KUNGÄLV, Sweden--(BUSINESS WIRE)--Regulatory News:
THE PERIOD 1 APRIL – 30 JUNE 2011
- Sales amounted to SEK 1 021 million, which was 3% higher than previous year in local currencies but 4% lower in SEK (SEK 1 065 million).
- The operating profit amounted to SEK 72.7 million (SEK 87.9 million), with SEK 30.5 million in non-recurring items impacting the result negatively.
- Profit after tax amounted to SEK 37.3 million (SEK 59.4 million).
- Earnings per share amounted to SEK 0.55 (SEK 0.90).
- Cash flow from operating activities amounted to SEK 26.2 million (SEK 117.5 million).
- Equity ratio amounted to 43.8% (42.4%).
- Net debt to equity ratio amounted to 83.3% (86.7%).
THE PERIOD 1 JANUARY – 30 JUNE 2011
- Sales amounted to SEK 1 948 million, which was 5% higher than previous year in local currencies but 2% lower in SEK (SEK 1 981 million).
- The operating profit amounted to SEK 90.4 million (SEK 104.8 million), with SEK 30.5 million in non-recurring items impacting the result negatively.
- Profit after tax amounted to SEK 43.0 million (SEK 67.0 million).
- Earnings per share amounted to SEK 0.63 (SEK 1.01).
- Cash flow from operating activities amounted to SEK -116.4 million (SEK 182.9 million).
EVENTS AFTER END QUARTER
On 29 July, New Wave Group acquired substantially all of the assets of the US based headwear company, Ahead, for a sum of USD 17.4m in addition to a net asset value adjustment of approximately USD 5m.
OUTLOOK ON 2011
For 2011 we expect a higher sales turnover and somewhat better result than the 2010 outcome.
CEO Comments
A tough quarter – despite good underlying result
The second quarter gives me mixed feelings. The second quarter was actually a good quarter but unfortunately the result was burdened by somewhat more than SEK 30 million in one-off charges, mainly due to financial irregularities and incorrect accounting of assets and liabilities in one of New Wave Group’s German subsidiaries but also one-off charges for Orrefors Kosta Boda.
However, there are also many positive signals; we continue to work on lowering costs, inventory is on a better service level, we have a strong balance sheet and a good gross margin.
Despite what happened in Q2, I believe in a decent year with increased sales compared to last year. On the other hand, I would like to highlight a greater uncertainty. The retail market in general has become weaker, the problems in the US and southern Europe tend to increase, and not to forget, the extraordinary turbulence on worldwide stock markets that is causing anxiety. Together with my colleagues, we will do our very best and in the long-term, I am more optimistic about New Wave than ever.
Torsten Jansson
The information in this report is that which New Wave Group is required to disclose under the Securities Exchange and Clearing Operations Act and/or the Financial Trading Act. It was released for publication at 7 am (CET) on 12 August 2011.
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