Interim Report New Wave Group AB (publ) JULY - SEPTEMBER 2010
The period 1 July – 30 September 2010
9 % growth in local currencies
– Sales amounted to SEK 1 061 million, which was 9 % higher than previous year in local currencies and 6 % better in SEK (SEK 1 002 million).
– Profit after tax improved by SEK 36.2 million (188 %) and amounted to SEK 55.5 million (19.3).
– Earnings per share amounted to SEK 0.83 (0.29).
– Cash flow from operating activities amounted to SEK -41.5 million (141.3).
– Equity ratio amounted to 42.4 (36.7) %.
– Net debt to equity ratio amounted to 87.9 (127.0) %.
The period 1 January – 30 September 2010
– Sales amounted to SEK 3 041 million, which was 6 % better than previous year in local currencies and 1 % better in SEK (SEK 3 005 million).
– Profit after tax improved by SEK 96.0 million (362 %) and amounted to SEK 122.5 million (26.5).
– Earnings per share amounted to SEK 1.84 (0.39).
– Cash flow from operating activities amounted to SEK 141.4 million (376.0).
Events after end quarter
– Orrefors and Karl Lagerfeld new partners for designing crystal art collection. The first collection will be launched in spring 2011 under the name of: Orrefors by Karl Lagerfeld
OUTLOOK ON 2010
Growth in the third quarter was above expectations, despite continued shortage of goods on some of the promo stock. We see an improvement in most of our major markets, but mainly in the U.S. For the rest of 2010, we expect to have a higher turnover and a better result than the outcome for 2009.
The third quarter has now passed and I feel more and more satisfied with the development. A sales growth of 9 % and an operating margin of 8 % during the quarter feel quite okay, especially with the knowledge that both sales and gross profit continue to suffer from a shortage of goods within profile, mainly for profile and working garments.
Despite a lot of hard work we have still not succeeded appreciably in filling our stock during the third quarter. We will receive quite a lot of stock for the fourth quarter, so the situation will improve, even if it would have been nice to go into a quarter which shall be the years best quarter in regards to sales, with full warehouses. The longer lead times in Asia, in combination with our major stock reductions during 2009, has unfortunately meant missed sales and a lower gross profit during 2010. Each quarter has continued to improve but has taken a considerably longer time than planned. Progress is in any case positive and we are strengthening our position and continually improving our organisation.
I am proud of our development and of the fantastic work so many of our staff has performed. We will continue working hard – and do everything we can to deliver a good fourth quarter and therefore a satisfactory year. Furthermore I am optimistic with 2011 at hand, that we really can put all our energy into sales and growth.
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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 Instruments Trading Act. Released for publication 12 November, 2010 at 7 am (CET).