NWG // 2020
April - June
Net sales
Net sales amounted to SEK 1,314.5 million, which
was 22% lower than last year (SEK 1,689.0 million).
Exchange rate effects had no material impact on sales
and net sales in local currencies were thus also 22%
lower than last year.
Net sales in the US decreased by 62%, which was
mainly related to Sports & Leisure. In Sweden, net
sales decreased by 31%. The decrease occurred in
all segments. Sales in Central Europe decreased by
29%, mainly in the Corporate segment. The Nordic
countries excluding Sweden had 43% lower net sales
than last year. The decrease was mainly attributable
to the Corporate and Sports & Leisure segments.
Southern Europe increased by 77%, which was related
to Corporate and several major trading shipments.
Other countries increased by 19%, which was related
to the trading business in Asia within the Corporate
segment.
Gross profit
The gross profit margin was lower than the previous
year and amounted to 39.2 (46.5) %. The lower margin
is mainly related to the trading business, which is
included in the Corporate segment. However, Gifts
& Home Furnishings also had a lower margin while
Sports & Leisure was on par with last year.
Other operating income and other
operating expenses
Other operating income increased by SEK 45.9 million
to SEK 61.4 (15.5) million. The increase is attributable
to government support in connection with COVID-19.
In addition to these supports, other operating income
include the operating currency gains and must be set
against the income statement item other operating
expenses, where primarily operating currency losses
are reported. Other operating expenses increased
by SEK 3.7 million and amounted to SEK -11.4 (-7.7)
million. The net of the above mentioned items
amounted to SEK 50.0 (7.8) million.
Costs and depreciations
External expenses decreased by SEK 142.5 million and
amounted to SEK -187.7 (-330.2) million. The decrease
is an effect of cost savings and volume-related costs.
Personnel costs decreased by SEK 81.4 million and
amounted to SEK -209.1 (-290.5) million. The decrease
is related to temporary lay-offs and reduced number
of staff.
The exchange rates for the quarter is in line with the
previous year and have not had any material impact on
the above mentioned costs.
Amortizations, depreciations and write-downs
were higher compared to last year and amounted to
SEK -57.8 (-52.8) million. The increase is related to
depreciations on right-of-use asset for leasing, which
increased by SEK 5.0 million compared with the
previous year.
Operating result
Operating result was SEK 9.5 million lower than last
year and amounted to SEK 110.1 (119.6) million.
The lower operating result is related to reduced net
sales. However, the operating margin improved and
amounted to 8.4% compared to 7.1% the previous year,
where the improvement is attributable to the cost
savings made. The quarter also includes several major
trading orders that were primarily delivered at the end
of the quarter.
Net financial items and tax
Net financial items amounted to SEK -17.3 (-16.0)
million, which is related to higher interest expenses.
Tax on result for the period amounted to SEK -19.9
(-19.9) million.
Result for the period
Result for the period amounted to SEK 72.9 (83.7)
million and earnings per share amounted to SEK 1.11
(1.28).
Craft
In a collaboration
with Vasaloppet,
Craft designed a new
collection for Cykelvasan
2020, which was
replaced by Hemmavasan.
7 // Q2