Interim report for the second quarter 2019
January - June
PERIOD 1 APRIL – 30 JUNE 2019
- Net sales amounted to SEK 1,689.0 million, which was 11 % (6 % in local currencies) higher than last year (SEK 1,523.2 million).
- Operating result amounted to SEK 119.6 (137.3) million.
- Result for the period amounted to SEK 83.7 (106.8) million.
- Earnings per share amounted to SEK 1.28 (1.60).
- Cash flow from operating activities amounted to SEK 9.0 (124.6) million.
PERIOD 1 JANUARY – 30 JUNE 2019
- Net sales amounted to SEK 3,193.9 million, which was 14 % (8 % in local currencies) higher than last year (SEK 2,796.0 million).
- Operating result amounted to SEK 165.6 (155.9) million.
- Result for the period amounted to SEK 109.7 (112.7) million.
- Earnings per share amounted to SEK 1.68 (1.70).
- Cash flow from operating activities amounted to SEK -56.1 (131.2) million.
- Equity ratio amounted to 44.7 (49.7) %.
- Net debt to equity ratio amounted to 79.2 (55.8) %.
APRIL – JUNE
I continue to be very satisfied with our sales growth. An increase of 11% (6% in local currencies) is good, not least given that we had a certain negative calendar effect and at the same time compared to the same quarter last year which increased by 11%. It was the 20th consecutive quarter of organic growth, which shows that our investments are delivering results. In addition, we grew in both sales channels and all segments, which provides security in itself. Extra pleasing is that we have an 18% growth in the retail sales channel and not least Craft is developing very strongly here. Promo also shows good growth with 7%. The result for the quarter is burdened by increased costs that are mainly related to market activities within team and infrastructure. The gross profit margin remains strong.
JANUARY – JUNE
Sales growth was 14% for the first half of the year (8% in local currencies). The operating result is just over the previous year and the result for the period is slightly lower. Our major investments in teams continue and also expansion of our distribution units for further growth. Together, these two items account for the majority of the increase in external costs. We continue to strengthen our sales organization and, as an example, 27 people out of the total increase of 39 employees are within sales. I see it as an investment that will yield return going forward.
We still have a solid equity ratio of 44.7%, which feels very secure. The stock is under good control and we are well equipped to continue our growth.
Also in this quarter, we have managed to create growth. The growth comes from our investments in market and sales. Not least Craft as a brand and the investment we have made on teams and clubs is developing well. We already have agreements with several national teams within a number of different sports and also large well-known clubs in several countries. Continued sales growth will be in focus but we expect to gradually increase the operating margin in the upcoming years.
I still look very positively on the future!
Torsten Jansson, CEO
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