New Wave Group (NEWA) Q4 2024 earnings summary

Executive summary

• Net sales increased by 3% in Q4 2024 to SEK 2,827.3 million, with full-year sales stable at SEK 9,528.7 million despite challenging market conditions, especially in Sweden and Germany, while the U.S. and Canada showed relative strength.

• Promo sales channel grew by 5% in Q4, while retail remained unchanged; Sports & Leisure segment outperformed with 6% growth.

• Operating margin was 16.4% in Q4 and 13.2% for the year, reflecting higher costs and lower gross margins.

• Continued investments in market expansion, particularly in North America and Germany, and in automated warehouses.

• The board proposes a dividend of SEK 3.50 per share, paid in two installments.

Financial highlights

• Q4 net sales: SEK 2,827.3 million, up 3% year-over-year; full-year net sales: SEK 9,528.7 million, flat year-over-year.

• Q4 operating result: SEK 462.7 million (down from SEK 518.7 million); full-year operating result: SEK 1,262.3 million (down from SEK 1,577.2 million).

• Gross profit margin: 50.0% in Q4 (down from 52.0%); 49.4% for the year (down from 50.3%).

• Result per share: SEK 2.60 in Q4; SEK 6.63 for the year.

• Cash flow from operating activities for the year: SEK 1,278.3 million (up from SEK 963.8 million); equity ratio improved to 63.7%.

Outlook and guidance

• Management expects market conditions to improve during the year, with investments in the USA and Germany anticipated to drive sales growth in the second half.

• Revenue from U.S. teamwear initiatives expected in H2 2025, with positive operating profit contribution in 2026.

• Tenson revenue target of SEK 500 million remains possible for 2026, depending on retail contracts.

• Continued focus on acquisitions and strengthening the balance sheet, but only if attractive opportunities arise.

• Ongoing investments in automation and market expansion are expected to support future growth.