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New Wave Group AB Interim / Quarterly Report 2023
3081_ir_2023-08-16_578d0dec-70ec-42c8-8643-d63c636babe0.pdf
Interim / Quarterly Report
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G r o
a v e
January - June
Trademarks
Corporate
Sports & Leisure
| 174 CUTTER & BUCK |
CRAFT :: | CLIQUE. | ahead 4 | 1 Kate Lord COLLECTION |
LE GANT |
|---|---|---|---|---|---|
| AUCLAIR & | LAURENTIDE USES LTD. | ASEGER | Termo | SINCE 1929 | Section and program MARSTRAND ORIGINAL SAILOR SHOES |
| mårie | TT Tenson® EST. 1951 |
Gifts & Home Furnishings
| ORREFORS @ | KostaBoda | KOSTA BODA ART HOTEL SWEDEN |
. week arselane In Sallum . KOSTA LODGE |
LOSTA | sagaform D |
|
|---|---|---|---|---|---|---|
| LORD NELSON SE VICTORY |
nightingale | queen | KOSTA LINNEWÄFVERI | Orrefors JERNVERK | BYON | |
| vakinmel | VICTORIAN |
2 // Q2
-
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 APRIL - 30 JUNE 2023 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)%.
SEK
2019 2020 2021 2022 2023
400 450 500
Q1 Q2 Q3 Q4
400 450 500
400 450 500
*Recalculated with regard to the 2:1 share split carried out in June 2023.
J a n s s o
o
r s t e n
"New all-time high in both net sales and operating result - again!"
New all-time high in both net sales and operating result again!
The quarter
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 & 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
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.
Q2
Torsten Jansson CEO
Th e p e r i o d
Comments on the period
Summary of the quarter April - June
The group's net sales increased by 14% (9% in local currencies), of which the acquired operation contributed 9%. The Corporate segment increased, while Sports & Leisure and Gifts & Home Furnishings had lower net sales than last year. Net sales increased in Central and Southern Europe and Other countries but decreased slightly in other regions. The gross profit margin decreased and costs increased slightly. The cost increase was mainly related to the acquired business but also higher market efforts. Overall, the period's result was slightly lower than the previous year and amounted to SEK 259.6 (265.0) million.
The Corporate segment increased 34%. All regions except Sweden and the USA improved their turnover. Sports & Leisure decreased by 1% and the segment mainly had lower net sales in the Nordic countries excluding Sweden and Central Europe. Gifts & Home Furnishings decreased by 7% and had lower net sales in all regions.
The promo sales channel increased by 26% while retail sales decreased by 5%. Promo increased in the Corporate and Sport & Leisure segments but decreased in Gifts & Home Furnishings. Retail sales decreased in Sports & Leisure and Gifts & Home Furnishings.
The gross profit margin decreased slightly compared to the previous year and amounted to 49.5 (51.0) %. The reduction was related to the Corporate segment and the group's trading operations as well as last year's acquired unit. These businesses have a lower gross profit margin than the group as a whole and their share of the group's net sales was greater this year compared to the previous year.
The group's external costs increased compared to the previous year, which is mainly attributable to the acquired operation, volume-related costs, but also that the group increased its marketing activities. Personnel costs increased, which is due
to an adjustment to the current sales level after the savings made in previous years.
The operating result improved slightly compared to the previous year and amounted to SEK 363.9 (351.0) million, while the operating margin decreased slightly to 15.8 (17.4) %.
Cash flow from operating activities amounted to SEK 230.1 (68.1) million. The improved cash flow is primarily an effect of lower merchandise purchases compared to last year. The inventory increased by SEK 2,064.1 million and amounted to SEK 5,714.8 (3,650.7) million, of which the exchange rate change when converting to SEK has increased the value by SEK 227.2 million. Acquired operation increased the inventory value by SEK 275.2 million.
CHANGE IN NET SALES
Corporate +34%
segment
-1% Sports & Leisure segment
-7%
Gifts & Home Furnishings segment
April - June
Net sales
Net sales amounted to SEK 2,304.5 million, which was 14% higher than the previous year (SEK 2,019.2 million). The exchange rate effects had a positive impact on turnover of SEK 108.6 million, or 5%. Last year's acquisition affected turnover by 9% or SEK 176.1 million.
Net sales in the USA decreased by 2%. Sports & Leisure was at the same level as last year, while Corporate and Gifts & Home Furnishings decreased. Sweden reduced its net sales by 3% and Sports & Leisure was also at the same level as last year, while Corporate and Gifts & Home Furnishings decreased. In Central Europe, turnover increased by 62%, which is mainly related to last year's acquisition in the Corporate segment. Sports & Leisure and Gifts & Home Furnishings decreased. The Nordic countries excluding Sweden decreased by 1% compared to the previous year. The Corporate segment increased, while Sports & Leisure and Gifts & Home Furnishings decreased. Southern Europe increased net sales by 10% and it was mainly Corporate that increased its sales. Other countries increased by 63%, which is attributable to Asia and trading activities in the Corporate segment.
Gross profit
The gross profit margin decreased slightly compared to the previous year and amounted to 49.5 (51.0) %. The decrease was mainly related to the Corporate segment and to the group's trading operations and last year's acquired unit. These have a lower gross profit margin than the group as a whole. As these operations have increased their share of the group's net sales, this has affected the margin negatively. Sports & Leisure improved its margin compared to last year, while Gifts & Home Furnishings decreased.
Other operating income and other operating costs
Other operating income decreased by SEK 1.5 million to SEK 27.4 (28.9) million. Other operating income is primarily attributable to the operation's exchange rate gains and must be set against the profit line other operating expenses, where mainly the operation's exchange rate losses are reported. Other operating expenses decreased by SEK 2.0 million and amounted to SEK -13.1 (-15.1) million. The net of the abovementioned items amounted to SEK 14.3 (13.8) million.
Costs and depreciations
External costs increased by SEK 37.3 million and amounted to SEK -382.3 (-345.0) million. The increase is mainly related to the acquired operation, volume-related costs and higher marketing activities. Personnel costs increased by SEK 49.8 million and amounted to SEK -338.7 (-288.9) million. The increase is mostly due to more employees in the areas of sales, order processing and warehouse as well as acquired operation.
Exchange rate changes increased the abovementioned costs by SEK 34.4 million and acquired operation affected by SEK 27.7 million.
Depreciation and write-downs increased compared to the previous year and amounted to SEK -68.8 (-58.3) million. The increase is primarily related to depreciation of right-of-use assets linked to leasing, which negatively affected depreciation by SEK 9.3 million.
Operating result
Operating result improved by SEK 12.9 million compared to the previous year and amounted to SEK 363.9 (351.0) million. The improved operating result is mainly the result of last year's acquisition, which increased operating result by SEK 11.4 million. The operating margin decreased and amounted to 15.8 (17.4) %.
Net financial items and tax
Net financial items amounted to SEK -35.1 (-10.4) million. The group's net debt increased in previous quarters due to inventory build-up and a company acquisition, which increased interest costs at the same time as interest levels increased compared to last year. Tax on the period's results amounted to SEK -69.2 (-75.5) million. The effective tax rate amounted to 21.0 (22.1) %.
Result for the period
The result for the period was slightly lower than last year and amounted to SEK 259.6 (265.0) million. Earnings per share amounted to SEK 1.96 (2.00).
January - June
Net sales
Net sales amounted to SEK 4,440.0 million, which was 17% higher than the previous year (SEK 3,794.1 million). Exchange rate effects had a positive impact on sales by SEK 214.4 million, which corresponds to 6%. Last year's acquisition of B.T.C. Activewear Ltd affected turnover by 9% or SEK 331.7 million.
Net sales in the USA increased by 10%, which was related to the Sports & Leisure segment. Sweden increased sales by 1%. Sports & Leisure increased, while Corporate and Gifts & Home Furnishings decreased. Central Europe increased by 69%, which was mainly due to last year's acquisitions in the Corporate segment. Southern Europe increased by 19%, which was also mainly an increase in the Corporate segment. The Nordic countries excluding Sweden increased by 6%, which was related to Corporate and Sports & Leisure, while Gifts and Home Furnishings decreased. Other countries increased by 2%.
The promo sales channel increased by 24% and retail sales improved by 5%. Net sales increased in both sales channels regarding Corporate and Sports & Leisure, while Gifts and Home Furnishings decreased in both sales channels.
Gross profit
The gross profit margin was higher than the previous year and amounted to 50.1 (49.4) %. It is primarily Sports & Leisure that increased its margin, while Corporate and Gifts & Home Furnishings remained at the same level as last year.
Other operating income and other operating costs
Other operating income decreased by SEK 0.4 million to SEK 51.1 (51.5) million. Other operating income is primarily attributable to the operation's exchange rate gains and must be set against the profit line other operating expenses where the operation's exchange rate losses are reported. Other operating expenses decreased by SEK 3.6 million and amounted to SEK -23.3 (-26.9) million. The net of the above-mentioned items amounted to SEK 27.8 (24.6) million.
Costs and depreciations
External costs increased by SEK 114.1 million and amounted to SEK -770.7 (-656.6) million. The increase is mainly related to volume-related costs but also higher marketing activities. Personnel costs increased by SEK 104.0 million and amounted to SEK -667.5 (-563.5) million. The increase is mainly related to more employees in the areas of sales, order processing and warehouse.
Exchange rate changes increased the above mentioned costs by SEK 71.7 million and acquired operation affected by SEK 52.1 million.
Depreciation and write-downs increased compared to the previous year and amounted to SEK -134.2 (-117.1) million. The increase is primarily related to depreciation of right-of-use assets linked to leasing, which negatively affected depreciation by SEK 10.4 million.
Operating result
Operating result increased by SEK 117.2 million and amounted to SEK 677.3 (560.1) million. The improvement is mainly related to a higher net turnover and improved gross profit margin. Acquired operation contributed SEK 20.9 million. The operating margin improved and amounted to 15.3 (14.8) %.
Net financial items and tax
Net financial items amounted to SEK -63.6 (-20.0) million, which is related to a higher net debt attributable to the group's inventory build-up and company acquisition. This increased interest costs at the same time as interest rates increased compared to last year.
The tax cost for the period amounted to SEK -132.0 (-121.5) million. The effective tax rate amounted to 21.5 (22.5) %.
Result for the period
Result for the period amounted to SEK 481.8 (418.5) million and earnings per share amounted to SEK 3.63 (3.15).
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 second quarter increased by 34% and amounted to SEK 1,231.7 (919.1) million. Acquired operation had an impact of SEK 176.1 million or 19%. Sales increased in most regions but decreased in the USA and Sweden. Both sales channels increased their net sales. Operating result improved by SEK 20.8 million and amounted to SEK 225.2 (204.4) million. The higher result was related to higher net sales, but the segment also had a lower gross profit margin and higher costs. Acquired operation contributed SEK 11.4 million.
Net sales for the first six months of the year amounted to SEK 2,283.6 (1,770.4) million. Acquired operation had an impact of SEK 331.7 million or 19%. Net sales decreased in the USA and Sweden but increased in other regions. Both sales channels increased their net sales. Operating result improved by SEK 98.4 million and amounted to SEK 428.6 (330.2) million. The higher result is mainly related to the higher net sales. However, the segment has a lower gross profit margin and higher costs. Acquired operation contributed SEK 20.9 million.
Sports & Leisure
Net sales during the period April-June decreased slightly and amounted to SEK 869.2 (881.5) million. The segment had lower net sales in Central Europe, the Nordics countries (excluding Sweden) and Other countries. The promo sales channel increased while retail sales decreased. Operating result amounted to SEK 140.2 (134.5) million. The higher result was mainly due to an improved gross profit margin.
Net sales for the period January-June increased by 10% and amounted to SEK 1,786.6 (1,628.2) million. Sales increased in both sales channels. The segment had higher net sales in all regions. Operating result increased by SEK 38.5 million and amounted to SEK 268.2 (229.7) million. The improvement is related to the higher net sales and an improved gross profit margin. However, the segment also had higher costs. Gifts & Home Furnishings
Net sales for the second quarter decreased by 7% and amounted to SEK 203.7 (218.6) million. The segment had lower net sales in all regions and in both sales channels. Operating result decreased compared to last year and amounted to SEK -1.6 (12.1) million. In addition to lower net sales, the segment also had a lower gross profit margin and higher costs, mainly in the form of more employees.
Net sales for the period January-June decreased by 6% and amounted to SEK 369.8 (395.5) million. Sales decreased in both sales channels and in all regions. Operating result decreased by SEK 19.6 million compared to the previous year and amounted to SEK -19.4 (0.2) million. The lower result was mainly related to lower sales but also higher marketing costs and more employees.
Capital tied up
NWG // 2023
Capital tied up in inventories increased by SEK 2,064.1 million compared to the previous year and amounted to SEK 5,714.8 (3,650.7) million. Exchange rate changes have increased the inventory value by SEK 227.2 million and acquired operation affected by SEK 275.2 million. The inventory's turnover rate is on par with the previous year and amounted to 1.1 (1.2) times.
| SEK million | 30 Jun 2023 |
30 Jun 2022 |
|---|---|---|
| Raw materials | 61.6 | 59.6 |
| Work in progress | 1.1 | 2.8 |
| Goods in transit | 359.6 | 482.7 |
| Finished goods | 5.292.5 | 3.105.6 |
| Total | 5.714.8 | 3.650.7 |
As of 30 June, total obsolescence deductions (the difference between the lowest of acquisition value and fair value) for inventory amounted to SEK 151.7 (165.3) million and obsolescence reserve for finished goods inventory amounted to 2.9 (5.0) %.
Accounts receivable amounted to SEK 1,501.7 (1,333.6) million, where the increase is mainly related to the higher net sales.
Investments, financing and liquidity
The quarter's cash flow from operating activities amounted to SEK 230.1 (68.1) million. The improved cash flow is mainly attributable to lower purchases of goods than last year. Cash flow from investment activities amounted to SEK -82.8 (-55.2) million.
For the first six months of the year, cash flow from operating activities amounted to SEK 37.0 million, which was slightly lower than the previous year (SEK 73.3 million). The lower cash flow is mainly related to payment of last year's inventory build-up.
Net debt increased by SEK 1,293.8 million and amounted to SEK 2,649.9 (1,356.1) million. The increase was related to indebtedness with credit institutions and is attributable to last year's acquisition and inventory build-up. The net debt ratio and net debt through working capital increased and amounted to 42.8 (27.0) % and 46.9 (37.3) % respectively.
The equity ratio decreased by 4.1 percentage points compared to the previous year and amounted to 54.9 (59.0) %. The lower equity ratio is attributable to higher net debt in connection with last year's acquisition and inventory build-up.
During the quarter, the group increased its credit line by SEK 200.0 million. The credit line on June 30 amounted to SEK 3,019.2 million, of which SEK 200.0 million runs through December 31 2023, USD 4.2 million runs through January 2024, SEK 2,150.0 million runs through December 2024, SEK 185,9 million runs through August 2027, and SEK 187.5 million has a term that extends to and including December 2030. The other SEK 250.0 million has a term of between three months and six years. The credit line 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 annual employees as of June 30 amounted to 2,449 (2,206) people, of which 49% were men and 51% were women. Of the number of employees, 501 (472) people work in production.
The production within the 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. Related companies to the CEO have purchased merchandise. In addition, there are transactions with related parties at insignificant values. All transactions have taken place on market terms.
The Parent company
Total revenue for the quarter amounted to SEK 38.8 (38.9) million. Result before allocations and tax amounted to SEK 451.9 (211.0) million. The improvement in earnings was mainly attributable to dividends from foreign subsidiaries. The net debt amounted to SEK 2,184.5 (876.8) million. The parent company's net financing to subsidiaries amounted to SEK 2,894.1 (1,519.3) million. The increase in net debt and net financing to subsidiaries is related to last year's acquisition and the subsidiaries' inventory build-up. The cash flow from investment activities amounted to SEK 9.2 (0.3) million, which is related to an intra-group company sale. The balance sheet total amounted to SEK 5,903.0 (4,152.6) million and the equity, including the equity share of untaxed reserves, to SEK 2,689.8 (2,486.7) million.
Total revenue for the period January-June amounted to SEK 76.8 (74.0) million. Result before appropriations and tax amounted to SEK 461.0 (212.0) million. The improvement in earnings was mainly attributable to dividends from foreign subsidiaries. The cash flow from investment activities amounted to SEK 47.4 (0.2) million. The improvement was due to intra-group company sales.
Subsequent Events
As of July 1, New Wave Group AB has acquired 100% of the shares in the Swedish outdoor company Tenson AB, note 8.
Calendar
| 7 NOV | Interim report for the third quarter |
|---|---|
| 9 FEB | Year-end report 2023 |
| 25 APR | Interim report for the first quarter |
| 16 MAY | Annual General Meeting |
The company's auditors have not conducted any review of the report for the second quarter of 2023.
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, August 16, 2023
New Wave Group AB (publ)
2023
Olof Persson Chairman of the Board
Kinna Bellander Member of the Board
CEO AND GROUP CEO Torsten Jansson
Phone: +46 (0) 31–712 89 01 E-mail: [email protected]
For more information, please contact:
Jonas Eriksson Member of the Board
Ralph Mühlrad
Member of the Board
DEPUTY CEO Göran Härstedt
Phone: +46 (0) 70 - 362 56 11 E-mail: [email protected]
M. Johan Widerberg Member of the Board
Isabella Jansson Member of the Board
Ingrid Söderlund Member of the Board
Torsten Jansson CEO and Group CEO
CFO Lars Jönsson Phone: +46 (0) 31–712 89 12 E-mail: [email protected]
This information is information that New Wave Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons detailed above, at 7.00 a.m.CET on August 16th, 2023.
13 // Q2
Consolidated income statement
| Note SEK million |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
|---|---|---|---|---|---|---|
| Net sales 3, 4, 5 |
2 304.5 | 2 019.2 | 4 440.0 | 3 794.1 | 8 843.6 | 6 718.6 |
| Goods for resale | -1 164.8 | -989.8 | -2 217.4 | -1 921.4 | -4 468.4 | -3 489.3 |
| Gross profit | 1 139.7 | 1 029.4 | 2 222.6 | 1 872.7 | 4 375.2 | 3 229.3 |
| Other operating income | 27.4 | 28.9 | 51.1 | 51.5 | 123.9 | 111.5 |
| External costs | -382.3 | -345.0 | -770.7 | -656.6 | -1 470.3 | -1 067.9 |
| Personnel costs | -338.7 | -288.9 | -667.5 | -563.5 | -1 205.3 | -1 016.9 |
| Amortizations, depreciations and write-downs of tangible and intangible fixed assets |
-68.8 | -58.3 | -134.2 | -117.1 | -249.2 | -227.3 |
| Other operating costs | -13.1 | -15.1 | -23.3 | -26.9 | -67.4 | -21.7 |
| Share of associated companies' result | -0.3 | 0.0 | -0.6 | 0.0 | -1.8 | -1.1 |
| Operating result | 363.9 | 351.0 | 677.3 | 560.1 | 1 505.1 | 1 005.9 |
| Financial income | 0.9 | 1.5 | 2.0 | 2.1 | 3.7 | 3.0 |
| Financial expenses | -36.0 | -11.9 | -65.6 | -22.1 | -58.7 | -46.0 |
| Net financial items | -35.1 | -10.4 | -63.6 | -20.0 | -55.0 | -43.0 |
| Result before tax | 328.8 | 340.6 | 613.8 | 540.1 | 1 450.1 | 962.9 |
| Tax expense Result for the period |
-69.2 259.6 |
-75.5 265.0 |
-132.0 481.8 |
-121.5 418.5 |
-281.3 1 168.8 |
-202.9 760.0 |
| Other comprehensive income: Items that can be reclassified into profit or loss: |
||||||
| Translation differences | 254.8 | 247.2 | 248.5 | 317.5 | 434.2 | 230.3 |
| Cash flow hedges | -4.5 | 7.8 | -4.2 | 8.0 | 2.4 | 3.3 |
| Sum | 250.3 | 255.0 | 244.3 | 325.5 | 436.6 | 233.6 |
| Income tax related to components of other comprehensive income |
1.0 | -1.6 | 0.9 | -1.6 | -0.5 | -0.7 |
| Total other comprehensive for the period | 251.3 | 253.3 | 245.2 | 323.8 | 436.1 | 232.9 |
| Total comprehensive income for the period | 510.9 | 518.4 | 727.0 | 742.4 | 1 604.9 | 992.9 |
| Result for the period attributable to: | ||||||
| Shareholders of the Parent company | 259.6 | 264.9 | 481.8 | 418.4 | 1 168.8 | 760.3 |
| Non-controlling interest | 0.0 259.6 |
0.1 265.0 |
0.0 481.8 |
0.1 418.5 |
0.0 1 168.8 |
-0.3 760.0 |
| Total comprehensive income attributable to: | ||||||
| Shareholders of the Parent company | 510.9 | 518.4 | 727.0 | 742.4 | 1604.9 | 992.8 |
| Non-controlling interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
| 510.9 | 518.4 | 727.0 | 742.4 | 1 604.9 | 992.9 | |
| Earnings per share (SEK)* | 1.96 | 2.00 | 3.63 | 3.15 | 8.81 | 5.73 |
| The average number of outstanding shares** | 132 687 086 | 132 687 086 | 132 687 086 | 132 687 086 | 132 687 086 | 132 687 086 |
*Earnings per share and the average number of outstanding shares are the same before and after dilution.
**Recalculated with regard to the 2:1 share split carried out in June 2023.
Consolidated cash flow statement
| 3 months | 3 months | 6 months | 6 months | 12 months | 12 months | |
|---|---|---|---|---|---|---|
| Note | Apr - Jun | Apr - Jun | Jan - Jun | Jan - Jun | Jan - Dec | Jan - Dec |
| SEK million | 2023 | 2022 | 2023 | 2022 | 2022 | 2021 |
| Operating activities Operating result |
||||||
| Adjustment for items not included in cash flow | 363.9 33.5 |
351.0 55.3 |
677.4 100.6 |
560.1 108.6 |
1 505.1 253.7 |
1 005.9 194.8 |
| Received interest | 1.8 | 0.5 | 2.0 | 0.7 | 7.6 | 1.8 |
| Paid interest | -36.9 | -10.9 | -65.6 | -20.7 | -62.7 | -44.8 |
| Paid income tax | -102.6 | -49.8 | -156.9 | -99.0 | -320.6 | -164.7 |
| Cash flow from operating activities before changes | ||||||
| in working capital | 259.7 | 346.0 | 557.5 | 549.6 | 1 383.2 | 993.0 |
| Changes in working capital | ||||||
| Increase/decrease of inventories | -5.8 | -360.7 | -264.8 | -587.2 | -1 983.1 | 57.8 |
| Increase/decrease of current receivables | -30.2 | -119.2 | 251.3 | 86.6 | -186.8 | -269.9 |
| Increase/decrease of current liabilities | 6.4 | 202.0 | -507.0 | 24.3 | 426.7 | 426.5 |
| Cash flow from changes in working capital | -29.6 | -277.9 | -520.5 | -476.3 | -1 743.2 | 214.4 |
| Cash flow from operating activities | 230.1 | 68.1 | 37.0 | 73.3 | -360.0 | 1 207.4 |
| Investing activities | ||||||
| Investments in tangible fixed assets | -87.8 | -60.3 | -125.9 | -82.9 | -123.7 | -105.3 |
| Sales of tangible fixed assets | 8.5 | 7.1 | 9.3 | 9.8 | 10.7 | 9.9 |
| Investments in intangible fixed assets | -3.5 | -2.0 | -6.9 | -7.4 | -10.5 | -18.8 |
| Acquisition of shares | 0.0 | 0.0 | 0.0 | 0.0 | -398.7 | 0.0 |
| Cash flow from investing activities 3 |
-82.8 | -55.2 | -123.5 | -80.5 | -522.2 | -114.2 |
| Cash flow after investing activities | 147.3 | 12.9 | -86.5 | -7.2 | -882.2 | 1 093.2 |
| Financial activities | ||||||
| Loans raised | 159.0 | 314.7 | 420.1 | 357.0 | 1 465.6 | 0.0 |
| Amortization of loans | -30.6 | -26.9 | -64.0 | -52.3 | -111.3 | -706.5 |
| Amortization of lease liabilities | -40.3 | -34.3 | -78.0 | -67.5 | -138.2 | -126.5 |
| Acquisition of non-controlling interests | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | -12.5 |
| Dividend paid to the shareholders of the Parent company | -216.3 | -282.0 | -216.3 | -282.0 | -282.0 | -265.4 |
| Cash flow from financial activities | -128.2 | -28.4 | 61.8 | -44.7 | 934.1 | -1 110.9 |
| Cash flow for the period | 19.1 | -15.5 | -24.7 | -51.9 | 51.9 | -17.7 |
| Liquid assets at the beginning of the period | 376.7 | 298.6 | 419.4 | 327.9 | 327.9 | 325.1 |
| Translation differences in liquid assets | 20.7 | 22.4 | 21.8 | 29.5 | 39.6 | 20.5 |
| Liquid assets at the end of the period | 416.5 | 305.5 | 416.5 | 305.5 | 419.4 | 327.9 |
| Liquid assets | ||||||
| Cash at bank and in hand | 416.5 | 305.5 | 416.5 | 305.5 | 419.4 | 327.9 |
Consolidated balance sheet
| Note | 30 Jun | 30 Jun | 31 Dec | 31 Dec | |
|---|---|---|---|---|---|
| SEK million ASSETS |
2023 | 2022 | 2022 | 2021 | |
| Intangible fixed assets | 3 | 1 818.2 | 1 601.4 | 1 768.5 | 1 474.7 |
| Tangible fixed assets | 3 | 1 425.4 | 1 287.3 | 1 319.6 | 1 258.3 |
| Shares in associated companies | 37.0 | 38.7 | 38.7 | 38.7 | |
| Other long-term receivables | 13.4 | 12.5 | 13.9 | 11.8 | |
| Deferred tax assets | 3, 5 | 132.1 | 108.5 | 129.2 | 93.5 |
| Total non-current assets | 5 | 3 426.0 | 3 048.3 | 3 269.9 | 2 877.0 |
| Inventory | 5 714.8 | 3 650.7 | 5 297.7 | 2 937.6 | |
| Current tax receivables | 29.0 | 27.2 | 30.2 | 16.7 | |
| Accounts receivable | 1 501.7 | 1 333.6 | 1 664.1 | 1 359.6 | |
| Other receivables | |||||
| 88.4 | 100.5 | 169.6 | 86.3 | ||
| Prepaid expenses and accrued income | 100.7 | 59.0 | 92.7 | 55.3 | |
| Liquid assets Total current assets |
416.5 7 851.1 |
305.5 5 476.5 |
419.4 7 673.7 |
327.9 4 783.6 |
|
| TOTAL ASSETS | 3, 6 | 11 277.2 | 8 524.8 | 10 943.6 | 7 660.6 |
| EQUITY | |||||
| Share capital | 199.0 | 199.0 | 199.0 | 199.0 | |
| Other capital contributions | 219.4 | 219.4 | 219.4 | 219.4 | |
| Reserves | 1 175.5 | 815.6 | 927.9 | 489.4 | |
| Retained earnings including result for the period | 4 591.3 | 3 792.8 | 4 543.1 | 3 658.8 | |
| Equity attributable to shareholders of the Parent company | 6 185.2 | 5 026.8 | 5 889.4 | 4 566.7 | |
| Non-controlling interest | 1.1 | 1.2 | 1.1 | 0.9 | |
| Total equity | 6 186.3 | 5 027.9 | 5 890.5 | 4 567.6 | |
| LIABILITIES | |||||
| Long-term interest-bearing liabilities | 7 | 2 797.1 | 1 436.2 | 2 418.4 | 1 166.8 |
| Pension provisions | 26.0 | 22.6 | 24.1 | 19.4 | |
| Other provisions | 5.4 | 6.3 | 7.2 | 7.1 | |
| Deferred tax liabilities | 162.0 | 151.8 | 159.2 | 138.4 | |
| Total non-current liabilities | 2 990.5 | 1 616.9 | 2 608.9 | 1 331.6 | |
| Short-term interest-bearing liabilities | 7 | 269.3 | 225.4 | 330.6 | 229.9 |
| Accounts payable | 990.3 | 998.0 | 1 404.8 | 926.1 | |
| Current tax liabilities | 80.9 | 149.9 | 104.4 | 89.9 | |
| Other liabilities | 364.3 | 159.1 | 174.7 | 163.6 | |
| Accrued expenses and prepaid income | 395.6 | 347.6 | 429.7 | 351.9 | |
| Total current liabilities | 2 100.4 | 1 879.9 | 2 444.2 | 1 761.4 | |
| Total liabilities | 3, 6 | 5 090.8 | 3 496.9 | 5 053.1 | 3 093.0 |
| TOTAL EQUITY AND LIABILITIES | 11 277.2 | 8 524.8 | 10 943.6 | 7 660.6 | |
Consolidated statement of changes in equity
| SEK million | Share capital | Other capital contributions |
Reserves | Retained ear nings 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 | 418.5 | 418.5 | 0.1 | 418.5 | |||
| Other comprehensive income | |||||||
| Translation differences | 317.3 | 317.3 | 0.2 | 317.5 | |||
| Cash flow hedges for the period | 8.0 | 8.0 | 8.0 | ||||
| Reclassification of previous years' | |||||||
| cash flow hedge | 2.6 | -2.6 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income |
-1.6 | -1.6 | -1.6 | ||||
| Transactions with shareholders | |||||||
| Dividends to shareholders of the Parent company |
-282.0 | -282.0 | -282.0 | ||||
| Closing balance 2022-06-30 | 199.0 | 219.4 | 815.6 | 3 792.8 | 5 026.8 | 1.2 | 5 027.9 |
| SEK million | Share capital | Other capital contributions |
Reserves | Retained ear nings incl. result for the period |
Total | Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|
| Opening balance 2023-01-01 | 199.0 | 219.4 | 927.9 | 4 543.1 | 5 889.4 | 1.1 | 5 890.5 |
| Result for the period | 481.8 | 481.8 | 0.0 | 481.8 | |||
| Other comprehensive income | |||||||
| Translation differences | 248.5 | 248.5 | 0.0 | 248.5 | |||
| Cash flow hedges for the period | -4.2 | -4.2 | -4.2 | ||||
| Reclassification of previous years' cash flow hedge |
2.4 | -2.4 | 0.0 | 0.0 | |||
| Income tax related to components of other comprehensive income |
0.9 | 0.9 | 0.9 | ||||
| Transactions with shareholders | |||||||
| Dividends to shareholders of the | |||||||
| Parent company | -431.2 | -431.2 | -431.2 | ||||
| Closing balance 2023-06-30 | 199.0 | 219.4 | 1 175.5 | 4 591.3 | 6 185.2 | 1.1 | 6 186.3 |
| Accumulated translation differences in equity | Jan - jun 2023 |
Jan - jun 2022 |
|---|---|---|
| Accumulated translation differences at the beginning of the period | 931.2 | 497.0 |
| Translation differences in foreign Group companies for the period | 248.5 | 317.5 |
| Accumulated translation differences at the end of period | 1179.7 | 814.5 |
Financial key figures
| 3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
|
|---|---|---|---|---|---|---|
| Net sales growth, % | 14.1 | 35.8 | 17.0 | 38.0 | 31.6 | 10.2 |
| Organic growth, % | 0.0 | 29.5 | 2.6 | 32.4 | 20.8 | 12.9 |
| Aquired growth, % | 8.7 | 0.0 | 8.7 | 0.0 | 3.7 | 0.0 |
| Average number of employees | 2 449 | 2 206 | 2 449 | 2 206 | 2 313 | 2 060 |
| Gross profit margin, % | 49.5 | 51.0 | 50.1 | 49.4 | 49.5 | 48.1 |
| Operating margin before depreciations, % | 18.8 | 20.3 | 18.3 | 17.8 | 19.8 | 18.4 |
| Operating margin, % | 15.8 | 17.4 | 15.3 | 14.8 | 17.0 | 15.0 |
| Profit margin, % | 14.3 | 16.9 | 13.8 | 14.2 | 16.4 | 14.3 |
| Net margin, % | 11.3 | 13.1 | 10.9 | 11.0 | 13.2 | 11.3 |
| Return on shareholders' equity, % | 20.5 | 19.7 | 20.5 | 19.7 | 25.0 | 18.0 |
| Return on capital employed, % | 18.2 | 19.4 | 18.2 | 19.4 | 20.7 | 16.9 |
| Equity ratio, % | 54.9 | 59.0 | 54.9 | 59.0 | 53.8 | 59.6 |
| Net debt, SEK million | 2 649.9 | 1 356.1 | 2 649.9 | 1 356.1 | 2 329.6 | 1 068.8 |
| Net debt to credit institutes, SEK million | 2 000.9 | 695.2 | 2 000.9 | 695.2 | 1 635.4 | 375.1 |
| Net debt to equity ratio, % | 42.8 | 27.0 | 42.8 | 27.0 | 39.5 | 23.4 |
| Net debt in relation to working capital, % | 46.9 | 37.3 | 46.9 | 37.3 | 44.7 | 35.7 |
| Interest coverage ratio, times | 10.1 | 29.6 | 10.4 | 25.4 | 25.7 | 21.9 |
| Capital turnover, times | 0.9 | 1.0 | 0.9 | 1.0 | 1.0 | 0.9 |
| Inventory turnover, times | 1.1 | 1.2 | 1.1 | 1.2 | 1.1 | 1.2 |
| Cash flow before investments, SEK million | 230.1 | 68.1 | 37.0 | 73.3 | -360.0 | 1 207.4 |
| Net investments, SEK million | -82.8 | -55.2 | -123.5 | -80.5 | -522.2 | -114.2 |
| Cash flow after investments, SEK million | 147.3 | 12.9 | -86.5 | -7.2 | -882.2 | 1 093.2 |
| Shareholders' equity per share, before and after dilution, SEK* | 46.62 | 37.88 | 46.62 | 37.88 | 44.39 | 34.42 |
| Share price as of the balance sheet date, SEK* | 94.84 | 68.05 | 94.84 | 68.05 | 103.20 | 83.90 |
| Dividend/share, SEK* | 3.25 | 2.125 | 3.25 | 2.125 | 2.125 | 2.00 |
| P/E-ratio | 10.21 | 9.80 | 10.21 | 9.80 | 11.72 | 14.64 |
| P/S-ratio | 1.33 | 1.16 | 1.33 | 1.16 | 1.55 | 1.66 |
| Share price/Shareholders' equity | 2.03 | 1.80 | 2.03 | 1.80 | 2.33 | 2.44 |
For definitions of alternative performance measures, see page 32.
*Recalculated with regard to the 2:1 share split carried out in June 2023.
Income statement
| 3 months Apr - Jun |
3 months Apr - Jun |
6 months Jan - Jun |
6 months Jan - Jun |
12 months Jan - Dec |
12 months Jan - Dec |
|
|---|---|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2023 | 2022 | 2022 | 2021 |
| Net sales | 30.0 | 26.4 | 55.9 | 50.5 | 100.1 | 90.4 |
| Other operating income | 8.8 | 12.5 | 20.9 | 23.5 | 61.6 | 18.0 |
| Total income | 38.8 | 38.9 | 76.8 | 74.0 | 161.7 | 108.4 |
| External costs | -24.5 | -17.2 | -45.3 | -31.9 | -70.4 | -62.6 |
| Personnel costs | -13.2 | -11.2 | -24.8 | -23.1 | -45.5 | -41.5 |
| Amortizations, depreciations and write-downs of | ||||||
| tangible and intangible fixed assets | -0.7 | -1.3 | -1.4 | -2.5 | -4.5 | -5.4 |
| Other operating costs | -9.9 | -11.0 | -16.6 | -20.4 | -52.4 | -14.3 |
| Operating result | -9.5 | -1.8 | -11.4 | -3.9 | -11.2 | -15.4 |
| Result from shares in Group companies | 425.7 | 207.7 | 425.7 | 207.7 | 247.2 | 470.6 |
| Changes in write-downs of financial assets | 20.0 | 0.0 | 19.6 | 0.0 | -4.3 | 7.1 |
| Financial income | 57.6 | 10.8 | 101.6 | 18.9 | 69.7 | 36.3 |
| Financial expenses | -41.8 | -5.7 | -74.5 | -10.7 | -44.5 | -23.9 |
| Net financial items | 461.4 | 212.8 | 472.4 | 215.9 | 268.1 | 490.1 |
| Result before appropriations and tax | 451.9 | 211.0 | 461.0 | 212.0 | 257.0 | 474.7 |
| Appropriations | 0.0 | 0.0 | 0.0 | 0.0 | 125.3 | 144.9 |
| Tax expense | -1.4 | -0.7 | -3.2 | -0.9 | -24.6 | -26.9 |
| Result for the period | 450.5 | 210.3 | 457.8 | 211.1 | 357.6 | 592.8 |
Total comprehensive income for the period corresponds with result for the period.
Cash flow statement
| Note SEK million |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
|---|---|---|---|---|---|---|
| Operating activities | ||||||
| Operating result | -9.5 | -1.8 | -11.4 | -3.9 | -11.2 | -15.4 |
| Adjustment for items not included in cash flow | 4.6 | 16.1 | 11.2 | 21.3 | 42.1 | -0.5 |
| Received dividends | 425.7 | 207.7 | 425.7 | 207.7 | 247.2 | 470.6 |
| Received interest | 57.6 | 10.8 | 101.6 | 18.9 | 69.7 | 36.3 |
| Paid interest | -41.8 | -5.7 | -74.5 | -10.7 | -44.5 | -23.9 |
| Paid income tax | -7.6 | -2.9 | -13.9 | -6.3 | -26.3 | -13.2 |
| Cash flow from operating activities before | 429.0 | 224.3 | 438.8 | 227.1 | 277.1 | 453.8 |
| changes in working capital | ||||||
| Changes in working capital | ||||||
| Increase/decrease in current receivables | -30.7 | -238.1 | -179.2 | -280.3 | -1333.2 | 49.7 |
| Increase/decrease in current liabilities | -302.0 | -7.7 | -406.1 | 29.5 | 459.6 | 65.1 |
| Cash flow from changes in working capital | -332.7 | -245.8 | -585.3 | -250.8 | -873.6 | 114.8 |
| Cash flow from operating activities | 96.3 | -21.6 | -146.5 | -23.8 | -596.5 | 568.6 |
| Investing activities | ||||||
| Shareholder contributions to Group companies | 0.0 | 0.0 | -50.0 | 0.0 | 0.0 | -20.4 |
| Investments in associated companies | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Investments in tangible fixed assets | 0.0 | 0.0 | -0.1 | -0.1 | -0.2 | 0.0 |
| Investments in intangible fixed assets | -0.1 | 0.0 | -0.1 | 0.0 | -0.5 | -6.1 |
| Acquisition of shares | 0.0 | 0.0 | 0.0 | 0.0 | -409.2 | -12.5 |
| Intra-Group sales of Group companies | 9.1 | 0.0 | 95.0 | 0.0 | 0.0 | 0.0 |
| Changes in long-term loans to Group companies | 0.5 | 0.5 | 3.0 | 0.5 | 1.5 | 324.9 |
| Raised long-term receivables | -0.3 | -0.2 | -0.4 | -0.2 | -0.5 | -0.1 |
| Cash flow from investing activities | 9.2 | 0.3 | 47.4 | 0.2 | -408.9 | 285.8 |
| Cash flow after investing activities | 105.5 | -21.3 | -99.1 | -23.6 | -1 005.4 | 854.5 |
| Financial activities | ||||||
| Loans raised | 142.9 | 328.6 | 379.4 | 354.6 | 1 388.4 | 0.0 |
| Amortization of loans | -32.2 | -25.3 | -64.1 | -49.3 | -101.5 | -588.8 |
| Dividend paid to shareholders of the Parent company | -216.3 | -282.0 | -216.3 | -282.0 | -282.0 | -265.4 |
| Cash flow from financial activities | -105.6 | 21.3 | 99.1 | 23.3 | 1 004.9 | -854.2 |
| Cash flow for the period | -0.1 | 0.0 | 0.0 | -0.2 | -0.5 | 0.1 |
| Liquid assets at the beginning of the period | 0.1 | 0.3 | 0.0 | 0.5 | 0.5 | 0.4 |
| Liquid assets at the end of the period | 0.0 | 0.3 | 0.0 | 0.3 | 0.0 | 0.5 |
| Liquid assets | ||||||
| Cash at bank and in hand | 0.0 | 0.3 | 0.0 | 0.3 | 0.0 | 0.5 |
Balance sheet
| SEK million ASSETS |
Note | 30 Jun 2023 |
30 Jun 2022 |
31 Dec 2022 |
31 Dec 2021 |
|---|---|---|---|---|---|
| Intangible fixed assets | 5.1 | 6.8 | 5.9 | 8.8 | |
| Tangible fixed assets | 2.3 | 3.0 | 2.7 | 3.5 | |
| Shares in Group companies | 2 599.6 | 2 256.0 | 2 644.6 | 2 256.0 | |
| Shares in associated companies | 36.4 | 38.1 | 38.1 | 38.1 | |
| Receivables on Group companies | 28.0 | 32.0 | 31.0 | 32.5 | |
| Other long-term receivables | 6.3 | 5.7 | 6.0 | 5.5 | |
| Total non-current assets | 2 677.7 | 2 341.7 | 2 728.3 | 2 344.4 | |
| Accounts receivable | 1.7 | 1.0 | 0.8 | 0.7 | |
| Receivables on Group companies | 3 191.2 | 1 783.2 | 2 988.8 | 1 481.6 | |
| Current tax receivables | 0.0 | 0.0 | 0.0 | 0.0 | |
| Other receivables | 16.5 | 16.9 | 25.6 | 39.4 | |
| Prepaid expenses and accrued income | 15.8 | 9.6 | 11.3 | 8.5 | |
| Liquid assets | 0.0 | 0.3 | 0.0 | 0.5 | |
| Total current assets | 3 225.3 | 1 811.0 | 3 026.6 | 1 530.6 | |
| TOTAL ASSETS | 5 903.0 | 4 152.6 | 5 754.8 | 3 875.0 | |
| 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 | 1 626.2 | 1 699.9 | 1 699.9 | 1 389.1 | |
| Share premium reserve | 48.0 | 48.0 | 48.0 | 48.0 | |
| Result for the period | 457.8 | 211.1 | 357.6 | 592.8 | |
| Total unrestricted equity | 2 132.0 | 1 959.0 | 2 105.5 | 2 029.9 | |
| Total equity | 2 580.5 | 2 407.4 | 2 553.9 | 2 478.3 | |
| Untaxed reserves | 137.7 | 99.9 | 137.7 | 99.9 | |
| LIABILITIES | |||||
| Long-term interest-bearing liabilities | 7 | 2 070.0 | 775.8 | 1 733.6 | 458.0 |
| Total non-current liabilities | 2 070.0 | 775.8 | 1 733.6 | 458.0 | |
| Short-term interest-bearing liabilities | 7 | 114.5 | 101.2 | 127.5 | 94.6 |
| Accounts payable | 449.8 | 454.8 | 696.8 | 399.1 | |
| Liabilities to Group companies | 325.1 | 295.9 | 485.9 | 321.6 | |
| Current tax liabilities | 0.1 | 7.1 | 10.8 | 12.4 | |
| Other liabilities | 216.1 | 1.2 | 0.8 | 1.2 | |
| Accrued expenses and prepaid income | 9.2 | 9.3 | 7.8 | 9.9 | |
| Total current liabilities | 1 114.9 | 869.5 | 1 329.6 | 838.8 | |
| Total liabilities | 3 184.9 | 1 645.4 | 3 063.2 | 1 296.8 | |
| TOTAL EQUITY AND LIABILITIES | 5 903.0 | 4 152.6 | 5 754.8 | 3 875.0 |
Statement of changes in equity
| 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 | 211.1 | 211.1 | ||||
| Total changes excluding transactions with shareholders |
0.0 | 0.0 | 0.0 | 0.0 | 211.1 | 211.1 |
| Dividends | -282.0 | -282.0 | ||||
| Closing balance 2022-06-30 | 199.0 | 249.4 | 1 699.9 | 48.0 | 211.1 | 2 407.4 |
| SEK million | Share capital | Restricted reserves |
Retained earnings |
Share premium reserve |
Result for the period |
Total equity |
|---|---|---|---|---|---|---|
| Opening balance 2023-01-01 | 199.0 | 249.4 | 1 699.9 | 48.0 | 357.6 | 2 553.9 |
| Transfer according to decision at AGM | 357.6 | -357.6 | 0.0 | |||
| Result for the period | 457.8 | 457.8 | ||||
| Total changes excluding transactions with shareholders |
0.0 | 0.0 | 0.0 | 0.0 | 457.8 | 457.8 |
| Dividends | -431.2 | -431.2 | ||||
| Closing balance 2023-06-30 | 199.0 | 249.4 | 1 626.3 | 48.0 | 457.8 | 2 580.5 |
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 2022 Annual Report.
New accounting policies for 2023
Several amendments to existing standards have been published and will come into effect in 2023 and beyond. One of these is changes in IAS 1 - Disclosure of accounting principles. To support the changes, the IASB has also developed guidance and examples to explain and identify a significant accounting principle. The company's management assesses that this change may affect information about applied accounting principles, but has not yet evaluated these effects in their entirety. Other changes are not considered to have a significant impact on New Wave Group's financial reports.
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 2022, 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.
a n
y
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 in 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.
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 | 3 months | 6 months | 6 months | 12 months | 12 months |
|---|---|---|---|---|---|---|
| Corporate | Apr - Jun 2023 |
Apr - Jun 2022 |
Jan - Jun 2023 |
Jan - Jun 2022 |
Jan - Dec 2022 |
Jan - Dec 2021 |
| Net sales | 1 231.7 | 919.1 | 2 283.6 | 1 770.4 | 4 152.0 | 2 971.6 |
| Operating result | 225.2 | 204.4 | 428.6 | 330.2 | 813.1 | 440.8 |
| Sports & Leisure | ||||||
| Net sales | 869.2 | 881.5 | 1 786.6 | 1 628.2 | 3 782.3 | 2 792.5 |
| Operating result | 140.2 | 134.5 | 268.2 | 229.7 | 647.3 | 466.0 |
| Gifts & Home Furnishings | ||||||
| Net sales | 203.7 | 218.6 | 369.8 | 395.5 | 909.3 | 954.5 |
| Operating result | -1.6 | 12.1 | -19.4 | 0.2 | 44.7 | 99.1 |
| Total net sales | 2 304.5 | 2 019.2 | 4 440.0 | 3 794.1 | 8 843.6 | 6 718.6 |
| Total operating result | 363.9 | 351.0 | 677.3 | 560.1 | 1 505.1 | 1 005.9 |
| Total operating result | 363.9 | 351.0 | 677.3 | 560.1 | 1 505.1 | 1 005.9 |
| Net financial items | -35.1 | -10.4 | -63.6 | -20.0 | -55.0 | -43.0 |
| Result before tax | 328.8 | 340.6 | 613.8 | 540.1 | 1 450.1 | 962.9 |
Assets and liabilities per operating segment
| SEK million | Total assets |
Fixed assets* |
Deferred tax assets |
Net investments |
Amortizations, depreciations and write-downs |
Total liabilities |
|---|---|---|---|---|---|---|
| 30 Jun 2023 | ||||||
| Corporate | 7 425.8 | 1 198.3 | 55.5 | -33.2 | -86.6 | 3 254.4 |
| Sports & Leisure | 3 325.7 | 1 717.6 | 67.7 | -78.0 | -38.8 | 1 507.7 |
| Gifts & Home Furnishings | 525.7 | 327.7 | 8.9 | -12.3 | -8.8 | 328.7 |
| Total | 11 277.2 | 3 243.6 | 132.1 | -123.5 | -134.2 | 5 090.8 |
| 30 Jun 2022 | ||||||
| Corporate | 4 939.5 | 1 077.5 | 38.5 | -18.8 | -74.3 | 2 502.8 |
| Sports & Leisure | 3 202.9 | 1 477.6 | 55.2 | -53.1 | -34.9 | 788.7 |
| Gifts & Home Furnishings | 382.4 | 333.5 | 14.8 | -8.6 | -7.9 | 205.4 |
| Total | 8 524.8 | 2 888.6 | 108.5 | -80.5 | -117.1 | 3 496.9 |
| 31 Dec 2022 | ||||||
| Corporate | 6 745.4 | 1 207.3 | 51.6 | -450.0 | -156.2 | 3 913.1 |
| Sports & Leisure | 3 811.3 | 1 548.8 | 60.5 | -55.4 | -77.0 | 935.9 |
| Gifts & Home Furnishings | 386.8 | 332.0 | 17.1 | -16.8 | -16.0 | 204.0 |
| Total | 10 943.6 | 3 088.1 | 129.2 | -522.2 | -249.2 | 5 053.1 |
* 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 Apr - Jun 2023 |
3 months Apr - Jun 2022 |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
|
| Promo | 1 226.6 | 915.3 | 302.2 | 280.9 | 42.7 | 50.4 | 1 571.6 | 1 246.6 |
| Retail | 5.0 | 3.8 | 566.9 | 600.6 | 161.0 | 168.2 | 733.0 | 772.6 |
| Total | 1 231.7 | 919.1 | 869.2 | 881.5 | 203.7 | 218.6 | 2 304.5 | 2 019.2 |
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | ||||
|---|---|---|---|---|---|---|---|---|
| 6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
|
| Promo | 2 274.3 | 1 763.4 | 550.3 | 481.3 | 73.5 | 84.8 | 2 898.1 | 2 329.5 |
| Retail | 9.3 | 7.0 | 1 236.3 | 1 146.9 | 296.3 | 310.7 | 1 541.9 | 1 464.6 |
| Total | 2 283.6 | 1 770.4 | 1 786.6 | 1 628.2 | 369.8 | 395.5 | 4 440.0 | 3 794.1 |
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | ||||
|---|---|---|---|---|---|---|---|---|
| 12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
|
| Promo | 4 132.4 | 2 949.9 | 1 054.9 | 742.1 | 229.5 | 265.3 | 5 416.8 | 3 957.3 |
| Retail | 19.6 | 21.7 | 2 727.4 | 2 050.4 | 679.8 | 689.2 | 3 426.8 | 2 761.3 |
| Total | 4 152.0 | 2 971.6 | 3 782.3 | 2 792.5 | 909.3 | 954.5 | 8 843.6 | 6 718.6 |
Note 5 - Reporting of geographic areas
Net sales per geographic area
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | Change % |
||||
|---|---|---|---|---|---|---|---|---|---|
| 3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
3 months Apr - Jun 2023 |
3 months Apr - Jun 2022 |
||
| USA | 55.6 | 63.3 | 448.3 | 448.5 | 12.6 | 15.0 | 516.5 | 526.8 | -2% |
| Sweden | 135.9 | 142.7 | 154.7 | 154.4 | 173.0 | 180.1 | 463.7 | 477.2 | -3% |
| Central Europe | 426.2 | 219.2 | 87.5 | 93.3 | 5.3 | 7.5 | 519.0 | 320.0 | 62% |
| Nordic countries excl. Sweden |
142.3 | 135.8 | 118.9 | 125.6 | 10.3 | 12.3 | 271.5 | 273.7 | -1% |
| Southern Europe | 293.0 | 264.3 | 28.0 | 26.3 | 0.1 | 0.1 | 321.1 | 290.7 | 10% |
| Other countries | 178.7 | 93.8 | 31.7 | 33.4 | 2.3 | 3.6 | 212.7 | 130.8 | 63% |
| Total | 1 231.7 | 919.1 | 869.2 | 881.5 | 203.7 | 218.6 | 2 304.5 | 2 019.2 | 14% |
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | Change % |
||||
|---|---|---|---|---|---|---|---|---|---|
| 6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
6 months Jan - Jun 2023 |
6 months Jan - Jun 2022 |
||
| USA | 125.5 | 132.0 | 884.4 | 783.0 | 26.3 | 29.0 | 1 036.1 | 943.9 | 10% |
| Sweden | 247.8 | 254.7 | 341.2 | 313.5 | 307.3 | 322.2 | 896.3 | 890.4 | 1% |
| Central Europe | 824.2 | 409.1 | 186.6 | 184.4 | 10.5 | 12.2 | 1 021.3 | 605.7 | 69% |
| Nordic countries excl. Sweden |
254.9 | 235.5 | 242.5 | 229.0 | 19.8 | 24.7 | 517.2 | 489.2 | 6% |
| Southern Europe | 573.9 | 485.3 | 58.5 | 48.2 | 0.2 | 0.2 | 632.6 | 533.7 | 19% |
| Other countries | 257.3 | 253.9 | 73.5 | 70.1 | 5.7 | 7.2 | 336.5 | 331.2 | 2% |
| Total | 2 283.6 | 1 770.4 | 1 786.6 | 1 628.2 | 369.8 | 395.5 | 4 440.0 | 3 794.1 | 17% |
| SEK million | Corporate | Sports & Leisure | Gifts & Home Furnishings |
Total | Change % |
||||
|---|---|---|---|---|---|---|---|---|---|
| 12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
12 months Jan - Dec 2022 |
12 months Jan - Dec 2021 |
||
| USA | 303.5 | 203.6 | 1 769.5 | 1 145.0 | 66.0 | 60.4 | 2 139.0 | 1 409.0 | 52% |
| Sweden | 545.0 | 476.1 | 724.3 | 637.6 | 740.8 | 799.4 | 2 010.1 | 1 913.1 | 5% |
| Central Europe | 1 201.0 | 660.8 | 413.1 | 338.9 | 25.0 | 26.0 | 1 639.1 | 1 025.7 | 60% |
| Nordic countries excl. Sweden |
494.5 | 401.3 | 526.7 | 411.4 | 62.4 | 49.8 | 1 083.6 | 862.5 | 26% |
| Southern Europe | 1 059.6 | 779.3 | 119.3 | 83.2 | 0.4 | 0.4 | 1 179.3 | 862.9 | 37% |
| Other countries | 548.4 | 450.5 | 229.4 | 176.4 | 14.7 | 18.5 | 792.5 | 645.4 | 23% |
| Total | 4 152.0 | 2 971.6 | 3 782.3 | 2 792.5 | 909.3 | 954.5 | 8 843.6 | 6 718.6 | 32% |
Fixed assets and deferred tax assets per geographic area
| 30 Jun 2023 | 30 Jun 2022 | 31 Dec 2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEK million | Fixed assets* |
Deferred tax assets |
Fixed assets* |
Deferred tax assets |
Fixed assets* |
Deferred tax assets |
||
| USA | 1 437.9 | 48.3 | 1 233.2 | 47.3 | 1 323.3 | 51.1 | ||
| Sweden | 760.3 | 24.7 | 755.5 | 22.5 | 723.7 | 26.3 | ||
| Central Europe | 491.3 | 18.5 | 317.8 | 9.5 | 477.2 | 16.3 | ||
| Nordic countries excl. Sweden | 188.4 | 6.5 | 226.6 | 4.5 | 206.7 | 6.5 | ||
| Southern Europe | 235.2 | 21.5 | 209.9 | 17.5 | 223.9 | 20.9 | ||
| Other countries | 130.5 | 12.6 | 145.7 | 7.2 | 133.3 | 8.1 | ||
| Total | 3 243.6 | 132.1 | 2 888.6 | 108.5 | 3 088.1 | 129.2 |
* Financial fixed assets are not included
Note 6 - Financial instruments
| SEK million Assets at fair value through other comprehensive income |
30 Jun 2023 4.2 |
30 Jun 2022 8.0 |
31 Dec 2022 2.4 |
31 Dec 2021 3.3 |
|---|---|---|---|---|
| Assets at amortized cost | 2 010.1 | 1 738.7 | 2 258.1 | 1 777.5 |
| Total financial assets | 2 014.3 | 1 746.7 | 2 260.5 | 1 780.8 |
| Liabilities at fair value through other comprehensive income | 0.0 | 0.0 | 0.0 | 0.0 |
| Liabilities at amortized cost | 3 951.4 | 2 985.7 | 3 862.9 | 2 662.4 |
| Total financial liabilites | 3 951.4 | 2 985.7 | 3 862.9 | 2 662.4 |
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 | 30 Jun | 30 Jun | 31 Dec | 31 Dec |
|---|---|---|---|---|
| SEK million | 2023 | 2022 | 2022 | 2021 |
| Floating charges | 690.5 | 690.5 | 690.5 | 690.5 |
| Property mortgages | 199.7 | 192.0 | 201.5 | 179.8 |
| Net assets in Group companies | 4 438.0 | 3 733.3 | 4 286.3 | 3 337.8 |
| Shares in associated companies | 8.3 | 8.3 | 8.3 | 8.3 |
| Stock and accounts receivable | 580.9 | 407.2 | 560.0 | 353.5 |
| Total | 5 917.4 | 5 031.3 | 5 746.6 | 4 569.9 |
| Contingent liabilities | 30 Jun | 30 Jun | 31 Dec | 31 Dec |
| SEK million | 2023 | 2022 | 2022 | 2021 |
| Duty guarantees | 15.4 | 12.7 | 13.8 | 12.2 |
| Rent guarantees | 126.1 | 137.1 | 132.9 | 141.9 |
| Guarantees for associated companies | 15.4 | 12.7 | 13.8 | 12.2 |
| Total | 126.1 | 137.1 | 132.9 | 141.9 |
| PARENT COMPANY | ||||
| Pledged assets | 30 Jun | 30 Jun | 31 Dec | 31 Dec |
| SEK million | 2023 | 2022 | 2022 | 2021 |
| Floating charges | 30.0 | 30.0 | 30.0 | 30.0 |
| Shares in Group companies | 1 694.0 | 1 737.7 | 1 739.1 | 1 737.7 |
| Shares in associated companies | 8.3 | 8.3 | 8.3 | 8.3 |
| Total | 1 732.3 | 1 776.0 | 1 777.4 | 1 776.0 |
| Contingent liabilities | 30 Jun | 30 Jun | 31 Dec | 31 Dec |
| SEK million | 2023 | 2022 | 2022 | 2021 |
| Guarantees for Group companies | 426.8 | 710.2 | 589.8 | 633.5 |
| Guarantees for associated companies | 6.0 | 6.0 | 6.0 | 6.0 |
| Total | 432.8 | 716.2 | 595.8 | 639.5 |
Note 8 - Subsequent events
New Wave Group has as of 1st of July 2023 acquired 100% of the shares in the Swedish outdoor company Tenson AB.
Tenson AB, the Swedish outdoor & lifestyle brand with roots from the Swedish west coast (founded in Varberg 1951) has over the past four years undergone a restructuring & repositioning process that included the entire spectrum regarding brand, product, marketing, sales and channel strategies. Through the acquisition and integration of the company, New Wave Group will give Tenson access to the resources and synergies required to enter the next phase of the above-mentioned process - to scale up operations and profitability.
In 2022, the Tenson Group's sales amounted to approximately SEK 130 million with a loss after tax of approximately SEK 8.5 million. The purchase price amounts to SEK 1 based on equity at closing on the 1st of July 2023 of at least SEK 6.53 million, where the brand is booked at approximately SEK 31 million. The acquisition is not expected to have any major impact on the result during the second half of 2023 but is expected to have a positive impact on New Wave Group's result already in 2024.
Condensed quarterly consolidated income statements
SEK million
| 2023 | 2022 | 2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||
| Net sales | 2 304.5 | 2 135.5 | 2 815.1 | 2 234.4 | 2 019.2 | 1 774.9 | 2 306.7 | 1 663.5 | 1 486.8 | 1 261.6 | ||
| Goods for resale | -1 164.8 | -1 052.6 | -1 415.4 | -1 131.6 | -989.8 | -931.6 | -1 203.3 | -860.4 | -769.2 | -656.4 | ||
| Gross profit | 1 139.7 | 1 082.9 | 1 399.7 | 1 102.8 | 1 029.4 | 843.3 | 1 103.4 | 803.1 | 717.6 | 605.2 | ||
| Gross profit margin % | 49.5 | 50.7 | 49.7 | 49.4 | 51.0 | 47.5 | 47.8 | 48.3 | 48.3 | 48.0 | ||
| Other operating income | 27.4 | 23.7 | 36.7 | 35.7 | 28.9 | 22.6 | 23.9 | 11.6 | 59.4 | 16.6 | ||
| External costs | -382.3 | -388.4 | -454.4 | -359.3 | -345.0 | -311.6 | -350.9 | -258.4 | -233.8 | -224.8 | ||
| Personnel costs | -338.7 | -328.8 | -350.3 | -291.5 | -288.9 | -274.6 | -301.4 | -235.5 | -242.8 | -237.2 | ||
| Depreciations and write-downs | -68.8 | -65.4 | -71.5 | -60.6 | -58.3 | -58.8 | -61.5 | -55.7 | -56.0 | -54.1 | ||
| Other operating costs | -13.1 | -10.2 | -12.6 | -27.9 | -15.1 | -11.8 | -9.9 | -3.7 | -2.9 | -5.2 | ||
| Share of associated companies' result | -0.3 | -0.3 | -0.4 | -1.4 | 0.0 | 0.0 | -0.3 | -0.3 | -0.1 | -0.4 | ||
| Operating result | 363.9 | 313.5 | 547.2 | 397.8 | 351.0 | 209.1 | 403.3 | 261.1 | 241.3 | 100.1 | ||
| Financial income | 0.9 | 1.1 | 0.5 | 1.1 | 1.5 | 0.6 | 0.7 | 0.6 | 0.9 | 0.8 | ||
| Financial expenses | -36.0 | -29.6 | -22.5 | -14.1 | -11.9 | -10.2 | -10.6 | -11.6 | -10.3 | -13.5 | ||
| Result before tax | 328.8 | 285.0 | 525.2 | 384.8 | 340.6 | 199.5 | 393.4 | 250.1 | 231.9 | 87.4 | ||
| Tax expense | -69.2 | -62.8 | -79.0 | -80.8 | -75.5 | -46.0 | -84.9 | -54.1 | -44.3 | -19.7 | ||
| Result for the period | 259.6 | 222.2 | 446.2 | 304.0 | 265.0 | 153.5 | 308.5 | 196.0 | 187.7 | 67.7 | ||
| Total other comprehensive income for the period |
251.3 | -6.1 | -127.1 | 556.9 | 253.3 | 70.5 | 87.5 | 60.5 | -57.7 | 142.5 | ||
| Total comprehensive income for the | 510.9 | 216.1 | 319.1 | 860.9 | 518.4 | 224.0 | 396.0 | 256.5 | 130.0 | 210.2 | ||
| period | ||||||||||||
| Earnings per share before and after dilution (SEK)* |
1.96 | 1.67 | 3.36 | 2.29 | 2.00 | 1.16 | 2.31 | 1.49 | 1.42 | 0.52 | ||
| 2020 | 2019 | 2018 | ||||||||||
| Quarter | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Net sales | 1 873.2 | 1 470.1 | 1 314.5 | 1 440.9 | 2 024.1 | 1 685.5 | 1 689.0 | 1 504.9 | 1 943.4 | 1 551.2 | 1 523.2 | 1 272.8 |
| Goods for resale | -1 007.7 | -843.9 | -799.7 | -810.2 | -1 079.2 | -923.2 | -903.3 | -795.3 | -1 042.3 | -835.3 | -804.2 | -677.5 |
| Gross profit | 865.6 | 626.2 | 514.8 | 630.7 | 944.9 | 762.3 | 785.7 | 709.6 | 901.1 | 715.8 | 719.0 | 595.4 |
| Gross profit margin % | 46.2 | 42.6 | 39.2 | 43.8 | 46.7 | 45.2 | 46.5 | 47.1 | 46.4 | 46.1 | 47.2 | 46.8 |
| Other operating income | 29.6 | 34.7 | 61.4 | 20.6 | 32.3 | 12.9 | 15.5 | 17.2 | 28.3 | 19.3 | 11.3 | 15.9 |
| External costs | -285.4 | -191.6 | -187.7 | -311.1 | -343.8 | -300.3 | -330.2 | -338.4 | -390.6 | -323.5 | -305.1 | -317.2 |
| Personnel costs | -259.9 | -220.8 | -209.1 | -292.8 | -307.6 | -278.7 | -290.5 | -283.0 | -298.0 | -257.7 | -260.9 | -246.4 |
| Depreciations and write-downs | -55.0 | -56.6 | -57.8 | -60.1 | -73.6 | -55.7 | -52.8 | -51.0 | -21.6 | -20.2 | -18.5 | -17.6 |
| Other operating costs | -11.4 | -15.2 | -11.4 | -10.4 | -12.4 | -11.3 | -7.7 | -8.2 | -9.8 | -15.0 | -8.3 | -11.8 |
| Share of associated companies' result | 0.1 | -0.4 | -0.1 | -0.9 | 0.6 | -0.2 | -0.3 | -0.2 | 0.1 | -1.3 | -0.3 | 0.4 |
| Operating result | 283.6 | 176.3 | 110.1 | -24.1 | 240.3 | 129.1 | 119.6 | 46.0 | 209.4 | 117.5 | 137.3 | 18.6 |
| Financial income | 0.1 | 0.6 | 2.9 | 0.5 | 2.8 | 2.5 | 2.2 | 1.3 | 1.5 | 0.7 | 1.8 | 1.5 |
| Financial expenses | -14.6 | -15.8 | -20.2 | -18.4 | -24.1 | -19.5 | -18.1 | -15.3 | -14.2 | -12.3 | -8.2 | -11.7 |
| Result before tax | 269.2 | 161.1 | 92.8 | -42.1 | 219.1 | 112.1 | 103.6 | 32.0 | 196.6 | 105.9 | 130.9 | 8.4 |
| Tax expense | -61.0 | -42.2 | -19.9 | 5.1 | -53.1 | -17.6 | -19.9 | -6.0 | -37.7 | -17.5 | -24.2 | -2.4 |
| Result for the period | 208.2 | 118.9 | 72.9 | -36.9 | 165.9 | 94.4 | 83.7 | 26.0 | 158.9 | 88.4 | 106.8 | 6.0 |
| Total other comprehensive income for the period |
-213.0 | -58.3 | -212.4 | 205.5 | -131.5 | 126.9 | 16.2 | 86.3 | 2.7 | -37.8 | 121.1 | 71.7 |
| Total comprehensive income for | -4.9 | 60.6 | -139.5 | 168.6 | 34.4 | 221.4 | 99.9 | 112.3 | 161.6 | 50.5 | 227.9 | 77.7 |
| the period | ||||||||||||
| Earnings per share before and after dilution (SEK)* |
1.56 | 0.91 | 0.55 | -0.27 | 1.26 | 0.72 | 0.64 | 0.20 | 1.21 | 0.68 | 0.80 | 0.05 |
* The average number of outstanding shares. before and after dilution, has been 123,687,086 in all periods in the table.
*Recalculated with regard to the 2:1 share split carried out in June 2023.
Condensed quarterly consolidated cash flow statements
SEK million 2023 2022 2021 Quarter Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Cash flow from operating activities before changes in working capital 259.7 297.8 466.3 367,3 346.0 203.6 404.1 282.8 219.0 87.1 Increase/decrease of inventories -5.8 -259.0 -525.1 -870,8 -360.7 -226.5 59.7 -157.7 125.2 30.6 Increase/decrease of current receivables -30.2 281.5 -71.1 -202,3 -119.2 205.8 -194.6 -174.7 -156.8 256.3 Increase/decrease of current liabilities 6.4 -513.4 -103.0 505,4 202.0 -177.7 144.1 291.4 -2.2 -6.8 Changes in working capital -29.6 -490.9 -699.2 -567,7 -277.9 -198.4 9.2 -41.0 -33.7 280.1 Cash flow from operating activities 230.1 -193.1 -232.9 -200,4 68.1 5.2 413.3 241.8 185.3 367.2 Investing activities -82.8 -40.7 -8.3 -433,4 -55.2 -25.3 -42.1 -33.0 -24.0 -15.2 Cash flow after investing activities 147.3 -233.8 -241.2 -633,8 12.9 -20.1 371.2 208.8 161.3 352.0 Increase/decrease of interest-bearing liabilities 88.1 190.0 389.3 589,6 253.6 -16.3 -82.6 -309.0 -95.4 -346.1 Transactions with owners -216.3 0.0 0.0 0,0 -282.0 0.0 -277.9 0.0 0.0 0.0 Cash flow from financial activities -128.2 190.0 389.2 589,6 -28.4 -16.3 -360.5 -309.0 -95.4 -346.1 Cash flow for the period 19.1 -43.8 148.0 -44,2 -15.5 -36.4 10.7 -100.2 65.9 5.9 Liquid assets at the beginning of the period 376.7 419.4 279.2 305,5 298.6 327.9 311.0 405.8 344.8 325.1 Translation differences in liquid assets 20.7 1.1 -7.8 17,9 22.4 7.1 6.2 5.5 -4.9 13.8 Liquid assets at the end of the period 416.5 376,7 419,4 279,2 305,5 298,6 327,9 311,0 405,8 344,8
| 2020 | 2019 | 2018 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Quarter | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 |
| Cash flow from operating activities before changes in working wcapital |
300.0 | 218.9 | 176.0 | -63.0 | 262.1 | 149.9 | 143.8 | 49.3 | 184.1 | 116.1 | 128.3 | 1.2 |
| Increase/decrease of stock | 472.4 | 86.9 | 53.9 | -117.4 | 180.9 | -256.4 | -108.0 | -58.3 | 44.6 | -310.4 | -110.8 | -117.4 |
| Increase/decrease of current receivables | -87.7 | -207.6 | 87.4 | 313.9 | -47.5 | -34.3 | -95.9 | 126.2 | -3.6 | -128.6 | -36.2 | 140.9 |
| Increase/decrease of current liabilities | -127.2 | 185.0 | -65.9 | -19.0 | -108.8 | 9.7 | 69.1 | -182.3 | -50.7 | 239.9 | 143.2 | -18.1 |
| Changes in working capital | 257.5 | 64.3 | 75.5 | 177.6 | 24.7 | -281.0 | -134.8 | -114.4 | -9.7 | -199.1 | -3.7 | 5.4 |
| Cash flow from operating activities | 557.5 | 283.2 | 251.4 | 114.6 | 286.7 | -131.1 | 9.0 | -65.1 | 174.4 | -83.0 | 124.6 | 6.6 |
| Investing activities | -7.2 | -8.6 | -11.1 | -30.6 | -42.2 | -32.6 | -35.6 | -38.3 | -39.7 | -42.1 | -41.6 | -39.8 |
| Cash flow after investing activities | 550.3 | 274.6 | 240.3 | 84.0 | 244.6 | -163.8 | -26.6 | -103.4 | 134.7 | -125.1 | 83.0 | -33.2 |
| Increase/decrease of | ||||||||||||
| interest-bearing liabilities | -435.9 | -322.9 | -201.6 | -195.2 | -122.6 | 210.1 | 75.3 | 49.2 | -15.9 | 104.9 | 58.0 | 5.1 |
| Transactions with owners | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.2 | -132.7 | 0.0 | 0.0 | 0.0 | -112.8 | 0.0 |
| Cash flow from financial activities | -435.9 | -322.9 | -201.6 | -195.2 | -122.6 | 211.2 | -57.4 | 49.2 | -15.9 | 104.9 | -54.8 | 5.1 |
| Cash flow for the period | 114.5 | -48.4 | 38.7 | -111.2 | 121.9 | 47.4 | -84.0 | -54.2 | 118.8 | -20.2 | 28.2 | -28.1 |
| Liquid assets at the beginning of the period | 226.8 | 277.8 | 257.6 | 351.3 | 238.4 | 182.5 | 265.0 | 312.2 | 192.6 | 215.4 | 180.5 | 202.4 |
| Translation differences in liquid assets | -16.2 | -2.7 | -18.5 | 17.6 | -9.1 | 8.5 | 1.5 | 7.0 | 0.8 | -2.6 | 6.7 | 6.2 |
| Liquid assets at the end of the period | 325.1 | 226.8 | 277.8 | 257.6 | 351.3 | 238.4 | 182.5 | 265.0 | 312.2 | 192.6 | 215.4 | 180.5 |
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 the same period 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