New Wave Group AB Reports Year-End Financial Results for 2024

Year-End Review 2024: New Wave Group AB

Overview

New Wave Group AB, a prominent player in the promotional products and apparel industry, has published its financial results for the year ending December 31, 2024. The report reveals a solid performance amid a tough market landscape, demonstrating both resilience and a commitment to strategic growth investments.

Financial Highlights

During the fourth quarter (1 October - 31 December 2024), the company generated net sales of SEK 2,827.3 million, marking a 3% increase from SEK 2,735.9 million in the same period last year. However, the operating result saw a decline to SEK 462.7 million from SEK 518.7 million.

Looking at the entire year, net sales reached SEK 9,528.7 million, slightly surpassing last year’s figures without substantial growth, while net income dropped to SEK 880.0 million compared to SEK 1,119.0 million in 2023. Earnings per share also fell from SEK 8.43 to SEK 6.63.

Despite these fluctuations, the group's cash flow from operations improved significantly, reaching SEK 1,278.3 million against SEK 963.8 million in 2023. Additionally, the equity ratio stood at 63.7%, indicating a robust balance sheet with over SEK 7.2 billion in equity.

Regional Performance

In terms of regional performance, the company experienced mixed results. Sweden, the largest market, reported a significant drop of 6%, while Southern Europe faced a 4% decline. Conversely, the USA showed growth of 3%, with Central Europe recording a 5% increase. Notably, the Nordic countries (excluding Sweden) witnessed an impressive 8% growth, highlighting the effectiveness of the company’s targeted marketing and investment strategies in those areas.

CEO Torsten Jansson commented on the results, pointing out that although the growth was below targets, the company managed to enhance its market share despite the challenges. He emphasized the importance of continued investment in market expansion and automation, reflecting a strategy aimed at long-term growth.

Challenges and Investments

Jansson acknowledged the 2% drop in gross profit margin contributing to the decreased operating results. However, he maintained a positive outlook, citing that ongoing investments in automation and a new business system are expected to yield positive outcomes in the coming years. The focus remains on strengthening operational efficiency while maintaining a competitive edge in various markets.

The company is also keen on expanding its product offerings, particularly in the promotional sector, with plans for major launches in Canada and further enhancements in the USA slated for 2025 and 2026.

Jansson remains optimistic about the future, expressing confidence that market conditions will improve and that New Wave Group is well-prepared to capitalize on these changes. The company has strategically positioned itself with a strong organizational framework and a diverse product range, aiming to respond promptly to evolving consumer demands.

Looking Ahead

As New Wave Group gears up for 2025, the focus will be on leveraging its strong logistics and customer service capabilities while pushing for innovative market strategies. With projections indicating economic recovery, the company is strategically investing to ensure it can seize new opportunities when market sentiments shift positively.

Conclusion

In summary, New Wave Group AB's year-end report for 2024 paints a picture of a company that, while facing operational challenges, has managed to maintain a strong fiscal position and is poised for future growth. Their proactive approach to investments in technology and market development underlines their commitment to sustaining a competitive stance in an evolving industry landscape.

For further inquiries, contact:
Torsten Jansson
CEO
New Wave Group AB
Phone: +46 31-712 89 01
Email: [email protected]

Göran Härstedt
Deputy CEO
Phone: +46 (0) 70-362 56 11
Email: [email protected]