Interim Report for the Second Quarter 2023
January - June
PERIOD 1 APRIL – 30 JUNE 2023
- Net sales amounted to SEK 2,304.5 million, which was 14% higher than last year (SEK 2,019.2 million). Currency changes affected net sales positively by 5% and acquired business by 9%.
- Operating result amounted to SEK 363.9 (351.0) million.
- Result for the period amounted to SEK 259.6 (265.0) million.
- Earnings per share amounted to SEK 1.96 (2.00).*
- Cash flow from operating activities amounted to SEK 230.1 (68.1) million.
PERIOD 1 JANUARY – 30 JUNE 2023
- Net sales amounted to SEK 4,440.0 million, which was 17% higher than last year (SEK 3,794.1 million). Currency changes affected net sales positively by 5% and acquired business by 9%.
- Operating result amounted to SEK 677.3 (560.1) million.
- Result for the period amounted to SEK 481.8 (418.5) million.
- Earnings per share amounted to SEK 3.63 (3.15). *
- Cash flow from operating activities amounted to SEK 37.0 (73.3) million.
- Equity ratio amounted to 54.9 (59.0)%.
- Net debt to equity ratio amounted to 42.8 (27.0)%.
*Recalculated with regard to the 2:1 share split carried out in June 2023.
New all-time high in both net sales and operating result - again!
Despite the fact that the market was weaker in the second quarter than we assessed in the first quarter, both in promo and in the retail trade, we still reached a new all-time high in sales. Net sales amounted to SEK 2,304.5 million. This is an increase of 14%. We continue to gain market share in a weaker market.
We also managed to increase operating result by SEK 12.9 million. This gives us our best second quarter ever with SEK 363.9 million. The operating margin fell from 17.4% to 15.8% but is still above our target of 15.0%.
The profit increase is due to good cost control, even though during the quarter we increased investments in both market, products and personnel and invested more time and costs analyzing various potential acquisitions. It is the 9th quarter in a row that we have increased net sales and the 10th quarter in a row that we have increased operating result.
The half year
Again, a new all-time high for the half year. Net sales amounted to SEK 4,440.0 million, an increase of SEK 645.9 million or 17%. Of the increase, acquired business was 9%, currency changes 5% and organic growth in local currencies 3%, which means that we continue to take market shares. Operating result increased by SEK 117.2 million or by 21% and amounted to SEK 677.3 million. The operating margin thus improved by 0.5% and amounted to 15.3%.
Rolling 12 months
On a rolling full year, net sales now amount to SEK 9,489.4 million and operating result to SEK 1,622.3 million, which gives an operating margin of 17.1%.
Cash flow and balance sheet
Our balance sheet is still very strong with an equity ratio of 54.9%. We started in the first quarter to focus on improving our cash flow, which is already paying off. Cash flow from operating activities amounted to SEK 230.1 (68.1) million. This focus will also have continued benefits during the second half of the year and the first quarter of 2024.
The future looks very bright. In the short term, we will face a challenging market, which we will monitor closely. Our brands, our organization, our finances, our balance sheet, etc. provide great opportunities to emerge from the current weaker market stronger than ever.
The market will be challenging for the next 2-3 quarters, but we can overcome that by gaining market share. Difficult times offer great opportunities, especially considering our capital, organization and strong balance sheet for acquisitions. In 9 months we have acquired both B.T.C. Activewear Ltd and Tenson AB. BTC gives us a very strong base in the UK and with Tenson I am optimistic that we can create the same success as we have with Craft over time.
We have now made two acquisitions in 9 months, this can be compared to no acquisition at all during 10 years (2012-2022) when we deemed that the market had too high valuations and low interest rates.
It has been a fun and exciting journey and it is only beginning. Thank you all for this quarter. Now the journey continues.
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 August 16, 2023.
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