New Wave Group AB Annual_report_2018_EN_HQ | Page 57

NWG // FINANCIAL INFORMATION
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Board of
Directors' report
The Board of Directors and CEO of New Wave Group AB (publ), 556350-0916,
based in Gothenburg, hereby submit the financial statements and consolidated
financial statements for the financial year 1 January 2018 to 31 December 2018.
16%
Increase in
net sales
Corporate*
11%
Increase in
net sales
Sports & Leisure
2%
Increase in
net sales
Gifts & Home
Furnishings
New Wave Group is a growth
company that creates, acquires
and develops brands. Our
brands are categorized into three
operating segments: Corporate*,
Sports & Leisure and Gifts &
Home Furnishings. The Group will
achieve synergies by coordinating
the design, purchasing, marketing,
warehousing, and distribution of
the product range. To ensure good
allocation of risks, the Group will
offer its products in the promo
market and the retail market.
New Wave Group’s competitiveness lies primarily in
its strong brands, considerable expertise, high level
of service, and a well-developed overall concept.
Products are primarily manufactured in Asia, and
to a lesser extent in Europe. Thanks to its relative
size, New Wave Group has good purchasing prices
and efficient logistics. The Group’s most well-known
wholly-owned brands include AHEAD, Auclair,
Clique, Cottover, Craft, Cutter & Buck, Grizzly,
J. Harvest & Frost, James Harvest Sportswear,
Jobman, Kosta Boda, Orrefors, PAX, Projob,
Sagaform, Seger and Toppoint.
Summary of 2018
Net sales increased by 12 % (9 % excluding currency
changes) compared to last year. The Group has expe-
rienced growth in each quarter and has also increased
sales in all regions and in both sales channels.
Segment Corporate* increased by 16 %, which
is a result of our efforts regarding good delivery
service and expanded marketing activities. Besides
a well-balanced stock, we have invested in larger
warehouses, as well as better IT systems to improve
our level of service. In addition, we have launched a
* The segment Corporate Promo has been renamed to Corporate.
number of new products, among others within work
wear, which strengthens our overall product port-
folio in the segment.
Within Sports & Leisure a number of invest-
ments in Craft have started to take effect. Craft's
Teamwear development continues and has during
the year been named best supplier within the
category "Team Sports" by the German magazine
SAZ Sport. Besides all the smaller clubs and associa-
tions that make up our base, there are even a number
of major European football clubs such as Dresden,
Darmstadt, Zwolle and Gent who have chosen to
play in Craft's products. In Sweden we have signed an
agreement with Hammarby football. Craft has also
signed a three year agreement with Spartan USA.
Spartan stages 287 obstacle course races per year in
32 countries, of which about 150 are in the United
States. The agreement covers both clothes and shoes
and has an estimated sales value of USD 30 million
during the three-year agreement term. The agre-
ement may be regarded as a breakthrough for the
brand in the United States. Within Cutter & Buck
we will continue expanding our sales organization in
the United States, but also strengthen our operations
in Canada and Europe. The segment has increased
its marketing activities during the year and all in all,
the efforts produced results. Sales for the segment
have increased by 11 % for the whole year, however,
growth was 20 % in the second half.
Gifts & Home Furnishings had a growth of 2 %,
despite the fact that the hot weather did not favour
the all-important summer months of activities at
Kosta. The segment has made a number of start-ups
and has expanded marketing efforts which have
burdened this year’s result.
The promo sales channel increased its net sales
by 16 % and the retail sales channel by 8 %. The sales
and marketing efforts made during the year have
been geared toward both sales channels.
ANNUAL REPORT // 057