KUNGÄLV, Sweden, Feb. 10, 2022 /PRNewswire/ --
PERIOD 1 OCTOBER - 31 DECEMBER
2021
- Net sales amounted to SEK 2,306.7
million, which was 23 % (22 % in local currencies) higher
than last year (SEK 1,873.2
million).
- Operating result amounted to SEK
403.3 (283.6) million.
- Result for the period amounted to SEK
308.5 (208.2) million.
- Earnings per share amounted to SEK
4.61 (3.13).
- Cash flow from operating activities amounted to SEK 413.3 (557.5) million.
PERIOD 1 JANUARY - 31 DECEMBER
2021
- Net sales amounted to SEK 6,718.6
million, which was 10 % (13 % in local currencies) higher
than last year (SEK 6,098.8
million).
- Operating result amounted to SEK
1,005.9 (545.9) million.
- Result for the period amounted to SEK
760.0 (363.0) million.
- Earnings per share amounted to SEK
11.46 (5.51).
- Cash flow from operating activities amounted to SEK 1,207.4 (1,206.6) million.
- Equity ratio amounted to 59.6 (53.4) %.
- Net debt to equity ratio amounted to 23.4 (47.1) %.
DIVIDEND
The Board of Directors has decided to propose to the AGM a
dividend of SEK 4.25 per share equal
to SEK 282.0 million.
CEO COMMENTS
OCTOBER - DECEMBER
Fourth quarter yielded records in both earnings and net
sales
I feel incredible joy and pride over both sales and operating
result during the quarter and of course also for the full year
2021. The pandemic is not over and continues to be an impact on
day-to-day business. Several countries received new restrictions
during the fourth quarter and this development has continued at the
beginning of 2022. This is having a negative effect on our sales in
parts of the Group, and considering that background our results are
even more fantastic.
Net sales during the quarter amounted to SEK 2,306.7 million, which is an increase from
the previous year of SEK 433.5
million or 23%. It is also interesting that there is a
growth of 14% against the fourth quarter of 2019, which was the
last quarter before the great outbreak of the pandemic. The quarter
for the year is also an all time high in terms of sales both for a
fourth quarter but also the highest net sales for a single
quarter.
Operating result was SEK 403.3
million, an increase of SEK 119.7
million or 42% compared to 2020 and the operating margin
increased from 15.1% to 17.5% - all figures for the quarter are at
an all time high. Compared with the 2019 quarter, operating result
increased by SEK 163.0 million or 68%
and the operating margin has been increased from 11.9% to
17.5%.
It is once again a pleasure to note that we have growth in all
three segments. Gifts & Home Furnishings grew by 13%, Corporate
by 18% and Sports & Leisure by as much as 35%. Our two sales
channels also showed good growth, promo with 16% and retail with
36%. Given the negative effects of the pandemic, this is a very
strong development.
FULL YEAR 2021
Despite the negative effects of the pandemic and reduced sales
at the beginning of the year, we still increased net sales for the
full year by SEK 619.8 million, a
growth of 13% in local currencies. Of our three segments, Corporate
was the hardest hit by the pandemic and decreased by 4%. Gifts
& Home Furnishings grew by 16% despite several of the company's
operations in Kosta, such as hotels, restaurants and retail, being
hit hard during parts of the year. Sports & Leisure showed
growth throughout by 29%. Both our sales channels increased, promo
by 2% and retail by 25%.
Operating result increased by SEK 460.0
million to SEK 1,005.9
million, an increase of 84% and it is incredibly exciting to
pass SEK 1 billion in operating
result. At the same time, net financial items decreased, which
together means that we more than doubled the result for the year
from SEK 363.0 million to
SEK 760.0 million, an improvement of
109%. Having met our target this year of 15% operating margin is
very gratifying and EBITDA now amounts to SEK 1,233.3 million. The Corporate segment
increased its operating result by SEK 91.8
million to SEK 440.8 million,
Sport & Leisure improved by as much as SEK 295.6 million to SEK
466.0 million and our formerly challenging Gifts & Home
Furnishings business improved by SEK 72.6
million to SEK 99.1 million
which actually means that the segment reaches an operating margin
of 10.4%.
CASH FLOW AND BALANCE SHEET
Cash flow from operating activities amounted to SEK 1,207.4 million and cash flow after investing
activities to SEK 1,093.2 million. The strong cash flow
has further strengthened our already strong balance sheet. Net debt
to credit institutions at the turn of the year was down to
SEK 375.1 million and equity amounted
to SEK 4,567.6 million and the equity
ratio to 59.6%. These strong financial positions provide great
opportunity going forward for both acquisitions and organic
expansion, while also providing great security to the existing
operations.
CRAFT'S FANTASTIC DEVELOPMENT CONTINUES
Craft's preorders for the AW season increased by as much as 42%,
breaking new records. We are pleased to see the growth is taking
place in all markets and in all product segments. It is noteworthy
that the more mature markets show very good growth, such as
Sweden with 34% or Norway with as much as 71% and we are taking
big steps forward in markets such as Spain, France, the USA and Canada.
OUR OTHER BRANDS
Thanks to Craft's fantastic development, it would be easy to
overlook our other strong brands. It is very gratifying that we
actually have good growth in almost all brands in all segments. For
example, Gifts & Home Furnishings had a growth of 16% during
the year, despite the fact that several businesses such as retail,
hotels, restaurants, etc. in Kosta were hit hard by the pandemic.
Net sales increased in the segment due to the fact that
Kosta Boda, Orrefors, Sagaform and
others had very good growth. Cutter & Buck, ProJob, Jobman and
others also had good growth.
THE FUTURE
We are entering 2022 stronger than ever and it is difficult not
to be optimistic about the development we have had. Companies are
developing well despite the pandemic. Sports & Leisure with
Craft at the forefront with fantastic development opportunities and
the previously challenged Gifts & Home Furnishings is
demonstrating promising development.
We stand strong against our competitors in terms of product
quality, design and function. We are far ahead of many competitors
in terms of sustainability and we are among the absolute best in
terms of service. Some areas of uncertainty remain in the market
although it feels more stable than before. We need to
increase our inventory to cope with the strong growth and there are
still some disruptions in the production and logistics chains.
However, these disturbances are becoming a lesser concern and it
looks brighter going forward. Another is large price increases, for
example on freight and energy. The ongoing pandemic is also a
continuing challenge for several businesses with, for example, very
high sick leave/absenteeism rates impacting day-to-day
operations.
Overall, however, I am very optimistic going forward and believe
we will achieve good and profitable growth. Of course, there may be
individual quarters that may be weaker, but over time I am
convinced of continued very good development.
Thank you all for a fantastic effort in 2021. Now we are
building New Wave even stronger in 2022 and beyond.
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 February
10, 2022.
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from New Wave Group, please send an email to info@nwg.se.
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Year end report for
New Wave Group AB (publ) January â€" December 2021 (PDF)
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SOURCE New Wave Group