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Nilörngruppen
Quarterly Report • Feb 9, 2023
3183_10-k_2023-02-09_74400d4d-bcc9-472b-8f88-195589966160.pdf
Quarterly Report
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Year End Report for Nilörngruppen AB (publ) Q4, January - December 2022
Period October - December
•
- Order bookings decreased by 18 percent to MSEK 228 (277).
- Revenue decreased by 15 percent to MSEK 199 (234).
- Revenue adjusted for currency effects amounted to MSEK 178, i.e. an underlying organic decrease of 24 percent.
- Operating profit amounted to MSEK 14.3 (40.1).
- Profit for the period amounted to MSEK 9.1 (30.3).
- Earnings per share amounted to SEK 0.80 (2.66).
Period January - December
- Order bookings increased by 14 percent and amounted to MSEK 983 (864).
- Revenue increased by 20 percent to MSEK 943 (788).
- Revenue adjusted for currency effects amounted to MSEK 853 (788), i.e. an underlying organic increase of 8 percent.
- Operating profit amounted to MSEK 136.4 (119.6).
- Profit for the period amounted to MSEK 101.0 (87.4).
- Earnings per share amounted to SEK 8.86 (7.67).
- Net cash excluding IFRS16 amounted to MSEK 33 (75).
Significant events during the quarter
• Nilörngruppen AB acquires Bally Labels AG in Switzerland. The company, which has previously been a partner company of Nilörn, will be consolidated with Nilörngruppen from 2023. The acquisition will have a limited but positive effect in 2023.
Significant events after the quarter
• The Board of Directors has decided to propose to the Annual General Meeting a dividend of SEK 5.00 (5.00) per share, equivalent to MSEK 57.0 (57.0).
CEO'S STATEMENT
Dear Shareholders,
Despite a slightly weaker finish, it is gratifying to note that the year is the best in Nilorn Group's history with sales of SEK 943 million and an operating profit of SEK 136 million. This surpasses the previous year, which was then our best year ever. Sales increased by 8 percent (adjusted for currency effects) and operating profit by 14 percent.
The fourth quarter developed weaker with a lower order intake in Q3 affecting sales, which decreased by 15 percent compared with the corresponding period last year. Operating profit of just over SEK 14 million is burdened by bonus costs because of the strong full-year result. It is hardly a surprise that the Nilorn Group is also affected by the prevailing uncertain external climate where the end consumer is more cautious in combination with generally high stock levels of end products at some retailers and brand owners. During the year, the development has been strong, especially in Germany, France and Italy, and a little weaker in England and the Nordic countries.
Most of our customers remain optimistic about 2023, but considering developments in the last quarter, we expect a slightly weaker development in the first quarter compared to last year. The progress we have made in the luxury segment in Italy and France is expected to have an effect later in the year and contribute to both sales and earnings.
The work of strengthening the organization and creating a clear structure continues. Nilorn has full focus on and with the goal of being a leader in sustainability. This means investing in systems and organization to guide and help our customers reach their goals. I am convinced that our investments are crucial for Nilorn to be an attractive supplier and that we thus have the conditions to maintain good growth in the coming years.
Nilörngruppen's own production in Bangladesh and Portugal has been an important part of the company's success in recent years. To enable continued profitable growth, we are investigating the possibility of expanding in Bangladesh by building a completely new factory and expanding our factory in Portugal. Nilörngruppen's strong balance sheet enables these investments, while the good result for the year means that the dividend is proposed to be unchanged at SEK 5 per share.
Our employees continue to do a fantastic job of dealing with the challenges that constantly arise, while adapting and streamlining the organization, introducing new ways of working and introducing new colleagues. We build and look to the future with confidence.
Krister Magnusson CEO
Period October - December
Order bookings
Order bookings decreased by 18 percent to MSEK 228 (277).
Net revenue
Revenue decreased by 15 percent to MSEK 199 (234). Revenue adjusted for currency effects amounted to MSEK 178, i.e. an underlying organic decrease of 24 percent
Gross margin
The gross margin was 44.0 (45.4) percent and has been negatively affected by lower volumes, product mix and as previously announced, increased shipping costs raw material and energy prices.
Other income, costs and depreciations
Other income amounted to MSEK 14.3 (4.8) and other operating expenses of MSEK 9.6 which is mainly attributable to currency. The external costs decreased to MSEK 18.3 (19.4) and personnel costs increased to MSEK 52.7 (42.9) where the majority is attributable to currency, more employees and booking of bonuses. Depreciation decreased to MSEK 6.9 (7.0).
Operating profit
Operating profit amounted to MSEK 14.3 (40.1), for an operating margin of 7.2 (17.1) percent.
Net finance items, taxes and profit for the period
Net finance items amounted to MSEK −2.0 (-1.2). Taxes paid amounted to MSEK −3.2 (-8.6) which is a function of different tax rates in different countries. The period's profit amounted to MSEK 9.1 (30.4) and earnings per share amounted to SEK 0.80 (2.66).
Cash flow, capital expenditures, financing and liquidity
Cash flow from operating activities amounted to MSEK -3.3 (18.4). Cash flow from investment activities amounted to MSEK -2.2 (3.0).
Equity
Consolidated equity amounts to MSEK 333.2 (278.2). The increase is attributable to the profit in the amount of MSEK +101, paid out dividend of MSEK -57.0, the period's translation difference of MSEK 12.7 and revaluation of benefit-based pension plan of MSEK -1.8. The translation difference is the net effect of conversion of equity in the non-Swedish subsidiaries to SEK and has been positively affected by a weakening of the Swedish krona.
Period January - December
Order bookings
Order bookings increased by 28% and amounted to MSEK 983 (864).
Net revenue and profit
Net revenue increased by 20 percent to MSEK 943 (788). Net revenue adjusted for currency effects amounted to MSEK 853 (788), i.e. an underlying organic increase of 8 percent. The gross margin was 44 (46) percent.
The Swedish krona has weakened against most currencies, which has a positive impact on consolidated sales. However, the effect on net profit is minimal, as the Group's income is met by costs in local currency and only the net profit is converted into SEK.
Other income, costs and depreciations
Other income amounted to MSEK 32.4 (11.9). External costs increased to MSEK 71.2 (62.0). Personnel costs increased to MSEK 194.3 (163.9). Depreciation increased to MSEK 29.9 (25.9)
Operating profit
Operating profit amounted to MSEK 136.4 (119.5), which translates to an operating margin of 14.5 (15.2) percent.
Net finance items, taxes and profit for the period
Taxes paid amounted to MSEK -31.4 (-28.8), for a total tax expense of 23.7 (24.8) percent. Profit after taxes amounted to MSEK 101 (87.4).
Segments
As shown in Note 2, all segments has increased in terms of turnover and operating profit.
Cash flow, capital expenditures, financing and liquidity
Cash flow from operating activities amounted to MSEK 26.7 (78.1). Cash flow from investment activities amounted to MSEK −14.7 (−11.7). The investments are mainly attributable to continued inventories in new ERP systems and machines in Portugal. Net liabilities at the end of the period excluding IFRS16 stood at MSEK 33 (75). IFRS 16 has increased interestbearing liabilities by MSEK 22 and comparable numbers not including the effect of IFRS 16 is net liabilities of MSEK 11 (41).
The Group's inventories have increased as a function of currency effects, increased product range, new customers and lower sales in the fourth quarter.
Personnel
The average number of employees in the Group was 587 (540), of whom 247 (219) were women. Of the total number of employees 317 (303) persons or 54 (56) percent are active in production and warehouses. The increase in personnel is attributable to production and warehouse staff, sales/backoffice, but also group functions such as purchasing, CSR and IT.
Transactions with closely related parties
There were no transactions between the Nilörn Group and closely related parties affecting the Group's profit and financial position during the period, except for dividends to the Parent Company's shareholders. The Parent Company's transactions with subsidiaries refer to design, product development, IT and other services.
Parent Company
The Parent Company's operations largely consist of handling group-wide functions, such as branding and design, product development, finances, administration, information and IT. The average number of employees was 26 (23). Net revenue for the period amounted to MSEK 32.9 (29.6). The operating result was MSEK −6.2 (−2.8) and profit after taxes was MSEK 58.5 (19.8) with most of the profit attributable to dividends from subsidiaries.
Significant events during the quarter
Nilörngruppen AB acquires Bally Labels AG in Switzerland together with two of the employees who will own 10 percent each. The acquisition will be consolidated into Nilörngruppen as of 2023. The purchase price, which is not disclosed, is conditional on certain external sales and will be paid in three instalments over three years. As a partner company, most of the sales are already consolidated in Nilorn's figures and the acquisition will therefore have a limited but positive effect on Nilorn's earnings.
Significant events after the balance sheet date
The Board of Directors has decided to propose to the Annual General Meeting a dividend of SEK 5.00 (5.00) per share, equivalent to MSEK 57.0 (57.0). The proposal is equivalent to dividend of 56 (65) percent.
Risks and uncertainty factors
With its international operations, Nilorrngruppen is constantly exposed to various financial risks. The significant risks and uncertainties to which the Nilorn Group is exposed are currency risks, political risks in individual countries, credit risks and IT security, as shown in Nilörngruppen's Annual Report 2021, Note 2.
Election committee
Nilörngruppen does not have an appointed election committee since the ownership structure is clear as Traction AB owns the majority of the votes. However, shareholders are always welcome to submit comments and/or suggestions with respect to the composition of the Board of Directors to the Chairman of the Board of Directors, Petter Stillström, telephone +46-8-506 289 00.
Annual General Meeting
The Annual General Meeting is scheduled to be held on Tuesday, May 3, 2023 at 5 p.m. at Nilörngruppen's head office in Borås.
The Annual Report will be available on the Company's website no later than three weeks before the Annual General Meeting.
Review
This report has not been subject to review by the Company's auditors.
Calendar
- 21 April 2023 Interim report Q1
- 3 May 2023 Annual General Meeting
- 14 July 2023 Interim report Q2
- 25 October 2023 Interim report Q3
- 9 February 2024 Year end report
This information is information that Nilörngruppen is under obligation to publish in accordance with the EU Market Abuse Regulation. The information herein was provided by the contact person named below for publication at 08:00 a.m., 09 February 2023.
BORÅS, 9 February 2023 NILÖRNGRUPPEN AB (PUBL)
Krister Magnusson CEO
FOR FURTHER INFORMATION, CONTACT:
Krister Magnusson, CEO Mobile: +46-704 85 21 14 E-mail: [email protected]
Nilörngruppen AB Box 499 503 13 Borås www.nilorn.com
Summary Financial Reports
| 3 months | 12 months | |||||
|---|---|---|---|---|---|---|
| October - December | January - December | |||||
| Amounts in SEK thousand | 2022 | 2021 | 2022 | 2021 | ||
| Net revenue | 199,311 | 234,458 | 942,811 | 788,305 | ||
| Raw materials, supplies and goods for resale | -111,678 | -127,993 | -526,293 | -424,174 | ||
| Gross profit | 87,633 | 106,465 | 416,518 | 364,131 | ||
| Other operating revenue | 14,314 | 4,784 | 32,447 | 11,877 | ||
| Other external costs | -18,265 | -19,418 | -71,173 | -61,953 | ||
| Personnel costs | -52,746 | -42,946 | -194,303 | -163,876 | ||
| Depreciation, amortisation and impairment charges | -6,876 | -6,972 | -29,921 | -25,941 | ||
| Other operating costs | -9,760 | -1,793 | -17,154 | -4,691 | ||
| Operating profit | 14,300 | 40,120 | 136,414 | 119,547 | ||
| Net finance items | -2,018 | -1,153 | -3,998 | -3,343 | ||
| Profit before taxes | 12,283 | 38,967 | 132,417 | 116,204 | ||
| Taxes | -3,178 | -8,617 | -31,417 | -28,766 | ||
| Net profit for the period | 9,105 | 30,350 | 101,000 | 87,438 | ||
| Average number of shares outstanding (thousands) | 11,402 | 11,402 | 11,402 | 11,402 | ||
| Average number of shares outstanding after dilution (thousands) 11,402 | 11,402 | 11,402 | 11,402 | |||
| Earnings per share, SEK | 0.80 | 2.66 | 8.86 | 7.67 | ||
| Earnings per share, SEK after dilution | 0.80 | 2.66 | 8.86 | 7.67 |
Consolidated Statement of Comprehensive Result
| Amounts in SEK thousand | October - December | January - December | ||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | |||
| Net profit for the period | 9,105 | 30,350 | 101,000 | 87,438 | ||
| Other comprehensive result that may be reposted to net profit for the period | ||||||
| Translation differences | -7,402 | -436 | 12,743 | 3,817 | ||
| Items that cannot be reposted to net profit for the period | ||||||
| Revaluation of defined benefit pension scheme | -1,772 | 0 | -1,772 | 0 | ||
| Total profit for the period | -69 | 29,914 | 111,971 | 91,255 | ||
| Total profit for the period attributable to: | ||||||
| The Parent Company's equity holders | -69 | 29,914 | 111,971 | 91,255 |
Quarterly Income Statements
| Amount in MSEK) | 2022 | 2021 | 2020 | 2019 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | |
| Net revenue | 242.3 | 269.1 | 232.0 | 199.3 | 175.2 | 175.2 203.4 234.5 155.5 | 142.3 | 147.0 | 173.4 | 178.1 | 195.8 | 170.8 | 170.6 | |||
| Raw materials, supplies and goods for resale |
-136.2 -150.8 -127.6 | -111.7 | -93.9 | -91.8 -110.5 -128.0 | -82.8 | -88.2 | -78.2 | -97.0 -103.9 -114.0 | -94.4 | -95.3 | ||||||
| Gross profit | 106.2 | 118.3 | 104.4 | 87.6 | 81.3 | 83.4 | 92.9 106.5 | 72.7 | 54.1 | 68.8 | 76.4 | 74.2 | 81.8 | 76.4 | 75.3 | |
| Gross margin | 43.8% 44.0% 45.0% | 44.0% 46.4% 47.6% 45.7% 45.4% 46.8% 38.0% 46.8% 44.1% 41.7% 41.8% 44.7% 44.1% | ||||||||||||||
| Other income | 2.7 | 7.2 | 8.2 | 14.3 | 3.5 | 1.7 | 1.8 | 4.8 | 1.5 | 6.9 | 5.3 | 5.4 | 2.5 | 0.7 | 1.2 | 0.7 |
| Operating costs | -61.8 | -72.9 | -67.2 | -80.8 | -51.7 | -55.8 | -58.9 | -64.2 | -58.5 | -54.2 | -47.0 | -54.8 | -55.8 | -56.5 | -51.8 | -58.0 |
| Depreciation, amortisation and |
-6.9 | -7.7 | -8.4 | -6.9 | -6.2 | -6.3 | -6.5 | -7.0 | -6.7 | -6.7 | -6.6 | -5.8 | -5.8 | -5.8 | -6.5 | -6.4 |
| impairment charges Operating profit |
40.2 | 44.9 | 37.0 | 14.3 | 26.9 | 23.0 | 29.3 | 40.1 | 9.0 | 0.1 | 20.5 | 21.2 | 15.1 | 20.2 | 19.3 | 11.6 |
| Operating margin | 16.6% 16.7% 16.0% | 7.2% 15.4% 13.1% 14.4% 17.1% | 5.8% | 0.1% 13.9% 12.2% | 8.5% 10.3% 11.3% | 6.8% | ||||||||||
| Operating profit per share | 3.5 | 3.9 | 3.2 | 1.3 | 2.4 | 2.0 | 2.6 | 3.5 | 0.8 | 0.0 | 1.8 | 1.9 | 1.3 | 1.8 | 1.7 | 1.0 |
Quarterly development of: Net revenue Operating profit
| 1 January – 31 December | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| KEY FINANCIAL INDICATORS | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||
| Revenue growth, % | 19.6 | 27.5 | -13.6 | 0.5 | 7.5 | 11.5 | 15.8 | |||||
| Operating margin, % | 14.5 | 15.2 | 8.2 | 9.3 | 12.0 | 12.1 | 12.3 | |||||
| Profit margin, % | 14.0 | 14.7 | 7.6 | 8.8 | 11.8 | 12.1 | 12.1 | |||||
| Average equity | 305.7 | 244.0 | 198.3 | 183.7 | 167.3 | 145.9 | 125.6 | |||||
| Return on equity, % | 33.0 | 35.8 | 16.9 | 25.7 | 42.3 | 44.6 | 44.8 | |||||
| Equity ratio, % | 55.7 | 50.0 | 51.3 | 45.3 | 53.0 | 49.2 | 50.8 | |||||
| Interest-bearing net cash (liabilities –), MSEK* | 11.2 | 40.7 | -13.2 | -89.6 | -2.5 | 9.2 | 9.7 | |||||
| Earnings per share, SEK | 8.86 | 7.7 | 2.9 | 4.1 | 6.2 | 5.7 | 4.9 | |||||
| Equity per share, SEK | 29.22 | 24.4 | 18.4 | 16.4 | 15.9 | 13.5 | 12.1 | |||||
| Dividend per share, SEK** | 5.00* | 5.0 | 2.0 | 0.0 | 4.0 | 4.0 | 3.6 | |||||
| Average number of shares outstanding | 11 401 988 | 11 401 988.0 | 11 401 988.0 | 11 401 988.0 | 11 401 988.0 11 401 988.0 11 401 988.0 | |||||||
| Number of shares outstanding at end of period | 11 401 988 | 11 401 988.0 | 11 401 988.0 | 11 401 988.0 | 11 401 988.0 11 401 988.0 11 401 988.0 | |||||||
| Average number of employees | 587 | 540 | 520 | 502 | 482 | 446 | 358 |
* Interest-bearing net cash (liabilities –), has been effected by 22 MSEK by the introduction of IFRS 16
** Proposed dividend for 2022
Consolidated Balance Sheet
| Amounts in SEK thousand | 2022-12 | 2021-12 |
|---|---|---|
| Assets | ||
| Intangible non-current assets | 28,134 | 25,617 |
| Other non-current assets | 123,882 | 133,320 |
| Inventories | 212,130 | 145,917 |
| Trade receiveables | 99,009 | 114,216 |
| Other current assets | 28,222 | 20,632 |
| Cash and cash equivalents | 106,795 | 116,367 |
| Total assets | 598,172 | 556,069 |
| Equity and liabilities | ||
| Equity | 333,219 | 278,259 |
| Long-term interest-bearing liabilites | 30,748 | 46,131 |
| Long-term non-interest-bearing liabilities | 7,018 | 5,713 |
| Current interest-bearing liabilities | 64,872 | 29,583 |
| Current non-interest-bearing liabilities | 162,314 | 196,383 |
| Total equity and liabilities | 598,172 | 556,069 |
Changes in Consolidated Equity
| 2022 | Other | Retained earnings | ||||
|---|---|---|---|---|---|---|
| Share | contributed | including net profit | Total | |||
| Amounts in SEK thousand | capital | capital | Reserves | for the period | Total | equity |
| OPENING EQUITY 2022-01-01 | 2,850 | 43,231 | -6,432 | 238,609 | 278,258 | 278,258 |
| Net profit for the period | 101,000 | 101,000 | 101,000 | |||
| Other total profit | ||||||
| Translation differences during the period | 12,743 | 12,743 | 12,743 | |||
| Revaluation of pension scheme | -1,772 | -1 772 | -1 772 | |||
| Transactions with shareholders | ||||||
| Dividend | -57,010 | -57,010 | -57,010 | |||
| CLOSING EQUITY 2022-12-31 | 2,850 | 43,231 | 4,539 | 282,599 | 333,219 | 333,219 |
| 2021 Amounts in SEK thousand |
||||||
| OPENING EQUITY 2021-01-01 | 2,850 | 43,231 | -10,249 | 163,573 | 209,810 | 209,810 |
| Net profit for the period | 87,438 | 87,438 | 87,438 | |||
| Other total profit | ||||||
| Translation differences during the period | 3,817 | 3,817 | 3,817 | |||
| Revaluation pension scheme | 0 | 0 | 0 | |||
| Transactions with shareholders | ||||||
| Dividend | -22,806 | -22,806 | -22,806 | |||
| CLOSING EQUITY 2021-12-31 | 2,850 | 43,231 | -6,432 | 228,205 | 278,259 | 278,259 |
| Consolidated Cash Flow Statement |
October - December | January - December | ||
|---|---|---|---|---|
| Amounts in SEK thousand | 2022 | 2021 | 2022 | 2021 |
| Operating activities | ||||
| Operating profit | 14,301 | 40,120 | 136,415 | 119,547 |
| Adjustment for items not included in cash flow | ||||
| Depreciation, amortisation and impairment charges | 6,876 | 6,972 | 29,921 | 25,941 |
| Other non cash generated items | -8,010 | -5,552 | -23,865 | -18,402 |
| 13,876 | 41,540 | 142,472 | 127,086 | |
| Interest income | 160 | 234 | 745 | 654 |
| Interest expense | -544 | -82 | -1,326 | -751 |
| Paid taxes | -19,180 | -3,519 | -32,853 | -12,529 |
| Cash flow from operating activities before changes in working | -5,689 | 38,173 | 109,038 | 114,460 |
| Cash flow from changes in working capital | ||||
| Inventories | -5,544 | -21,660 | -55,423 | -37,684 |
| Trade receivables | 26,584 | -4,530 | 22,731 | -35,278 |
| Other short-term receivables | 9,243 | 6,689 | -7,475 | 692 |
| Trade payables | -18,837 | 14,448 | -39,246 | 32,053 |
| Other liabilities | -9,056 | -14,768 | -2,890 | 4,582 |
| Cash flow from operating activities | -3,299 | 18,352 | 26,735 | 78,825 |
| Investment activities | ||||
| Acquisition of tangible non-current assets | -1,784 | -1,571 | -6,076 | -4,719 |
| Acquisition of intangible non-current assets | -2,629 | -1,042 | -10,572 | -6,122 |
| Sales of fixed assets | 0 | 0 | 1,079 | 0 |
| Change in long-term receivable | 2,252 | -421 | 909 | -899 |
| Cash flow from investment activities | -2,161 | -3,034 | -14,660 | -11,740 |
| Financing activities | ||||
| Repayment/raising loans | 3,493 | 688 | 33,816 | 861 |
| Paid dividend | 0 | 0 | -57,010 | -22,806 |
| Cash flow from financing activities | 3,493 | 688 | -23,194 | -21,945 |
| Cash flow for the year | -1,967 | 16,006 | -11,119 | 45,140 |
| Cash and cash equivalents at beginning of period | 115,396 | 99,843 | 116,367 | 66,276 |
| Translation difference in cash and cash equivalents | -6,634 | 518 | 1,547 | 4,951 |
| Cash and cash equivalents at end of period | 106,795 | 116,367 | 106,795 | 116,367 |
| Parent Company Income Statement |
3 months | 12 months | ||
|---|---|---|---|---|
| Amounts in SEK thousand | October - December | January - December | ||
| 2022 | 2021 | 2022 | 2021 | |
| Net revenue | 10 188 | 10 010 | 32 845 | 29 575 |
| Other operating income | 2 7 | 4 4 | 8 8 | 145 |
| Total revenue | 10 215 | 10 053 | 32 933 | 29 720 |
| Other external costs | -3 928 | -3 024 | -12 358 | -9 548 |
| Personnel costs | -7 407 | -5 483 | -23 268 | -20 458 |
| Depreciation, amortisation and impairment charges | -806 | -628 | -3 535 | -2 494 |
| Operating profit | -1 925 | 918 | -6 227 | -2 780 |
| Net finance items | 1 068 | 9 3 | 56 258 | 13 605 |
| Profit after finance items | -857 | 1 011 | 50 031 | 10 825 |
| Year-end appropriations | - | - | 9 815 | 10 484 |
| Taxes | -1 219 | -1 512 | -1 355 | -1 550 |
| Net profit for the period | 7 739 | 9 983 | 58 491 | 19 759 |
Since there are no comprehensive profit items, comprehensive income coincides with the period's results.
Parent Company Balance Sheet
| Amounts in SEK thousand | 2022-12 | 2021-12 |
|---|---|---|
| Assets | ||
| Intangible non-current assets | 26 287 | 23 573 |
| Tangible non-current assets | 617 | 657 |
| Financial non-current assets | 134 914 | 117 347 |
| Short-term receivables | 132 151 | 80 294 |
| Cash and cash equivalents | 0 | 43 305 |
| Total assets | 293 969 | 265 176 |
| Equity and liabilities | ||
| Equity | 182 823 | 181 341 |
| Untaxed reserves | 16 370 | 12 800 |
| Current liabilities | 94 776 | 71 035 |
| Total equity and liabilities | 293 969 | 265 176 |
Notes
1. Accounting policies
As was the case with the Annual Accounts for 2020, the Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by EU, recommendation No 1 (RFR 1) of the Swedish Financial Reporting Board. As was the case with the Annual Accounts for 2020, the Parent Company prepares its financial statements in accordance with the Annual Accounts Act and recommendation No 2 (RFR 2) of the Swedish Financial Reporting Board. The Year-end Report is prepared in accordance with IAS 34 and the Swedish Annual Accounts Act. Disclosures in accordance with IAS 34.16 are found in the financial reports and its notes as well as in the other parts of the interim report.
From 1 January 2019 Nilörngruppen applies IFRS 16 Leases. The Group has applied the simplified transition method and has thus not recalculated comparative data for 2018. The simplification rule, that the right-of-use asset shall be equivalent to the lease liability, has been applied in the transition. No transition effect is therefore reported in equity. A complete description of the accounting policies for leases will be found in the 2021 Annual Report. Also refer to Note 3 for the effect of IFRS 16 on the quarter.
The Parent Company has chosen to apply the simplification rules in RFR 2, which means that all leases be reported as operating leases.
New accounting policies for 2022
No new accounting policies with significant impact on Nilörn have entered into force in 2022.
2. Information by geographic area
Primary segment – Geographic area
| Other | Intra | ||||
|---|---|---|---|---|---|
| Period January - December 2022 | Sweden | Europe | Asia | Group | Total |
| Revenue | |||||
| External revenue | 52,361 | 327,891 | 562,559 | - | 942,811 |
| Total revenue | 52,361 | 327,891 | 562,559 | ,0 | 942,811 |
| Profit | |||||
| Operating profit | 13,601 | 51,955 | 72,937 | -2,080 | 136,414 |
| Interest income | ,745 | ,745 | |||
| Interest expense | -4,743 | -4,743 | |||
| Taxes on the on the period's profit | -31,417 | -31,417 | |||
| Net profit for the period | 13,601 | 51,955 | 72,937 | -37,495 | 100,999 |
Period January - December 2021
| Revenue | |||||
|---|---|---|---|---|---|
| External revenue | 41,734 | 258,002 | 488,569 | - | 788,305 |
| Total revenue | 41,734 | 258,002 | 488,569 | ,0 | 788,305 |
| Profit | |||||
| Operating profit | 13,177 | 41,228 | 66,636 | -1,494 | 119,547 |
| Interest income | ,653 | ,653 | |||
| Interest expense | -3,996 | -3,996 | |||
| Taxes on the profit for the year | -28,766 | -28,766 | |||
| Net profit for the year | 13,177 | 41,228 | 66,636 | -33,603 | 87,438 |
3. IFRS 16 Leasing
| Of which effect of | 31 Dec 2022 not incl. | ||
|---|---|---|---|
| Report of financial position | 31-Dec-22 | IFRS 16 | effect of IFRS 16 |
| Other non-current assets | 123,882 | 22,568 | 101,314 |
| Other current assets | 28,222 | -1,395 | 29,617 |
| Equity | 333,219 | 1,266 | 331,953 |
| Long-term interest-bearing liabilities | 30,748 | 5,430 | 25,318 |
| Short-term interest-bearing liabilities | 64,872 | 16,386 | 48,486 |
| Total effect on equity | 23,082 |
| Of which effect of | Jan-Dec 2022 not incl. | ||
|---|---|---|---|
| Report of effects on profit | Jan-Dec 2022 | IFRS 16 | effect of IFRS 16 |
| Other external cost | -71,173 | 18,860 | -90,033 |
| Depreciation, amortisation and impairment | -29,921 | -17,582 | -12,339 |
| Net finance items | -3,998 | -,884 | -3,114 |
| Taxes | -31,417 | -,82 | -31,335 |
| Total | -136,509 | ,312 | -136,821 |
| Of which effect of | Jan-Dec 2022 not incl. | ||
|---|---|---|---|
| Key financial indicators | Jan-Dec 2022 | IFRS 16 | effect of IFRS 16 |
| Operating margin | 14.5% | 0.1% | 14.3% |
| Net cash and cash equivalents (liabilities −), MSEK | 11.2 | -21.8 | 33.0 |
| Equity ratio, % | 55.7% | -2.0% | 57.8% |
4. Definitions of alternative key financial indicators
ESMA (The European Securities and Markets Authority) has published guidelines for alternative key financial indicators for companies with securities listed on a regulated market within EU. These guidelines shall be applied to alternative key financial indicators used starting 3 October 2016. Reference is made in the annual accounts to a number of non-IFRS performance metrics used to help investors as well as management to analyse the company's operations. These financial metrics should therefore not be seen as replacements for metrics defined according to IFRS. Since all companies do not calculate financial metrics in the same way, they are not always comparable with metrics used by other companies. These financial metrics should therefore not be seen as replacements for metrics defined according to IFRS. We describe below the various non-IFRS performance metrics used as a complement to the financial information reported in accordance with IFRS and how these metrics have been used.
| Non-IFRS metrics | Definition | Justification |
|---|---|---|
| Average equity | Equity at the beginning of the period, plus equity at the end of the period, divided by two. |
The metric is the difference between the Group's assets and liabilities, which is equivalent to consolidated equity contributed by owners and the consolidated aggregated profit. This metric is used to report the capital attributable to the Group's owners. |
| Average number of employees | Average number of yearly employed | This metric is used to measure the development of the Group's workforce. |
| Revenue growth | Net revenue at the end of the period, minus net revenue at the beginning of the period, divided by net revenue at the beginning of the period. |
This metric is used to measure the development of the Group's revenue over time. |
| Return on equity | Period's result according to the income statement in percent of average equity. |
This metric is used to analyse profitability over time, given the resources attributable to the Parent Company's owners. |
| Return on capital employed | Result before taxes, plus financial expenses, in percent of average capital employed. |
Return on capital employed is a profitability metric used to gauge the result relative to the capital required to run the business. |
| Interest-bearing net cash and cash equivalents/liabilities |
Interest-bearing receivables, cash and cash equivalents, reduced by interest-bearing liabilities. |
The metric shows the total debt financing and is used as a complement to judge the feasibility of paying dividends, to implement strategic investments and to gauge the Group's ability to meet its financial obligations. |
| Operating margin | Operating result in percent of net revenue. | This metric is used to measure operative profitability. |
| Equity ratio | Equity in percent of balance sheet total. | This measure shows the proportion of the company's total assets financed with equity by its shareholders. A high equity ratio is an indication of financial strength. |
| Operating margin | Operating result in percent of net revenue. | This metric is used to measure operative profitability. |
Definitions of key financial indicators not defined by IFRS
Nilörngruppen in Brief
Nilörngruppen is a global company founded in the 1970s, with expertise in adding value to trademarks through branding in the form of labels, packaging and accessories, primarily for customers in the fashion and apparel industry. Nilörngruppen offers complete, creative and customised concepts in branding, design, product development and logistic solutions. The Group conducts business via its own subsidiaries in Sweden, Denmark, Great Britain, Germany, Belgium, Portugal, Hong Kong, India, Turkey, China, Bangladesh, Italy, Switzerland and Pakistan. The Group has partner companies in Tunisia and Holland.