Interim Report for the First Quarter 2023
January - March
PERIOD 1 JANUARY – 31 MARCH 2023
- Net sales amounted to SEK 2,135.5 million, which was 20% higher than last year (SEK 1,774.9 million). Currency changes affected net sales positively by 6% and acquired business by 9%
- Operating result amounted to SEK 313.5 (209.1) million.
- Result for the period amounted to SEK 222.2 (153.5) million.
- Earnings per share amounted to SEK 3.35 (2.31).
- Cash flow from operating activities amounted to SEK -193.1 (5.2) million.
- Equity ratio amounted to 56.3 (61.9) %.
- Net debt to equity ratio amounted to 42.0 (22.9) %.
CEO commentsNet sales
We start 2023 in an incredibly impressive way. Both the first quarters of 2021 and 2022 were record highs. Therefore we were comparing against very strong numbers and we were still able to outperform them. Net sales increased by 20% to SEK 2,135.5 (1,774.9) million of which 6% was currency exchange and 9% acquired operations.
Operating result increased by SEK 104.4 million from SEK 209.1 million to SEK 313.5 million or by 50%, which gives an operating margin of 14.7% (11.8%) in what is always the weakest quarter of the year. Continued good gross profit, increased sales, good cost control and efficiency improvements resulted in a very positive outcome.
Of our two sales channels, promo grew by 22% and retail by 17%. Of our three segments, Corporate grew by 24%, Sports & Leisure by 23%, while Gifts & Home Furnishings decreased by 6%.
Rolling 12 months
On a rolling full-year basis, net sales now amount to SEK 9,204.2 million and it is a significant accomplishment to break the 9 billion barrier for the first time and quickly approach the interim goal of SEK 10 billion.
Operating result amounts to SEK 1,609.5 million and it is the first time it exceeds SEK 1.6 billion. The operating margin continued to improve and is now 17.5%.
Cash flow & balance sheet
We continue to have a very strong balance sheet. For the first time, equity exceeds SEK 6 billion (SEK 6,106.7 million) and our equity ratio amounts to 56.3%.
We have increased our debt slightly because we deliberately built up the inventory and we are increasing sales and thus tying up more capital in accounts receivable. We also acquired B.T.C. Activewear last year and we still have room for more acquisitions.
It is always difficult to assess the short-term perspective, but I know that we are strong in almost all areas. The investments we made in the past have really yielded good results, both in increased sales and in a very good profit development.
We have a lot of growth left in already developed products, such as in Craft shoes and Craft Teamwear, where we have only seen the beginning. There are also great opportunities for continued profitable growth within Cutter & Buck and several of our brands within promo and professional clothing.
We will, as I previously wrote, increase the pace of product development, marketing and introduction of existing products/brands in more countries. This was already initiated during the first quarter. As it currently stands, current revenue increases are able to offset those costs without having any major negative impact on our results.
So all in all, my employees and I see the future brightly and we have many years of profitable growth ahead of us!
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, 2023.
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