NWG // FINANCIAL INFORMATION
Other operating income and other operating expenses
During 2025, other operating expenses were affected by a non recurring cost of SEK 66 million relating to the repayment of previously forgiven loans under the Paycheck Protection Program( PPP). The loans were received by the Group’ s U. S. subsidiaries during the COVID 19 pandemic, and the costs include interest, fees, and related expenses. In addition, other operating income and expenses mainly consist of currency gains and losses. The net impact of currency gains and losses amounted to SEK 2 million( 3). The net total for other operating income and expenses amounted to SEK – 29 million( 47).
Operating profit
Operating profit decreased to SEK 1,141 million( 1,262). The decrease is primarily explained by:
# Temporarily increased operating costs related to the new business system
# A non recurring cost of SEK 66 million in Q3 related to the repayment of PPP loans in the U. S.
# Negative currency effects The operating margin amounted to 11.4 %( 13.2).
Net financial items and taxes
Net financial items totaled SEK-108 million(-129). Lower interest rates offset the effect of a higher average net debt.
Tax expense amounted to SEK-250 million(-253), corresponding to an effective tax rate of approximately 24 %( 22).
Result for the Year
Result for the year amounted to SEK 783 million( 880). Earnings per share amounted to SEK 5.90( 6.63).
Reporting of operating segments
New Wave Group owns a number of brands, all allocated to one of the Group’ s three operating segments: Corporate, Sports & Leisure, and Gifts & Home Furnishings. The Group monitors sales and operating profit for each segment and brand.
Corporate
The segment’ s net sales for 2025 amounted to SEK 5,065 million( 4,679), with 99 % generated through the Promo sales channel. All regions except the Nordics excluding Sweden increased their net sales for the year. Operating profit was in line with the previous year and amounted to SEK 728 million( 728), impacted by acquisitions and higher marketing and personnel costs.
Sports & Leisure
Net sales for 2025 increased by 3 % and amounted to SEK 4,091 million( 3,988). The segment reported increased net sales in all regions. Two thirds of the segment’ s sales were generated through the Retail channel and one third through Promo. During 2025, the Promo channel grew while Retail remained at the same level as the previous year. Operating profit decreased by SEK 117 million to SEK 428 million( 545). The decline was primarily related to the nonrecurring U. S. cost of SEK 63 million, as well as generally higher IT, sales, and marketing costs.
Gifts & Home Furnishings
Net sales for January – December were in line with the previous year and amounted to SEK 863 million( 861). The Nordics excluding Sweden and the rest of Europe increased their net sales. Sweden achieved the same level as the prior year, while ther regions decreased. 75 % of the segment’ s sales were generated through the Retail channel and the remainder through Promo. In 2025, Promo increased while Retail declined. Operating profit decreased by SEK 4 million to SEK – 15 million(– 11). The lower result was mainly related to the segment’ s share of the nonrecurring U. S. cost, amounting to SEK 3 million.
Inventory and Accounts Receivable
Capital tied up in inventory increased by SEK 518 million compared with the previous year, amounting to SEK 5,642 million( 5,124). Currency translation effects reduced the inventory value by SEK – 431 million, meaning the increase in local currencies amounted to SEK 949 million. The increase was driven by ongoing warehouse expansions and acquisitions. Inventory turnover amounted to 1.0 times( 0.9).
SEK million 31 Dec 2025 31 Dec 2024 Raw materials 54 56 Work in progress 1 1 Goods in transit 515 367 Finished goods 5,072 4,700
Total 5,642 5,124
As of 31 December 2025, total obsolescence deductions amounted to SEK 176 million( 180), and the obsolescence reserve in relation to finished goods was 3.4 %( 3.7). Accounts receivable amounted to SEK 1,684 million( 1,597), an increase mainly related to higher December sales than in the previous year and acquisitions.
Investments
The year 2025 was investment intensive for New Wave. In addition to initiatives in marketing and sales, the Group made significant investments in warehouses, warehouse properties, warehouse optimization and automation. The Group also invested in two
094 // ANNUAL REPORT