New Wave Group Annual Report 2024 | Page 84

NWG // FINANCIAL INFORMATION

Other operating income and other operating expenses

Other operating income decreased by SEK 35.4 million to SEK 95.3( 130.7) million. Other operating income is primarily attributable to the operation ' s exchange rate gains but also invoiced costs and should be compared to the income statement line other operating expenses where the operation ' s exchange rate losses are reported. Other operating expenses decreased by SEK 6.0 million and amounted to SEK-48.5(-54.5) million. The net of the above-mentioned items amounted to SEK 46.8( 76.2) million. The lower net is primarily because of last year ' s electricity subsidy received, positive earnings effects in connection with the acquisition of Tenson AB and capital gains on the sale of property. These items had a positive impact on last year ' s net by SEK 25.5 million.

Costs and depreciations

External costs increased by SEK 86.3 million and amounted to SEK-1,749.3(-1,663.0) million. The increase is mainly related to sales expenses, but marketing costs have also increased. Personnel costs increased by SEK 77.2 million and amounted to SEK-1,430.0(-1,352.8) million. The increase for the year is due to general salary increases and also new investments.

Exchange rate changes have reduced the above costs by SEK 6.5 million and last year ' s acquired unit increased costs by SEK 25.8 million.

Depreciation and write-downs were higher compared to the previous year and amounted to SEK-307.9(-263.2) million. The increase is related to depreciation of right-of-use assets linked to leasing and investments in our warehouse units.

Operating result

Operating result decreased by SEK 314.9 million and amounted to SEK 1,262.3( 1,577.2) million. The lower result is related to a lower gross profit margin, higher sales and marketing costs and higher personnel costs. The operating margin decreased due to the above-mentioned reasons and amounted to 13.2( 16.6)%. Acquired business had an impact of SEK-13.2 million.

Net financial items and taxes

Net financial items improved compared to the previous year and amounted to SEK-128.9(-137.7) million. This is because net debt and interest expenses have decreased.

The tax expense for the period amounted to SEK-253.5(-320.4) million. The effective tax rate is on par with last year and amounted to 22.4( 22.3) %.

Result for the year

Result for the year amounted to SEK 880.0( 1,119.0) million and earnings per share amounted to SEK 6.63( 8.43).

Reporting of operating segments

New Wave Group divides its operations into the segments Corporate, Sports & Leisure and Gifts & Home Furnishings.

The Group monitors the segments’ and brands’ sales as well as operating result. The operating segments are based on the Group’ s operational management.

Corporate

Net sales for the year amounted to SEK 4,678.9( 4,757.1) million. The USA, Central Europe and Other countries increased their net sales slightly while the other regions decreased. Both sales channels decreased their sales. Operating result decreased by SEK 213.4 million and amounted to SEK 729.3( 942.7) million. Lower net sales and gross profit margin as well as higher marketing and personnel costs have reduced operating result.

Sports & Leisure

Net sales for the period January-December increased by 3 % and amounted to SEK 3,988.3( 3,874.6) million. Acquired operation had an impact of SEK 34.1 million. The segment had higher net sales in Central Europe, the Nordic Countires( excl. Sweden) and the USA but decreased in other regions. The promo sales channel increased while retail was at the same level as last year. Operating result decreased by SEK 73.2 million and amounted to SEK 544.5( 617.7) million. The decline in profit is the result of higher costs, both in the form of sales and marketing costs but also personnel costs. The acquired unit had an impact of SEK-13.2 million.

Gifts & Home Furnishings

Net sales for the period January-December decreased by 2 % and amounted to SEK 861.5( 881.1) million. Sweden was at the same level as last year, while other regions decreased their net sales. Both sales channels decreased. Operating result decreased by SEK 28.3 million compared to the previous year and amounted to SEK-11.5( 16.8) million. The lower result is due to a lower gross profit margin, higher sales, marketing and personnel costs. Last year also includes government electricity support of SEK 9.6 million.

Net sales and operating result per operating segment

084 // ANNUAL REPORT