YEAR-END REPORT NEW WAVE GROUP AB
PERIOD 1 OCTOBER – 31 DECEMBER 2017
- Net sales amounted to SEK 1,630.3 million, which was 5 % higher than last year (SEK 1,548.6 million).
- Operating result amounted to SEK 172.5 (167.0) million.
- Result for the period amounted to SEK 146.8 (127.8) million.
- Earnings per share amounted to SEK 2.20 (1.90).
- Cash flow from operating activities amounted to SEK 134.5 (280.9) million.
PERIOD 1 JANUARY – 31 DECEMBER 2017
- Net sales amounted to SEK 5,597.3 million, which was 7 % higher than last year (SEK 5,237.1 million).
- Operating result amounted to SEK 469.1 (400.2) million.
- Result for the period amounted to SEK 354.0 (276.7) million.
- Earnings per share amounted to SEK 5.34 (4.16).
- Cash flow from operating activities amounted to SEK 207.8 (448.9) million.
- Equity ratio amounted to 50.8 (48.4) %.
- Net debt to equity ratio amounted to 54.1 (62.1) %.
The Board of Directors has decided to propose to the Annual General Meeting a dividend of 1.70 (1.35) SEK per share equal to SEK 112.8 (89.6) million.
It is with great pleasure and pride that I look back at 2017
OCTOBER - DECEMBER
The quarter offered continued growth and amounted to 5 % (8 % in local currency), and a further increase in operating result. An all-time high for both sales and operating result for a fourth quarter which is pleasing. It also feels stable and positive that we had growth in all our segments. Both external and personnel costs increased as planned and are mainly due to the increase in sales forces and marketing which are investments for future growth. Among other things, we launched our expanded marketing in the United States in the quarter, and our new warehouse in Toronto became fully operational which has been very well received by customers in Canada.
2017 was yet another great year! Sales increased by 7 % to 5,597 MSEK which is a new "all-time high". Operating result increased by 17 % to 469 MSEK and even this was an all-time high. If you look back, we have now delivered growth in 15 of the 16 most recent quarters and gone from 4,274 MSEK in sales 2014 to 5,597 MSEK in 2017. At the same time, operating result increased in 13 of the past 14 quarters and has gone from 250 to 469 MSEK – a development we should be proud of. During the year we have also strengthened the balance sheet and for the first time we have over 3 billion SEK in shareholders' equity and the equity ratio is the highest ever with 50.8 %. Gratifyingly, all key performance indicators presented in 2017 improved.
I look with great confidence and joy into the future. We are very strong in almost all areas and we are well prepared. We have invested, and continue to invest, intensively in our brands and continually take market shares for most brands. While not least the retail sector is going through a painful process and conversion, we continue our growth. We have good growth with those customers who are working with e-commerce, and continued growth in e-commerce will likely benefit us even more as consumers increasingly want strong brands which strengthen the product.
The promo sales channel has developed very well and it is a trend that has continued for several years. We now see the positive effects of past investments in inventories and thus a high level of service, new products and aggressive marketing.
There is a lot happening within the Group and therefore it is hard to choose what to include in the CEO comments. To name but a few of the initiatives that are now underway is of course Craft Teamwear which is incredibly exciting and has received a warm reception in all markets we have launched it in. Craft's running shoes reach consumers this spring. Our warm reception by customers at the warehouse in Toronto enables us to plan for more warehouses in North America and this of course makes our expanding marketing interesting to follow.
With the launch of new product lines in Jobman and ProJob we believe in good growth here.
In conclusion, I am convinced that our growth, both in profit and sales, has only just begun. As I usually write, any single quarter can be worse due to calendar effects, that several major investments coincide in the same quarter, etc.
However, I would like to end the CEO comments in the same way as 2016; Overall, we have never been in such a favourable position compared to our competitors, no matter if we are talking financial strength, brands, products, CSR or something else!
Thank you to our employees, customers, shareholders and the Board of Directors for 2017 and I look forward to 2018 together!
Torsten Jansson, CEO
FOR MORE INFORMATION, PLEASE CONTACT:
Phone: +4631–712 89 01
Phone: +4631–712 89 12
The information in this report is that which New Wave Group is required to disclose under the Securities and Market Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) on 8 February 2018.