New Wave announces interim report from Jan-June

26 Aug '08

5 min read

New Wave Group AB announces interim report for Q2 January - June 2.

Sales
April – June
The turnover for the period increased by 27 % to MSEK 1 245 (978). Out of the total increase, acquired units contributed MSEK 170.

The organic growth amounted to 11%. Both business areas have good growth, with the Retail business area slightly stronger and especially within the sport sector, where the European championship in football made a positive contribution.

The group companies that are selling hard giveaways on the Swedish market DJ Frantextil and Sagaform, together with the group's production unit in Denmark, have been and still are under restructuring. This has now started giving results for Sagaform and Dahetra who are showing a positive development. DJ Frantextil however has not yet shown any positive development.

The sales growth was good in all regions, especially in the Nordic countries with an increase of 14%. The American units, particularly Orrefors Kosta Boda and Cutter & Buck, have been affected negatively by the weaker economic situation in the USA. Cutter & Buck sales within the golf sector are unchanged while the Promo business area is lower.

January – June
The turnover for the period increased by 30 % to MSEK 2 260 (1 738). Out of the total increase, acquired units contributed MSEK 367. Exchange rates have had a positive effect on sales by MSEK 18.

The organic growth amounted to 9%.

The sales growth was good in all regions, especially in the Nordic region with an increase of 12%, but also other regions showed good organic growth. The American units, particularly Cutter & Buck and Orrefors Kosta Boda, have been affected negatively by the weaker economic situation in the USA. Cutter & Buck sales within the golf sector are unchanged while the Promo business area is lower.

Profit
April – June
The result after finance net increased by MSEK 12 to MSEK 112.5 (100.5) and acquired units affected by MSEK -2. Excluding previous year's capital gain of MSEK 12.5 in connection with the sale of property, the profit before tax increased by MSEK 24.5 or 28%. The result after tax increased by MSEK 11.8 to MSEK 85.8 (74.0) and result per share amounted to SEK 1.29 (1.12).

Gross margin increased during the quarter and amounted to 49.7 (48.0) %. Increases are seen in most of the companies and markets. The groups units in the USA have been affected by the weaker American economy. The external costs as part of sales increased and amounted to 21.7 (20.9) %.

This increase is mainly related to the acquired units. Personnel costs as part of sales is decreasing and amounted to 15.0 (15.4) %. The majority of the increase in absolute numbers is mainly related to acquired units but also centrally initiated projects have played a role.

Depreciation increased by MSEK 6.8 to MSEK 16.7 (10.1). The increase mainly relates to acquired units.

Net financial items amounted to MSEK -36.3 (-19.4). The increase is due to increased interest rates and higher net debt which relates to the acquisition of Cutter & Buck. The group's policy is to have a short duration, which has a swift effect on the costs when the interest rate changes.

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