GOTHENBURG, Sweden, Aug. 15, 2024 /PRNewswire/ --
PERIOD 1 APRIL - 30 JUNE 2024
- Net sales amounted to SEK 2,397.9 million, which was 4% higher than last year (SEK 2,304.5 million). Currency changes affected net sales positively by 1%.
- Operating result amounted to SEK 301.2 (363.9) million.
- Result for the period amounted to SEK 210.3 (259.6) million.
- Earnings per share amounted to SEK 1.59 (1.96).
- Cash flow from operating activities amounted to SEK 337.5 (230.1) million.
PERIOD 1 JANUARY - 30 JUNE 2024
- Net sales amounted to SEK 4,393.1 million, which was 1% lower than last year (SEK 4,440.0 million). Acquired business affected net sales by 1%.
- Operating result amounted to SEK 486.8 (677.3) million.
- Result for the period amounted to SEK 331.4 (481.8) million.
- Earnings per share amounted to SEK 2.50 (3.63).
- Cash flow from operating activities amounted to SEK 541.1 (37.0) million.
- Equity ratio amounted to 60.2 (54.9) %.
- Net debt to equity ratio amounted to 30.3 (42.8) %.
CEO COMMENTS
A strong cash flow and continued market investments lead to increased market shares and growth once again!
The quarter
The market was considerably weaker than we had previously assessed. That assessment was made based on a potential interest rate cut and possible future interest rate cuts which would boost sales, however that was not the case. Our current evaluation is that the promo market decreased by 5-10% depending on the country and that the retail trade continued to experience similar challenges and reductions.
We foresee a temporary weakness in the market and will continue our market investments as opportunity to take market shares. Currently our confirmed orders are also looking better than last year.
Despite these challenges, we were able to achieve a growth of 4%, 3% of the growth was organic and 1% was in currency and acquired business. Such strong performance meant continued building market shares and a net turnover that amounted to SEK 2,397.9 (2,304.5) million, which provided a new "all time high" for a second quarter.
We continue to deliver a strong gross profit margin which amounted to 49.0 (49.5) %. However, the operating result declined from SEK 363.9 million to SEK 301.2 million, partially due to overall increased costs and also increased market investments. Cash flow from current operations improved by SEK 107.4 million and amounted to SEK 337.5 (230.1) million.
Half the year
In 6 months, we saw a reduction in sales of SEK 46.9 million or 1%, which in the first half of the year means that we continue to take market shares - although I am far from satisfied with the overall outcome. Operating result decreased by SEK 190.5 million and amounted to SEK 486.8 million, providing an operating margin of 11.1%. The decrease in profit is attributable to similar challenges experienced during second quarter. Cash flow from operating activities also improved during the first half of the year and amounted to SEK 541.1 (37.0) million.
Rolling 12 months
On a rolling full-year basis, net sales amounted to SEK 9,466.0 million with an operating result of SEK 1,386.6 million, which gave an operating margin of 14.6%.
Cash flow and balance sheet
As previously stated, we have a strong cash flow which continues to provide us a very strong balance sheet. The equity ratio amounts to 60.2 (54.9) %, which supports a very strong position going forward.
Future
I feel confident in saying that I am optimistic about a bright future ahead! In the short term, we likely will see some turbulence with the ongoing war in Ukraine, elections in the USA, the crisis in the Middle East, etc. We have the benefit of our strong market position and balance sheet to give us an advantage in the longer term.
Historically, we have gone through difficult times and have emerged stronger than ever and we will do it again! We will be able to use our brands, our organization, our balance sheet and our experience to continue to take market shares and continue to look at acquisitions for new growth.
We continue to work tirelessly to create a much larger, more profitable and more successful New Wave in the same way as we have always done.
Torsten Jansson, CEO
FOR MORE INFORMATION, PLEASE CONTACT:
CEO and Group CEO
Torsten Jansson
Phone: +46 31-712 89 01
E-mail: [email protected]
Deputy CEO
Göran Härstedt
Phone: +46 (0) 70- 362 56 11
E-mail: [email protected]
CFO
Lars Jönsson
Phone: +46 31-712 89 12
E-mail: [email protected]
This information is information that New Wave Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons detailed above, at 7.00 a.m. CET on August 15, 2024.
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The following files are available for download:
https://mb.cision.com/Main/932/4024340/2944946.pdf | Q2_NWG_2024_EN_Aug_15_LQ 1 |
https://mb.cision.com/Public/932/4024340/b85106de1b660546.pdf | Q2 2024 ENG NWG Pressrelease |
SOURCE New Wave Group
