GOTHENBURG, Sweden, Nov. 7, 2024 /PRNewswire/ --
PERIOD 1 JULY - 30 SEPTEMBER 2024
- Net sales amounted to SEK 2,308.3 million, which was 1% lower than last year (SEK 2,337.0 million). Currency changes affected net sales negatively by 3%.
- Operating result amounted to SEK 312.8 (381.1) million.
- Result for the period amounted to SEK 204.1 (270.9) million.
- Earnings per share amounted to SEK 1.54 (2.04).
- Cash flow from operating activities amounted to SEK 191.4 (173.3) million.
PERIOD 1 JANUARY - 30 SEPTEMBER 2024
- Net sales amounted to SEK 6,701.4 million, which was 1% lower than last year (SEK 6,777.0 million). Currency changes affected net sales negatively by 1%.
- Operating result amounted to SEK 799.7 (1,058.4) million.
- Result for the period amounted to SEK 535.6 (752.7) million.
- Earnings per share amounted to SEK 4.04 (5.67).
- Cash flow from operating activities amounted to SEK 732.6 (210.3) million.
- Equity ratio amounted to 60.7 (55.8)%.
- Net debt to equity ratio amounted to 29.3 (40.2)%.
CEO COMMENTS
It is very reassuring that we continue to take market shares in a tough market.
July - September
Net sales in local currencies increased by 2%. It is very reassuring that we continue to take market shares in a tough market, although I am not at all satisfied with our results. As an example, in Sweden the Sportindex decreased by 1.5% during the third quarter and it was the 11th quarter in a row with negative figures. The home furnishing index was minus 9% in the quarter, even though it was also minus 1% in 2023, a total decrease of 10% compared to the third quarter of 2022. We also estimate that the Promo market declined by around 7-9%, confirming that it was indeed a very challenging quarter. Overall, however, we are in a very strong position and will continue with our market investments.
Operating result
Operating result decreased from SEK 381.1 million to SEK 312.8 million and the operating margin for the quarter was 13.6%. The reduction is due to a combination of non-recurring income in the previous year and increased wage costs. We also continue to invest aggressively in all markets, and in particular in Germany and the USA.
A significant reason that we are still able to deliver a solid operating result in a difficult environment, even though we continue our investments, is due to our stable gross profit margin. During the quarter, gross profit margin amounted to 48.8%, which was 0.2% better than the previous year, even though many competitors are in price wars in an attempt to maintain volumes and turnover.
January - September
In terms of sales, this period was as challenging as the third quarter. In local currencies, net sales were comparable to the previous year, which is significantly better than the market performance, and we continue to gain market share. I believe that we should be able to do even better! My focus and that of many others in the short term is finding new customers and new markets. We will continue to develop and invest in Germany and the USA. We must outperform the rest of the market. Operating result fell from SEK 1,058.4 million to SEK 799.7 million impacted by many different factors, one of which is that we continue to be aggressive, invest and take market shares. I feel completely confident that this approach will have a positive effect on the future turnover and results.
Cash flow & balance sheet
The cash flow from operating activities in the quarter improved from SEK 173.3 million to SEK 191.4 million and for the period January - September as much as SEK 522.3 million to SEK 732.6 (210.3) million. The equity ratio is now 60.7% and a record high, and the indebtedness is very low. In the last nine months, I have experienced some impatience among our investors and shareholders that we are not aggressively using our strong financial position for acquisitions. We are in position to and plan to acquire, but NEVER for just short term growth. Our acquisitions must create long-term shareholder value and add value to the group for our customers in both the short and long term. We continue to actively look for acquisition opportunities.
The future
I feel calm, safe and optimistic about the future, however I don't anticipate the economy in general will be growing much momentum in the short term. We also live in a troubled and unsettled world that affects us all. However what we have control over is continuing to manage a strong New Wave organization. We will continue our strategies to take market shares, invest in all of the countries and their operations with an emphasis in the Teamwear product area and in Germany and the USA. These investments will reduce the result in the short term, but in the slightly longer perspective create good values for our shareholders. In the short term, I don't think we'll see any turnaround in the market in general. I think we will likely see a few more challenging quarters, although of course I hope I'm wrong.
Finally, we have a very solid organization. Compared to our competitors, we have a high level of service, high quality products and strong brands. We also have a strong balance sheet and an outstanding team. We intend to continue building New Wave into an even bigger, better and more profitable company!
Please join us on the continued journey and thank you all!
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 November 7, 2024.
If you want to sign up for, or unregister from, future messages from New Wave Group, please send an email to [email protected].
This information was brought to you by Cision http://news.cision.com
https://news.cision.com/new-wave-group/r/interim-report-for-the-third-quarter-2024-new-wave-group-ab,c4062323
The following files are available for download:
https://mb.cision.com/Main/932/4062323/3098037.pdf | Q3_NWG_2024_EN_Nov_6_LQ |
https://mb.cision.com/Public/932/4062323/b44a9c8ca3c6b1eb.pdf | Q3 2024 ENG NWG Pressrelease |
SOURCE New Wave Group
