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New Wave Group AB Interim / Quarterly Report 2022
3081_10-q_2022-04-26_36c152dc-9c19-4470-af5c-9ea2dfa2a3e1.pdf
Interim / Quarterly Report
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2022 Interim report N B
G r o u p
A
e w Wa v e
January - March
Corporate
| CLIQUE REG, TRADEMARK |
J.HARVEST & FROST CORPORATE SHIRTMAKER |
JAMES HARVEST sports Twear |
Frinter ACTIVE WEAR |
MAC ONE® | JINGHAM |
|---|---|---|---|---|---|
| JOBMAN WORKWEAR |
I DPROJOB | TOPPOINT | d-Vice PROMOTE | cottover people & planet |
17:17442 active profile outfit |
| 105 / DERBY POF SWEDEN® |
Praphix | No Problem Sportswear |
CAD SPORTSWEAR |
hurricone | :::: bagsfirst® |
Sports & Leisure
| 1 1 1 CUTTER & BUCK |
ANNIKA CZ CUTTER & BUCK |
CRAFT :: | CLIQUE. | ahead 4 | K Kate Lord COLLECTION |
|---|---|---|---|---|---|
| LE GANT | AUCLAIR & | LAURENTIDE grow | SEGER | 8 Termo |
|
| SINCE 192 | was mannel start process. MARSTRAND ORIGINAL SAILOR SHOES |
mårie | speedo |
Gifts & Home Furnishings
| ORREFORS ଭ | KostaBoda | KOSTA BODA ART HOTEL SWEDEN |
STORE BRESCANE IN SELLERS KOSTA LODGE |
LOSTA 087 |
saga orm |
|---|---|---|---|---|---|
| LORD NELSON STE VICTORY |
nightingale | queen | KOSTA LINNEWÄFVERI | Orrefors JERNVERK | |
| vakinme | VICTORIAN |
2 // Q1
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) %.
Q1 Q2 Q3 Q4
2018 2019 2020 2021 2022
2018 2019 2020 2021 2022
SEK
2018 2019 2020 2021 2022
o
r s t e n J a n s s o
"Another record performance."
Net 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.
Operating result
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
Operating cash flow was SEK 5.2 million, compared with SEK 367.2 million the previous year. The difference consists of a certain inventory build-up, payment of previous purchases of goods and an increase in accounts receivable with the sharp increase in sales. Given the growth, we would have preferred to increase inventory further, but there are still supply disruptions in the logistics chain.
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.
The future
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.
Q1
Torsten Jansson
CEO
T h e p e r i o d
Comments on the period
Summary of the quarter January - March
The first quarter of the year reports continued positive development of both net sales and earnings. The Group's net sales improved by 41% (36% in local currencies) and the operating result for the period increased by 109% and amounted to SEK 209.1 (100.1) million. The improvement takes place in all segments and regions as well as in both sales channels. The gross profit margin was slightly lower compared with the previous year, while costs increased. The cost increase is mainly volume-related, both in terms of external costs and personnel costs.
The Corporate segment increased 49% and Sport & Leisure increased by 40%. Both these segments had higher net sales in all regions. Gifts & Home Furnishings increased by 13%, which is mainly related to the regions of Sweden, the rest of the Nordic region and the USA.
The promo sales channel increased by 49% and retail increased by 29%. Promo increased its net sales in all segments while retail increased in Sports & Leisure and Gifts & Home Furnishings but was slightly lower in Corporate.
The gross profit margin was 47.5 (48.0)%. The year's margin was affected by the fact that our trading operations, with a lower percentage margin, accounted for a larger share of net sales than in last year's quarter.
The Group's external costs increased compared with the previous year, which is mainly due to volume-related costs but also higher market activities. Personnel costs increased, which is an adjustment to the current sales level after the savings made in previous years.
The result for the period improved by SEK 85.8 million and amounted to SEK 153.5 (67.7) million.
Cash flow from operating activities amounted to SEK 5.2 (367.2) million. The lower cash flow is an effect of higher purchases of goods. Inventories increased by SEK 267.3 million and amounted to SEK 3,200.0 (2,932.7) million.
CHANGE IN NET SALES 40% Sports & Leisure segment Corporate segment 49% Gifts & Home Furnishings segment 13%
January - March
Net sales
Net sales amounted to SEK 1,774.9 million, which was 41% higher than the previous year (SEK 1,261.6 million). The exchange rate changes had a positive effect on sales of SEK 61.3 million, which corresponds to 5%.
Net sales in USA increased by 62% and Sweden increased by 16%. Both regions had higher net sales in all segments. Sales in Central Europe increased by 37%. The improvement took place in Corporate and Sports & Leisure. The Nordic region excluding Sweden had 39% higher net sales than last year. All segments had higher net sales. Southern Europe increased by 36%, which is related to the Corporate segment. Other countries increased by 92%, which was mainly related to trading operations in the Corporate segment and Canada in the Sports & Leisure segment.
Gross profit
The gross profit margin was slightly lower compared with the previous year and amounted to 47.5 (48.0)%. The Group's trading operations, with a lower percentage gross profit margin, accounted for a larger share of net sales this year compared with the previous year.
Other operating income and other operating costs
Other operating income increased by SEK 6.0 million to SEK 22.6 (16.6) million. Other operating income is mainly attributable to the operating exchange rate gains, but also other remuneration, and shall be set against the income statement item other operating expenses, where mainly the operating exchange rate losses are reported. Other operating expenses increased by SEK 6.6 million and amounted to SEK -11.8 (-5.2) million. The net of the above-mentioned items amounted to SEK 10.8 (11.4) million.
Costs and depreciations
External costs increased by SEK 86.8 million and amounted to SEK -311.6 (-224.8) million. The increase is mainly related to volume-related costs and the fact that marketing activities have increased. Personnel costs increased by SEK 37.4 million and amounted to SEK -274.6 (-237.2) million. The first quarter of last year was affected by the savings made in previous years. Last year, the Group began to return to more normal operations and the number of employees has continuously increased since then.
Exchange rate fluctuations increased the above-mentioned costs by SEK 31.3 million.
Depreciation and write-downs were slightly higher compared with the previous year and amounted to SEK -58.8 (-54.1) million.
Operating result
Operating result improved by SEK 109.0 million compared with the previous year and amounted to SEK 209.1 (100.1) million. The improved operating result is related to the higher net sales.
Net financial items and tax
Net financial items amounted to SEK -9.6 (-12.8) million. The Group's net debt has decreased, which has also contributed to lower interest expenses.
Tax on the profit for the period amounted to SEK -46.0 (-19.7) million and the increase is related to the improved operating result.
Result for the period
Result for the period improved by SEK 85.8 million and amounted to SEK 153.5 (67.7) million. Earnings per share amounted to SEK 2.31 (1.04).
Craft Craft's CTM Carbon Race Rebel shoe won in the category "Fast" at the 2022 RW Shoe Awards.
Reporting of operating segments
New Wave Group divides its operations into the segments Corporate, Sports & Leisure and Gifts & Home Furnishings. The Group monitors the segments' and brands' sales as well as operating result. The operating segments are based on the Group's operational management.
Corporate
Net sales for the first quarter improved by 49% and amounted to SEK 851.4 (572.3) million. Sales increased in all regions but mainly in USA and Central Europe. The region Other countries also had a strong development, which is related to trading operations in Asia. The promo sales channel increased while retail reduced its sales slightly. Operating result improved by SEK 74.6 million and amounted to SEK 125.9 (51.3) million. The higher result is related to the higher net sales.
Sports & Leisure
Net sales during the period January-March increased by 40% and amounted to SEK 746.6 (533.1) million. The segment had higher net sales in all regions except Southern Europe, where net sales were on par with last year. Sales increased in both sales channels. Operating result improved by SEK 40.7 million and amounted to SEK 95.2 (54.5) million. The higher result is related to improved net sales, but the segment also has a higher cost level.
Gifts & Home Furnishings
Net sales for the first quarter increased by 13% and amounted to SEK 176.9 (156.1) million. The improved net sales are mainly related to Sweden, USA and the Other Nordic countries. Sales increased in both sales channels. Operating result was slightly lower than last year and amounted to SEK -12.0 (-5.7) million. The lower operating result is mainly related to the market investments that are underway in Destination Kosta.
Capital tied up
NWG // 2021
Capital tied up in inventories increased by SEK 267.3 million and amounted to SEK 3,200.0 (2,932.7) million. When converted to SEK, inventory value increased by SEK 65.1 million. The inventory's turnover rate is in line with the previous year and amounted to 1.2 (1.1) times.
| SEK million | 31 Mar 2022 |
31 Mar 2021 |
|---|---|---|
| Raw materials | 51.7 | 31.6 |
| Work in progress | 1.8 | 1.3 |
| Goods in transit | 304.1 | 132.1 |
| Finished goods | 2 842.4 | 2 767.7 |
| Total | 3 200.0 | 2 932.7 |
As of March 31, the total obsolescence deduction, defined as the difference between the lower of acquisition value and fair value, for the inventory amounted to SEK 154.7 (159.4) million and the obsolescence reserve in relation to finished goods inventory amounted to 5.2 (5.4 )%.
Accounts receivable amounted to SEK 1,191.2 (842.8) million, where the increase is mainly related to higher sales.
Investments, financing and liquidity
The quarter's cash flow from operating activities decreased by SEK 362.0 million and amounted to SEK 5.2 (367.2) million. The lower cash flow is attributable to a higher inflow of goods and payment of previously purchased goods. Cash flow from investing activities increased compared with last year amounted to SEK -25.3 (-15.2) million.
Net debt decreased by SEK 422.7 million, of which SEK 370.7 million is related to credit institutions and amounted to SEK 1,095.4 (1,518.1) million. The net debt to equity ratio and net debt through working capital improved and amounted to 22.9 (37.3)% and 33.8 (52.7)%, respectively.
The equity ratio improved by 5.0 percentage points compared with the previous year and amounted to 61.9 (56.9)%.
The Group's total credit facility as of March 31, 2022 amounted to SEK 2,744.8 million, of which \$ 11.2 million runs through January 2024, SEK 2,150.0 million runs through December 2024 and SEK 240.6 million has a term that extends to and including with August 2027. The remaining SEK 250.0 million has a term of between three months and six years. The credit facility is limited in amount to and dependent on the value of certain underlying assets. The financing agreement means that key figures (covenants) must be met in order to maintain the credit line.
Personnel and organization
The average number of full-time employees as of March 31 was 2,176 (2,035), of which 50% were women and 50% were men. Of the number of employees, 453 (401) people work in production.
The production within New Wave Group is attributable to AHEAD (embroidery), Cutter & Buck (embroidery), Kosta Boda, Orrefors, Seger, Termo and Toppoint.
Related party transactions
Lease agreements exist with related companies and related companies to the CEO have purchased merchandise. In addition, there are transactions with related parties of insignificant values. All transactions have taken place on market terms.
The Parent company
Total revenue for the quarter amounted to SEK 35.1 (25.2) million. Result before appropriations and tax amounted to SEK 1.0 (1.6) million. Net debt amounted to SEK 558.4 (1,002.6) million. The parent company's net financing to subsidiaries amounted to SEK 1,186.9 (1,141.5) million. Cash flow from investing activities amounted to SEK -0.1 (0.1) million. Total assets amounted to SEK 3,915.8 (3,980.9) million and equity, including the equity portion of untaxed reserves, to SEK 2,558.4 (2,197.3) million.
Annual General Meeting
The Annual General Meeting will be held on May 18 (only postal voting). The annual report is available at the company's head office in Gothenburg and at www.nwg.se.
Dividend
The dividend policy is that 40% of the Group's net profit will be distributed over a business cycle.
The Board of Directors proposes that the Annual General Meeting resolves on a dividend of SEK 4.25 per share, regardless of share class, a total of SEK 281,960,058. The dividend constitutes 37% of the net profit.
Nomination committee
The nomination committee for the board election at the 2022 Annual General Meeting is
-
Ulf Hedlundh, representative of Svolder AB and Chairman of the nomination committee
-
Torsten Jansson, CEO and representative of Torsten Jansson Holding AB
-
Frank Larsson, representative for Svenska Handelsbanken Fonder
For more information about the nomination committee and its work, please see www.nwg.se.
Calendar
| 18 MAY | Annual General Meeting |
|---|---|
| 17 AUG | Interim report for the second quarter |
| 8 NOV | Interim report for the third quarter |
The company's auditors have not conducted any review of the report for the first quarter of 2022.
The Board of Directors and CEO declare that the year-end report gives a true and fair overview of the company's and Group's operations, financial position and earnings, and describes the significant risks and uncertainty factors faced by the company and the companies included in the Group.
Gothenburg, April 26, 2022
2022
New Wave Group AB (publ)
Olof Persson Chairman of the Board
Christina Bellander Member of the Board
Ralph Mühlrad Member of the Board
M. Johan Widerberg Member of the Board
Ingrid Söderlund Member of the Board
Torsten Jansson CEO and Group CEO
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 26th, 2022.
For more information, please contact:
CEO AND GROUP CEO Torsten Jansson Phone: +46 (0) 31–712 89 01 E-mail: [email protected] CFO Lars Jönsson Phone: +46 (0) 31–712 89 12 E-mail: [email protected]
11 // Q1
Consolidated income statement
| SEK million | Note | 3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
|---|---|---|---|---|---|
| Net sales | 3, 4, 5 | 1 774.9 | 1 261.6 | 6 718.6 | 6 098.8 |
| Goods for resale | -931.6 | -656.4 | -3 489.3 | -3 461.5 | |
| Gross profit | 843.3 | 605.2 | 3 229.3 | 2 637.3 | |
| Other operating income | 8 | 22.6 | 16.6 | 111.5 | 146.2 |
| External costs | -311.6 | -224.8 | -1 067.9 | -975.7 | |
| Personnel costs | -274.6 | -237.2 | -1 016.9 | -982.6 | |
| Amortizations, depreciations and write-downs of | |||||
| tangible and intangible fixed assets | 3 | -58.8 | -54.1 | -227.3 | -229.5 |
| Other operating costs | -11.8 | -5.2 | -21.7 | -48.3 | |
| Share of associated companies' result | 0.0 | -0.4 | -1.1 | -1.4 | |
| Operating result | 3 | 209.1 | 100.1 | 1 005.9 | 545.9 |
| Financial income | 0.6 | 0.8 | 3.0 | 4.1 | |
| Financial expenses | -10.2 | -13.5 | -46.0 | -69.0 | |
| Net financial items | -9.6 | -12.8 | -43.0 | -64.9 | |
| Result before tax | 199.5 | 87.4 | 962.9 | 481.0 | |
| Tax expense Result for the period |
-46.0 153.5 |
-19.7 67.7 |
-202.9 760.0 |
-118.0 363.0 |
|
| Other comprehensive income: Items that can be reclassified into profit or loss: |
|||||
| Translation differences | 70.3 | 141.2 | 230.3 | -274.5 | |
| Cash flow hedges | 0.2 | 1.6 | 3.3 | -4.7 | |
| Sum | 70.5 | 142.8 | 233.6 | -279.2 | |
| Income tax related to components of other | 0.0 | -0.3 | -0.7 | 1.0 | |
| comprehensive income Total other comprehensive for the period |
70.5 | 142.5 | 232.9 | -278.2 | |
| Total comprehensive income for the period | 224.0 | 210.2 | 992.9 | 84.8 | |
| Result for the period attributable to: | |||||
| Shareholders of the Parent company | 153.5 | 68.7 | 760.3 | 365.5 | |
| Non-controlling interest | 0.0 | -1.0 | -0.3 | -2.5 | |
| 153.5 | 67.7 | 760.0 | 363.0 | ||
| Total comprehensive income attributable to: | |||||
| Shareholders of the Parent company | 224.0 | 210.6 | 992.8 | 88.9 | |
| Non-controlling interest | 0.0 | -0.4 | 0.1 | -4.1 | |
| 224.0 | 210.2 | 992.9 | 84.8 | ||
| Earnings per share (SEK) | 2.31 | 1.04 | 11.46 | 5.51 | |
| The average number of outstanding shares | 66 343 543 | 66 343 543 | 66 343 543 | 66 343 543 |
Consolidated cash flow statement
| Note SEK million |
3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
|---|---|---|---|---|
| Operating activities | ||||
| Operating result | 209.1 | 100.1 | 1 005.9 | 545.9 |
| Adjustment for items not included in cash flow | 53.3 | 43.8 | 194.8 | 264.5 |
| Received interest | 0.2 | -0.5 | 1.8 | 0.7 |
| Paid interest | -9.8 | -12.3 | -44.8 | -65.7 |
| Paid income tax | -49.2 | -44.1 | -164.7 | -113.7 |
| Cash flow from operating activities before changes in working capital |
203.6 | 87.1 | 993.0 | 631.8 |
| Changes in working capital | ||||
| Increase/decrease of inventories | -226.5 | 30.6 | 57.8 | 495.8 |
| Increase/decrease of current receivables | 205.8 | 256.3 | -269.9 | 106.1 |
| Increase/decrease of current liabilities | -177.7 | -6.8 | 426.5 | -27.1 |
| Cash flow from changes in working capital | -198.4 | 280.1 | 214.4 | 574.8 |
| Cash flow from operating activities | 5.2 | 367.2 | 1 207.4 | 1 206.6 |
| Investing activities | ||||
| Investments in tangible fixed assets | -22.6 | -14.5 | -105.3 | -44.7 |
| Sales of tangible fixed assets | 2.7 | 1.5 | 9.9 | 6.7 |
| Investments in intangible fixed assets | -5.4 | -1.5 | -18.8 | -11.3 |
| Business combinations | 0.0 | 0.0 | 0.0 | -8.6 |
| Raised long-term receivables | 0.0 | -0.7 | 0.0 | 0.0 |
| Repayment of long-term receivables | 0.0 | 0.0 | 0.0 | 0.3 |
| Cash flow from investing activities 3 |
-25.3 | -15.2 | -114.2 | -57.5 |
| Cash flow after investing activities | -20.1 | 352.0 | 1 093.2 | 1 149.1 |
| Financial activities | ||||
| Loans raised | 42.3 | 0.0 | 0.0 | 62.9 |
| Amortization of loans | -25.4 | -314.6 | -706.5 | -1091.8 |
| Amortization of lease liabilities | -33.2 | -31.5 | -126.5 | -126.7 |
| Acquisition of non-controlling interests | 0.0 | 0.0 | -12.5 | 0.0 |
| Dividend paid to the shareholders of the Parent company | 0.0 | 0.0 | -265.4 | 0.0 |
| Cash flow from financial activities | -16.3 | -346.1 | -1 110.9 | -1 155.6 |
| Cash flow for the period | -36.4 | 5.9 | -17.7 | -6.4 |
| Liquid assets at the beginning of the period | 327.9 | 325.1 | 325.1 | 351.3 |
| Translation differences in liquid assets | 7.1 | 13.8 | 20.5 | -19.8 |
| Liquid assets at the end of the period | 298.6 | 344.8 | 327.9 | 325.1 |
| Liquid assets | ||||
| Cash at bank and in hand | 298.6 | 344.8 | 298.6 | 325.1 |
Consolidated balance sheet
| 31 Mar | 31 Mar | 31 Dec | 31 Dec | ||
|---|---|---|---|---|---|
| SEK million | Note | 2022 | 2021 | 2021 | 2020 |
| ASSETS | |||||
| Intangible fixed assets | 3 | 1 500.7 | 1 447.1 | 1 474.7 | 1 380.9 |
| Tangible fixed assets | 3 | 1 256.0 | 1 286.8 | 1 258.3 | 1 289.5 |
| Shares in associated companies | 38.6 | 39.4 | 38.7 | 39.7 | |
| Other long-term receivables | 12.0 | 14.9 | 11.8 | 14.0 | |
| Deferred tax assets | 3, 5 | 99.2 | 105.4 | 93.5 | 106.7 |
| Total non-current assets | 5 | 2 906.5 | 2 893.6 | 2 877.0 | 2 830.8 |
| Inventory | 3 200.0 | 2 932.7 | 2 937.6 | 2 883.0 | |
| Current tax receivables | 21.8 | 20.1 | 16.7 | 13.4 | |
| Accounts receivable | 1 191.2 | 842.8 | 1 359.6 | 1 059.3 | |
| Other receivables | 68.8 | 59.0 | 86.3 | 61.7 | |
| Prepaid expenses and accrued income | 57.2 | 47.2 | 55.3 | 43.5 | |
| Liquid assets | 298.6 | 344.8 | 327.9 | 325.1 | |
| Total current assets | 4 837.6 | 4 246.6 | 4 783.6 | 4 385.9 | |
| TOTAL ASSETS | 3, 6 | 7 744.1 | 7 140.2 | 7 660.6 | 7 216.7 |
| EQUITY | |||||
| Share capital | 199.0 | 199.0 | 199.0 | 199.0 | |
| Other capital contributions | 219.4 | 219.4 | 219.4 | 219.4 | |
| Reserves | 562.5 | 398.8 | 489.4 | 252.2 | |
| Retained earnings including result for the period | 3 809.8 | 3 238.3 | 3 658.8 | 3 174.3 | |
| Equity attributable to shareholders of the Parent company | 4 790.8 | 4 055.5 | 4 566.7 | 3 845.0 | |
| Non-controlling interest | 0.8 | 10.1 | 0.9 | 10.5 | |
| Total equity | 4 791.6 | 4 065.7 | 4 567.6 | 3 855.5 | |
| LIABILITIES | |||||
| Long-term interest-bearing liabilities | 7, 8 | 1 177.2 | 1 620.4 | 1 166.8 | 1 933.3 |
| Pension provisions | 21.4 | 18.8 | 19.4 | 18.0 | |
| Other provisions | 5.7 | 7.4 | 7.1 | 7.6 | |
| Deferred tax liabilities | 144.3 | 143.3 | 138.4 | 140.1 | |
| Total non-current liabilities | 1 348.6 | 1 789.9 | 1 331.6 | 2 099.1 | |
| Short-term interest-bearing liabilities | 7, 8 | 216.7 | 242.5 | 229.9 | 209.4 |
| Accounts payable | 810.5 | 614.3 | 926.1 | 543.6 | |
| Current tax liabilities | 112.0 | 40.0 | 89.9 | 58.6 | |
| Other liabilities | 8 | 150.8 | 151.7 | 163.6 | 177.9 |
| Accrued expenses and prepaid income | 313.9 | 236.2 | 351.9 | 272.5 | |
| Total current liabilities | 1 603.9 | 1 284.6 | 1 761.4 | 1 262.1 | |
| Total liabilities | 3, 6 | 2 952.5 | 3 074.5 | 3 093.0 | 3 361.1 |
| TOTAL EQUITY AND LIABILITIES | 7 744.1 | 7 140.2 | 7 660.6 | 7 216.7 |
Consolidated statement of changes in equity
| SEK million | Share capital | Other capital contributions |
Reserves | Retained earnings incl. result for the period |
Total | Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|
| Opening balance 2021-01-01 | 199.0 | 219.4 | 252.2 | 3 174.3 | 3 845.0 | 10.5 | 3 855.5 |
| Result for the period | 68.7 | 68.7 | -1.0 | 67.7 | |||
| Other comprehensive income | |||||||
| Translation differences | 140.6 | 140.6 | 0.6 | 141.2 | |||
| Cash flow hedges for the period | 1.6 | 1.6 | 1.6 | ||||
| Reclassification of previous years' cash flow hedge |
4.7 | -4.7 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income |
-0.3 | -0.3 | -0.3 | ||||
| Transactions with shareholders | |||||||
| Dividends to shareholders of the Parent company |
0.0 | 0.0 | 0.0 | ||||
| Acquisition of non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | |||
| Closing balance 2021-03-31 | 199.0 | 219.4 | 398.8 | 3 238.3 | 4 055.6 | 10.1 | 4 065.7 |
| SEK million | Share capital | Other capital contributions |
Reserves | Retained earnings incl. result for the period |
Total | Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|
| Opening balance 2022-01-01 | 199.0 | 219.4 | 489.4 | 3 658.8 | 4 566.7 | 0.9 | 4 567.6 |
| Result for the period | 153.6 | 153.6 | -0.1 | 153.5 | |||
| Other comprehensive income | |||||||
| Translation differences | 70.3 | 70.3 | 0.0 | 70.3 | |||
| Cash flow hedges for the period | 0.2 | 0.2 | 0.2 | ||||
| Reclassification of previous years' cash flow hedge |
2.6 | -2.6 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income |
0.0 | 0.0 | 0.0 | ||||
| Transactions with shareholders Dividends to shareholders of the |
|||||||
| Parent company | 0.0 | 0.0 | |||||
| Acquisitions of non-controlling interest | 0.0 | 0.0 | |||||
| Closing balance 2022-03-31 | 199.0 | 219.4 | 562.5 | 3 809.8 | 4 790.8 | 0.8 | 4 791.6 |
| Accumulated translation differences in equity | Jan - Mar 2022 |
Jan - Mar 2021 |
|---|---|---|
| Accumulated translation differences at the beginning of the period | 497.0 | 266.7 |
| Translation differences in foreign Group companies for the period | 70.3 | 141.2 |
| Accumulated translation differences at the end of period | 567.3 | 407.9 |
Financial key figures
| 3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
|
|---|---|---|---|---|
| Net sales growth, % | 40.7 | -12.4 | 10.2 | -11.7 |
| Organic growth, % | 35.8 | -7.0 | 12.9 | -9.9 |
| Average number of employees | 2 176 | 2 035 | 2 060 | 2 064 |
| Gross profit margin, % | ||||
| Operating margin before depreciations, % | 47.5 | 48.0 | 48.1 | 43.2 |
| Operating margin, % | 15.1 11.8 |
12.2 7.9 |
18.4 15.0 |
12.7 9.0 |
| Profit margin, % | 11.2 | 6.9 | 14.3 | 7.9 |
| Net margin, % | 8.6 | 5.4 | 11.3 | 6.0 |
| Return on shareholders' equity, % | 18.1 | 11.8 | 18.0 | 9.5 |
| Return on capital employed, % | 18.4 | 11.3 | 16.9 | 8.4 |
| Equity ratio, % | 61.9 | 56.9 | 59.6 | 53.4 |
| Net debt, SEK million | 1 095.3 | 1 518.1 | 1 068.8 | 1 817.6 |
| Net debt to credit institutes, SEK million | 405.0 | 775.8 | 375.1 | 1 075.9 |
| Net debt to equity ratio, % | 22.9 | 37.3 | 23.4 | 47.1 |
| Net debt in relation to working capital, % | 33.8 | 52.7 | 35.7 | 59.5 |
| Interest coverage ratio, times | 20.6 | 7.5 | 21.9 | 8.0 |
| Capital turnover, times | 0.9 | 0.8 | 0.9 | 0.8 |
| Inventory turnover, times | 1.2 | 1.1 | 1.2 | 1.1 |
| Cash flow before investments, SEK million | 5.2 | 367.2 | 1 207.4 | 1 206.6 |
| Net investments, SEK million | -25.3 | -15.2 | -114.2 | -57.5 |
| Cash flow after investments, SEK million | -20.1 | 352.0 | 1 093.2 | 1 149.1 |
| Shareholders' equity per share, before and after dilution, SEK | 72.21 | 61.13 | 68.83 | 57.96 |
| Share price as of the balance sheet date, SEK | 153.00 | 69.80 | 167.80 | 54.50 |
| Dividend/share, SEK | - | - | 4.00 | - |
| P/E-ratio | 12.01 | 9.85 | 14.64 | 9.89 |
| P/S-ratio | 1.40 | 0.78 | 1.66 | 0.59 |
| Share price/Shareholders' equity | 2.12 | 1.14 | 2.44 | 0.94 |
For definitions of alternative performance measures, see page 30.
Income statement
| 3 months | 3 months | 12 months | 12 months | |
|---|---|---|---|---|
| SEK million | Jan - Mar 2022 |
Jan - Mar 2021 |
Jan - Dec 2021 |
Jan - Dec 2020 |
| Net sales | 24.2 | 20.8 | 90.4 | 90.5 |
| Other operating income | 10.9 | 4.4 | 18.0 | 41.1 |
| Total income | 35.1 | 25.2 | 108.4 | 131.5 |
| External costs | -14.7 | -11.8 | -62.6 | -55.4 |
| Personnel costs | -11.8 | -10.3 | -41.5 | -42.8 |
| Amortizations, depreciations and write-downs of tangible and intangible fixed assets |
-1.3 | -1.4 | -5.4 | -6.2 |
| Other operating costs | -9.4 | -2.9 | -14.3 | -35.2 |
| Operating result | -2.1 | -1.3 | -15.4 | -8.0 |
| Result from shares in Group companies | 0.0 | 0.0 | 470.6 | 80.5 |
| Changes in write-downs of financial assets | 0.0 | 0.0 | 7.1 | 7.8 |
| Financial income | 8.1 | 9.5 | 36.3 | 56.6 |
| Financial expenses | -5.0 | -6.6 | -23.9 | -42.4 |
| Net financial items | 3.1 | 2.9 | 490.1 | 102.5 |
| Result before appropriations and tax | 1.0 | 1.6 | 474.7 | 94.6 |
| Appropriations | 0.0 | 0.0 | 144.9 | 7.6 |
| Tax expense | -0.2 | -0.3 | -26.9 | 0.0 |
| Result for the period | 0.8 | 1.3 | 592.8 | 102.1 |
Total comprehensive income for the period corresponds with result for the period.
Cash flow statement
| 3 months Jan - Mar |
3 months Jan - Mar |
12 months Jan - Dec |
12 months Jan - Dec |
|
|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2021 | 2020 |
| Operating activities | ||||
| Operating result | -2.1 | -1.3 | -15.4 | -8.0 |
| Adjustment for items not included in cash flow | 5.2 | -5.4 | -0.5 | 17.9 |
| Received dividends | 0.0 | 0.0 | 470.6 | 0.0 |
| Received interest | 8.1 | 9.5 | 36.3 | 56.6 |
| Paid interest | -5.0 | -6.6 | -23.9 | -42.4 |
| Paid income tax | -3.4 | -2.6 | -13.2 | -4.6 |
| Cash flow from operating activities before changes in working capital |
2.8 | -6.4 | 453.8 | 19.5 |
| Changes in working capital | ||||
| Increase/decrease in current receivables | -42.2 | 43.4 | 49.7 | 743.9 |
| Increase/decrease in current liabilities | 37.2 | 101.9 | 65.1 | 147.4 |
| Cash flow from changes in working capital | -5.0 | 145.3 | 114.8 | 891.4 |
| Cash flow from operating activities | -2.2 | 138.9 | 568.6 | 910.9 |
| Investing activities | ||||
| Shareholder contributions to Group companies | 0.0 | 0.0 | -20.4 | -6.5 |
| Investments in associated companies | 0.0 | 0.0 | 0.0 | 0.0 |
| Investments in tangible fixed assets | 0.0 | -0.3 | 0.0 | -3.6 |
| Investments in intangible fixed assets | 0.0 | 0.0 | -6.1 | -2.5 |
| Acquisition of shares | 0.0 | 0.0 | -12.5 | 0.0 |
| Intra-Group sales of Group companies | 0.0 | 0.0 | 0.0 | 14.5 |
| Changes in long-term loans to Group companies | 0.0 | 0.5 | 324.9 | 2.5 |
| Raised long-term receivables | -0.1 | -0.1 | -0.1 | 0.9 |
| Cash flow from investing activities | -0.1 | 0.1 | 285.8 | 5.3 |
| Cash flow after investing activities | -2.3 | 139.0 | 854.5 | 916.2 |
| Financial activities | ||||
| Loans raised | 26.0 | 0.0 | 0.0 | 0.0 |
| Amortization of loans | -24.0 | -139.2 | -588.8 | -936.4 |
| Dividend paid to shareholders of the Parent company | 0.0 | 0.0 | -265.4 | 0.0 |
| Cash flow from financial activities | 2.0 | -139.2 | -854.2 | -936.4 |
| Cash flow for the period | -0.3 | -0.2 | 0.1 | -20.2 |
| Liquid assets at the beginning of the period | 0.5 | 0.4 | 0.4 | 20.6 |
| Liquid assets at the end of the period | 0.2 | 0.2 | 0.5 | 0.4 |
| Liquid assets | ||||
| Cash at bank and in hand | 0.2 | 0.2 | 0.5 | 0.4 |
Balance sheet
| SEK million ASSETS |
Note | 31 Mar 2022 |
31 Mar 2021 |
31 Dec 2021 |
31 Dec 2020 |
|---|---|---|---|---|---|
| Intangible fixed assets | 7.8 | 5.6 | 8.8 | 6.6 | |
| Tangible fixed assets | 3.3 | 4.6 | 3.5 | 4.7 | |
| Shares in Group companies | 2 256.0 | 2 236.1 | 2 256.0 | 2 236.1 | |
| Shares in associated companies | 38.1 | 38.1 | 38.1 | 38.1 | |
| Receivables on Group companies | 32.5 | 345.5 | 32.5 | 326.9 | |
| Other long-term receivables | 5.5 | 5.5 | 5.5 | 5.4 | |
| Total non-current assets | 2 343.2 | 2 635.4 | 2 344.4 | 2 617.8 | |
| Accounts receivable | 0.7 | 0.5 | 0.7 | 0.5 | |
| Receivables on Group companies | 1 546.5 | 1 308.1 | 1 481.6 | 1 351.8 | |
| Current tax receivables | 0.0 | 3.4 | 0.0 | 1.2 | |
| Other receivables | 16.7 | 23.6 | 39.4 | 24.5 | |
| Prepaid expenses and accrued income | 8.4 | 9.6 | 8.5 | 8.4 | |
| Liquid assets | 0.2 | 0.2 | 0.5 | 0.4 | |
| Total current assets | 1 572.5 | 1 345.5 | 1 530.6 | 1 386.8 | |
| TOTAL ASSETS | 3 915.8 | 3 980.9 | 3 875.0 | 4 004.6 | |
| EQUITY | |||||
| Share capital | 199.0 | 199.0 | 199.0 | 199.0 | |
| Restricted reserves | 249.4 | 249.4 | 249.4 | 249.4 | |
| Total restricted equity | 448.4 | 448.4 | 448.4 | 448.4 | |
| Retained earnings | 1 981.9 | 1 654.5 | 1 389.1 | 1 552.4 | |
| Share premium reserve | 48.0 | 48.0 | 48.0 | 48.0 | |
| Result for the period | 0.8 | 1.3 | 592.8 | 102.1 | |
| Total unrestricted equity | 2 030.7 | 1 703.8 | 2 029.9 | 1 702.5 | |
| Total equity | 2 479.1 | 2 152.3 | 2 478.3 | 2 151.0 | |
| Untaxed reserves | 99.9 | 57.3 | 99.9 | 57.3 | |
| LIABILITIES | |||||
| Long-term interest-bearing liabilities | 7 | 462.7 | 910.0 | 458.0 | 1 040.0 |
| Total non-current liabilities | 462.7 | 910.0 | 458.0 | 1 040.0 | |
| Short-term interest-bearing liabilities | 7 | 95.9 | 92.8 | 94.6 | 89.8 |
| Accounts payable | 366.4 | 246.0 | 399.1 | 218.0 | |
| Liabilities to Group companies | 392.0 | 512.1 | 321.6 | 437.2 | |
| Current tax liabilities | 9.3 | 0.0 | 12.4 | 0.0 | |
| Other liabilities | |||||
| Accrued expenses and prepaid income | 1.6 | 1.2 | 1.2 | 1.3 | |
| Total current liabilities | 9.0 874.1 |
9.2 861.3 |
9.9 838.8 |
10.1 756.4 |
|
| Total liabilities | 1 336.8 | 1 771.3 | 1 296.8 | 1 796.3 | |
| TOTAL EQUITY AND LIABILITIES | 3 915.8 | 3 980.9 | 3 875.0 | 4 004.6 |
Statement of changes in equity
| SEK million | Share capital | Restricted reserves |
Retained earnings |
Share premium reserve |
Result for the period |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance 2021-01-01 | 199.0 | 249.4 | 1 552.4 | 48.0 | 102.1 | 2 151.0 |
| Transfer according to decision at AGM | 102.1 | -102.1 | 0.0 | |||
| Result for the period | 1.3 | 1.3 | ||||
| Total changes excluding transactions with shareholders |
0.0 | 0.0 | 0.0 | 0.0 | 1.3 | 1.3 |
| Dividends | 0.0 | 0.0 | ||||
| Closing balance 2021-03-31 | 199.0 | 249.4 | 1 654.5 | 48.0 | 1.3 | 2 152.3 |
| SEK million | Share capital | Restricted reserves |
Retained earnings |
Share premium reserve |
Result for the period |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance 2022-01-01 | 199.0 | 249.4 | 1 389.1 | 48.0 | 592.8 | 2 478.3 |
| Transfer according to decision at AGM | 592.8 | -592.8 | 0.0 | |||
| Result for the period | 0.8 | 0.8 | ||||
| Total changes excluding transactions with shareholders |
0.0 | 0.0 | 0.0 | 0.0 | 0.8 | 0.8 |
| Dividends | 0.0 | 0.0 | ||||
| Closing balance 2022-03-31 | 199.0 | 249.4 | 1 981.9 | 48.0 | 0.8 | 2 479.1 |
Note 1 - Accounting policies
This report is prepared in accordance with IAS 34 Interim Financial Reporting and the Annual Accounts Act. The interim report for the Parent Company has been prepared according the Annual Accounts Act as well as RFR 2 Reporting for Legal Entities. Applied accounting policies are otherwise consistent with the 2021 Annual Report.
New accounting policies for 2022
A number of amendments of current accounting standards have been published and are effective from 2022 and later. None of these has a material impact on New Wave Group´s financial statements.
Note 2 - Risks and risk control
New Wave Group's international operations mean that it is continuously exposed to various financial risks. The financial risks are interest rate risks, currency, liquidity and credit risks. In order to minimize the effect these risks may have on earnings, the Group has a risk policy. For a more detailed description of the Group's risk management please refer to the Annual Report 2021, note 16, p. 98-104. The Annual Report is available at the Group's headquarters in Gothenburg, Sweden, as well as at www.nwg.se.
The Group's policy is to have short fixed-rate interest periods, which means that fluctuating short-term interest rates have a rapid impact on the Group's net interest income.
During 2020, the world was hit by a pandemic caused by COVID-19. New Wave Group has been largely affected by the spread of COVID-19 and the demand for the Group's products and services was significantly reduced also during the previous year. New outbreaks in China with large and long shutdowns risk exacerbating the strained situation that has existed for a year and continues to be in product supply and logistics.
The conflict between Russia and Ukraine has significantly increased geopolitical tensions, which in turn has a major impact on world trade. In this context, New Wave Group has marginal business with both Ukraine and Russia. Furthermore, the war also means increased uncertainty about economic development.
Group management and each company management closely monitor developments of COVID-19 and the conflict between Russia and Ukraine and work closely with suppliers and customers. Strategies and activities are continuously adapted as the situation develops.
Besides the above, the Group's reported risks are deemed to be essentially unchanged.
Note 3 - Reporting of operating segments
Net sales and operating result per operating segment
| SEK million | 3 months Jan - Mar |
3 months Jan - Mar |
12 months Jan - Dec |
12 months Jan - Dec |
|---|---|---|---|---|
| Corporate | 2022 | 2021 | 2021 | 2020 |
| Net sales | 851.4 | 572.3 | 2 971.6 | 3 104.8 |
| Operating result | 125.9 | 51.3 | 440.8 | 349.0 |
| Sports & Leisure | ||||
| Net sales | 746.6 | 533.1 | 2 792.5 | 2 168.5 |
| Operating result | 95.2 | 54.5 | 466.0 | 170.4 |
| Gifts & Home Furnishings | ||||
| Net sales | 176.9 | 156.1 | 954.5 | 825.5 |
| Operating result | -12.0 | -5.7 | 99.1 | 26.5 |
| Total net sales | 1 774.9 | 1 261.6 | 6 718.6 | 6 098.8 |
| Total operating result | 209.1 | 100.1 | 1 005.9 | 545.9 |
| Total operating result | 209.1 | 100.1 | 1 005.9 | 545.9 |
| Net financial items | -9.6 | -12.8 | -43.0 | -64.9 |
| Result before tax | 199.5 | 87.4 | 962.9 | 481.0 |
Assets and liabilities per operating segment
| SEK million | Total assets |
Fixed assets* |
Deferred tax assets |
Net investments |
Amortizations, depreciations and write-downs |
Total liabilities |
|---|---|---|---|---|---|---|
| 31 Mar 2022 | ||||||
| Corporate | 4 641.7 | 1 081.6 | 34.7 | -12.9 | -38.2 | 2 034.8 |
| Sports & Leisure | 2 711.8 | 1 342.7 | 50.0 | -10.4 | -16.7 | 710.2 |
| Gifts & Home Furnishings | 390.6 | 332.4 | 14.5 | -2.0 | -3.9 | 207.5 |
| Total | 7 744.1 | 2 756.7 | 99.2 | -25.3 | -58.8 | 2 952.5 |
| 31 Mar 2021 | ||||||
| Corporate | 4 099.9 | 1 103.5 | 34.7 | -8.1 | -34.3 | 2 245.3 |
| Sports & Leisure | 2 654.6 | 1 296.3 | 45.8 | -3.9 | -16.0 | 635.9 |
| Gifts & Home Furnishings | 385.7 | 334.1 | 24.9 | -3.2 | -3.8 | 193.3 |
| Total | 7 140.2 | 2 733.9 | 105.4 | -15.2 | -54.1 | 3 074.5 |
| 31 Dec 2021 | ||||||
| Corporate | 4 425.7 | 1 078.8 | 32.8 | -60.9 | -144.4 | 2 090.3 |
| Sports & Leisure | 2 742.7 | 1 317.6 | 45.3 | -29.2 | -66.5 | 749.5 |
| Gifts & Home Furnishings | 492.2 | 336.6 | 15.4 | -24.1 | -16.4 | 253.3 |
| Total | 7 660.6 | 2 733.0 | 93.5 | -114.2 | -227.3 | 3 093.1 |
* Financial fixed assets are not included
Note 4 - Net sales per sales channel and operating segment
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | ||||
|---|---|---|---|---|---|---|---|---|
| 3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
|
| Promo | 848.1 | 568.9 | 200.3 | 130.4 | 34.5 | 27.4 | 1 082.9 | 726.6 |
| Retail | 3.3 | 3.5 | 546.3 | 402.7 | 142.4 | 128.7 | 692.0 | 534.9 |
| Total | 851.4 | 572.3 | 746.6 | 533.1 | 176.9 | 156.1 | 1 774.9 | 1 261.5 |
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | ||||
|---|---|---|---|---|---|---|---|---|
| 12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
|
| Promo | 2 949.9 | 3 084.6 | 742.1 | 568.3 | 265.3 | 236.7 | 3 957.3 | 3 889.6 |
| Retail | 21.7 | 20.2 | 2 050.4 | 1 600.2 | 689.2 | 588.8 | 2 761.3 | 2 209.2 |
| Total | 2 971.6 | 3 104.8 | 2 792.5 | 2 168.5 | 954.5 | 825.5 | 6 718.6 | 6 098.8 |
Note 5 - Reporting of geographic areas
Net sales per geographic area
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | Change % |
||||
|---|---|---|---|---|---|---|---|---|---|
| 3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
||
| USA | 68.5 | 45.9 | 334.3 | 200.1 | 14.0 | 11.1 | 416.8 | 257.1 | 62% |
| Sweden | 112.0 | 96.8 | 159.1 | 132.8 | 141.8 | 127.5 | 412.9 | 357.1 | 16% |
| Central Europe | 189.9 | 124.3 | 91.2 | 79.7 | 4.8 | 4.8 | 285.9 | 208.7 | 37% |
| Nordic countries excl. Sweden |
99.8 | 72.3 | 103.5 | 75.0 | 12.5 | 7.7 | 215.8 | 154.9 | 39% |
| Southern Europe | 221.0 | 157.1 | 21.9 | 21.8 | 0.0 | 0.0 | 242.9 | 178.9 | 36% |
| Other countries | 160.2 | 75.9 | 36.6 | 23.8 | 3.8 | 5.0 | 200.6 | 104.7 | 92% |
| Total | 851.4 | 572.3 | 746.6 | 533.0 | 176.9 | 156.1 | 1 774.9 | 1 261.6 | 41% |
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | Change % |
||||
|---|---|---|---|---|---|---|---|---|---|
| 12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2020 |
||
| USA | 203.6 | 193.7 | 1 145.0 | 895.2 | 60.4 | 52.0 | 1 409.0 | 1 140.9 | 23% |
| Sweden | 476.1 | 387.8 | 637.6 | 480.3 | 799.4 | 689.8 | 1 913.1 | 1 558.0 | 23% |
| Central Europe | 660.8 | 592.4 | 338.9 | 300.8 | 26.0 | 20.2 | 1 025.7 | 913.4 | 12% |
| Nordic countries excl. Sweden |
401.3 | 358.5 | 411.4 | 306.1 | 49.8 | 45.7 | 862.5 | 710.3 | 21% |
| Southern Europe | 779.3 | 842.0 | 83.2 | 58.9 | 0.4 | 0.3 | 862.9 | 901.2 | -4% |
| Other countries | 450.5 | 730.4 | 176.4 | 127.1 | 18.5 | 17.5 | 645.4 | 875.0 | -26% |
| Total | 2 971.6 | 3 104.8 | 2 792.5 | 2 168.5 | 954.5 | 825.5 | 6 718.6 | 6 098.8 | 10% |
Fixed assets and deferred tax assets per geographic area
| 31 Mar 2022 | 31 Mar 2021 | 31 Dec 2021 | ||||
|---|---|---|---|---|---|---|
| SEK million | Fixed assets* |
Deferred tax assets |
Fixed assets* |
Deferred tax assets |
Fixed assets* |
Deferred tax assets |
| USA | 1 102.2 | 42.8 | 1 054.6 | 46.2 | 1 078.8 | 40.8 |
| Sweden | 758.1 | 22.1 | 721.4 | 22.4 | 755.3 | 19.5 |
| Central Europe | 313.7 | 9.3 | 338.0 | 5.7 | 318.1 | 8.7 |
| Nordic countries excl. Sweden | 234.0 | 3.6 | 254.2 | 3.6 | 230.2 | 3.9 |
| Southern Europe | 207.1 | 17.2 | 223.2 | 21.6 | 210.2 | 16.7 |
| Other countries | 141.6 | 4.2 | 142.6 | 5.9 | 140.4 | 3.9 |
| Total | 2 756.7 | 99.2 | 2 733.9 | 105.4 | 2 733.0 | 93.5 |
* Financial fixed assets are not included
Note 6 - Financial instruments
| SEK million Assets at fair value through other comprehensive income |
31 Mar 2022 0.2 |
31 Mar 2021 1.6 |
31 Dec 2021 3.3 |
31 Dec 2020 0.0 |
|---|---|---|---|---|
| Assets at amortized cost | 1 565.2 | 1 254.4 | 1 777.5 | 1 454.7 |
| Total financial assets | 1 565.4 | 1 256.0 | 1 780.8 | 1 454.7 |
| Liabilities at fair value through other comprehensive income | 0.0 | 0.0 | 0.0 | 4.7 |
| Liabilities at amortized cost | 2 514.2 | 2 730.2 | 2 662.4 | 2 951.7 |
| Total financial liabilites | 2 514.2 | 2 730.2 | 2 662.4 | 2 956.4 |
Financial instruments are measured at fair value or amortized cost according to classification in the consolidated balance sheet.
Note 7 - Pledged assets and contingent liabilities
GROUP
| Pledged assets | 31 Mar | 31 Mar | 31 Dec | 31 Dec |
|---|---|---|---|---|
| SEK million | 2022 | 2021 | 2021 | 2020 |
| Floating charges | 690.5 | 690.5 | 690.5 | 690.5 |
| Property mortgages | 182.5 | 173.3 | 179.8 | 172.0 |
| Net assets in Group companies | 3 513.1 | 3 361.0 | 3 337.8 | 3 201.5 |
| Shares in associated companies | 8.3 | 8.3 | 8.3 | 8.3 |
| Stock and accounts receivable | 343.1 | 285.6 | 353.5 | 321.7 |
| Total | 4 737.5 | 4 518.8 | 4 569.9 | 4 394.1 |
| Contingent liabilities | 31 Mar | 31 Mar | 31 Dec | 31 Dec |
| SEK million | 2022 | 2021 | 2021 | 2020 |
| Duty guarantees | 12.2 | 12.4 | 12.2 | 12.2 |
| Rent guarantees | 142.0 | 154.3 | 141.9 | 151.5 |
| Guarantees for associated companies | 6.0 | 6.0 | 6.0 | 6.0 |
| Total | 160.2 | 172.8 | 160.1 | 169.7 |
| PARENT COMPANY | ||||
| Pledged assets | ||||
| SEK million | 31 Mar 2022 |
31 Mar 2021 |
31 Dec 2021 |
31 Dec 2020 |
| Floating charges | 30.0 | 30.0 | 30.0 | 30.0 |
| Shares in Group companies | 1 737.7 | 1 744.3 | 1 737.7 | 1 744.3 |
| Shares in associated companies | 8.3 | 8.3 | 8.3 | 8.3 |
| Total | 1 776.0 | 1 782.6 | 1 776.0 | 1 782.6 |
| Contingent liabilities | 31 Mar | 31 Mar | 31 Dec | 31 Dec |
| SEK million | 2022 | 2021 | 2021 | 2020 |
| Guarantees for Group companies | 588.0 | 591.5 | 633.5 | 555.7 |
| Guarantees for associated companies | 6.0 | 6.0 | 6.0 | 6.0 |
| Total | 594.0 | 597.5 | 639.5 | 561.7 |
Note 8 - Disclosures related to COVID-19
In connection with the COVID-19 crisis, companies within the Group have taken part of the support packages that governments around the world have issued. This note contains information about the government support that the Group has received and their financial impact. In several countries, the Group has also taken part in support packages where employees reduce their working hours and receive compensation directly from the government. The financial impact from this is reduced personnel costs, but is not defined as a government grant.
Government
The Group has received government grants, mainly related to temporary lay-offs, in several countries. Employees reduce their working hours, but can keep main part of their salary and the employer temporary receives government grants to cover main part of the personnel costs for the employees. During the second quarter of 2021, the Group received confirmation that most of the government loans that the Group's American companies had previously received were forgiven. Confirmation that the remaining part were forgiven was received during the third quarter of the same year and all so-called PPP loans have thus been forgiven. The loans were obtained in 2020 and were linked to COVID-19. The forgiveness of the loans is considered to constitute government grants and is therefore reported as other operating income. In total, the loans forgiven amounts to SEK 44.2 million. The table below contains information on total received grants that are recorded as other operating income and grants that are received, but recorded as other liabilities as they relate to costs that have not yet occurred.
| 3 months Jan - Mar 2022 |
3 months Jan - Mar 2021 |
Jan - Dec 2021 |
12 months Jan - Dec 2020 |
|---|---|---|---|
| 0.4 | 5.6 | 61.9 | 75.7 |
| 31 Mar 2022 |
31 Mar 2021 |
31 Dec 2021 |
31 Dec 2020 |
| 0.3 | 1.3 | 0.3 | 1.3 |
| 12 months |
Deferment of payment of taxes and social charges
In some countries, the Group has been granted a deferral of payment of taxes and social charges. The table below contains information on total liabilities for which the Group has been granted a deferral. All liabilities fall due within 12 months.
| 31 Mar 2022 |
31 Mar 2021 |
31 Dec 2021 |
31 Dec 2020 |
|
|---|---|---|---|---|
| Other liabilities | 0.0 | 5.9 | 0.0 | 20.2 |
Government loans
The Group has chosen to use the opportunity to obtain government loans in the US (so-called PPP loans) and in France and UK. The Group has during 2021 received notice that all of the previously granted government loans in the US has been forgiven. The loan forgiveness is recognized as other operating income. For the government loans in France and UK, there are no forgiveness options. The table below contains information on the remaining government loans received.
| 31 Mar 2022 |
31 Mar 2021 |
31 Dec 2021 |
31 Dec 2020 |
|
|---|---|---|---|---|
| Long-term interest-bearing liabilities |
4.3 | 9.3 | 4.6 | 36.8 |
| Short-term interest-bearing liabilities |
0.6 | 43.4 | 0.6 | 12.3 |
| 4.9 | 52.7 | 5.2 | 49.1 |
Condensed quarterly consolidated income statements
SEK million
| 2022 | 2021 | 2020 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | |||
| Net sales | 1 774.9 | 2 306.7 | 1 663.5 | 1 486.8 | 1 261.6 | 1 873.2 | 1 470.1 | 1 314.5 | 1 440.9 | |||
| Goods for resale | -931.6 | -1 203.3 | -860.4 | -769.2 | -656.4 | -1 007.7 | -843.9 | -799.7 | -810.2 | |||
| Gross profit | 843.3 | 1 103.4 | 803.1 | 717.6 | 605.2 | 865.6 | 626.2 | 514.8 | 630.7 | |||
| Gross profit margin % | 47.5 | 47.8 | 48.3 | 48.3 | 48.0 | 46.2 | 42.6 | 39.2 | 43.8 | |||
| Other operating income | 22.6 | 23.9 | 11.6 | 59.4 | 16.6 | 29.6 | 34.7 | 61.4 | 20.6 | |||
| External costs | -311.6 | -350.9 | -258.4 | -233.8 | -224.8 | -285.4 | -191.6 | -187.7 | -311.1 | |||
| Personnel costs | -274.6 | -301.4 | -235.5 | -242.8 | -237.2 | -259.9 | -220.8 | -209.1 | -292.8 | |||
| Depreciations and write-downs | -58.8 | -61.5 | -55.7 | -56.0 | -54.1 | -55.0 | -56.6 | -57.8 | -60.1 | |||
| Other operating costs | -11.8 | -9.9 | -3.7 | -2.9 | -5.2 | -11.4 | -15.2 | -11.4 | -10.4 | |||
| Share of associated companies' result | 0.0 | -0.3 | -0.3 | -0.1 | -0.4 | 0.1 | -0.4 | -0.1 | -0.9 | |||
| Operating result | 209.1 | 403.3 | 261.1 | 241.3 | 100.1 | 283.6 | 176.3 | 110.1 | -24.1 | |||
| Financial income | 0.6 | 0.7 | 0.6 | 0.9 | 0.8 | 0.1 | 0.6 | 2.9 | 0.5 | |||
| Financial expenses | -10.2 | -10.6 | -11.6 | -10.3 | -13.5 | -14.6 | -15.8 | -20.2 | -18.4 | |||
| Result before tax | 199.5 | 393.4 | 250.1 | 231.9 | 87.4 | 269.2 | 161.1 | 92.8 | -42.1 | |||
| Tax expense | -46.0 | -84.9 | -54.1 | -44.3 | -19.7 | -61.0 | -42.2 | -19.9 | 5.1 | |||
| Result for the period | 153.5 | 308.5 | 196.0 | 187.7 | 67.7 | 208.2 | 118.9 | 72.9 | -36.9 | |||
| Total other comprehensive income | ||||||||||||
| for the period | 70.5 | 87.5 | 60.5 | -57.7 | 142.5 | -213.0 | -58.3 | -212.4 | 205.5 | |||
| Total comprehensive income for the period |
224.0 | 396.0 | 256.5 | 130.0 | 210.2 | -4.9 | 60.6 | -139.5 | 168.6 | |||
| Earnings per share before and after | ||||||||||||
| dilution (SEK)* | 2.31 | 4.61 | 2.97 | 2.84 | 1.04 | 3.13 | 1.81 | 1.11 | -0.54 | |||
| 2019 | 2018 | 2017 | ||||||||||
| Quarter | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 2 024.1 | 1 685.5 | 1 689.0 | 1 504.9 | 1 943.4 | 1 551.2 | 1 523.2 | 1 272.8 | 1 630.3 | 1 331.1 | 1 371.7 | 1 264.2 |
| Goods for resale | -1 079.2 | -923.2 | -903.3 | -795.3 | -1 042.3 | -835.3 | -804.2 | -677.5 | -886.8 | -692.8 | -745.7 | -692.8 |
| Gross profit | 944.9 | 762.3 | 785.7 | 709.6 | 901.1 | 715.8 | 719.0 | 595.4 | 743.5 | 638.2 | 626.0 | 571.4 |
| Gross profit margin % | 46.7 | 45.2 | 46.5 | 47.1 | 46.4 | 46.1 | 47.2 | 46.8 | 45.6 | 47.9 | 45.6 | 45.2 |
| Other operating income | 32.3 | 12.9 | 15.5 | 17.2 | 28.3 | 19.3 | 11.3 | 15.9 | 22.9 | 10.4 | 7.0 | 10.9 |
| External costs | -343.8 | -300.3 | -330.2 | -338.4 | -390.6 | -323.5 | -305.1 | -317.2 | -304.9 | -265.4 | -270.1 | -288.6 |
| Personnel costs Depreciations and write-downs |
-307.6 -73.6 |
-278.7 -55.7 |
-290.5 -52.8 |
-283.0 -51.0 |
-298.0 -21.6 |
-257.7 -20.2 |
-260.9 -18.5 |
-246.4 -17.6 |
-262.2 -18.2 |
-217.1 -16.4 |
-233.0 -15.7 |
-228.1 -15.0 |
| Other operating costs | -12.4 | -11.3 | -7.7 | -8.2 | -9.8 | -15.0 | -8.3 | -11.8 | -6.1 | -7.4 | -3.9 | -7.8 |
| Share of associated companies' result | 0.6 | -0.2 | -0.3 | -0.2 | 0.1 | -1.3 | -0.3 | 0.4 | -2.5 | 0.6 | 0.2 | 0.4 |
| Operating result | 240.3 | 129.1 | 119.6 | 46.0 | 209.4 | 117.5 | 137.3 | 18.6 | 172.5 | 143.0 | 110.5 | 43.2 |
| Financial income | 2.8 | 2.5 | 2.2 | 1.3 | 1.5 | 0.7 | 1.8 | 1.5 | 1.3 | 1.6 | 1.0 | 1.3 |
| Financial expenses | -24.1 | -19.5 | -18.1 | -15.3 | -14.2 | -12.3 | -8.2 | -11.7 | -14.3 | -14.8 | -14.1 | -13.8 |
| Result before tax | 219.1 | 112.1 | 103.6 | 32.0 | 196.6 | 105.9 | 130.9 | 8.4 | 159.4 | 129.8 | 97.4 | 30.7 |
| Tax expense | -53.1 | -17.6 | -19.9 | -6.0 | -37.7 | -17.5 | -24.2 | -2.4 | -12.6 | -24.5 | -20.3 | -5.8 |
| Result for the period | 165.9 | 94.4 | 83.7 | 26.0 | 158.9 | 88.4 | 106.8 | 6.0 | 146.8 | 105.3 | 77.0 | 24.9 |
| Total other comprehensive income | ||||||||||||
| for the period | -131.5 | 126.9 | 16.2 | 86.3 | 2.7 | -37.8 | 121.1 | 71.7 | 45.3 | -43.3 | -42.4 | -12.2 |
| Total comprehensive income for | 34.4 | 221.4 | 99.9 | 112.3 | 161.6 | 50.5 | 227.9 | 77.7 | 192.1 | 62.0 | 34.7 | 12.7 |
| the period | ||||||||||||
| Earnings per share before and after | ||||||||||||
| dilution (SEK)* | 2.53 | 1.45 | 1.28 | 0.41 | 2.42 | 1.36 | 1.60 | 0.10 | 2.20 | 1.60 | 1.16 | 0.38 |
* The average number of outstanding shares. before and after dilution, has been 66,343,543 in all periods in the table.
Condensed quarterly consolidated cash flow statements
SEK million 2022 2021 2020 Quarter Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Cash flow from operating activities before changes in working capital 203.6 404.1 282.8 219.0 87.1 300.0 218.9 176.0 -63.0 Increase/decrease of inventories -226.5 59.7 -157.7 125.2 30.6 472.4 86.9 53.9 -117.4 Increase/decrease of current receivables 205.8 -194.6 -174.7 -156.8 256.3 -87.7 -207.6 87.4 313.9 Increase/decrease of current liabilities -177.7 144.1 291.4 -2.2 -6.8 -127.2 185.0 -65.9 -19.0 Changes in working capital -198.4 9.2 -41.0 -33.7 280.1 257.5 64.3 75.5 177.6 Cash flow from operating activities 5.2 413.3 241.8 185.3 367.2 557.5 283.2 251.4 114.6 Investing activities -25.3 -42.1 -33.0 -24.0 -15.2 -7.2 -8.6 -11.1 -30.6 Cash flow after investing activities -20.1 371.2 208.8 161.3 352.0 550.3 274.6 240.3 84.0 Increase/decrease of interest-bearing liabilities -16.3 -82.6 -309.0 -95.4 -346.1 -435.9 -322.9 -201.6 -195.2 Transactions with owners 0.0 -277.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cash flow from financial activities -16.3 -360.5 -309.0 -95.4 -346.1 -435.9 -322.9 -201.6 -195.2 Cash flow for the period -36.4 10.7 -100.2 65.9 5.9 114.5 -48.4 38.7 -111.2 Liquid assets at the beginning of the period 327.9 311.0 405.8 344.8 325.1 226.8 277.8 257.6 351.3 Translation differences in liquid assets 7.1 6.2 5.5 -4.9 13.8 -16.2 -2.7 -18.5 17.6 Liquid assets at the end of the period 298.6 327.9 311.0 405.8 344.8 325.1 226.8 277.8 257.6
| 2019 | 2018 | 2017 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Cash flow from operating activities before changes in working wcapital |
262.1 | 149.9 | 143.8 | 49.3 | 184.1 | 116.1 | 128.3 | 1.2 | 154.9 | 153.3 | 105.0 | 37.8 |
| Increase/decrease of stock | 180.9 | -256.4 | -108.0 | -58.3 | 44.6 | -310.4 | -110.8 | -117.4 | 129.5 | -200.4 | -63.7 | -73.9 |
| Increase/decrease of current receivables | -47.5 | -34.3 | -95.9 | 126.2 | -3.6 | -128.6 | -36.2 | 140.9 | -78.5 | -113.8 | -40.4 | 113.0 |
| Increase/decrease of current liabilities | -108.8 | 9.7 | 69.1 | -182.3 | -50.7 | 239.9 | 143.2 | -18.1 | -71.4 | 150.5 | 49.2 | -43.3 |
| Changes in working capital | 24.7 | -281.0 | -134.8 | -114.4 | -9.7 | -199.1 | -3.7 | 5.4 | -20.4 | -163.7 | -54.9 | -4.2 |
| Cash flow from operating activities | 286.7 | -131.1 | 9.0 | -65.1 | 174.4 | -83.0 | 124.6 | 6.6 | 134.5 | -10.4 | 50.1 | 33.6 |
| Investing activities | -42.2 | -32.6 | -35.6 | -38.3 | -39.7 | -42.1 | -41.6 | -39.8 | -37.7 | -36.9 | -16.0 | -19.9 |
| Cash flow after investing activities | 244.6 | -163.8 | -26.6 | -103.4 | 134.7 | -125.1 | 83.0 | -33.2 | 96.8 | -47.3 | 34.1 | 13.7 |
| Increase/decrease of | ||||||||||||
| interest-bearing liabilities | -122.6 | 210.1 | 75.3 | 49.2 | -15.9 | 104.9 | 58.0 | 5.1 | -54.6 | 30.2 | 47.1 | -39.4 |
| Transactions with owners | 0.0 | 1.2 | -132.7 | 0.0 | 0.0 | 0.0 | -112.8 | 0.0 | 0.0 | 0.0 | -89.6 | 0.0 |
| Cash flow from financial activities | -122.6 | 211.2 | -57.4 | 49.2 | -15.9 | 104.9 | -54.8 | 5.1 | -54.6 | 30.2 | -42.5 | -39.4 |
| Cash flow for the period | 121.9 | 47.4 | -84.0 | -54.2 | 118.8 | -20.2 | 28.2 | -28.1 | 42.2 | -17.1 | -8.4 | -25.7 |
| Liquid assets at the beginning of the period | 238.4 | 182.5 | 265.0 | 312.2 | 192.6 | 215.4 | 180.5 | 202.4 | 155.6 | 178.9 | 191.9 | 218.9 |
| Translation differences in liquid assets | -9.1 | 8.5 | 1.5 | 7.0 | 0.8 | -2.6 | 6.7 | 6.2 | 4.6 | -6.2 | -4.6 | -1.3 |
| Liquid assets at the end of the period | 351.3 | 238.4 | 182.5 | 265.0 | 312.2 | 192.6 | 215.4 | 180.5 | 202.4 | 155.6 | 178.9 | 191.9 |
Definitions of alternative performance measures
Guidelines concerning non-IFRS performance measures for companies with securities listed on a regulated market in the EU have been issued by ESMA (The European Securities and Markets Authority). These guidelines are to be applied to alternative performance measures (APM) applied as of July 3, 2016. The Interim Report refers to a number of non-IFRS performance measures used to assist investors and company management to analyze the company's operations. Because not all companies calculate the financial measures in the same way, these are not always comparable to measures used by other companies. These financial measures should not be seen as a substitute for measures defined under IFRS. A description of the various non-IFRS performance measures used as a complement to the financial information reported according to IFRS and how they are used, is presented below. A reconciliation of alternative performance measures is available on www.nwg.se/en/investor-relations/ financial-reports/key-numbers.
| PERFORMANCE | ||
|---|---|---|
| MEASURES GROSS PROFIT MARGIN |
DEFINITION/CALCULATION Net sales less goods for resale in percent of net sales. |
PURPOSE The measure is used for showing the Group's margins before the effect of costs such as selling and administrative costs. |
| OPERATING MARGIN | Operating result as a percentage of the period's net sales. | The measure is used to show operating profitability and how the Group meets its targets. |
| PROFIT MARGIN | Result before tax as a percentage of the period's net sales. | The measure enables the profitability to be compared across locations where corporate taxes differ. |
| NET MARGIN | Result after tax as a percentage of the period's net sales. | The measure is used to show net earnings in relation to income. |
| NET SALES GROWTH | Sales growth including currency effects. | The measure is used to show growth in the Group and to measure how the Group meets its targets. |
| ORGANIC GROWTH | Organic growth refers to sales growth from existing operations cleared from currency effects. The currency effect is calculated by recalculating this year's sales in local currencies to last year's rates and compared to previous year's sales. |
The measure is used to show growth in existing business since currency effects are beyond the Group's control and to measure how the Group meets its targets. |
| OPERATING MARGIN BEFORE DEPRECIATIONS |
Operating result before depreciation as a percentage of the period's net sales. |
The measure is used to show operating profitability and how the Group meets its targets, regardless of depreciation, amortization and write-downs. |
| NET FINANCIAL ITEMS | The total of interest income, interest expenses, currency differences on borrowings and cash equivalents in foreign currencies, other financial income and other financial expenses. |
The measure reflects the Group's total costs of the external financing. |
| RETURN MEASURES | DEFINITION/CALCULATION | PURPOSE |
| RETURN ON CAPITAL EMPLOYED |
Rolling 12 month's result before tax plus financial expenses as a percentage of average capital employed. The average capital employed is calculated by taking the capital employed per period end and the capital employed at year-end for the previous year divided by two. |
The measure is used to analyze profitability by putting result in relation to the capital needed to operate the business. |
| RETURN ON EQUITY | Rolling 12 month's result for the period according to the income statement as a percentage of average equity. The average equity is calculated by taking the equity per period end and the equity at year-end for the previous year divided by two. For the Parent company it is calculated as result after tax as a percentage of average adjusted equity. In adjusted equity, the equity part of untaxed reserves is included. |
The measure is used to analyze profitability over time, given the resources available to the Parent company's owners. |
| DATA PER SHARE EQUITY PER SHARE |
DEFINITION/CALCULATION Equity at the end of the period divided by number of shares at the end of the period. |
PURPOSE Equity per share measures the net asset value per share and determines if a company is increasing shareholder value over time. |
|---|---|---|
| CAPITAL MEASURES | DEFINITION/CALCULATION | PURPOSE |
| EQUITY | The equity reported in the consolidated balance sheet consists of taxed equity increased by the equity portion of the Group's untaxed reserves and non-controlling interests. Deferred tax liability in untaxed reserves has been calculated at the applica ble tax rates for the companies in each country, as decided and communicated at the balance sheet date. |
The measure is the difference between the Group's assets and liabilities, which corresponds to the Group's equity contributed by owners and the Group's accumulated profits. |
| CAPITAL EMPLOYED | Total assets less provisions and non-interest bearing liabilities, which consist of accounts payable, current tax liabilities, other liabilities and accrued expenses and prepaid income. |
The measure indicates how much capital is needed to run the business, regardless of type of financing (borrowed or equity). |
| WORKING CAPITAL | Total current assets, excluding liquid assets and current tax receivables, less short-term non-interest bearing liabilities excluding current tax liabilities. |
The measure is used to show how much capital is needed to finance operating activities. |
| NET DEBT | Interest-bearing liabilities (current and non-current) less cash and cash equivalents. |
The measure shows financing from borrowings. |
| NET DEBT TO CREDIT INSTITUTES |
Interest-bearing liabilities (current and non-current) less lease liabilities and less cash and cash equivalents. |
The measure shows financing from borrowings excluding lease liabilties |
| CAPITAL TURNOVER | Rolling 12 month's net sales divided by average total assets. The average total assets is calculated by taking the total assets per period end and the total assets at year-end for the previous year divided by two. |
The measure shows how efficiently the Group uses its total capital. |
| INVENTORY TURNOVER | Rolling 12 month's goods for resale in the income statement divided by average inventory. The average inventory is calculated by taking the inventory per period end and the inventory at year end for the previous year divided by two. |
The measure is used to show the inventory's turnover per year, since the stock is central for the Group to keep a good service level, i.e. to be able to deliver goods fast. |
| NET DEBT TO EQUITY RATIO |
Net debt as a percentage of equity. | The measure helps show financial risk and is useful for management to monitor the level of the indebtedness. |
| NET DEBT IN RELATION TO WORKING CAPITAL |
Net debt divided by working capital. | The measure is used to show how much of the working capital is financed through net debt. |
| INTEREST COVERAGE RATIO |
Result before tax plus financial costs divided by financial costs. | The measure is used to calculate the Group's ability to pay interest costs. |
| EQUITY RATIO | Total equity as a percentage of total assets. | The measure shows how much of the Group's assets are financed by the shareholders through equity. An equity ratio is a measure of financial strength and how the Group meets its targets. |
| OTHER MEASURES | DEFINITION/CALCULATION | PURPOSE |
|---|---|---|
| EFFECTIVE TAX RATE | Tax on profit for the period as a percentage of result before tax. | This measure enables comparison of income tax across locations where corporate taxes differ. |
| EFFECTIVE INTEREST RATE | Net financial items in relation to average net debt. | The measure enables comparison of cost for the net debt. |
| CASH FLOW FROM OPERATIONS |
Cash flow from operating activities including changes in working capital and before cash flows from investing and financing activities. |
The measure is used to show the cash flow generated by the company's operations. |
| NET INVESTMENTS | Cash flow from investing activities according to the cash flow analysis which includes investments and divestments of buildings, acquisitions, investments in tangible and intangible assets and raised long-term debt. |
The measure is used to regularly estimate how much cash is used for investments in operations and for expansion. |
New Wave Group is a growth group that designs, acquires and develops brands and products in the corporate, sports, gifts and home furnishings sectors. The Group shall achieve synergies by coordinating design, purchasing, marketing, warehousing and distribution of the assortment. The Group shall offer its products to the promo market and the retail market in order to achieve good risk diversification.
New Wave Group AB (publ) Corp. id number 556350-0916 Kungsportsavenyen 10, SE-411 36 Gothenburg Phone +46 (0) 31 712 89 00 | [email protected]
www.nwg.se