |
-137.7 |
-55.0 |
-43.0 |
-64.9 |
Result before tax |
1,133.4 |
1,439.4 |
1,450.1 |
962.9 |
481.0 |
Tax expense |
-253.5 |
-320.4 |
-281.3 |
-202.9 |
-118. 0 |
Result for the year |
880.0 |
1,119.0 |
1,168.8 |
760.0 |
363.0 |
Gross profit margin, % |
49.4 |
50.3 |
49.5 |
48.1 |
43.2 |
Operating margin, % |
13.2 |
16.6 |
17.0 |
15.0 |
9.0 |
Equity ratio, % |
63.7 |
60.2 |
53.8 |
59.6 |
53.4 |
Net debt to equity ratio, % |
25.2 |
31.4 |
39.5 |
23.4 |
47.1 |
Net debt in relation to working capital, % |
33.2 |
37.2 |
44.7 |
35.7 |
59.5 |
Average number of employees |
2.451 |
2,450 |
2,313 |
2,060 |
2,064 |
Total assets, SEK million |
11,326.4 |
10,739.3 |
10,943.6 |
7,660.6 |
7,216. 7 |
ANNUAL REPORT // 083