NWG // 2020
T h e
p e r
i o d
Comments
on the period
Summary of the quarter April - June
New Wave Group’s net sales have been largely affected by the COVID-19 virus and the
pandemic that has hit the world. Demand for the Group’s products and services has decreased
during the quarter. Net sales mainly decreased in April, followed by a slight recovery
during May and June. Most of the Group’s American business was shut down for one and a
half months and deliveries were limited in several European countries. This resulted in lower
net sales for the Group compared to the previous year and affected almost all segments and
regions negatively. The negative effects on net sales led to a lower gross result and
operating result compared to the previous year, but the negative effects were limited through
cost savings. The Group’s net sales and result also include several major trading orders that
were primarily delivered at the end of the quarter.
Re:turn
Sagaform’s
Re:turn collection,
made of recycled
glass.
Net sales decreased by 22% (same in local currencies).
The Corporate segment increased by 2%, which is
related to the above mentioned trading orders. The
increase occurred in the regions Southern Europe and
Other countries. The improvement in Other countries
was related to the promo business in Asia. Sports &
Leisure decreased by 51%. All regions had lower net
sales, but the most significant drop was seen on the US
market. Gifts & Home Furnishings decreased by 24%,
which was related to lower sales in Sweden.
The promo sales channel decreased by 8% and
retail sales decreased by 44%. The lower net sales in
promo took place in Sports & Leisure and Gifts &
Home Furnishings, but Corporate increased. The
retail sales channel decreased in all segments.
The gross profit margin decreased compared to
the previous year and amounted to 39.2 (46.5) %. The
lower margin was mainly attributable to the Corporate
segment, related to a larger share of trading shipments.
Gifts & Home Furnishings also had a lower margin,
while Sports & Leisure was on par with last year.
The Group’s external costs decreased during
the quarter, which is related to savings and volumerelated
costs. Personnel costs also decreased, which
was related to reduced number of staff and temporary
lay-offs.
Operating result amounted to SEK 110.1 (119.6)
million. Result for the period amounted to SEK 72.9
(83.7) million.
Cash flow from operating activities amounted
to SEK 251.4 (9.0) million. The higher cash flow is
primarily an effect of reduced current receivables and
lower merchandise purchases. However, inventory
increased by SEK 138.5 million and amounted to SEK
3,605.9 (3,467.4) million. Net debt decreased by SEK
127.1 million and amounted to SEK 2,656.6 (2,783.7)
million, and the net debt to equity ratio dropped to
69.9 (79.2) %.
2%
Corporate
segment
2020 - Q2
-51%
Sports & Leisure
segment
-24%
Gifts & Home Furnishings
segment
6 // Q2