KUNGÄLV, Sweden, Nov. 6, 2020 /PRNewswire/ -- NEW WAVE
GROUP AB
PERIOD 1 JULY - 30 SEPTEMBER
2020
- Net sales amounted to SEK 1,470.1
million, which was 13% (9% in local currencies) lower than
last year (SEK 1,685.5 million).
- Operating result amounted to SEK
176.3 (129.1) million.
- Result for the period amounted to SEK
118.9 (94.4) million.
- Earnings per share amounted to SEK
1.81 (1.45).
- Cash flow from operating activities amounted to SEK 283.2 (-131.1) million.
PERIOD 1 JANUARY - 30 SEPTEMBER
2020
- Net sales amounted to SEK 4,225.6
million, which was 13% (13% in local currencies) lower than
last year (SEK 4,879.3 million).
- Operating result amounted to SEK
262.3 (294.6) million.
- Result for the period amounted to SEK
154.8 (204.1) million.
- Earnings per share amounted to SEK
2.38 (3.13).
- Cash flow from operating activities amounted to SEK 649.1 (-187.3) million.
- Equity ratio amounted to 49.0 (44.0) %.
- Net debt to equity ratio amounted to 62.1 (82.8) %.
CEO COMMENTS
JULY-SEPTEMBER
I am very proud of and pleased with our third quarter. Our
organization has really made a fantastic achievement during a
turbulent and challenging time. Net sales decreased by 13% from
SEK 1,685.5 million to SEK 1,470.1 million, but with the current market
situation where all major events and sports competitions are
cancelled, games are played without an audience, clubs and
associations have limited activities and larger conferences and
congresses become digital, it is still a good result.
The fact that we then increased the operating result by 37% from
SEK 129.1 million to SEK 176.3 million and thereby improved the
operating margin by 4.3 percentage points from 7.7% to 12.0% is a
very good development. An operating margin of 12% or higher in a
third quarter has actually only been reached by us once before - in
2008. Then we reached 12.8%. This makes 2020 second best ever. We
achieved a cash flow from operating activities in the quarter of
SEK 283.2 million, which is an
improvement of SEK 414.3 million
compared to the same period last year and once again shows how fast
we can adapt when crises occur.
During the third quarter net sales for the Corporate segment
decreased by 1%, Sports & Leisure decreased by 29%, but Gifts
& Home Furnishings experienced a growth of 11%. Geographically,
the main challenge is the US, where net sales decreased by 43%
(including 5% negative exchange rate effect). Most positive is that
Sweden had a 4% growth in the
quarter - a strong development in a weak market.
JANUARY-SEPTEMBER
The year started very good, then crash landed in March, April
and May and has since then slowly recovered. The spring months were
very intense as we accomplished a major work to lower our costs and
secure a good cash flow. Thanks to these measures, and probably
previous years' investments in products and brands, we have, this
far, quickly recovered. Net sales decreased by 13%, and the US is
the major challenge during this period as well with minus 39% and
accounts for SEK 495.7 million of the
total drop of SEK 653.7 million. The
operating result decreased by SEK 32.3
million from SEK 294.6 million
to SEK 262.3 million, but it is
notable that the operating margin actually improved from 6.0% to
6.2%. It is gratifying to see how quick and decisive our
organization has succeeded in lowering the costs and adapting to
the current situation.
CASH FLOW AND BALANCE SHEET
In addition to the result development, I am very satisfied with
our cash flow. For the nine-month period, cash flow from operating
activities amounted to SEK 649.1
million, an improvement of SEK 836.4
million compared to the same period the previous year. Total
credit limit amounted to SEK 3,133.2
million and net debt to credit institutes to SEK 1,629.8 million, which gives an available
credit of SEK 1,503.4 million. We
have also strengthened the equity ratio, which now amounts to
49.0%. We have never had a balance sheet that strong and an
available credit that large.
THE FUTURE
It is still very hard to assess the coming quarters. COVID-19
has once again increased in several countries and regions during
October, and there is still a great uncertainty about when the US
will recover. We will do our best to perform as well as possible
during the coming quarters as well. Looking past the COVID-19
crisis, I am totally convinced that we will come out stronger and
our assessment is that we gain market shares and develop better
than our competitors in basically all areas. I am looking forward
to accelerating growth again after the crisis - but still with
focus on the operating margin - and continue towards new
achievements.
Torsten Jansson, CEO
FOR MORE INFORMATION, PLEASE CONTACT:
CEO and Group CEO
Torsten
Jansson
Phone: +46-31-712-89-01
E-mail: torsten.jansson@nwg.se
CFO
Lars Jönsson
Phone: +46 31-712-89-12
E-mail: lars.jonsson@nwg.se
This information is information that New Wave Group AB is
obliged to make public pursuant to the EU Market Abuse Regulation.
The information was submitted for publication, through the agency
of the contact persons detailed above, at 7.00 a.m. CET on November
6, 2020.
If you want to sign up for, or unregister from, future messages
from New Wave Group, please send an email to info@nwg.se.
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Interim report for
New Wave Group AB January - September 2020 (PDF)
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SOURCE New Wave Group