Amer Sports Corporation Interim Report January-September 2017
JULY-SEPTEMBER 2017
- Net sales EUR 733.2 million (July-September 2016: 736.8). In local currencies, net sales increased by 3%. Growth was solid in EMEA and China, whilst the US market continued to be challenging.
- Gross margin 46.7% (48.0).
- EBIT excluding items affecting comparability (IAC) EUR 109.0 million (106.5). Items affecting comparability were EUR -34.3 million (-2.4), mostly related to the ongoing restructuring announced in February 2017.
- Earnings per share excl. IAC EUR 0.65 (0.62).
- Free cash flow EUR -55.8 million (-66.9).
- Outlook for 2017 unchanged.
JANUARY-SEPTEMBER 2017
- Net sales EUR 1,882.1 million (January-September 2016: 1,849.7). In local currencies, net sales increased by 2%.
- Gross margin 45.6% (46.9).
- EBIT excluding IAC EUR 122.4 million (140.4). Items affecting comparability were EUR -40.0 million (-8.7).
- Earnings per share excl. IAC EUR 0.65 (0.73).
- Free cash flow EUR 5.1 million (-88.4).
OUTLOOK
In 2017, Amer Sports’ net sales in local currencies are expected to increase from 2016, despite short-term market softness. EBIT excl. IAC is expected to be approximately at the level of 2016.
The growth in 2017 is expected to be biased to the second half of the year. EBIT excl. IAC includes further accelerated investment into the company’s transformation toward omni-channel and digital to win in the fast changing market place. The company will continue to focus on growing the core business and the five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services.
KEY FIGURES
*) EBITDA excl. IAC = EBIT excluding items affecting comparability and depreciation and amortization
**) Items affecting comparability are material items or transactions, which are relevant for understanding the financial performance of Amer Sports when comparing profit of the current period with previous periods. These items can include, but are not limited to, capital gains and losses, significant write-downs, provisions for planned restructuring and other items that are not related to normal business operations from Amer Sports’ management view. A single item affecting comparability has to represent more than one cent per share on annual basis.
***) Cash flow from operating activities – net capital expenditures – change in restricted cash (Net capital expenditures: Total capital expenditure less proceeds from sale of assets).
HEIKKI TAKALA, PRESIDENT AND CEO:
In the third quarter we returned to profitable growth, as expected. Growth was broad-based, and in line with our strategy, driven again by Apparel, own retail, e-commerce and China. Encouragingly, we continued to gain speed in Fitness, and we laid foundation for a rebound in Sports Instruments as we rolled out the complete Spartan product family. We made again significant progress in the company omni-channel transformation to win in the changing market place. We executed the announced restructuring, and we are already delivering significant cost efficiencies, ahead of schedule. Furthermore, we continued to drive cash flow improvement ahead of our target.
In August, we announced our new 2020 financial targets, focus on profitable growth, now with special emphasis given to profitability. We continue to capitalize on our proven growth drivers, most notably softgoods, Direct to Consumer, and China, and we are transforming the company at maximum speed to stay ahead of the game as the market place and the consumer habits are evolving rapidly. In a challenging market, we are making strong progress in executing the strategy, capitalizing on all levers of our value creation model.
FINANCIAL STATEMENTS BULLETIN 2017
Amer Sports will publish its financial statements bulletin 2017 on Thursday, February 8, 2018 at approximately 1:00 p.m. Finnish time.
INVESTOR RELATIONS NEWSLETTER
Subscribe to Amer Sports Investor Relations Newsletter at www.amersports.com/investors/subscribe.
Amer Sports Board of Directors has decided to utilize the authorization given by the Annual General Meeting held on March 9, 2017 to repurchase Amer Sports shares. The repurchases will start at the earliest on October 30, 2017 and end on March 7, 2018 at the latest. The repurchase authorization is to a maximum of 10,000,000 of the Company’s own shares.
The company’s own shares shall be repurchased otherwise than in proportion to the holdings of the shareholders by using the non-restricted equity through trading on regulated market organized by Nasdaq Helsinki Ltd at the market price prevailing at the time of the acquisition. The shares shall be repurchased and paid for in accordance with the rules of Nasdaq Helsinki Ltd and Euroclear Finland Ltd.
AMER SPORTS
Amer Sports (www.amersports.com) is a sporting goods company with internationally recognized brands including Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto and Precor. The company’s technically-advanced sports equipment, footwear and apparel improve performance and increase the enjoyment of sports and outdoor activities. The Group’s business is balanced by its broad portfolio of sports and products and a presence in all major markets. Amer Sports shares are listed on the Nasdaq Helsinki stock exchange (AMEAS).
