Year-end Report 2020 New Wave Group AB

KUNGÄLV, Sweden, Feb. 11, 2021 /PRNewswire/ --

PERIOD 1 OCTOBER - 31 DECEMBER 2020

• Net sales amounted to SEK 1,873.2 million, which was 7% (3% in local currencies) lower than last year (SEK 2,024.1 million).
• Operating result amounted to SEK 283.6 (240.3) million.
• Result for the period amounted to SEK 208.2 (165.9) million.
• Earnings per share amounted to SEK 3.13 (2.53).
• Cash flow from operating activities amounted to SEK 557.5 (286.7) million.

PERIOD 1 JANUARY - 31 DECEMBER 2020

• Net sales amounted to SEK 6,098.8 million, which was 12% (10% in local currencies) lower than last year (SEK 6,903.5 million).
• Operating result amounted to SEK 545.9 (535.0) million.
• Result for the period amounted to SEK 363.0 (370.1) million.
• Earnings per share amounted to SEK 5.51 (5.66).
• Cash flow from operating activities amounted to SEK 1,206.6 (99.5) million.
• Equity ratio amounted to 53.4 (44.9) %.
• Net debt to equity ratio amounted to 47.1 (78.6) %.

DIVIDEND

In light of the ongoing pandemic and its difficult-to-assess consequences in 2021, the Board has decided to propose to the AGM that no dividend shall be paid. The Group has a strong financial position and there are good opportunities for a dividend during the latter part of 2021 and the Board will return at the latest in the interim report for the third quarter, which is scheduled to be published on November 5 2021, with proposal on when a resumption of dividend can take place.

CEO COMMENTS

OCTOBER-DECEMBER

Record-breaking result

Despite the continuing COVID-19 pandemic with lock-downs, events without audience, basically no activities for clubs and associations and cancelled or postponed events, we deliver the highest operating result in the history of the Group. Net sales decreased by only a marginal 3% in local currencies and 7% in SEK, which is good given the prevailing conditions. Geographically, we saw a recovery during the quarter in the Nordic countries as well as a slight recovery in the US and Canada. On the positive side, it is also worth mentioning that Sports & Leisure had growth in the Nordic countries and that Gifts & Home Furnishings experienced a growth of 17%.

Operating result & cash flow

Operating result increased from SEK 240.3 million to SEK 283.6 million - the highest result ever in a quarter. The operating margin amounted to 15.1%. Cash flow from operating activities amounted to SEK 557.5 million, which further increased our balance sheet.

FULL YEAR 2020

2020 became an extremely turbulent year and during some periods our companies and businesses have experienced major negative effects for the same reasons as in my comments for the fourth quarter. Net sales for the full year decreased by 12% and in local currencies by 10%. This is a far better outcome than I expected in the spring. Although it is difficult to be happy about a reduction in sales, I still feel satisfied under the circumstances and I think our companies have done a great job. Even more enjoyable is that the operating result - albeit marginally - increased from SEK 535.0 million to SEK 545.9 million, making this the sixth year in a row with improved operating result. Operating margin for the full year increased from 7.7% to 9.0%. That is a result of hard and diligent work in our companies with cost savings and streamlining, but also of the investments we have previously made in our products and brands. Cash flow from operating activities for the full year amounted to SEK 1,206.6 million - a sharp improvement compared to the previous year. In connection with this, I would like to highlight the fantastic work our purchasing organization in Asia has done during the year.

OUR BALANCE SHEET

Our balance sheet gives us great freedom for action in the future. The equity ratio amounts to 53.4%, which is the highest in over 20 years. Our net debt to credit institutes is now down to SEK 1,075.9 million, which gives an available credit of SEK 1,769.1 million. A key ratio I do not really think fits in at all with our business, but which many still refer to, is net debt in relation to EBITDA, which is now down to a record low 1.7 times (excluding leasing).

THE FUTURE

In the short term it is incredibly hard to know. 2020 started strongly and it was only in mid-March that we saw the full effects of COVID-19. We already know that many countries currently have restrictions and lock-downs - at least during January and a time into February - and it may be even longer. We therefore believe that the market will continue to be difficult during the first half of the year. In the second half of the year we believe and will plan for a strong growth and we will therefore, mainly during the second quarter, try to build up our stock again in order to meet stronger demand. In the long term, I am now more than ever convinced of good growth in both sales and result. Our brands are stronger than ever, our balance sheet is stronger than ever and our organization has, not least through its fantastic work in 2020, shown that it can tackle most scenarios in a good and flexible way.

I would like to end by thanking all employees for a fantastic job during a difficult year, thanking the Board and shareholders and last but not least all customers and consumers who choose us as supplier and choose our brands and products. Together we stand stronger than ever!

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. The information was submitted for publication, through the agency of the contact persons detailed above, at 7.00 a.m. CET on February 11, 2021.

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SOURCE New Wave Group

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