NWG // 2020
Capital tied up
Capital tied up in stock amounted to SEK 3,605.9
million and increased by SEK 138.5 million compared
with the previous year (SEK 3,467.4 million). The
increase is mainly related to new product ranges.
Inventory turnover rates are in line with the previous
year and amounted to 1.0 (1.1) times.
SEK million
Accumulated impairment of inventories amounted
to SEK 142.3 (125.4) million and impairment losses
related to finished goods amounted to 4.0 (3.8) %.
Accounts receivable amounted to SEK 818.6
(1,092.2) million, where the decrease is mainly related
to the lower net sales.
Investments, financing and
liquidity
Cash flow from operating activities for the quarter
amounted to SEK 251.4 (9.0) million. The improved
cash flow is mainly attributable to a reduction in
current receivables and lower merchandise purchases.
Cash flow from investing activities amounted to SEK
-11.1 (-35.6) million.
For the first six months of the year, cash flow from
operating activities amounted to SEK 366.0 million,
which was SEK 422.1 million higher than the previous
year (SEK -56.1 million). The higher cash flow is mainly
related to a reduction of current receivables, but also
lower merchandise purchases.
30 Jun
2020
30 Jun
2019
Raw materials 36.7 51.5
Work in progress 8.6 13.5
Goods in transit 102.0 207.9
Finished goods 3,458.6 3,194.5
Total 3,605.9 3,467.4
As of June 30, the Group’s total credit limit was SEK
3,165 million, of which SEK 2,150 million runs through
March 2022, USD 21 million through January 2024 and
SEK 318 million has maturities extending until August
2027. The remaining SEK 500 million has a maturity of
between three months and six years. The credit limit
is limited in amount to and dependent on the value
of certain underlying assets. The financing agreement
means that key ratios (covenants) must be met for
maintenance of the credit limit. Net debt to credit
institutes amounted to SEK 1,898.8 (2,168.6) million,
which gives an available credit of SEK 1,266 million.
Net debt decreased by SEK 127.1 million, and
amounted to SEK 2,656.6 (2,783.7) million. The
Group’s net debt to credit institutes decreased by SEK
269.8 million, while the leasing liabilities increased by
SEK 142.7 million. The net debt to equity ratio and net
debt in relation to working capital amounted to
69.9 (79.2) % and 74.1 (77.6) %, respectively.
The equity ratio improved by 3.2 percentage
points compared to the previous year and amounted
to 47.9 (44.7) %.
Personnel and organization
The number of employees as of 30 June was 2,152
(2,597), of which 49% were women and 51% were men.
Of the total number of employees, 405 (604) work in
production.
The production within the New Wave Group is
attributable to AHEAD (embroidery), Cutter & Buck
(embroidery), Dahetra, Kosta Boda, Orrefors, Paris
Glove, Seger, Termo and Toppoint.
Related party transactions
Lease agreements exist with related companies.
Associated companies to the CEO have purchased
merchandise and received compensation for
consultancy services performed. In addition, there are
transactions with related parties at immaterial values.
All transactions have been made on market terms.
The Parent company
Total revenue for the quarter amounted to SEK 38.7
(39.1) million. Result before appropriations and tax
amounted to SEK 2.2 (162.8) million. The lower result
is related to the Parent company not receiving any
dividends from subsidiaries during the period. Net
debt amounted to SEK 1,838.9 (2,016.7) million.
The Parent company’s net financing to subsidiaries
amounted to SEK 1,743.9 (1,898.4) million. Cash flow
from investing activities amounted to SEK -2.5 (0.3)
million. The total assets amounted to SEK 4,738.2
(4,485.6) million and equity, including the equity
portion of untaxed reserves, amounted to SEK 2,101.3
(1,992.0) million.
Total revenue for the period January-June
amounted to SEK 72.7 (71.3) million. Result before
appropriations and tax amounted to SEK 2.8
(165.3) million. The lower result is related to that no
dividends from subsidiaries have been received
during the period. Cash flow from investing activities
amounted to SEK -4.1 (-2.7) million.
12 // Q2