KUNGÄLV, Sweden--(BUSINESS WIRE)--Regulatory News:
JANUARY–DECEMBER 2014
PERIOD 1 OCTOBER – 31 DECEMBER 2014
- Sales amounted to SEK 1,260 million, which was 11 % higher than last year (SEK 1,140 million).
- Operating profit amounted to SEK 112.2 (111.6) million.
- Profit amounted to SEK 91.9 (90.3) million.
- Earnings per share amounted to SEK 1.38 (1.35).
- Cash flow from operating activities amounted to SEK -54.6 (213.1) million.
PERIOD 1 JANUARY – 31 DECEMBER 2014
- Sales amounted to SEK 4,274 million, which was 6 % higher than last year (SEK 4,047 million).
- Acquired units contributed by SEK 14 million in turnover and SEK -1.2 million in profit after tax.
- Operating profit amounted to SEK 250.0 (290.7) million.
- Profit amounted to SEK 176.9 (187.1) million.
- Earnings per share amounted to SEK 2.66 (2.82) kr.
- Cash flow from operating activities amounted to SEK -284.2 (358.5) million.
- Equity ratio amounted to 45.9 (49.8) %.
- Net debt amounted to 76.0 (60.1) %.
CEO COMMENTS
The fourth quarter
I am extremely satisfied with the fourth quarter. Despite the warm weather and poor sales of winter apparel our total sales increased by 11%. Within the various segments, Corporate Promo sticks out, as it should do and as we said, with growth of around 21% and the promo sales channel with 20% growth. Inventories are at a good level, our new products are received well and, above all, our customers are returning and are satisfied! We’re taking market shares within Corporate Promo throughout Europe and even in the USA. With everything we are doing for Corporate Promo, I consider that we can increase growth even further.
Sports & Leisure as a segment grew slightly, which I would describe as approved considering the mild winter, which led to relatively fewer supplementary orders. Hopefully we can make up for some of this over the next few quarters.
Gifts & Home Furnishings is the next subject for rejoicing with a growth of 9%. It shows that we are continuing on the right track.
Operating profit of SEK 112 million is on par with last year, which I’m happy with, especially considering the investments we’re making in growth. Of the quarter’s increase in costs, a majority is related to our planned sales and marketing activities - so overall costs are under control.
Full year 2014
Full year 2014 was characterised by improving inventory value and service levels, product development and a vigorous effort to stimulate growth again. Most of these actions began to bite in the second half of the year. I am not happy with a growth rate of 6% for the full year, but given how the year began, and that we essentially stood still after the first half, so I’m satisfied with the conclusion.
I am far from happy with an operating profit of SEK 250 million for the full year, but given that this decrease occurred in the first half and that we in the second half of the year, made major investments in products, marketing, sales personnel, and beyond that had a warm fourth quarter, I feel pleased with the second half of the year.
It is also incredibly gratifying that Orrefors Kosta Boda, for the second year in a row, shows a profit. This year’s profit is certainly modest due to the marketing investments we have made – and we still have a lot left to do.
Balance Sheet
An equity ratio of 46% is incredibly strong, especially given that inventory is now good and that in the future only needs to grow for any new collections and new establishments, and of course in relation to whether sales grow sharply.
Prospects FOR THE FUTURE
The goal for 2015 and the coming years is continued growth. As I have mentioned, we have taken many measures in 2014 which will give effect in 2015 and on top of this we be making a number of new investments even this year. We are launching several new product segments and brands, such as Cutter & Buck Europe which will be launched this month and Hefa AB is launching a new CSR collection under the brand Cottover. This will be launched in May. We are now once again a good supplier with a high level of service and we are well equipped to take market shares in all our business areas, especially within Corporate Promo. Even Craft stands strong and has major potential in the coming years. We have a hungry management who will do everything in order to succeed. I’ll repeat what I wrote in the last interim report; we have not been this strong since the financial crisis of 2008.
Torsten Jansson
CEO New Wave Group
The information in this report is that which New Wave Group is required to disclose under the Securities Market Act and/or the Financial Trading Act.
The information was released for publication at 7 am (CET) on 6 February 2015.
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