0KIZ New Wave Group Ab

KUNGÄLV, Sweden, Nov. 7, 2019 /PRNewswire/ --

PERIOD 1 JULY - 30 SEPTEMBER 2019

• Net sales amounted to SEK 1,685.5 million, which was 9 % (5 % in local currencies) higher than last year (SEK 1,551.2 million).

• Operating result amounted to SEK 129.1 (117.5) million.

• Result for the period amounted to SEK 94.4 (88.4) million.

• Earnings per share amounted to SEK 1.45 (1.36).

• Cash flow from operating activities amounted to SEK -131.1 (-83.0) million.

PERIOD 1 JANUARY - 30 SEPTEMBER 2019

• Net sales amounted to SEK 4,879.3 million, which was 12 % (7 % in local currencies) higher than last year (SEK 4,347.2 million).

• Operating result amounted to SEK 294.6 (273.4) million.

• Result for the period amounted to SEK 204.1 (201.1) million.

• Earnings per share amounted to SEK 3.13 (3.06).

• Cash flow from operating activities amounted to SEK -187.3 (48.2) million.

• Equity ratio amounted to 44.0 (47.7) %.

• Net debt to equity ratio amounted to 82.8 (58.4) %.

CEO COMMENTS

JULY - SEPTEMBER

We now have another strong quarter behind us. Net sales increased by 9 % (5 % in local currencies) and amounted to SEK 1,685.5 million.

The sales channel promo increased by 7 %. At the beginning of the quarter we experienced a slowdown in demand which recovered at the end of the quarter. Retail increased by 11 %, which feels very good. Given everything that is written about the retail trade, e-commerce and so on, I would like to point out once again that we are growing with our customers on e-commerce and that e-commerce generally gives us new opportunities and is not a threat. Net sales reached an all-time high for a third quarter and it was the 21st quarter in a row with sales growth. Expenses increased during the quarter at a slower pace than previous quarters (excluding IFRS 16).

Operating result increased by 10 % to SEK 129.1 million and result for the period by 7 % to SEK 94.4 million.

JANUARY - SEPTEMBER

Net sales increased by 12 % (7 % in local currencies) and amounted to SEK 4,879.3 million, which is also an all-time high. Operating result increased by 8 % and amounted to SEK 294.6 million. The result increased by 1.5 % and amounted to SEK 204.1 million.

BALANCE SHEET

We maintain a strong balance sheet with equity of SEK 3,736.3 million and an equity ratio of 44 %, which gives us good security going forward. We will now try to keep stock increases at a lower rate than sales increases, which we should achieve. Remember however, that closing inventory value always reflects what we believe about sales ahead, not what we sold for in the past.

IN A LONGER PERSPECTIVE…

We are proud of the developments in recent years! Companies and brands are not built in a day, month, quarter or even in a year, so how was our third quarter report 5 years ago?

Net sales increased by SEK 1,865.2 million from SEK 3,014.1 million to SEK 4,879.3 million and all quarters have had growth. At the same time, operating result increased by SEK 156.8 million from SEK 137.8 million to SEK 294.6 million and result for the period by SEK 119.1 million from SEK 85.0 million to SEK 204.1 million. Sales increased by 62 %, operating result by 114 % and result for the period by 140 %. Despite annual dividends, we have increased equity by SEK 1,514 million and kept the equity ratio almost intact. The return on equity has increased from 5.3 % to 7.6 % and on capital employed from 4.9 % to 6.3 %. The number of employees has increased by 18.6 % or 406 persons to 2,592 persons. This is a development we feel proud of!

THE FUTURE

We stand strong going forward! We want to continue growing and we will grow even in 2020 - but we are changing the focus somewhat. Our main focus for 2020 is to increase the operating margin and to simultaneously strengthen the balance sheet further by focusing on a good cash flow.

I look with great delight and confidence on the future!

Finally, thank you to all employees, customers, shareholders, consumers and others who make this possible!

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 7, 2019.

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SOURCE New Wave Group