Interim Report New Wave Group AB (publ) January - June, 2011

Interim Report New Wave Group AB (publ) January - June, 2011

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

 
FOR MORE INFORMATION, PLEASE CONTACT:

CEO
Torsten Jansson
Phone: +46 (0)31 712 89 01
E-mail: Torsten.Jansson@nwg.se

dCEO
Rolf Karp
Phone: +46 (0)31 712 89 05
E-mail: Rolf.Karp@nwg.se

CFO
Lars Jönsson
Phone: +46 (0)31 712 89 12
E-mail: Lars.Jonsson@nwg.se (Lars.Jonsson@nwg.se)

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.