NWG // FINANCIAL INFORMATION
new production facilities and began construction of a new fulfilment center in Dallas.
At year end, 11 of the Group’ s warehouses had been automated using Autostore or HiRobotics in combination with WMS solutions. Once the new Dallas warehouse is completed during the third quarter of 2026, all planned warehouse automations within the Group will be complete, meaning twelve warehouses will be automated. All these warehouses, along with several others, also have WMS implemented.
During the summer of 2026, the Group’ s new production facility for hard profile products in Poland will be completed, which is expected to increase capacity and strengthen the offering.
Since 2024, the Group has been making extensive investments in a new ERP-system, which will be implemented over approximately four years. By year end 2025 / 2026, two implementations had been completed, both together with new warehouse automations. In 2026, the Group’ s U. S. subsidiary Cutter & Buck, including the Dallas facility, will transition to the new system, along with three major European operations. Although strategically important and expected to be used for many years, current accounting rules require that a large share of the business system investment be expensed directly rather than capitalized and amortized over multiple years. This creates a front loaded impact on earnings. For 2025, approximately SEK 70 million was expensed directly for the new system.
Financing and Liquidity
Cash flow from operating activities amounted to SEK 653 million, SEK 625 million lower than the previous year( 1,278). The lower cash flow was primarily attributable to higher goods purchases and investments during the year. Cash flow from investing activities amounted to SEK – 938 million(– 297), mainly related to acquisitions, investments in facilities, and warehouse automation and development.
Net debt increased by SEK 1,278 million and amounted to SEK 3,082 million( 1,804), of which SEK 2,118 million( 1,090) related to liabilities to credit institutions and SEK 964 million( 714) to lease liabilities. Of the increase, SEK 1,029 million are related to credit institutions and SEK 250 million lease liabilities. The net debt-to-equity ratio and net debt relative to working capital increased to 45 %( 25) and 53 %( 33), respectively.
The equity ratio was 53.0 %( 63.7), impacted by currency translation of – 2.5 percentage points.
Total credit facilities amounted to SEK 3,802 million( 2,670) as of 31 December, of which SEK 77 million mature up to August 2027, SEK 2,700 million up to December 2028, SEK 125 million up to December 2030, and SEK 600 million up to December 2032. The remaining SEK 300 million have maturities between three months and four years. The facility is limited by the value of certain underlying assets and subject to financial covenants. All covenants were fulfilled as of 31 December 2025.
Intangible Assets
The Group’ s intangible assets consist primarily of goodwill and trademarks. The major trademarks include Orrefors and Kosta Boda in Gifts & Home Furnishings and mainly Cutter & Buck in Sports & Leisure. Goodwill and trademarks are tested annually, or more frequently, if necessary, to determine whether any impairment exists. This year’ s change primarily relates to goodwill from the acquisition of Cotton Classics. The assets right-of-use value are calculated by discounting projected cash flows for five years plus a terminal period, using a weighted average cost of capital( WACC). Key assumptions include growth rate, operating margin, and WACC.
Based on tests and analyses performed during the year, no impairment needs were identified. No impairment was identified in the prior year either. For additional details relating to the Group’ s intangible assets and impairments, see Note 8.
Personnel, organization and remuneration
The average number of full time employees was 2,603( 2,451) per December 31, of whom 48 % were men and 52 % women. Of the total, 532( 512) worked in production. Production within the Group includes AHEAD( embroidery), Cutter & Buck( embroidery), Kosta Boda, Orrefors, Seger, Termo, and Toppoint.
ANNUAL REPORT // 095