Year end report for New Wave Group AB (publ) January–December 2012
1 OCTOBER – 31 DECEMBER 2012
- Turnover amounted to SEK 1 176 million, which was on par with last year (SEK 1 187 million).
- Prior year’s acquired unit contributed by SEK 45 million in turnover and SEK 4.8 million in profit after tax.
- Operating profit amounted to SEK 151.7 million (SEK 130.3 million).
- Profit after tax amounted to SEK 100.7 million (SEK 82.7 million).
- Earnings per share amounted to SEK 1.51 (SEK 1.25).
- Cash flow from operating activities amounted to SEK 276.1 million. (SEK 278.3 million).
1 JANUARY– 30 DECEMBER 2012
- Turnover amounted to SEK 4 280 million, which was on par with last year (SEK 4 237 million).
- Prior year’s acquired units contributed by SEK 293 million in turnover and SEK 7.8 million in profit after tax.
- Operating profit amounted to SEK 73,1 million (SEK 326.9 million), of which restructuring costs amounted to SEK -212 million.
- Profit after tax amounted to SEK 5.8 million (SEK 199.1 million), of which restructuring costs amounted to SEK -161.5 million.
- Earnings per share amounted to SEK 0.08 (SEK 2.99).
- Cash flow from operating activities amounted to SEK 341.1 million (SEK 66.0 million).
- Equity ratio amounted 44.1 (43.5) %.
- Net debt to equity ratio amounted 77.5 (85.9) %.
THE FOURTH QUARTER
The difficult market conditions continue and in some countries worsened during this quarter. Despite this we delivered one of our best fourth quarters ever. This is due to cost savings, streamlining and of course the steps taken in Orrefors Kosta Boda. I must admit that the result beats those expectations I had when we presented the third quarter report. My concern was that there could be a big drop in sales and I also had a major concern for the gross profit margin. I am of course not satisfied with sales on par with last year, but at the same time I am sure that we are taking market shares and are performing better than our competitors in nearly all areas and regions. We are now really seeing the results of our hard work with costs. I am also very satisfied with our cash flow, which is the result of hard work and persistence especially with regard to accounts receivable and inventories.
THE YEAR 2012
I would like to sum up 2012 with the fact that despite everything I feel quite satisfied. With regard to the market conditions and economic situation, sales were not as bad as I feared. Even if a 1% sales increase, including acquisitions, is a long way from my and my colleague’s goal. In light of both the economic situation and the steps undertaken in Orrefors Kosta Boda, I would still describe the result as satisfactory.
I am pleased with our cash flow, our inventory and the fact that we have a strong balance sheet. By and large all key figures in the balance sheet are at historically peak levels - despite the poor year and Orrefors Kosta Boda’s package of measures.
Despite the good quarter, I believe it will be tough, sales wise, for at least the first half year, and maybe the whole of 2013. With regard to the result, I hope that a lot will happen during 2013. Partly because I am more or less certain that Orrefors Kosta Boda will show a positive result for the year – which was five years since the last time – and partly because we have both saved and streamlined in most areas and companies. Besides sales, the gross margin, at least in the short term, can be a threat. But even this shouldn’t be so much worse and we have an upside with regard to the gross profit in Orrefors Kosta Boda. We choose not to give a forecast for 2013 but instead we hope to deliver quarter for quarter.
No – preferably not. I love expansion, and I love growth but 2008/2009 and 2012 have taught me that we must be financially very strong, and we are nearly there. Therefore 2013 will be a year when we will prioritize the result, a further strengthening of our balance sheet and a further reduction in our debts. These are our main goals for 2013. If the economic situation and sales swing upwards faster than I expect, then we can of course expand more quickly and we will of course be back as a growth company but a secure and strong company. Even if the actual niggling is boring I believe that 2013 will give many other reasons for rejoicing.
FOR MORE INFORMATION, PLEASE CONTACT:
CEO Torsten Jansson
Phone: 031–712 89 01
CFO Lars Jönsson
Phone: 031–712 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. The information was released for publication at 7 am (CET) on 8 February, 2013.