New Wave Group AB Annual_report_2018_EN_HQ | Page 60

NWG // FINANCIAL INFORMATION
Gross profit
The gross profit margin improved compared with last
year and amounted to 46.6 (46.1) %. Improvement
occurred in all segments. The Group has a well-
balanced stock and a good level of service. rate amounted to 18.5 (15.2) %. The lower tax rate
last year is primarily due to a change in deferred
tax liabilities, which was related to a change in the
corporate tax rate in the United States.
Other operating income and
Other operating expenses Result for the year
Other operating income increased by SEK 23.6
million to SEK 74.8 (51.2) million. Other operating
income is mainly attributable to operating currency
gains but also other remunerations and should
be compared to the result row Other operating
expenses where mainly operating currency losses
are reported. Other operating expenses increased by
SEK 19.6 million and amounted to SEK -44.8 (-25.2)
million. The net total of above items amounted to
SEK 30.0 (26.0) million.
Costs and depreciations
External costs have increased by SEK 207.5 million
and amounted to SEK -1,336.4 (-1,128.9) million.
The increase is primarily attributable to increased
marketing activities and improvement measures
in our distribution centers but also volume-related
costs have contributed to the increase. Personnel
costs amounted to SEK -1,063.0 million which is
SEK 122.7 million higher than last year (SEK -940.3
million). The increase is related to the increased
number of employees, mostly in sales, warehousing
and customer service. Currency changes increased
the costs by SEK 61.6 million.
Depreciations and write-downs were higher
compared to last year and amounted to SEK -77.9
(-65.3) million. The increase is primarily related to
investments in new and existing buildings as well as
IT investments.
Operating margin
The operating margin amounted to 7.7 (8.4) % where
the slightly lower margin is attributable to the cost
increases associated with increased activities in
sales and marketing as well as improvements in our
distribution centers.
Net financial items and taxes
Net financial items improved by SEK 11.0
million compared to last year and amounted to
SEK -40.9 (-51.9) million. The improvement is
related to lower interest costs. Income tax expense
amounted to SEK -81.8 (-63.2) million and the tax
060 // ANNUAL REPORT
Result for the year amounted to SEK 360.0 (354.0)
million and earnings per share amounted to SEK
5.48 (5.34).
Reporting of operating segments
New Wave Group AB divides its operations into
segments Corporate, Sports & Leisure and Gifts
& Home Furnishings. The Group monitors the
segments’ and brands’ sales as well as EBITDA. The
operating segments are based on the Group's opera-
tional management.
Corporate
Net sales for the year increased by 16 % and amounted
to SEK 3,069.0 (2,648.7) million. EBITDA increased
by SEK 63.4 million and amounted to SEK 353.1
(289.7) million. The improved turnover is due to
increased sales and marketing activities, as well as
improved inventory structure and level of service.
It is the promo sales channel that increased and the
improvement occurs in all regions. The improved
result is mainly related to the increase in turnover.
Sports & Leisure
Net sales amounted to SEK 2,573.7 (2,311.5)
million, which gives an increase of 11 %. EBITDA
decreased by SEK 12.1 million and amounted
to SEK 218.2 (230.3) million. Sales increased in
both sales channels. The segment had growth in
most regions and an improved gross profit margin.
The lower result is primarily related to higher
costs due to new employments and marketing.
Gifts & Home Furnishings
Net sales for the full year amounted to SEK 647.8
(637.1) million, which gave an increase of 2 %. Sales
increased in both sales channels. EBITDA amounted
to SEK -10.6 million which was SEK 25.0 million less
than last year (SEK 14.4 million). The lower result
is mainly related to more market activities and that
the segment made a number of new establishments
in Kosta and thus higher costs.