Effects on New Wave Group as a result of the spread of the coronavirus
New Wave Group is largely affected by the spread of the coronavirus. The demand for the group’s products and services is expected to be significantly reduced for all operating segments during the remainder of the first calendar quarter of 2020. The demand thereafter is expected to be affected in particular during the second calendar quarter, but it is currently not possible to give any forecasts for periods beyond that.
In the Corporate segment, sales are expected to decrease primarily due to cancelled events, conferences and corporate activities as well as due to general problems in the economy, resulting in that the demand for promotional products will be significantly reduced.
Sales are expected to decrease also in the Sports & Leisure segment, however not to the same extent as in the Corporate segment. Cancelled sporting events are expected to lead to decreased replica sales, the sports retail’s high stock volumes resulting from the warm winter are expected to affect the segment’s sales negatively in combination with the current situation caused by the virus outbreak, which is expected to result in less visits to and sales in physical sports retail stores. The risk for increased bad debts expenses is considered significant.
In the Gifts & Home Furnishings segment, the part of the business attributable to the destination Kosta, such as Kosta Boda Art Hotel, Kosta Lodge as well as restaurants and stores, is expected to see significantly reduced sales and an impaired result for the remainder of the year. Remaing businesses in the segment are also expected to decrease sales, however not to the same extent.
The group is currently taking a number of actions to reduce costs and minimize the effects of the virus outbreak.
Gothenburg on 18 March 2020
New Wave Group AB (publ)
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