Interim Report New Wave Group AB

KUNGÄLV, Sweden, Nov. 09, 2017 /PRNewswire/ --

PERIOD 1 JULY – 30 SEPTEMBER 2017

• Net sales amounted to SEK 1,331.1 million, which was 2% higher than last year (1,300.4 million).

• Operating result amounted to SEK 143.0 (124.9) million.

• Result for the period amounted to SEK 105.3 (86.5) million.

• Earnings per share amounted to SEK 1.60 (1.31).

• Cash flow from operating activities amounted to SEK -10.4 (15.5) million.

PERIOD 1 JANUARY – 30 SEPTEMBER 2017

• Net sales amounted to SEK 3,967.0 million, which was 8% higher than last year (3,688.5 million).

• Operating result amounted to SEK 296.6 (233.2) million.

• Result for the period amounted to SEK 207.2 (148.9) million.

• Earnings per share amounted to SEK 3.14 (2.26) SEK.

• Cash flow from operating activities amounted to SEK 73.3 (168.0) million.

• Equity ratio amounted to 48.0 (45.4)%.

• Net debt to equity ratio amounted to 60.7 (73.5)%.

CEO COMMENTS

JULY–SEPTEMBER

It is with pleasure and pride that we finish our third quarter, which is the 13th consecutive quarter of growth in net sales. The increase was 2%, but this rate includes a negative currency impact of 2% as growth in local currencies was 4%.

Operating result for the quarter rose from SEK 124.9 million to SEK 143.0 million or by 14% and result for the period by 22% to SEK 105.3 million. It is the seventh consecutive quarter with increases in operating result and we have now increased in 12 of the last 13 quarters.

Net sales, as well as operating result and result for the period are at an all-time high for a third quarter.

We had some disturbances in the form of delivery delays from Asia during the quarter, together with strikes that occurred in the port of Gothenburg. Even the extreme weather in the United States and the Caribbean has affected sales negatively, in regards to golf, and will probably occur in a further quarter or quarters.

Of the three segments Gifts & Home Furnishings shows 11% growth, Corporate Promo 11% and Sports & Leisure minus 6%. It should be borne in mind that Sports & Leisure suffered from the delivery delays the most, and that golf clothing is also reported here. It is also this segment which has the largest part of the negative currency effect.

JANUARY–SEPTEMBER

For January-September sales increased by 8% but here we have a positive currency effect of 2%. For nine months, we have had growth in all three of our segments, Corporate Promo by 13%, Gifts & Home Furnishings by 11% and Sport & Leisure by 1%.

Our net sales grew to SEK 3,967.0 million compared to last year SEK 3,688.5 million.

Operating result increased by 27% to SEK 296.6 million, result for the period by 39% to SEK 207.2 million. Even for the nine months, both net sales and operating result as well as result for the period was at an all-time high.

CASH FLOW AND BALANCE SHEET

I'm pleased and satisfied that we, despite all our investments such as stock building in Canada, our backing of Craft Teamwear etc. still have a positive cash flow from operating activities. In spite of growth and investment, we have increased the equity ratio by 2.6 percent-age points to 48.0% compared with September 2016. We have also reduced net debt by SEK 228 million compared to the same period. I am pleased with our strong balance sheet, which provides favorable conditions for us to grow and expand.

THE FUTURE

There's no doubt that I see a bright future. We have in the last three years invested heavily in new products within existing brands as well as new brands, new warehouses, and not least in powerful marketing. These investments have meant that we now, for the first time, are passing the SEK 5,500 million on a rolling 12 months and we have increased net sales by 1.242 million since 2014 – the year when we started our investments for growth. Although we made these undertakings and investments, we have at the same time increased operating result substantially. If we compare 2017 with 2015, then we have during the period January to September, more than doubled it from SEK 146.8 million to SEK 296.6 million.

We still have major growth ahead of us. Craft Teamwear has been very well received, it doesn't affect this year's sales by much but we believe it will generate growth already next year. Next year we expect to have 20-30 teams in the two highest leagues as well as the national teams in football, handball and floorball in Europe. Even Craft shoes which will be launched in the spring is very exciting.

Prior to spring there will even be major launches, as well as the renewal and broadening of workwear under the brand names ProJob and Jobman. Our new warehouse in Toronto has been welcomed by our Canadian customers and if it continues as it started, we will establish additional warehouses in Canada as early as next year.

So I feel great confidence in our growth going forward.

Of course, the goal is also growth in earnings, which I am convinced we will manage, but with the reservation that any quarter or quarters may come in lower than last year, but on an annual basis we will continue our growth.

We meet the future strong, motivated and confident of good development!

Torsten Jansson, CEO

For More Information, Please Contact:

CEO
Torsten Jansson
Phone: 031–712 89 01
E-mail: [email protected]

CFO
Lars Jönsson
Phone: 031–712 89 12
E-mail: [email protected]

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SOURCE New Wave Group