NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 6

NWG // 2019
During the
year, the Group
continued
its efforts to
improve its
service level
and made
further invest-
ments in new
distribution
centers.
The new accounting standard IFRS 16 has had
a positive impact of SEK 135.6 million on the
Group's external costs compared with the previous
year. Excluding IFRS 16, the Group increased its
expenses during the first half of the year, which was
related to an increase in marketing activities and
new recruitments within sales, warehousing and
customer service. 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 establish-
ments in new markets have contributed to a
higher capital tied up in inventories with sub-
sequent 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.
Key Figures
2019 2018
Net sales, SEK million 6 903.5 6 290.6
Gross profit margin, % 46.4 46.6
EBITDA, SEK million 768.1 560.7
Operating result, SEK million 535.0 482.8
Result for the year, SEK million 370.1 360.0
Equity, SEK million 3 770.7 3 434.2
Return on equity, % 10.3 11.2
8.6 9.4
78.6 53.3
Return on capital employed, %
Net debt to equity ratio, %
Net debt in relation to working capital, %
Equity ratio, %
77.1 57.0
44.9 48.6
2 579 2 566
Profit per share, SEK 5.66 5.48
Equity per share, SEK 56.59 51.47
Number of employees
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 sustain-
ability 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.
EBITDA per operating segment,
SEK million
500
88.0
400
372.5
353.1
300
37.9
271.2
200
218.2
100
-11.6
0
2019
2018
Corporate
2019
Sports &
Leisure
Excl. IFRS 16
For the effect of IFRS 16 on each key figure, see note 30.
006 // ANNUAL REPORT
2018
10.1 -10.6
2019 2018
Gifts & Home
Furnishings
IFRS 16-effect