New Wave Group Annual Report 2025 2025 | Page 92

NWG // FINANCIAL INFORMATION

Summary 2025

The year 2025 was characterized by an uncertain macroeconomic environment and significant currency fluctuations, in which the Swedish krona strengthened against the other currencies within the Group. Despite external uncertainty and a cautious market, New Wave has maintained a high investment pace and achieved organic growth, expanded market presence, and strategic acquisition-driven growth. For the first time, the Group’ s revenue exceeded SEK 10 billion, while New Wave continued to reinforce its leading positions in several key markets.

Net sales increased to SEK 10,019 million( 9,529). Growth was driven by both organic expansion and acquisitions, including the acquisition of Cotton Classics in September. The Corporate segment increased its revenue to SEK 5,065 million( 4,679). This development was primarily driven by trading operations, promo products within giveaways and technical items, as well as the acquisition of Cotton Classics.

The Sports & Leisure segment increased its net sales to SEK 4,091 million( 3,988), showing strong performance in local currencies, particularly for the Craft and Cutter & Buck brands. Net sales for the Gifts & Home Furnishings segment remained in line with the previous year, amounting to SEK 863 million( 861). All three segments were impacted by currency effects, which in total reduced sales by SEK – 413 million or – 4.3 % compared with the previous year.

The Group’ s operating profit amounted to SEK 1,141 million, a decrease of SEK 121 million compared with the previous year( 1,262). The operating margin was 11.4 %( 13.2). The result was negatively impacted by increased costs related to investments in warehouse automation and IT, acquisitions, as well as a non-recurring cost of SEK 66 million linked to the PPP settlement in the United States. The result for the year amounted to SEK 783 million( 880). Throughout the year, the Group continued to build inventory to support expansion and improved delivery capacity. As of 31 December 2025, inventory amounted to SEK 5,642 million( 5,124). The increased inventory levels, combined with a year characterized by high investment activity, contributed to a decrease in cash flow from operating activities to SEK 653 million( 1,278).

Investments increased significantly during the year, driven not least by the acquisition of Cotton Classics and continued initiatives related to warehouse management, optimization and automation, as well as real estate. Cash flow from investing activities amounted to SEK – 938 million(– 297).

During 2025, the Group also undertook extensive work and investment in a new business system intended to serve the Group for at least ten years. The system is a SaaS-based solution, meaning that a significant share of expenditures was expensed directly instead of being capitalized and amortized over the system’ s useful life. At mid-year 2025, the first subsidiary went live, with an additional six subsidiaries scheduled to follow during 2026. The work carried out in 2025 constitutes much of the foundation for system rollouts planned over the coming years. The project is expected to continue through 2027 and 2028.

As of the balance sheet date, the equity ratio amounted to 53.0 %( 63.7), primarily affected by the year’ s high investment pace and negative currency translation effects. The Group’ s net debt increased to SEK 3,082 million( 1,804) due to acquisitions, inventory build-up, and investments in properties and technology.

Sales SEK million

7,000

6,000

5,000

4,000

3,000

2,000

1,000

3,000

2,500

2,000

1,500

1,000

500

3,000

2,500

2,000

1,500

1,000

500

0

0

0

Corporate

Sales per operating segments and sales channel

66 %

2 %

13 %

50 %

Promo

0 %

34 % 6 %

27 %

Retail Sales per region and operating segment

North America

North America

Rest of Europe

Sports & Leisure Gifts & Home Furnishings Change

Sales per geographic region

Rest of Europe

12 months 2025 12 months 2024

Other countries

Other countries

25 % 20 % 15 % 10 % 5 % 0 %-5 %-10 %

Change compared to the previous year %

092 // ANNUAL REPORT