KUNGÄLV, Sweden, Aug. 20, 2020 /PRNewswire/ -- NEW WAVE GROUP AB
PERIOD 1 APRIL - 30 JUNE 2020
- Net sales amounted to SEK 1,314.5 million, which was 22 % (22 % in local currencies) lower than last year (SEK 1,689.0 million).
- Operating result amounted to SEK 110.1 (119.6) million.
- Result for the period amounted to SEK 72.9 (83.7) million.
- Earnings per share amounted to SEK 1.11 (1.28).
- Cash flow from operating activities amounted to SEK 251.4 (9.0) million.
PERIOD 1 JANUARY - 30 JUNE 2020
- Net sales amounted to SEK 2,755.4 million, which was 14 % (15 % in local currencies) lower than last year (SEK 3,193.9 million).
- Operating result amounted to SEK 86.0 (165.6) million.
- Result for the period amounted to SEK 35.9 (109.7) million.
- Earnings per share amounted to SEK 0.57 (1.68).
- Cash flow from operating activities amounted to SEK 366.0 (-56.1) million.
- Equity ratio amounted to 47.9 (44.7) %.
- Net debt to equity ratio amounted to 69.9 (79.2) %.
CEO COMMENTS
APRIL-JUNE
The second quarter turned out considerably better than I feared. Some countries recovered faster than we expected, the trading business reported a very good result and showed good growth.
Sales during the quarter decreased by 22% in local currencies. The outcome differed quite a lot between countries and companies, and worst affected were our US companies with a decrease of 62% and with several of our companies shut down well into May. Sales in Sweden, other Nordic countries and Central Europe also dropped between 29-43%. Southern Europe and Other countries experienced growth of 77% and 19% respectively, mainly due to trading orders.
Operating result amounted to SEK 110.1 million compared to SEK 119.6 million for the previous year - a result which I am satisfied with and proud of given the current circumstances. During the period, the Group received SEK 44.1 million in government support in several countries related to COVID-19. We managed to strongly cut back on costs, with a SEK 142.5 million decrease in external costs and a SEK 81.4 million decrease in personnel costs. These actions, together with a lower-than-expected drop in sales, actually resulted in an improved operating margin.
JANUARY-JUNE
Net sales for the first six months of the year decreased by 14% to SEK 2,755.4 million. The development in the regions was about the same as for the second quarter. The largest drop was in the US with 36%, where it is worth noting that several of our warehouses were shut down for a relatively long period of time.
Under the circumstances I am satisfied with an operating result of SEK 86.0 million. For quite some time I was worried that the result would end up considerably worse.
CASH FLOW AND BALANCE SHEET
In addition to lowering costs, I am very satisfied with the work being done to improve cash flow. The first six months improved by SEK 422.1 million compared to the same period last year and amounted to SEK 366.0 million. Total credit limit amounts to SEK 3,165 million and the net debt to credit institutes amounts to SEK 1,898.8 (2,168.6) million, which gives an available credit of SEK 1,266 million. During the period, we have continued to strengthen the balance sheet and increased the equity ratio with 3.2 percentage points to 47.9%.
THE FUTURE
It is very hard to assess the coming quarters, but I am entirely convinced that we will come out of the crisis stronger than ever within all our areas. In the short term, however, it can certainly continue to go up and down depending on how COVID-19 develops.
Torsten Jansson, CEO
FOR MORE INFORMATION, PLEASE CONTACT:
CEO and Group CEO
Torsten Jansson
Phone: +46 31-712 89 01
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 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 20, 2020.
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https://news.cision.com/new-wave-group/r/interim-report-for-the-second-quarter-2020,c3176173
The following files are available for download:
Interim report for New Wave Group AB January - June 2020 (PDF) |
SOURCE New Wave Group
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