New Wave Group (NEWA) Q1 2025 earnings summary

Executive summary

• Achieved 9% organic sales growth year-over-year in Q1 2025, with net sales reaching SEK 2,184 million and all three segments and regions contributing positively.

• Operating profit increased to SEK 212 million from SEK 186 million, and net result rose to SEK 144 million from SEK 121 million.

• Expansion initiatives in North America and Europe, including new warehouses, product launches, and investments in sales force and automation, are underway.

• Maintained a strong balance sheet and high equity ratio despite currency headwinds, supporting ongoing growth and acquisition opportunities.

• Growth observed in both retail and corporate channels, reflecting broad-based strength.

Financial highlights

• Net sales reached SEK 2,184 million, up from SEK 1,995 million year-over-year, with organic growth of 9%.

• Operating profit was SEK 212 million (up from SEK 186 million), and profit for the period was SEK 144 million (up from SEK 121 million).

• Gross margin was 49.8% (49.7% last year); operating margin improved to 9.7% (9.3%).

• Promo channel sales grew by 12%, retail by 6%.

• Cash flow from operations was SEK 219 million (up from SEK 204 million year-over-year).

Outlook and guidance

• Management expects continued growth and market share gains, supported by ongoing investments in automation, new markets, and product launches in North America and Europe.

• Confident in ability to grow despite challenging macroeconomic conditions, but cautious of potential economic downturns and short-term tariff risks.

• Focus remains on organic growth, with acquisitions considered as opportunities arise.