CAPITAL TIED UP
REPORTING OF
OPERATING SEGMENTS
Capital tied up in inventory amounted to SEK 3,280.6 million
and has increased by SEK 534.5 million compared to last year
(SEK 2,746.1 million). The increase is related to the Group's
continued buildup of inventories in Canada as well as new product
lines in the promo sales channel. In addition, the currency exchange
rates increased the value by SEK 93.2 million. The Group has a
well-balanced stock and a good level of service. The stock value is
expected to be at a higher level even in the coming quarter due to
our extended promo range. Stock turnover is on the same level as
last year and amounted to 1.0 (1.1).
New Wave Group AB divides its operation into the segments
Corporate Promo, Sports & Leisure, and Gifts & Home
Furnishings. The Group monitors the segments’ and brands’ sales
and EBITDA. The operating segments are based on the Group's
operational management.
CORPORATE PROMO
Net sales for the third quarter increased by 25 % and amounted to
SEK 687.6 (551.2) million. EBITDA increased by SEK 5.5 million
and amounted to SEK 55.4 (49.9) million. It is the promo sales
channel that increased. Sales increased in most of our regions. The
improved result is related to the increased net sales but the segment
also has higher overhead costs in the form of increased sales and
marketing activities together with expansions and improvements
in distribution centers.
SEK million
Raw materials
Work in progress
Goods in transit
Merchandise on stock
Total
Net sales for the period January - September increased by 15 % and
amounted to SEK 2,091.5 (1,819.8) million. EBITDA increased
by SEK 29.0 million and amounted to SEK 208.1 (179.1) million.
The increase in net sales 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 has increased and the
improvement occurs in all regions. The improved result is mainly
related to the increase in sales.
2018-09
39.6
15.7
227.9
2 997.4
3 280.6
2017-09
33.3
8.0
208.0
2 496.8
2 746.1
Inventories were written down by SEK 120.2 (103.6) million
and write-down related to merchandise on stock amounted to
3.9 (4.0) %.
Accounts receivable amounted to SEK 1,089.1 (902.4) million
where growth is mainly related to the higher turnover.
SPORTS & LEISURE
Net sales for the period July-September increased by 15 % and
amounted to SEK 707.9 (616.8) million. EBITDA decreased by
SEK 20.6 million and amounted to SEK 78.3 (98.9) million.
Sales increased in both sales channels where promo increased by
20 % and retail by 13 %. We had growth in most of the regions.
The lower result is related to higher costs for sales and marketing
activities.
Net sales for the first nine months of this year increased by 6 % and
amounted to SEK 1,823.6 (1,714.7) million. EBITDA decreased
by SEK 26.7 million and amounted to SEK 133.9 (160.6) million.
Sales increased primarily in the promo sales channel. The segment
had growth in most of the regions. The lower result is related to
higher costs but the segment also had an increase in the gross
profit margin.
GIFTS & HOME FURNISHINGS
Net sales for the third quarter decreased by 5 % and amounted to
SEK 155.6 (163.0) million. Sales decreased in both sales channels.
The regions of Sweden and USA decreased while the Nordic
region (excluding Sweden) increased its sales. EBITDA was lower
compared to last year and amounted to SEK 3.9 (10.5) million,
which is attributable to the lower net sales.
Net sales for the period January - September amounted to SEK
432.1 (432.4) million. Sales increased in the promo sales channel
but decreased somewhat in retail. EBITDA amounted to
SEK -12.3 million which was SEK 16.3 million lower than last
year (SEK 4.0 million). The decrease is mainly related to additional
marketing activities and hence higher costs but also a slightly
lower gross profit margin.
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