NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 58

NWG // FINANCIAL INFORMATION
The rate of increase decreased during the second half
of the year and the fourth quarter was on par with last
year. In addition to these activities, volume-related
costs have also contributed to an increase in total costs
for the full year compared with the previous year.
Our expanded product range and establishments
in new markets have contributed to a higher capital
tied up in inventories with subsequent higher net
debt and interest expenses. This year's tax expense
increased slightly, which is mainly related to the fact
that last year includes a positive change in deferred
tax. Result for the year improved to SEK 370.1 (360.0)
million.
Cash flow from operating activities amounted
to SEK 99.5 (222.6) million. The lower cash flow is
largely due to the timing of payment of accounts
payable related to our increased merchandise
purchases. Investment activities decreased slightly
and amounted to SEK 148.7 (163.2) million.
In September, the Group signed a supplement to
the existing financing agreement and increased its
total credit limit by an additional SEK 500 million.
The equity ratio decreased and amounted to 44.9
(48.6) %, which is related to the introduction of the new
accounting standard IFRS 16. Excluding the effects
from this standard, the equity ratio improved by 1.1
percentage point to 49.7%. Net debt increased by SEK
1,133.8 million, of which SEK 803.8 million is related
to IFRS 16, and amounted to SEK 2,964.8 (1,831.0)
million. The remainder of the increase is mainly due
to financing of our expanded product range and thus
higher inventories. The net debt to equity ratio and net
debt in relation to working capital amounted to 78.6
(53.3) % and 78.1 (57.0) % respectively, see also note
30 regarding the effect of IFRS 16.
During the autumn, the Group arranged a capital
market day where the theme was brands and CSR. The
Group's three largest brands - Clique, Cutter & Buck
and Craft - were presented, as well as a review of the
Group's CSR work.
New Wave Group was one of eight companies that
received full marks - 6 points out of 6 possible - when
Dagens Industri, Aktuell Hållbarhet and the School
of economics and management at Lund University
ranked how over 170 listed companies relate to
Agenda 2030 and the UN's global sustainability
goals. The ranking analyzed how the companies have
adapted their sustainability work to the UN's global
sustainability goals. Companies must demonstrate
that they work systematically to identify their impact
and how they should work strategically to best
contribute to the achievement of Agenda 2030.
Net sales
Net sales amounted to SEK 6,903.5 million,
which was 10% higher than the previous year
(SEK 6,290.6 million). Exchange rate effects had
a positive impact on sales of SEK 275.9 million,
corresponding to 5%.
Net sales in Sweden increased by 5% and the
improvement was achieved in the retail sales channel.
The US increased by 12% and the increase occurred
in both channels. The exchange rate change when
translated to SEK had a positive impact on sales and
sales in local currency increased by 3%. The Nordic
countries excluding Sweden increased by 7% and both
sales channels increased. Net sales in Central Europe
improved by 9%, which is related to both promo and
retail. Southern Europe increased by 13% which is
related to the promo sales channel. Both European
regions were positively affected by exchange rate
changes when translated to SEK and sales in local
currencies improved by 6% and 10% respectively.
Other countries increased by 14% which is related to
operations in Asia and Canada and the promo sales
channel.
Net sales
SEK million
USA
Sweden
Central Europe
Nordic countries excl. Sweden
Southern Europe
Other countries
Total
058 // ANNUAL REPORT
2019 Share of
net sales 2018 Share of
net sales Change Percentage
change
1 774.5
1 610.0
1 078.1
861.0
812.2
767.7
6 903.5 26%
23%
16%
12%
12%
11%
100% 1 579.7
1 529.9
986.4
807.1
716.5
670.9
6 290.6 25%
24%
16%
13%
11%
11%
100% 194.8
80.1
91.7
53.9
95.7
96.8
612.9 12%
5%
9%
7%
13%
14%
10%