Year End Report for New Wave Group AB
11 February 2016 - 5:16PM
Business Wire
Regulatory News:
JANUARY–DECEMBER 2015 PERIOD 1 OCTOBER – 31 DECEMBER 2015
· Sales amounted to SEK 1,405 million, which was 12 % higher
than last year (SEK 1,260 million).
· Operating profit amounted to SEK 108.4 (112.2) million.
· Result for the period amounted to SEK 63.3 (91.9) million.
· Earnings per share amounted to SEK 0.94 (1.38).
· Cash flow from operating activities amounted to SEK 375.5
(-54.6) million.
PERIOD 1 JANUARY – 31 DECEMBER 2015
· Sales amounted to SEK 4,965 million, which was 16 % higher
than last year (SEK 4,274 million).
· Operating profit amounted to SEK 255.2 (250.0) million.
· Result for the period amounted to SEK 145.3 (176.9)
million.
· Earnings per share amounted to SEK 2.16 (2.66).
· Cash flow from operating activities amounted to SEK 129.5
(-284.2) million.
· Equity ratio amounted to 45.9 (45.9) %.
· Net debt to equity ratio amounted to 76.8 (76.0) %.
CEO COMMENTS
THE FOURTH QUARTER
The fourth quarter was far better than what I thought. The
extremely warm winter, or rather the lack of winter meant that we
sold substantially fewer winter products than we planned for.
Therefore, there was an obvious risk for a decrease in total sales,
especially when winter was equally hot in both Europe and North
America. But instead the promo sales channel hit an organic growth
of a fantastic 20%. The operating segment Corporate Promo increased
by 18% and then you should know that the segment had an increase of
21% over last year’s fourth quarter. Total sales increased by 12%
to SEK 1,405 million which is the highest sales ever in a quarter,
although I had expected even more.
Operating income was slightly below last year, SEK 108.4 million
against SEK 112.2 million. This is partly due to the fact that we
sold slightly less than anticipated due to the warm winter, but
also the fact that during the quarter we had non-recurring cost in
regards to Russia for SEK 18.4 million. Of this SEK 8.1 million
affected operating profit and SEK 10.3 million affected financial
costs. The quarter’s cash flow from operating activities amounted
to SEK 375.5 million which is the second highest in our history for
a single quarter.
FULL YEAR 2015
It was largely an investment and stock building year and a
continuation of our investments initiated in autumn 2014 to boost
our growth and enhance our level of service. This meant that we
increased our sales to SEK 4,965 million for 2015, which is an
all-time high. I am convinced that we could have reached well over
SEK 5 billion with a more normal winter in Europe and/or North
America. Of our sales channels, promo showed a fantastic 23% in
growth and retail 9%.
Operating income increased by SEK 5 million, despite all the
investments and marketing as well as the result being burdened by
the non-recurring cost for Russia and foreign exchange losses. It
is also gratifying that we finished the year with a positive cash
flow from operations even though it was a year of investment and
inventory build-up.
I am glad that we have a strong balance sheet with an equity
ratio of 45.9% after this build-up phase.
FUTURE AND FOCUS
We are extremely strong both in terms of brands, products, CSR,
quality and service to our customers. With this knowledge, and the
fact that our customers/dealers are more satisfied than ever, I am
very positive for the future especially as we already have a decent
growth rate. However, I have some concern that the continued warm
weather and lack of winter can also affect the first quarter
negatively.
The focus now will be to increase the level of profit and
operating margin. The operating margin that we had is perfectly ok
under a heavy investment phase, but now it must start to increase.
Our management and all subsidiary managers are well aware that we
must focus on this in the near future.
I continue to be very positive looking forward and am very proud
of how we are currently performing.
TORSTEN JANSSON
CEO New Wave Group
The information in this report is that which New Wave Group is
required to disclose under the Securities Market Act and/or the
Financial Trading Act. The information was released for publication
at 7 am (CET) on 11 February 2016.
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New Wave GroupTorsten Jansson, 031–712 89
01CEOtorsten.jansson@nwg.seorLars J�nsson, 031–712 89
12CFOlars.jonsson@nwg.se