Interim report for the second quarter 2018
January - June
PERIOD 1 APRIL - 30 JUNE 2018
- Net sales amounted to SEK 1,523.2 million, which is 11 % higher than last year (SEK 1,371.8 million).
- Operating result amounted to SEK 137.3 (110.4) million.
- Result for the period amounted to SEK 106.8 (77.1) million.
- Earnings per share amounted to SEK 1.60 (1.16) kr.
- Cash flow from operating activities amounted to SEK 124.6 (50.1) million.
PERIOD 1 JANUARY - 30 JUNE 2018
- Net sales amounted to SEK 2,796.0 million, which is 6 % higher than last year (SEK 2,635.9 million).
- Operating result amounted to SEK 155.9 (153.7) million.
- Result for the period amounted to SEK 112.7 (101.9) million.
- Earnings per share amounted to SEK 1.70 (1.55) kr.
- Cash flow from operating activities amounted to SEK 131.2 (83.7) million.
- Equity ratio amounted to 49.7 (48.6) %.
- Net debt to equity ratio amounted to 55.8 (61.7) %
APRIL - JUNE
Our second quarter was very strong, with growth of 11% (9 % in local currency). Our investments are rapidly being paid off and despite significantly higher costs our operating profit for the quarter increased by 24 % to SEK 137.3 million.
Our strong balance sheet contributed to our net financial items improving further, where the result for the period increased by 39 % to SEK 106.8 million. Looking at how the growth was distributed, promo sales channel increased by 15 % and retail by 5 %. Looking at the different segments, Corporate Promo increased by 15 %, Sports & Leisure by 7 % and Gifts & Home Furnishings by 5 %. We should remember that during this quarter we had a positive calendar effect - but it is no coincidence that this is the 16th quarter in a row that we had growth. This proves that our market investments are paying off.
Especially gratifying is also that promo sales channel increased by 9 % in North America in local currency.
JANUARY - JUNE
When we sum up the first half of the year, sales increased by 6 % to SEK 2,796.0 million. Even at mid-year all segments are showing growth. Gross profit was strong at 47.0 %. The increase in sales and the strong gross profit meant that, despite continued heavy investments in sales and marketing, we could still increase operating result to SEK 155.9 million and net profit by 11 % to SEK 112.7 million.
BALANCE SHEET AND CASH FLOW
Cash flow from operating activities was SEK 131.2 million compared to SEK 83.7 million last year. This gives us a strong balance sheet and room for continued expansion – both organically and via possible acquisitions.
We will now enter autumn with good order stocks, well balanced inventories, larger sales forces, continued intensive marketing with better range and products than ever. I would like to mention in particular Craft Teamwear, where we have major growth potential. We are the sports clubs' best friend - and even if it is among the many small clubs and associations that the largest market is found, it still makes us proud and delighted that we managed to get big clubs like KAA Gent, Pec Zwolle, Dynamo Dresden, Darmstadt among others to choose Craft. There are more major clubs and national teams in a number of sports that are already under contract. These will be published at a later date.
Craft has also made its largest contract ever with Spartan USA. Spartan stages 287 obstacle course races per year in 32 countries, of which about 150 are in the United States. There is approximately 1 million starters each year and has 502 million views on social media. The contract covers both clothes and shoes, and has an estimated sales value of USD 30 million over the three-year contract term. We regard the contract as a breakthrough for Craft in the United States.
We head towards an exciting future!
Torsten Jansson, CEO
FOR MORE INFORMATION, PLEASE CONTACT:
Phone: +46 31–712 89 01
Phone: +46 31–712 89 12
The information in this report is that which New Wave Group is required to disclose under the Securities and Market Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) 16 August 2018.
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