Year-End 2019 New Wave Group AB
January - December
PERIOD 1 OCTOBER – 31 DECEMBER 2019
- Net sales amounted to SEK 2,024.1 million, which was 4 % (1 % in local currencies) higher than last year (SEK 1,943.4 million).
- Operating result amounted to SEK 240.3 (209.4) million.
- Result for the period amounted to SEK 165.9 (158.9) million.
- Earnings per share amounted to SEK 2.53 (2.42).
- Cash flow from operating activities amounted to SEK 286.7 (174.4) million.
PERIOD 1 JANUARY – 31 DECEMBER 2019
- Net sales amounted to SEK 6,903.5 million, which was 10 % (5 % in local currencies) higher than last year (SEK 6,290.6 million).
- Operating result amounted to SEK 535.0 (482.8) million.
- Result for the period amounted to SEK 370.1 (360.0) million.
- Earnings per share amounted to SEK 5.66 (5.48).
- Cash flow from operating activities amounted to SEK 99.5 (222.6) million.
- Equity ratio amounted to 44.9 (48.6) %.
- Net debt to equity ratio amounted to 78.6 (53.3) %.
The Board of Directors has decided to propose to the AGM a dividend of SEK 2.20 (2.00) per share equal to SEK 146.0 (132.7) million.
OCTOBER – DECEMBER
Once again a quarter with growth. Net sales increased by 4 % (1 % in local currencies) to SEK 2,024.1 million, which is the highest sales we have ever had in a quarter.
Gross profit remains stable and amounted to 46.7 (46.4) %.
External costs decreased by SEK 6.1 million (SEK 46.8 million incl. IFRS 16) compared with the previous year. Operating result thus amounted to the highest ever for a quarter and was SEK 240.3 (209.4) million, an increase of 15 %. The operating margin improved by 1.1 percentage points and amounted to 11.9 %.
It feels good that our previously stated focus to prioritize costs, earnings and cash flow had an effect already in the fourth quarter.
At the end of the quarter, we were negatively affected by the warm weather and sales of winter products have been tough for both us and our customers.
FULL YEAR 2019
2019 was another year of growth. Net sales increased by 10 % (5 % in local currencies) and amounted to SEK 6,903.5 million.
It was the sixth year in a row of growth and during those years we have grown by SEK 2.9 billion.
Operating result amounted to SEK 535.0 million and result for the period amounted to SEK 370.1 million, both new all-time highs.
The year was characterized by great success for many of our operations. The only thing we are not satisfied with is the development in Gifts & Home Furnishings where we also took a goodwill write-down of Sagaform of SEK -11.4 million. Actions have taken to improve the development.
We were negatively affected at the end of the year in terms of sales of winter products such as jackets, gloves, hats, scarves, etc. The warm weather mainly affected our sports brands, but also workwear to some extent. Unfortunately, the warm weather has continued into the first quarter.
BALANCE SHEET AND CASH FLOW
I am very happy and satisfied with our balance sheet and cash flow.
We are now entering a phase where we will focus on earnings and positive cash flow instead of strong growth, investments in new brands and inventory.
We enter this phase with an equity of SEK 3,770.7 million and an equity ratio of 44.9 %. We have all the potential to further improve this, but it is still a nice feeling and a great security.
It is also pleasing that we for the fourth consecutive year propose an increased dividend and at the same time increased sales and strengthened the balance sheet.
I feel confident and optimistic and we are strong in virtually all areas and brands.
The major investment we have made in club and teamwear brings with it a new market for many of our brands, even if it is most important for Craft.
Craft develops very well in teamwear and meets the high expectations that we had. We win small and medium sized associations every day, but we are also rapidly expanding among Sweden's and Europe's top teams.
Perhaps the hardest sport to break into is football and in next year's men's premier division in Sweden we have three teams, Hammarby Fotboll, IFK Göteborg and Varberg BOIS. Internationally we have FC Luzern, PEC Zwolle, KAA Gent, SG Dynamo Dresden and SV Darmstadt. We are very happy and proud of this development and we also harvest great success when it comes to women's football teams.
In conclusion, I would like to finish the CEO comments with almost the same words as 2018. Our brands, our sales capacity, our delivery capacity, our organization and our balance sheet have never been better, bigger or stronger.
Thanks to all customers, employees, shareholders and others who made this development possible.
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 February 6, 2020.
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