NWG // 2020
Reporting of operating segments
New Wave Group divides its operations into segments Corporate, Sports &
Leisure and Gifts & Home Furnishings. The Group monitors the segments’ and
brands’ sales as well as operating result. The operating segments are based
on the Group’s operational management.
Corporate
In the Corporate segment, sales have
been primarily affected by cancelled
events, conferences and other corporate
activities as well as the general problems
in the business, reducing the demand for
promo products.
Net sales for the second quarter
increased, however, by 2% to SEK 830.4
(811.1) million. Sales increased in
Southern Europe and Other countries, but
decreased in all other regions. During the
quarter, the segment has had increased
sales within the trading business positively
affecting Southern Europe and Other
countries. Sales increased in the promo
sales channel, while retail decreased.
Operating result increased by SEK 17.1
million and amounted to SEK 112.0 (94.9)
million. The improved result is attributable
to the higher net sales and savings.
Net sales for the first six months of the
year amounted to SEK 1,541.5 (1,535.1)
million. Southern Europe and Other
countries experienced growth, while all
other regions decreased compared to
the previous year. The increase in sales
occurred in the promo sales channel, and
retail decreased compared to the previous
year. Operating result decreased by SEK
12.9 million and amounted to SEK 137.0
(149.9) million. The lower result is attributable
to a lower gross profit margin, which
has been partly offset by cost savings.
During the first quarter of the
year, some trademarks have been
reclassified from Corporate to Gifts &
Home Furnishings. The comparative
figures have been recalculated.
Sports & Leisure
Cancelled sport events have led to reduced
replica sales and the sport retailer’s high
inventory levels due to the mild winter
have negatively affected the segment’s
sales in combination with the current
situation caused by COVID-19. Sales
have also been negatively affected by the
one-and-a-half-month shutdown of the
Group’s American business.
Net sales during the period April-June
decreased by 51% to SEK 338.7 (687.0)
million. Sales decreased in both sales
channels. The segment had lower net
sales in all regions compared to last year.
Operating result decreased by SEK 36.2
million and amounted to SEK -5.4 (30.8)
million. The lower result is related to the
lower net sales, but the segment has also
made cost savings.
Net sales for the period January-June
decreased by 31% and amounted to SEK
923.9 (1,329.8) million. Sales decreased
in both sales channels. The segment had
lower net sales in all regions. Operating
result decreased with SEK 72.5 million and
amounted to SEK -22.2 (50.3) million. The
lower result is attributable to lower net
sales, but has been positively affected by
savings.
Gifts & Home Furnishings
In the Gifts & Home Furnishings segment,
sales have decreased for the part of the
business related to Destination Kosta,
such as Kosta Boda Art Hotel, Kosta Lodge
and restaurants. Sales have decreased for
the other parts of the segment as well, but
not to the same extent.
Net sales for the second quarter
decreased by 24% to SEK 145.4 (191.0)
million. The lower net sales are mainly
related to Sweden. Sales decreased in
both sales channels. Operating result
improved compared to the previous year
and amounted to SEK 3.5 (-6.1) million,
which was related to savings.
Net sales for the period January-June
decreased by 12% to SEK 290.1 (328.9)
million. Sales decreased in both sales
channels. Operating result slightly
improved compared to the previous year
and amounted to SEK -28.7 (-34.6) million,
which was attributable to savings.
During the first quarter of the year,
some trademarks have been reclassified
from Corporate to Gifts & Home
Furnishings. The comparative figures have
been recalculated.
10 // Q2