INTERIM REPORT FOR THE SECOND QUARTER 2022 NEW WAVE GROUP AB
GOTHENBURG, Sweden, Aug. 17, 2022 /PRNewswire/ --
PERIOD 1 APRIL – 30 JUNE 2022
- Net sales amounted to SEK 2,019.2 million, which was 36% (30% in local currencies) higher than last year (SEK 1,486.8 million).
- Operating result amounted to SEK 351.0 (241.3) million.
- Result for the period amounted to SEK 265.0 (187.7) million.
- Earnings per share amounted to SEK 3.99 (2.84).
- Cash flow from operating activities amounted to SEK 68.1 (185.3) million.
PERIOD 1 JANUARY – 30 JUNE 2022
- Net sales amounted to SEK 3,794.1 million, which was 38% (32% in local currencies) higher than last year (SEK 2,748.4 million).
- Operating result amounted to SEK 560.1 (341.5) million.
- Result for the period amounted to SEK 418.5 (255.4) million.
- Earnings per share amounted to SEK 6.31 (3.88).
- Cash flow from operating activities amounted to SEK 73.3 (552.5) million.
- Equity ratio amounted to 59.0 (58.9) %.
- Net debt to equity ratio amounted to 27.0 (31.2) %.
CEO COMMENTS
Another record quarter
It is with pride and joy that we can present another record quarter with strong growth both in terms of sales and results. Sales have now increased eight quarters in a row and we are showing an all-time high in both net sales and operating result for the sixth consecutive quarter.
Net sales in the quarter increased from SEK 1,486.8 million to SEK 2,019.2 million, a growth of SEK 532.4 million or 36%. In local currencies, growth amounted to 30%.
Operating result increased from SEK 241.3 million to SEK 351.0 million, an increase of SEK 109.7 million or 45%. As previously reported for the second quarter of 2021, we received deferred government PPP loans in the USA of SEK 42.5 million. If you exclude these from the prior year's results, it amounted to SEK 198.8 million, and the actual profit improvement is then SEK 152.5 million or 77%.
The operating margin amounted to 17.4% in the quarter, which is also an all-time high.
All markets showed growth except for the Other countries region, which is due to reduced trading in Asia. The USA and Central Europe stand out with growth of 62% and 52% respectively. The USA is once again our biggest market.
Both our sales channels had good growth with 33% in promo and 40% in retail.
The half year
The first two quarters of the year produced sales growth of 38%, in local currencies 32%. Net sales amounted to SEK 3,794.1 million compared to SEK 2,748.4 million the previous year, a growth of SEK 1,045.7 million. Operating result increased from SEK 341.5 million to SEK 560.1 million or by 64%. The operating margin was thus 14.8% in the first half of the year compared to 12.4% for the same period in the previous year.
Rolling 12 months
On a rolling full-year basis, net sales now amount to SEK 7,764.3 million with an operating result of SEK 1,224.5 million and an operating margin of 15.8%.
Cash flow and balance sheet
We have increased the inventory to address the increasing demand. Accounts receivable increased due to the sales growth and we have distributed 547 MSEK in dividends during the last seven months to the shareholders. Considering these items, our balance sheet remains very strong with an equity ratio of 59% and an equity balance of more than SEK 5 billion. This gives us great security and tremendous opportunities for expansion.
The future
Despite all the current challenges in the world around us, our numbers show that our investments continue to bring success. We currently do not see any reduced demand for our products and brands - rather the opposite. Our sales continue to increase. We have now managed to build up the inventory during the second quarter, however further stock build-up is needed to meet the increasing demand. We also know that we have good growth (42%) in Craft's base orders for the fall. More and more customers are starting to sell our shoes and the Teamwear investment continues to produce good results. I also want to highlight Clique, which is greatly increasing its promo sales, and Cutter & Buck, which has become a growth machine both in Europe and USA.
I am convinced that we are now taking market shares in most areas. If there is a downturn in the economy, we are well positioned to continue to take market shares and show growth. In addition, we have both higher profitability and a stronger balance sheet than most competitors, which opens the door for possible acquisitions at more reasonable prices. In recent years, we have had to refrain from acquisitions due to excessive price expectations.
Finally, a big thank you to our entire organization who have done a great job and a big thank you to all the customers who choose our products.
Torsten Jansson, CEO
FOR MORE INFORMATION, PLEASE CONTACT:
CEO and Group CEO
Torsten Jansson
Phone: +46 31–712 89 01
E-mail: [email protected]
Deputy CEO
Göran Härstedt
Phone: +46 (0) 70– 362 56 11
E-mail: [email protected]
CFO
Lars Jönsson
Phone: +46 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 17, 2022.
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The following files are available for download:
Interim report for New Wave Group AB January - June 2022 (PDF) |
SOURCE New Wave Group
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