NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 103

NWG // FINANCIAL INFORMATION //
THE GROUP
Note 31 - Significant events after
the balance sheet date
Effects on New Wave Group as a result of the
spread of the coronavirus
New Wave Group is largely affected by the spread of the corona-
virus. The demand for the Group’s products and services is
expected to be significantly reduced for all operating segments
during the remainder of the first calendar quarter of 2020. The
demand thereafter is expected to be affected in particular during
the second calendar quarter, but it is currently not possible to give
any forecasts for periods beyond that.
In the Corporate segment, sales are expected to decrease
primarily due to cancelled events, conferences and corporate acti-
vities as well as due to general problems in the economy, resulting
in that the demand for promotional products will be significantly
reduced.
Sales are expected to decrease also in the Sports & Leisure
segment, however not to the same extent as in the Corporate
segment. Cancelled sporting events are expected to lead to
decreased replica sales, the sports retail’s high stock volumes
resulting from the warm winter are expected to affect the segment’s
sales negatively in combination with the current situation caused
by the virus outbreak, which is expected to result in less visits to
and sales in physical sports retail stores. The risk for increased bad
debts expenses is considered significant.
In the Gifts & Home Furnishings segment, the part of the
business attributable to the destination Kosta, such as Kosta
Boda Art Hotel, Kosta Lodge as well as restaurants and stores, is
expected to see significantly reduced sales and an impaired result
for the remainder of the year. Remaing businesses in the segment
are also expected to decrease sales, however not to the same extent.
The Group is currently taking a number of actions to reduce
costs and minimize the effects of the virus outbreak.
ANNUAL REPORT // 103