GOTHENBURG, Sweden, August 17, 2022 /PRNewswire/ —
PERIOD 1 APRIL – 30 JUNE 2022
- Net sales amounted to SEK 2,019.2 million, 36% (30% in local currencies) more than last year (SEK 1,486.8 million).
- The operating result amounted to 351.0 (241.3) million SEK.
- The result for the period amounted to SEK 265.0 (187.7) million.
- Earnings per share amounted to SEK 3.99 (2.84).
- Cash flow from operating activities amounted to SEK 68.1 (185.3) million.
PERIOD 1 JANUARY – 30 JUNE 2022
- Net sales amounted to SEK 3,794.1 million, 38% (32% in local currencies) more than last year (SEK 2,748.4 million).
- The operating result amounts to 560.1 (341.5) million SEK.
- The result for the period amounted to 418.5 (255.4) million SEK.
- Earnings per share amounted to SEK 6.31 (3.88).
- Cash flow from operating activities amounted to SEK 73.3 (552.5) million.
- The equity ratio stands at 59.0 (58.9)%.
- The net debt to equity ratio was 27.0 (31.2)%.
New record quarter
It is with pride and joy that we can present another record quarter with strong growth in terms of both sales and results. Sales have now increased for eight consecutive quarters and we are posting an all-time high for both net sales and operating income for the sixth consecutive quarter.
Net sales for the quarter increased from SEK 1,486.8 million to SEK 2,019.2 million, a growth of SEK 532.4 million or 36%. In local currencies, the growth amounts to 30%.
The operating result increased from SEK 241.3 million to SEK 351.0 million, an increase of SEK 109.7 million or 45%. As previously reported for the second quarter of 2021, we received deferred government PPP loans in the US of SEK 42.5 million. If you exclude them from the results of the previous year, this amounts to 198.8 million SEK, and the real improvement in profits is then 152.5 million SEK or 77%.
The operating margin amounted to 17.4% for the quarter, which is also an all-time high.
All markets posted growth except for the Other countries zone, which is explained by the decline in trade in Asia. The USA and Central Europe stand out with respective growth of 62% and 52%. The United States is again our largest market.
Our two sales channels experienced good growth with 33% in promotion and 40% in retail.
The first two quarters of the year produced sales growth of 38%, in local currencies of 32%. Net sales amounted to SEK 3,794.1 million compared to SEK 2,748.4 million the previous year, a growth of SEK 1,045.7 million. The operating result increased from SEK 341.5 million to SEK 560.1 million or 64%. The operating margin thus stood at 14.8% in the first half against 12.4% for the same period of the previous year.
12 rolling months
On a rolling full-year basis, net sales now amount to SEK 7,764.3 million with an operating result of SEK 1,224.5 million and an operating margin of 15.8%.
Cash and balance sheet
We have increased inventory to meet growing demand. Accounts receivable have increased due to sales growth and we have distributed MSEK 547 in dividends over the past seven months to shareholders. Considering these elements, our balance sheet remains very strong with an equity ratio of 59% and an equity balance of over SEK 5 billion. This gives us great security and great opportunities for expansion.
Despite all the current challenges in the world around us, our figures show that our investments continue to bring success. We are currently not seeing any decline in demand for our products and brands, quite the contrary. Our sales continue to increase. We have now managed to build inventory during the second quarter, but further stock building is required to meet growing demand. We also know that we have good growth (42%) in base Craft orders for the fall. More and more customers are starting to sell our shoes, and the Teamwear investment continues to produce good results. I also want to highlight Clique, which is increasing its promotional sales considerably, and Cutter & Buck, which has become a growth machine in both Europe and the United States.
I am convinced that we are now taking market share in most areas. In the event of an economic downturn, we are well positioned to continue to take market share and show growth. In addition, we have both higher profitability and a stronger balance sheet than most competitors, which opens the door to potential acquisitions at more reasonable prices. In recent years, we have had to refrain from acquiring due to excessive price expectations.
Finally, a big thank you to our entire organization who did a great job and a big thank you to all the customers who choose our products.
Torsten Jansson, CEO
FOR MORE INFORMATION PLEASE CONTACT:
Group CEO and CEOTorsten Jansson Telephone: +46 31–712 89 01 Email: [email protected]
Deputy General Director Göran Härstedt Telephone: +46 (0) 70– 362 56 11 E-mail: [email protected]
CFO Lars JönssonPhone: +46 31–712 89 12E-mail: [email protected]
This information is information that New Wave Group AB is required to make public in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the contact persons listed above, at 7:00 a.m. CET on August 17, 2022.
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SOURCE New Wave Group