Interim report for New Wave Group AB (publ) JANUARY–JUNE 2012
1 April–30 June 2012
• Sales amounted to SEK 1 075 million, which was 5% higher than last year (SEK 1 021 million).
• Acquired units contributed by SEK 95 million in turnover and SEK 2.6 million in result after tax.
• Operating profit amounted to SEK 58.7 million (SEK 72.7 million).
• Result after tax amounted to SEK 33.3 million (SEK 37.3 million).
• Earnings per share amounted to SEK 0.50 (SEK 0.55).
• Cash flow from operating activities improved by SEK 106.6 million and amounted to SEK 132.8 million (SEK 26.2 million).
1 January–30 June 2012
• Sales amounted to SEK 2 050 million, which was 5% higher than last year (SEK 1 948 million).
• Acquired units contributed by SEK 158 million in turnover and SEK -4.6 million in result after tax.
• Operating profit amounted to SEK 61.3 million (SEK 90.4 million).
• Result after tax amounted to SEK 25.1 million (SEK 43.0 million).
• Earnings per share amounted to SEK 0.38 (SEK 0.63).
• Cash flow from operating activities improved by SEK 294.2 million and amounted to SEK 177.8 million (SEK -116.4 million).
• Equity ratio amounted to 43.4% (43.8%).
• Net debt to equity ratio amounted to 83.4% (83.3%).
VIEWS ON 2012
For 2012 we expect a higher turnover and a result around the 2011 outcome. The sales growth in the latter part of the first half of 2012 does, however, make the forecast more uncertain than before and if the development does not improve, turnover is expected to be around the 2011 outcome and the result slightly lower than last year’s outcome.
After the second quarter we can now say that the economic development in Europe has been weak and has affected us more than we anticipated. Particularly the promo sales channel has worsened, a development we did not foresee. We had in our calculations believed in a weak market in Southern Europe, but unfortunately the entire promo market is decreasing in Central and Northern Europe as well. Geographically speaking, we are really only pleased with the USA who are more or less on track.
Unfortunately, it is my belief that we will have a weak market development for the rest of the year and probably also in 2013. This means that we will have to make additional cutbacks to decrease our costs. In addition to lower sales, a tough market also affects the gross profit. Our prognosis is uncertain and if we are to fulfil it the market cannot decrease further. Developments in the beginning of the third quarter have been weak.
What I find positive is our cash flow, our well-balanced stock and strong balance sheet. I also make the assessment that we actually are winning promo market shares, despite lower sales. Sports & Leisure has gone about as planned during the quarter and in the Gifts & Home Furnishings segment, we see that our cost-cutting measures are starting to pay.
So despite the current situation, I have great hopes for the future – we have a better and stronger management team than ever – and we will continue to grow and create value.
FOR MORE INFORMATION, PLEASE CONTACT:
Managing Director Torsten Jansson
Phone: +46 31 712 89 01
Financial Manager Lars Jönsson
Phone: +46 31 712 89 12
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. It was released for publication at 7 am (CET) on 22 August 2012.