PERIOD 1 OCTOBER – 31 DECEMBER 2024

• Net sales amounted to SEK 2,827.3 million, which was 3% higher than last year (SEK 2,735.9 million).
• Operating result amounted to SEK 462.7 (518.7) million.
• Result for the period amounted to SEK 344.4 (366.4) million.
• Earnings per share amounted to SEK 2.60 (2.76).
• Cash flow from operating activities amounted to SEK 545.7 (753.5) million.

PERIOD 1 JANUARY – 31 DECEMBER 2024

• Net sales amounted to SEK 9,528.7 million, which was at the same level as last year (SEK 9,512.9 million).
• Operating result amounted to SEK 1, 262.3 (1,577.2) million.
• Result for the period amounted to SEK 880.0 (1,119.0.) million.
• Earnings per share amounted to SEK 6.63 (8.43).
• Cash flow from operating activities amounted to SEK 1,278.3 (963.8) million.
• Equity ratio amounted to 63.7 (60.2) %.
• Net debt to equity ratio amounted to 25.2 (31.4) %.

ANNUAL GENERAL MEETING

The board proposes that the general meeting decide on a dividend of SEK 3.50 per share, with half-yearly payments of SEK 1.75 per share each.

CEO COMMENTS

October- December

Net sales

We managed to increase net sales by 3% despite a continued challenging market in all countries – of which Sweden might be the worst. This means that we continue to gain market share. However, there is a significant difference between different countries and regions. Sweden clearly had the largest decrease of 6%. Southern Europe also decreased by 4%. The USA grew by 3%, Central Europe by 5% and the Nordics (excl. Sweden) by 8% which is very strong. Other countries generated growth of 38%. Other countries include our trading operations in Asia which are dependent on a few large orders which means that the sales varies in different quarters.

Although I am not satisfied with 3% growth and it is far below our target, I still think it is a statement of strength in today's market situation. Of our sales channels, promo improved by 5% and retail was at the same level as last year. The regions that showed growth have a significantly larger share of net sales in promo than retail. We have continued our investments for future growth, primarily in Germany and the US but also in other markets.

Operating result

Operating result decreased by SEK 56.0 million to SEK 462.7 million. The decrease is, among other things, due to a 2% lower gross profit margin but also because we continue our market investments for future growth. We also continue to automate our warehouses at the same time as we are implementing a completely new business system, which will have a positive impact in the future. The operating margin in the quarter was 16.4%, which can nevertheless be described as strong in the current economic and market situation especially since we continue investing in the future.

Full Year 2024

Net sales

I am pleased that the full year actually ended slightly higher than the previous year despite the difficult market situation. This means that we continue to gain market share, which we will be very pleased with when the market turns around. As in the fourth quarter, the development in Sweden and Southern Europe had the largest decrease with minus 3% and 5% respectively. For the full year, Other countries decreased by 1%, while the Nordic countries (excl. Sweden), the USA and Central Europe showed growth of 2 to 4%.

Operating result

Operating result decreased by SEK 314.9 million to SEK 1,262.3 million, which we are obviously not satisfied with. Despite this it can be considered a strong result considering the economic situation and the market. We have continued our investments in both the market and warehouse automation, which will yield returns in the future. By daring to continue with our investments, we have strengthened our competitiveness going forward, which will yield good returns when the market turns.

Cash flow & balance sheet

The year's cash flow from operating activities amounted to SEK 1,278.3 million. Investments (mainly in the previously mentioned automations) increased by SEK 75.8 million to SEK 296.8 million and this of course does not include the marketing investments we made which are accounted for in the income statement. I am convinced that both will provide returns going forward.

Our balance sheet is very strong and at the end of the year we had a record high equity ratio of 63.7% and equity amounted to just over SEK 7.2 billion.

The future

It looks very promising going forward. I believe the market will improve during the year, even though it may be challenging for another quarter or two, and then we will see the benefits of the work and investments we have made. We have taken market share and maintained a high level of service to our customers in a challenging market. Then, the investments in primarily the USA and Germany should start to have a positive impact on our sales in the second half of the year, even though it may take a little longer than that before they contribute to operating profit. We are planning additional brands and product lines, primarily in promo, in both North America and Europe, and we continue to have great growth opportunities at Craft in several product groups and regions.

I am convinced that we will show good growth going forward and we are truly equipped for this in every way possible with a good organization, good product range and brands, a high level of service to our customers and a strong balance sheet. This applies to both Europe and North America, but I would once again like to highlight the USA and Canada where we now are in excellent position for high growth. We have a strong organization and the USA is already our largest market with 23% of our net sales and North America in total is 26% of our net sales. However, we have only launched smaller parts of our brands and assortment. For Craft Teamwear, the launch is in full swing and we are also preparing it now in Canada. We will also make major launches of ProJob and Harvest/Printer in Canada in 2025 and we are planning for more brand expansions within promo in the USA in 2025 and 2026.

Thank you everyone!

Torsten Jansson, CEO

FOR MORE INFORMATION, PLEASE CONTACT:

CEO and Group CEO
Torsten Jansson
Phone: +46 31–712 89 01
E-mail: torsten.jansson@nwg.se

Deputy CEO
Göran Härstedt
Phone: +46 (0) 70– 362 56 11
E-mail: goran.harstedt@nwg.se

CFO
Lars Jönsson
Phone: +46 31–712 89 12
E-mail: lars.jonsson@nwg.se

This information is information that New Wave Group AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the agency of the contact persons detailed above, at 7.00 a.m. CET on February 6, 2025.

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