INTERIM REPORT NEW WAVE GROUP AB

PERIOD 1 APRIL – 30 JUNE 2017

•  Sales amounted to SEK 1,372 million, which was 9 % higher than last year (SEK 1,257 million).
•  Operating result amounted to SEK 110.5 (100.2) million.
•  Result for the period amounted to SEK 77.0 (67.0) million.
•  Earnings per share amounted to SEK 1.16 (1.01).
•  Cash flow from operating activities amounted to SEK 50.1 (88.6) million.

PERIOD 1 JANUARY – 30 JUNE 2017

•  Sales amounted to SEK 2,636 million, which was 10 % higher than last year (SEK 2,388 million).
•  Operating result amounted to SEK 153.7 (108.3) million.
•  Result for the period amounted to SEK 101.9 (62.4) million.
•  Earnings per share amounted to SEK 1.55 (0.95) kr.
•  Cash flow from operating activities amounted to SEK 83.7 (152.5) million.
•  Equity ratio amounted to 48.6 (45.8) %.
•  Net debt to equity ratio amounted to 61.7 (75.2) %.

CEO COMMENTS

April – June
Our growth continues and sales increased 9 % including currency to SEK 1,371.7 million, which is a record for a second quarter. It is the 12th consecutive quarter of growth which we are proud of. Operating profit increased by 10 % to SEK 110.5 million, which is strong in view of the substantial investments we make in both new products and marketing.

These are strong figures, especially as we expected a negative calendar effect in this quarter due to the fact that Easter occurred during the second quarter of this year.

The balance sheet remains very strong, with an equity ratio of 48.6 %, and we also have a positive cash flow in spite of growth. 

January – June
Sales increased by 10 % to SEK 2,635.9 million, which is an all-time high.

There was also an operating profit increase of 42 % to SEK 153.7 million and profit after tax increased by a whole 63 % to SEK 101.9 million.

Delightedly, all regions and all segments are showing growth.

We also continue to grow with a positive cash flow, resulting in a very strong balance sheet where we reduced our net debt, have a low debt/equity ratio and an equity ratio of 48.6 %. The operating margin also improved compared with last year and amounted to 5.8 (4.5) %.

The future
We are now faced with some really exciting quarters and years.

CRAFT Teamwear is now starting to take off and we have signed PEC Zwolle, the Finnish floorball association, Warberg Floorball Club and Lycurgus Volleyball Club, among other elite clubs and teams. We will over the next few quarters add additional clubs in Europe. At the end of August we will open our new Canadian warehouse for Cutter & Buck and Clique. We have also made a decision on new warehouses in Germany and Belgium and to automate parts of the warehouse in Italy.

Right now, and even in January 2018, we will launch a record number of new products for ProJob and Jobman. In the first quarter of 2018, CRAFT shoes will also be out in the shops.

Even Kosta is developing well and we will continue our investments there.

We will also, as we previously reported, be starting extensive marketing in the USA at the end of this and next year.

With everything that we’ve done, and everything that we do, we are well equipped and we will definitely continue our growth.

In terms of earnings, I believe in continued growth. There can of course be single quarters which have lower growth, particularly if a lot of establishment costs end up in the same quarter. But we have now managed to achieve sales growth in 13 of the last 14 quarters, and improved operating profit in 11 of them.

Even our operating result has improved significantly since we started our major investments for the future in 2014. From SEK 255 million 2015 to SEK 400 million 2016, and now on a rolling 12 months to SEK 445 million. There is a strong trend in terms of both sales and result.

We stand strong in for the future and our journey has just begun!

Torsten Jansson, CEO

  
   
FOR MORE INFORMATION, PLEASE CONTACT:

CEO Torsten Jansson
Phone: 031–712 89 01
E-mail: torsten.jansson@nwg.se 

CFO Lars Jönsson
Phone: 031–712 89 12
E-mail: lars.jonsson@nwg.se 

The information in this report is that which New Wave Group AB 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 17 August 2017.

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