New Wave Group - Year End Report New Wave Group AB

KUNGÄLV, Sweden, Feb 09, 2017 /PRNewswire/ --

Period 1 October – 31 December 2016

• Sales amounted to SEK 1,549 million, which was 10 % higher than last year (SEK 1,405 million).
• Operating profit amounted to SEK 167.0 (108.4) million.
• Result for the period amounted to SEK 127.8 (63.3) million.
• Earnings per share amounted to SEK 1.90 (0.94).
• Cash flow from operating activities amounted to SEK 280.9 (375.5) million.

Period 1 January – 31 December 2016

• Sales amounted to SEK 5,237 million, which was 5 % higher than last year (SEK 4,965 million).
• Operating profit amounted to SEK 400.2 (255.2) million.
• Result for the period amounted to SEK 276.7 (145.3) million.
• Earnings per share amounted to SEK 4.16 (2.16).
• Cash flow from operations amounted to SEK 448.9 (129.5) million.
• Equity ratio amounted to 48.4 (45.9) %.
• Net debt to equity ratio amounted to 62.1 (76.8) %.

Dividend

The Board of Directors has decided to propose to the AGM a dividend of 1.35 (1.00) SEK per share equal to SEK 89.6 million.

CEO comments

The Quarter

I'm satisfied with the fourth quarter on almost all points even if there are individual companies that should perform better. An organic growth of 10 % (of which 4 % currency) feels strong. Not least because we grew 12 % in the same quarter last year. The growth in Corporate Promo of 13 % is extremely strong, and that we have growth in all business segments is really pleasing. Now we start to notice growth, even on the development of our result. Operating profit increased by SEK 58.6 million (54 %) and the periods result by SEK 64.5 million (102 %).

Full Year 2016

Almost satisfied... over the past three years we have had organic growth of almost SEK 1,200 million, of which 2016 with 272 million. At the same time, we increased the operating profit by SEK 145.0 million (57 %) and result for the period by SEK 131.4 million (90 %). We also had a good cash flow from operations of SEK 448.9 million, which gives us a strong balance sheet. Net debt was reduced to SEK 1,749 million, the equity ratio is 48.4 % and net debt to equity ratio is 62.1 %. It's a strong improvement rate in virtually all areas and on all key ratios.

Future And Focus

I remain optimistic about the future. The investments we made in 2014-2016, are still far from their full potential and we launched Craft Teamwear in January 2017. This launch will give us additional growth, primarily from 2018 and we are heading towards the launch of Craft footwear. Virtually all operations have growth and profitability, even though promo clothes and workwear stand out most positive. In addition to new product launches, we have also invested heavily in CSR and in marketing in recent years. These investments will help us in the long term, not least on the Corporate Promo market where we are far ahead of most of our competitors. In addition, we have a highly motivated and good organization that does a fantastic job.

I am convinced that our growth, in terms of both sales and profit, has only just begun. Then, as I usually write, some quarters may be worse. The reason might be, for example, a larger establishment. We are also in the face of expanding efforts both in Canada and Poland, and maybe a few more countries over the next two years. Overall, however, we have never been in such a favourable position compared to our competitors, no matter if we are talking economic strength, brands, products, CSR or something else!

Torsten Jansson
CEO 

For more information, please contact:

CEO Torsten Jansson
Phone: 031–712-89-01
E-mail: torsten.jansson@nwg.se

CFO Lars Jönsson 
Phone: 031–712-89-12
E-mail: lars.jonsson@nwg.se 

The information in this report is that which New Wave Group is required to disclose under the Securities and Market Act and/or the Financial Trading Act. The information was released for publication at 7 am (CET) on 9 February 2017.

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SOURCE New Wave Group