Q1 2026 New Wave Group AB Earnings Call Transcript
Key Points
- New Wave Group AB (FRA:NWG0) reported a strong gross margin of 50%, which is considered a record high.
- The company experienced organic growth of 2.9% and aims to increase it to 5-6% for better profitability.
- The US market showed better performance compared to Europe, with a 7% organic growth in local currencies.
- The company is expanding its operations with a significant investment in a new warehouse in Texas, expected to enhance service in the southern US.
- New Wave Group AB (FRA:NWG0) maintains a strong balance sheet with equity over 55%, providing security and room for continued growth and investment.
- The overall market remains weak and unstable, with no quick turnaround expected due to geopolitical uncertainties.
- Retail markets are particularly challenging, with e-commerce in Sweden experiencing a significant decline.
- Currency fluctuations have negatively impacted results, particularly in the US market.
- High costs are associated with the ongoing ERP system implementation and investments in new markets and warehouses.
- The gifts and home furnishing segment continues to struggle, with efforts to turn it around proving difficult.
Yes, welcome to the presentation of Q1. I can start to describe it as a very stable quarter.
We are a bit or I'm a bit disappointed that we still don't see any better markets. I say that it's the longest period ever for me. And then we have been on the stock exchange for 30 years when it's weak markets and unstable every time. And fortunately, I can say that I'm not the only one that I thought that the market should improve the last three years, but it's still not happening.
And I think as long as we have all this unsecurity about the wars in Ukraine and in Iran now, and also in Gaza before, together with politics that we have in the US right now with or have had for a while.
With tariffs and non-security and this. I don't think it will come a quick turnaround. But I'm happy anyhow that we continue to take market shares, we continue to grow.
We have quite good growth in the US actually. I see that US, I would describe, is a better market than Europe, which is
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