Interim Report New Wave Group AB (publ)


Period 1 January – 31 March 2016

  • Sales amounted to SEK 1,131 million, which was 3% higher than last year (SEK 1,096 million).
  • Operating profit amounted to SEK 8.1 (1.8) million.
  • The periods result amounted to SEK -4.6 (-10.9) million.
  • Earnings per share amounted to SEK -0.06 (-0.17).
  • Cash flow from operating activities amounted to SEK 63.9 (-28.9) million.
  • Equity ratio amounted to 46.2 (45.8)%.
  • Net debt to equity ratio amounted to 75.0 (79.1)%.

2016 has started more or less as expected. Sales are the highest ever for a first quarter and grew by 3% (4% in local currencies) to SEK 1,131 million. The retail sales channel has had a tough winter with very mild weather which was also reflected by stagnant sales. With a good selling-in for autumn and the fact that Craft in the fourth quarter will launch ”Team Wear” for football, floorball and handball, we are confident that we will have decent growth even here in the autumn. The promo sales channel shows tremendous strength with growth of 6%, which is met by a growth of 30% from the previous year. With promo we are strengthening our position in most product categories and markets for every day that passes and the position we have now gained over the last one and a half years, we will be able to harvest long into the future.

Operating profit improved by SEK 6.3 million to SEK 8.1 million which is perfectly okay even though we expected a few million more.

I regard the balance sheet as very strong with an equity ratio of 46.2 % and our net debt is down and next to the lowest levels we’ve ever had. This provides excellent opportunities for further expansion.

I am very confident for the coming quarters and years. We shall now be able to start delivering increasing results but also have decent growth. My organisation and I are incredibly motivated to deliver!



During the first quarter of the year the Group increased its sales by 3% (4% excluding currency fluctuations) compared with last year. Our investments in higher delivery reliability and new products, primarily in the promo sales channel, have continued and it is here we see an increase in turnover. The Corporate Promo segment increased its sales by 8% and it is the promo sales channel, mainly in the regions of Sweden and Europe that the increase occurs. Sports & Leisure sales were unchanged compared to last year, but we see a positive development in promo while retail development was negative. Even Gifts & Home Furnishings sales are on a par with the last year and that applies to both sales channels. Totally our promo sales channel increased by 6% while retail had the same turnover as last year.

Our gross profit margin was on par with last year and amounted to 45.5 (45.7)%. We have a good level of service and the respective margin for each segment shows a slight improvement in Gifts & Home Furnishings and a slightly lower margin in Corporate Promo (due to changes in the product mix). Sports & Leisure’s gross profit margin remains unchanged.

The Group’s external costs have increased compared to last year, which is related to the increased investments in sales and marketing as previously announced. The increase in personnel costs is related to more employees, primarily in sales and customer service. These costs will increase even in the coming quarters as we get the full-year effect of 2015 year’s employments.

Operating profit increased by SEK 6.3 million compared with last year, reflecting the higher turnover but also as last year include non-recurrent costs in the form of currency losses. Financial expenses have decreased which is due to a minor acquisition last year.

Cash flow from operating activities amounted to SEK 63.9 (-28.9) million. The improved cash flow is attributable to positive changes in working capital. Inventories, however, increased by SEK 68 million and amounted to SEK 2,495 (2,427) million. Exchange rate fluctuations have reduced the value by SEK 67 million. Net debt decreased by SEK 104 million and amounted to SEK 1,870 (1,974) million, of which SEK 73 million is related to changes in exchange rates. Net debt also decreased and as of 31 March amounted to 75.0 (79.1)%.


Sales amounted to SEK 1,131 million, which was 3% higher than last year (SEK 1,096 million). Currency exchange rates negatively affected sales by SEK 9 million (-1%).

The operating segment Corporate Promo increased by 8%, Sports & Leisure as well as Gifts & Home Furnishings were on par with last year. Of the Group’s sales channels, promo increased by 6% while retail sales was unchanged.

Turnover in Sweden was unchanged compared with last year. However, the promo sales channel increased by 7% and retail decreased by 7%. The USA increased slightly which is attributable to the promo sales channel. Other Nordic countries were at the same level as last year but the Danish and Finnish markets grew and even here it was the promo sales channel that increased. The Norwegian market decreased in both sales channels. Sales in Central and Southern Europe have increased by 13% and 10% respectively, which is related to the promo sales channel.

The gross profit margin was slightly lower than last year and amounted to 45.5 (45.7)%.

Other operating income increased by SEK 0.1 million to SEK 9.4 (9.3) million. Other operating income is mainly attributable to operating currency gains but also invoiced expenses and should be compared to the result row ”Other operating expenses” where mainly operating losses are reported. Other operating expenses decreased by SEK 12.9 million and amounted to SEK -5.6 (-18.5) million. The net total of the above items amounted to SEK 3.8 (-9.2) million, where the improved earnings is primarily attributable to last years foreign exchange losses associated with the Swiss Franc as it abandoned its euro cap.

External costs increased by SEK 9.7 million and amounted to SEK -279.8 (-270.1) million. The increase is related to increased investment in sales and marketing.
Personnel costs amounted to SEK -217.4 million, which is SEK 12.1 million higher than last year (SEK -205.3 million). The increase is related to an increased number of employees, mainly within sales, customer service and marketing.

Depreciation increased slightly compared with last year and amounted to SEK -13.2 (-14.9) million.

Operating margin amounted to 0.7 (0.2) % where the improvement is related to the higher turnover and lower other operating expenses.

Net financial items amounted to SEK -13.8 (-15.1) million. The improvement is due to the fact that last year included expenses of SEK 2.9 million in connection with a minor acquisition.

Tax for the period amounted to SEK 1.1 (2.4) million.  

Result for the period amounted to SEK -4.6 (-10.9) million and earnings per share amounted to SEK -0.06 (-0.17).

New Wave Group AB divides its operations into segments - Corporate Promo, Sports & Leisure, and Gifts & Home Furnishings. The Group monitors the segments’ and brands’ sales and profit (EBITDA). The operating segments are based on the Group’s operational management.

Turnover increased by SEK 38 million and amounted to SEK 505 (467) million. The result (EBITDA) amounted to SEK 13.5 (9.1) million. The increased turnover is due to increased sales and marketing activities, as well as an improved inventory structure and level of service. The increase occurred in the promo sales channel and in particular in the regions of Sweden, Europe and the USA. The improved result is related to the increased turnover but has also been negatively affected by increased costs for sales and marketing as well as a somewhat lower gross profit margin (product mix).

Turnover for the first quarter amounted to SEK 520 (523) million. The result (EBITDA) amounted to SEK 22.0 (24.6) million. Sales increased somewhat in regards to promo while retail’s sales decreased. Regions in Europe increased while Sweden and other Nordic countries decreased. The slightly lower profit is related to turnover.

Sales in the segment are on par with last year and amounted to SEK 106 (106) million. Sales are at the same level in both sales channels. The result (EBITDA) amounted to SEK -14.2 million which was SEK 2.8 million better than last year (SEK -17.0 million). The improvement in earnings is due to an improved gross profit margin.

Capital tied up in inventories increased by SEK 68 million compared with last year’s first quarter. Total inventories amounted to SEK 2,495 (2,427) million, of which changes in exchange rates have decreased stock value by SEK 67 million. The increase is a planned increase and is mainly related to the sales channel promo and its supplementary purchases within its basic range and new basic collections. The turnover rate in inventories is at the same level as last year and amounted to 1.0 (1.0). The inventory value is expected to be at a slightly higher level than in the past, even in the coming quarters, mainly because of our extended Corporate Promo range.

SEK million 2016-03 2015-03
Raw materials 29.0 22.6
Work in progress 5.0 2.9
Goods in transit 109.9 104.4
Merchandise on stock          
2 351.0 2 297.0
Total 2 494.9
       2 426.9

Inventories were written down by SEK 112 (108) million, of which SEK 8 (11) million relates to raw materials. Write-down related to merchandise on stock amounted to 4.2 (4.1) %.

Accounts receivable amounted to SEK 729 (778) million. The decrease is mainly related to a lower exchange rate for the conversion into SEK.

Consolidated cash flow from operating activities improved by SEK 92.8 million and amounted to SEK 63.9 (-28.9) million. This is due to an improvement of our working capital compared with the corresponding period last year. The cash net investments amounted to SEK -16.5 (-26.3) million.

Net debt decreased by SEK 104 million to SEK 1,870 (1,974) million, which is mainly related to changes in foreign exchange rates. Exchange rates have reduced debt by SEK 73 million. Our net debt in relation to shareholders’ equity and working capital has decreased and amounted to 75.0 (79.1)% and 71.1 (72.9)% respectively.

The equity ratio has improved slightly in relation to last year and as of 31 March amounted to 46.2 (45.8)%.

The Group signed a new financial agreement on 10 February. The total credit facility amounts to SEK 2,616 million of which SEK 2,250 million has a term of three years and USD 45 million has a term of eight years. Interests as well as the covenants are unchanged compared to the previous agreement. The credit facility amount is limited to and dependent on the value of some underlying assets. The funding agreement means that financial ratios (covenants) must be fulfilled in order to maintain the agreement. Interest is based on each respective currency’s base rate and fixed margin.

Based on the present forecast, management estimates that the Group will be able to meet these covenants with sufficient margin.

The number of employees as of 31 March 2016 amounted to 2,398 (2,264), of whom 51% were female and 49% were men. Of the total number of employees 602 (566) work in production. The production contained within New Wave group is attributable to Ahead (embroidery), Cutter & Buck (embroidery), Dahetra, Orrefors Kosta Boda, Paris Glove, Seger, Termo and Toppoint.
There are lease agreements with related companies. Related companies to the Managing Director have bought merchandise and received payments for consulting services performed. There are transactions with related parties for insignificant amounts. All transactions are on market terms.

Total income for the first quarter of the year amounted to SEK 24.5 (31.5) million. Result before appropriations and tax amounted to SEK 25.3 (-5.3) million. The improvement in earnings is related to repayment of previously written-down shares in Group companies. Net borrowing amounted to SEK 1,753 (1,913) million, of which SEK 1,547 (1,707) million relates to the financing of subsidiaries. Net investments amounted to SEK 30.0 (-1.7) million. The balance sheet total amounted to SEK 3,627 (3,576) million and shareholders’ equity, including 78% of untaxed reserves, to SEK 1,241 (1,314) million.
New Wave Group’s international operations mean that it is continuously exposed to various financial risks. The financial risks are currency, borrowings and interest rate risks, as well as liquidity and credit risks. In order to minimize the affect these risks may have on earnings, the Group has established a financial policy. For a more detailed description of the Group’s risk management please refer to the Annual Report 2015;

The Group’s policy is to have short fixed-interest agreements resulting in quick effects on the Group’s net interest as the short-term interest rate changes.

The Group’s reported risks are deemed to be essentially unchanged.
This report is prepared in accordance with IAS 34 Interim Report and the Annual Accounts Act.

No new or revised IFRS which came into force 2016 has had any significant impact on the Group.

The interim report for the parent company has been prepared according to the Annual Accounts Act as well as the Swedish Financial Accounting Standards Council’s recommendation RFR2 - Accounting for Legal Entities. Applied accounting policies are in accordance with the Annual Report for 2015.
The Annual General Meeting will be held on 11 May at 13.00 in Kosta. The annual report will be available at the company’s headquarters in Göteborg, as well as on its website
The Group’s dividend policy is that 40% of the Group’s net profit will be distributed over a business cycle. The Board has decided to propose a dividend of 1:00 (1.00) per share, amounting to SEK 66.3 million. This proposal corresponds to 46% of 2015 year’s profit.
The nomination committee for the board election at the 2016 Annual General Meeting is:

  • Johan Ståhl, representative of Lannebo Fonder and Chairman of the Nomination Committee
  • Torsten Jansson, CEO and representative of Torsten Jansson Förvaltnings AB
  • Arne Lööw, representative of Fjärde AP-fonden

For more information about the nomination committee and its work, please see


  • 11 May: Annual General Meeting 2016
  • 18 August: Interim report for Q2
  • 10 November: Interim report for Q3

The Board of Directors and CEO declare that the interim report gives a true and fair overview of the company’s and group’s operations, financial position and earnings, and describes the significant risks and uncertainty factors that the company and the companies included in the group face.


Anders Dahlvig Christina Bellander M Johan Widerberg
Chairman of the Board    
Member of the Board    
Member of the Board
Helle Kruse Nielsen Mats Årjes Torsten Jansson
Member of the Board Member of the Board CEO


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 Market Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) on 21 April 2016.


About Us

New Wave Group is a clothing company concentrating on sportswear and casual clothes.