NWG // 2020
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Comments on the period
Summary of the quarter July - September New Wave Group ’ s net sales have been largely affected by the COVID-19 virus during the third quarter as well . Demand for the Group ’ s products and services is still lower than the previous year , although there has been some recovery . The US , where the Group has large operations , is the region most affected by the pandemic , but also Europe and the Nordic countries ( excl . Sweden ) are areas affected negatively . The regions Sweden and Other countries performed better and had growth in net sales . When it comes to our segments Corporate and Gifts & Home Furnishings , net sales were just below and just above the previous year , respectively . Sports & Leisure , with large American operations , had a worse outcome . Despite the negative effects on net sales , operating result increased compared to the previous year , due to cost savings .
Craft
Athlete Tommy Rivs in the campaign Finding Flagstaff , taking place in his hometown .
Net sales for the Group decreased by 13 % ( 9 % in local currencies ). The Corporate segment decreased by 1 %. Other countries , where the promo business in Asia is included , ncreased their net sales while other regions decreased . Sports & Leisure decreased by 29 %. Most of the regions had lower net sales , but the most significant drop was seen in the US . Gifts & Home Furnishings increased by 11 %, which was related to Sweden .
The promo sales channel decreased by 6 % and retail sales decreased by 21 %. The lower net sales in promo took place in Sports & Leisure , while Corporate and Gifts & Home Furnishings increased slightly . The retail sales channel mainly decreased in Sports & Leisure , but increased in Gifts & Home Furnishings .
The gross profit margin decreased compared to the previous year and amounted to 42.6 ( 45.2 )%. The Group had a lower margin 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 employees and temporary lay-offs .
Operating profit improved by SEK 47.2 million and amounted to SEK 176.3 ( 129.1 ) million . Result for the period amounted to SEK 118.9 ( 94.4 ) million .
Cash flow from operating activities amounted to SEK 283.2 ( -131.1 ) million . The higher cash flow is primarily an effect of lower merchandise purchases . Inventory decreased by SEK 305.8 million and amounted to SEK 3,485.4 ( 3,791.2 ) million . Net debt decreased by SEK 697.1 million and amounted to SEK 2,396.4 ( 3,093.5 ) million , and the net debt to equity ratio dropped to 62.1 ( 82.8 )%. The equity ratio improved by five percentage points and amounted to 49.0 ( 44.0 )%.
-1%
Corporate segment
CHANGE IN NET SALES
-29 %
Sports & Leisure segment
11 %
Gifts & Home Furnishings segment
6 // Q3