Interim report for the first quarter 2019
January - March
PERIOD 1 JANUARY – 31 MARCH 2019
- Net sales amounted to SEK 1,504.9 million, which was 18 % (11 % in local currencies) higher than last year (SEK 1,272.8 million).
- Operating result amounted to SEK 46.0 (18.6) million.
- Result for the period amounted to SEK 26.0 (6.0) million.
- Earnings per share amounted to SEK 0.41 (0.10).
- Cash flow from operating activities amounted to SEK -65.1 (6.6) million.
- Equity ratio amounted to 45.9 (51.3) %.
- Net debt to equity ratio amounted to 73.7 (54.5) %.
CEO COMMENTS
It is gratifying that 2019 started just as good as 2018 ended. Sales growth of 18 %, of which 11 % in local currencies, is strong! It was also the 19th consecutive quarter of sales growth showing that we are in a period of strong development! Operating result rose from SEK 18.6 million to SEK 46.0 million and result for the period increased from SEK 6.0 million to SEK 26.0 million. Both results are all-time high for a first quarter.
NET SALES
All our three segments had growth. Sports & Leisure continued to develop very strongly and showed 21 % growth. Corporate was not far behind with growth of 19 % and Gifts & Home Furnishings managed to cross the zero line, even if growth was a modest 2 %. The Group's net sales passed some milestones as it was the first time we crossed the SEK 1.5 billion for a first quarter – and the first time we crossed the SEK 6.5 billion on a rolling 12 months (SEK 6,523 million). We probably had a somewhat positive effect compared to the previous year as Easter this year is in the second quarter.
RESULT
The first quarter is always the weakest but it is still very nice to begin the year well. For the quarter to achieve an operating result of SEK 46.0 million and a result for the period of SEK 26.0 million pleases me. We also pass a milestone in terms of operating result and for the first time we passed SEK 500 million on a rolling 12-month period.
BALANCE SHEET
IFRS 16, which we report according to for the first time, affects the comparison between the years and the new standard has resulted in an increase in net debt by SEK 633.2 million. In addition, the quarter was affected significantly by changes in exchange rates which increased stock by SEK 103.8 million. But I am satisfied that we have a strong balance sheet with an equity ratio of almost 46 % despite IFRS 16.
THE FUTURE
I still feel that we stand very strong! Even in the future there can be quarters that are less favorable but I am confident that the investments we have already made will generate growth in both sales and result for many years to come! It is a tremendous benefit for me to lead such a strong and driven organisation which we currently have and skilled staff are essential for success. We also have a number of strong brands, good products, high level of service etc. which makes it even better!
Thank you all for the first quarter!
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 25 April 2019.
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