Interim Report for the First Quarter 2022
January - March
PERIOD 1 JANUARY – 31 MARCH 2022
- Net sales amounted to SEK 1,774.9 million, which was 41% (36% in local currencies) higher than last year (SEK 1,261.6 million).
- Operating result amounted to SEK 209.1 (100.1) million.
- Result for the period amounted to SEK 153.5 (67.7) million.
- Earnings per share amounted to SEK 2.31 (1.04).
- Cash flow from operating activities amounted to SEK 5.2 (367.2) million.
- Equity ratio amounted to 61.9 (56.9) %.
- Net debt to equity ratio amounted to 22.9 (37.3) %.
CEO commentsNet sales
We are once again delivering a record quarter. Net sales increased by as much as 41% (excluding currency 36%) and amounted to SEK 1,774.9 million, which is a new all-time high for a first quarter. Just as we previously predicted, the recovery in the market will take place quickly after easing or removing restrictions in Europe and the USA. Both of our sales channels had good growth with 49% for promo and 29% for retail. All three segments had growth, Corporate with 49%, Sports & Leisure with 40% and Gifts & Home Furnishings with 13%. All geographical regions also showed growth. A quarter that we can feel great pride in our accomplishments in sales growth.
We more than doubled our operating profit from SEK 100.1 million to SEK 209.1 million. The operating margin for the quarter was 11.8%. The highest operating margin we have previously reached is 7.9%.
Net profit increased from SEK 67.7 million to SEK 153.5 million, an improvement of SEK 85.8 million or as much as 127%.
Rolling 12 months
For the first time, we passed SEK 7 billion in net sales on a rolling full year and achieved SEK 7,231.9 million and an operating result of SEK 1,114.9 million. This gives an operating margin of 15.4%.
Cash flow & balance sheet
The balance sheet remains very strong with an equity ratio of 61.9%, which leaves plenty of room for both organic growth and possible acquisitions.
We are well equipped for the future and I remain optimistic. However, there is no shortage of challenges in the short term due to the situation prevailing in the world. The war in Ukraine is terrible and worrying, as is the development of the pandemic in China with large and long lockdowns. Both of these risks are exacerbating the strained situation that has existed for a year and continues in product supply and logistics.
We have so far managed to deal with these problems effectively, however it remains a challenging situation. Above all, there may be quarters that are affected, for example, Craft's basic orders are delayed and delivered later than normal. The short-term development is therefore still difficult to assess, but in the long term I am more positive than ever. We continue to gain market share in most areas. Promo with Clique in the lead develops very well. We see a strong recovery in the US for all companies. Last but not least, Craft continues its growth and in May we will take over the Norwegian national teams in cross-country skiing and biathlon.
We recently extended the agreement with Hammarby Football for another 5 years and it now extends until 2028. We are strong and well equipped against our competitors in virtually all areas. So even with the situation in the world, we face various challenges and sometimes feel anxious in the short term, I am more confident than ever with the long-term development.
Torsten Jansson, CEO
FOR MORE INFORMATION, PLEASE CONTACT:
CEO and Group CEO
Phone: +46 31–712 89 01
Phone: +46 31–712 89 12
This information is information that New Wave Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons detailed above, at 7.00 a.m. CET on April 26, 2022.
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