New Wave Group AB

during those three months. The only new thing on the market is that we have started the introduction of teamware in craft in the US and Canadian market, which I will come back to. On the purchasing side, we have also started to be more active in Africa through our Egypt office. Otherwise, it's the same countries that are the main suppliers as well. Brands, nothing new for Q2. It's the same as before and also the different business segments. And this I actually jump because it's very, very old. Lounge of craft in Canada and US. We have finally started. We have planned it for a couple of years actually. And I think that the clients have really reacted in a very positive way. We still don't have any bigger stock there. We built up that in Q3. And Q4 and Q1. But if we get the same success in Europe, this can really be something that will make us grow much, much quicker again in percentage. And of course, in the beginning now, for the first year, it will cost some money. And as usual, I see it as an investment, but it's booked over the P&L. But it's a very very interesting thing and we're also now in January or on the biggest fair. So we expose it quite broad from January and forward. So that's it. Otherwise it's no news here so we jump into the quarter. uh i'm a little bit disappointed on one thing and that's the sales uh is even if the sales actually are over uh estimations uh so and we're back on growth which are nice uh but i thought that the market will turn around uh when they cut down the interest rates and start talking about cutting it more i i more today have the opposite feeling that the consumers especially are quite pressed and the prices that have been in the past for energy and also higher interest level have actually come and hit the consumers more now than before. And I thought that it would be enough to be a little bit more positive about interest rates and so on. to make the open the wallet again so on that point even if we had to grow and I'm very happy for that and definitely we take quite big market shares I think it's very few companies that are growing at all and you can see the market on corporate we think it's down between five to ten percent or think we're quite sure on that a little bit depending on the countries and we still have a small increase and the retail especially of course the sports market have had tough times it's no secret there you have a couple of public companies as well that is more easy to follow and we have an increase on ten percent so in one way I'm happy but I actually would or did expect a little bit more Otherwise, I think it's a very, very stable report. We have a strong cash flow. We have a fantastic balance sheet.

We continue the investment in the market.

growth to create growth and I think I had the some of the questions earlier today that why don't we cut down costs if it's a bit tougher and I think opposite if it's any time we should invest it's when our competitors are weaker And it's cheaper to buy marketing and do investments. And again, most of this I see as investment, even if it hit the P&L. We have also made a big move. We had two subsidiaries in Stockholm, that we have moved to Enköping. and put together in one and that's our cost was I think around 10 million mainly in both Q1 and Q2 but mostly Q2 but there will be a saving instead from next year it's a totally automatic warehouse again So in general, I'm quite happy. I'm also quite happy for the gross margin, which I think is very, very stable in this market. And operating margin, it's far away from our goal and a bit lower than last year. But we should also remember there that normally Q1 and Q2 are quite weak if you compare with the rest of the year. So we also have the best years in front of us, actually. Yeah, sales up a little bit and actually a whole time high for Q2. And promo channel increased by 2%. And as I said, it's in the market that we think decreased between 5 and 10 and retail 9% up. And we know we are on retail, we have a good network because it's quite few clients, it's bigger chains and we know that there's been tough times for them. Here's not so much to comment actually. If we look at the different markets on the quarter. Yeah, we take half a year here actually. Or I don't know, we take the quarter. U.S. is up 5%. I would say that the U.S. economy, I personally think it's a little bit weaker than it was before. Not dramatically, but a little bit. Sweden I would say is quite fantastic with the market we have here and how the situation is among consumers to have 6% growth. I think it's actually one of the better figures we have produced if we compare with how the market is. Central Europe 6%, Nordic countries excluding Sweden 10%. So at least they are doing our goal for growth. Southern Europe was a little bit down and other countries a little bit down. And other countries is mainly due to our trading activities in Asia. Gross margin, 49%. And again, I think it's very, very stable. And as I said already in Q1, we see actually a deflation in some of the segments, especially on basic textile. And we should also remember that we see the sales figures. But we keep stable and we have not felt that we need to cut down prices or margin to defend the sales. So there I'm quite happy. External costs, you have, of course, some part of it that are increased inflation that have been in salaries and rents and so on, of course, hitting us as well. But I would say most of it is volume related and to increase market activities. And also, as I mentioned, the moving costs for job and exit. So I would say it's under very good control. And a lot of it is also easy, if, which I don't think, but that really the times will be even tougher. Most of the marketing activities and so on, we can actually take down again and we'll be six months in advance or something like that. And as I said, the cost for job and taxes will turn around to be a saving instead from next year. It normally takes six to 12 months before you are really rich, full efficiency in a new warehouse like that. operating result it's never funny to have a lower than the year before and it's nothing we are used to the last years but I think it's easy to understand why now it is and also quiet business contributed with minus 9.9 million. So we still have a lot of companies actually doing and reaching our goal. Also BTC that was the latest requirement before Tenzon is taking down the average operating margin as well. And will do for at least this year and maybe next year because they were quite far from 15-20% when we applied. If we look at Per Segment Corporate. It's not so much to say it's a very, very stable area for us. Sports and leisure. Increased sales in all regions except other countries and increased sales in both channels. Gross margin a little bit lower. and acquired operations affected than SEC 9.9. And that's then tens on, 100% tens on. Which we, of course, have big I hope to create growth and nice profits in Tencent in the future. I don't know if you have seen, but for example, I don't think they have had any marketing for the last two, three years before we were acquired. And I would say we invest more or less what we sell for in advertising and to build up the brand again. Gifts, Home and Furnishing is I would say disappointed. I'm disappointed on again and there we have to work hard to improve it. It's not the right development there. I mean it was what I think quite bad result already last year which have decreased more. So that's an area there we really need to do better work you can also say that for that area most of the profits always coming from q4 you have a christmas that have the christmas gifts both for companies and for consumers so so i'm not so so worried about it for the first half a year i hope we can do it much better the second half and especially q4 cash flow Still very strong and if we look at our balance sheet we are over 60% again in equity ratio which is a very very nice situation to have because we have room financially both for new establishment and for organic grow and to increase the stock when that day has come so that we see an increase in the market. and also for acquisitions and I thought last year that I will never see so many suggestions for acquisitions but actually they've increased and stuff and then you can say three out of four we maybe spend 50 minutes on Euro and then we'll say it's not interesting but it's a lot of opportunities with that said we should be As we have been in the past careful we should buy the right things and we should only buy companies that really fit in to the group and that we can do something good with in the future. But I have quite big hope that we can at least do and announce one or a couple the coming year. Palanquita I mentioned which are Very, very strong. We have quite high amounts in credits that are not used today. So it's a nice situation. Rolling 12. Not so much to comment. I hope I soon don't have to see 9.5 something in sales again. I want to break the 10 as soon as possible. Otherwise, it's not so much to say there. And January, June is... Quite the same picture. A difference of course, Q1 was lower. We also had, I should say, a small positive effect in the calendar for Q2. And Q1 was a quite big negative effect of that. But sales on post-op here is down 1%. So it's a clear improvement if you compare Q2 and Q1. There's not so much to comment. And here we can see that Q1 was, I think US in the quarter was up five. And here one, and Sweden was actually down here compared with six up in Q2. So it's an improvement if you compare those two quarters. And it's also quite interesting to see that Sweden has been number two after US always in how we show the figures. And actually now it has been passed also in Central Europe. Yeah, gross profit again stable. Costs we have talked about and it's the same picture if you take off a year. It's not so much to say there. And the cash flow then a big improvement. half a million which also of course half a billion sorry that that also depends on that we have decreased the stock a bit and I think we have a very balanced stock now for what we think about sales personally I say like always that I would have liked to see a bit bigger stock because that has would have meant that we thought the market should turn around quick which we don't think now so it's quite often there when I'm opposite to the market when the market thinks the stock is too high I think it's good so but we will continue with I think a good cash flow yeah the last comments growth four percent one percent core currency We continue to gain market shares, and I think on the corporate, I think we have taken more market shares than ever in the short period, actually. All-time high for net sales, strong gross profit and cash flow. But again, I'm a bit disappointed on the sales, even if it was a growth. And minus one January, June that I'm not happy at all with. But that was mainly Q1 then, or it was Q1. Cash flow we are very happy with. Future, I'm as always quite optimistic and you can say I see the slowdown in the economy was as a big possibility for us as I mentioned. If you look at, we have had IT crashes, we have financial crashes, we have a pandemic and so on and we've always come out stronger. And I'm very, very convinced that we will do that again. much thank you to very strong balance sheets that you do that we can use the situation we continue to take market shares will which means that we will gain even more when the markets get a little bit stronger and we continue to looking at acquisitions so yeah that's it so we open up for Q&A's Yeah, you need the microphone.