Interim report for New Wave Group AB (publ) -  JANUARY–JUNE 2013

PERIOD 1 APRIL – 30 JUNE 2013

  • Sales amounted to SEK 995 million, which was SEK 80 million lower than last year (SEK 1,075 million).
  • Operating profit amounted to SEK 70.2 million (SEK 58.7 million).
  • Profit after tax amounted to SEK 38.9 million (SEK 33.3 million).
  • Earnings per share amounted to SEK 0.60 (SEK 0.50).
  • Cash flow from operating activities amounted to SEK 41.8 million (SEK 132.8 million).

PERIOD 1 JANUARY – 30 JUNE 2013

  • Sales amounted to SEK 1,873 million, which was SEK 177 million lower than last year (SEK 2,050 million).
  • Operating profit amounted to SEK 86.3 million (SEK 61.3 million).
  • Profit after tax amounted to SEK 39.0 million (SEK 25.1 million).
  • Earnings per share amounted to SEK 0.60 (SEK 0.38).
  • Cash flow from operating activities amounted to SEK 147.9 million (SEK 177.8 million).
  • Equity ratio amounted to 46.0% (43.4%).
  • Net debt to equity ratio amounted to 73.3% (83.4%).

   
CEO comments

MARKETING & SALES

The market remained tough in the second quarter and we see no change in Europe – nor in our largest markets such as Sweden and Norway. The only geographical area that feels stable and which may be on the way up is the USA. Meanwhile, we lost sales in the quarter due to stocks being too low for certain items e.g. t-shirt and polo.

RESULT
We have good cost control. This, together with the fact that Orrefors Kosta Boda continues to improve means that we managed a decent result. However, a result which I still am far from satisfied with. I consider several of our companies and brands are underachieving even if the market is tough. During the autumn we will continue to focus on improvements in these companies and structural changes and reorganising may be required among subsidiaries.

CASH FLOW AND WORKING CAPITAL
We still have good control over cash flow but unfortunately we have too low stocks in regards to corporate promo. We will therefore increase stocks in corporate promo during the coming quarters.

FUTURE
We expect a continued tough and difficult market in the third quarter and maybe for the rest of the year. We have not seen any signs of a turnaround in the first half year, but instead a certain deterioration. During the first half year, we have worked to prioritize results and further strengthening of our balance sheet. We will, however, during the remainder of the year increase sales and marketing efforts. While this may give slightly worse results in the coming quarters, we are convinced that it is right for the future.

Torsten Jansson
    

FOR MORE INFORMATION, PLEASE CONTACT:
Managing Director Torsten Jansson
Phone: +46 31 712 89 01
E-mail: torsten.jansson@nwg.se

Financial Director Lars Jönsson
Phone: +46 31 712 89 12
E-mail: lars.jonsson@nwg.se

The information in this report is that which New Wave Group is required to disclose under the Securities Exchange and Clearing Operations Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) on 22 August 2013.

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About Us

New Wave Group is a clothing company concentrating on sportswear and casual clothes.