(Finansavisen): The sports and recreational toy manufacturer Next Sport in Kristiansand was founded in 2006 by Frank Mykjåland, and since then both the profit margin and the profit margin have skyrocketed.
This equates to a profit margin of 12 percent.
Turnover increased by more than 31 percent, a peak of NOK 168.5 million.
– We are very happy with the last year. According to Tom Sport's CEO Tom Erik Mykjåland, sales ended up over budget and we worked well with brand building.
– The Latest Over the years, we've focused on what we do best. It's about creating products on the border between sports and fashion. The garments we make can be used both in the urban environment and on tour. In addition, we recorded good growth in children's clothing.
Next Sport owns, designs and manufactures sports and leisure clothing of the Twentyfour and Daniel Franck brands, as well as children's clothing by Gullkorn Design. At its suppliers in China and Bangladesh, the company is also responsible for the customer's own branding.
Twentyfour is the group's flagship. According to Mykjåland, this brand accounts for approximately 65 percent of Next Sports' sales. Twentyfour is sold in sports shops such as Sport1, MX Sport, Stadium, G-Sport, Intersport, XXL and Getinspired.no.
– Do you have any plans to expand the product range?
– We have no immediate plans, except categories that naturally fall into our brands. We'd better focus on what's going well. Now we are working to develop existing products in new markets.
Approximately 97 percent of the company's turnover comes from Norway, the remainder being sold in Germany, England and Switzerland.
In 2015, the sports store Twentyfour Sport opened Kristiansand and Molde. However, these were discontinued at the end of 2017.
Next Sport is owned by Norwegian Concept, which in turn owns 84% of the Mykjåland family through Flt Holding. Frank Mykjåland owns 51 percent of Flt Holding, while children Tom Erik Mykjåland and Lene Mykjåland, former national football team, each own 24.5 percent.
Last year, a dividend of over 16 million NOK was distributed, while NOK 3.4 million were used to strengthen equity.
– What will the development look like in 2019?
– With sales growth between the previous year and the budget, we are up 5 and 10 percent. Winter was tough, but autumn seems to be good. It is undoubtedly a difficult time in the industry, says Mykjåland.
Twentyfour has its own online store, but most of the revenue comes from retailers. Last year, Next's sales amounted to NOK 10.2 million through sales directly to consumers. Mykjåland still wants to use retail as its main channel.
– As a dealer we are not too eager for the consumer market. For us it is important to have an online shop that shows the entire range. We value having some partners we can work with, he says.