• Q3 loss reaches SEK120m
  • Sales slipped 4% to SEK1.05bn
  • Sports & Leisure division "continuing to develop well"

Swedish brand developer New Wave has revealed its Sports & Leisure business is "continuing to develop well" despite a "really poor quarter" for the company overall as it swung to a third-quarter loss.

Net loss reached SEK120m (US$17.7m) during the three months ended 30 September, compared to a SEK73.4m profit in the same period last year. The results were negatively impacted by SEK161.5m worth of restructuring costs.

Sales slipped 4% to SEK1.05bn. Operating loss reached SEK139.9m, compared to an operating profit of SEK106.2m last year.

"For a while now the demand for Promo products has been weak, but we are taking market shares and sooner or later the climate will change for the better. Sports & Leisure, with mainly Cutter & Buck and Craft, is continuing to develop well, so there is a glimmer of light despite a bad economic climate," CEO Torsten Jansson said.

"In the long term I believe more than ever in New Wave but in the short term I believe it will be tough and challenging for at least a year ahead."

Show the press release

Interim report for New Wave Group AB (publ)

1 JULY – 30 SEPTEMBER 2012
- Sales amounted to SEK 1,054 million, which was 4% lower than last year  (SEK 1,101 million). 
- Acquired units contributed by SEK 90 million in turnover and SEK 7.6 million  in result after tax.
- Operating profit amounted to SEK -139.9 million (SEK 106.2 million), of which restructuring costs amounted to SEK -212.0 million.
- Result after tax amounted to SEK -120.0 million (SEK 73.4 million), of which restructuring costs amounted to SEK -161.5 million.
- Earnings per share amounted to SEK -1.81 (SEK 1.10).
- Cash flow from operating activities amounted to SEK -112.8 million (SEK -100.0 million). 

1 JANUARY – 30 SEPTEMBER 2012
- Sales amounted to SEK 3,104 million, which was 2% higher than last year (SEK 3,049 million).
- Acquired units contributed by SEK 248 million in turnover and SEK 3.0 million in result after tax.
- Operating profit amounted to SEK -78.6 million (SEK 196.6 million), of which restructuring costs amounted to SEK -212.0 million. 
- Result after tax amounted to SEK -94.9 million (SEK 116.4 million), of which restructuring costs amounted to SEK -161.5 million.
- Earnings per share amounted to SEK -1.43 (SEK 1.73). 
- Cash flow from operating activities improved by SEK 281.4 million and amounted to SEK 65.0 million (SEK -216.4 million).
- Equity ratio amounted to 40.6% (41.3%). 
- Net debt to equity ratio amounted to 97.1% (93.9%). 

VIEWS ON 2012
For 2012 we expect sales turnover to be on par with 2011 outcome, and the result before tax around zero.

CEO comments
A really poor quarter which gives hope for the future!This quarter and year’s major happening is understandably the restructuring of Orrefors Kosta Boda and everything that it signifies. Until now we have had good or very good profit, ever since the start of New Wave, but this quarter and year is an exception. Since 2008, Orrefors Kosta Boda has burdened New Wave’s result by SEK -512 million! We believed in what we have done but now it is time to move on. Obviously, it was a hard decision to make with a lot of torment in September. But do I regret the acquisition? Just now, maybe a little, but at the same time I am convinced that looking forward, our shareholders will receive good returns, even for Orrefors Kosta Boda!
We once again meet a very tough economic climate. 2012 will be a poor year, even without Orrefors Kosta Boda, and I believe that even 2013 will be challenging. The economic climate is weak, and even if we can now make Orrefors Kosta Boda profitable, it will still be a tough year. At the same time I am convinced that we then head towards better times.
For a while now the demand for Promo products has been weak, but we are taking market shares and sooner or later the climate will change for the better. Sports & Leisure, with mainly Cutter & Buck and Craft, is continuing to develop well, so there is a glimmer of light despite a bad economic climate.
If we look geographically then USA is developing according to plan and feels relatively strong. Southern Europe is still very weak, just as we had predicted. But the surprise is, as I said after the second quarter, that Central and Northern Europe has had a major slump in their economy. Our biggest market, Sweden, is unfortunately the weakest of all regions with the exception of Southern Europe. I have only seen a major slump in Sweden once during my 30 years as an entrepreneur and that was the fourth quarter of 2008, when the financial crisis started.
In the long term I believe more than ever in New Wave but in the short term I believe it will be tough and challenging for at least a year ahead.

Torsten Jansson

Original source: New Wave Group