Amer Sports Half Year Financial Report January-June 2017
Donnerstag, 27.07.2017 12:00 von GlobeNewswire
Amer Sports Corporation
HALF YEAR FINANCIAL REPORT
July 27, 2017 at 1:00 p.m.
Amer Sports Half Year Financial Report January-June 2017
APRIL-JUNE 2017
- Net sales EUR 487.3 million (April-June 2016: 477.4), up by 2%. In local currencies, net sales increased by 1%.
- Gross margin 44.5% (44.7).
- EBIT excluding items affecting comparability EUR -24.8 million (-12.1). Items affecting comparability were EUR +1.0 million (-).
- Earnings per share excluding IAC EUR -0.21 (-0.13).
- Free cash flow EUR 7.0 million (-54.3).
- Own initiatives and order positions support gradually accelerating profitable growth as of second half of the year. Outlook for 2017 unchanged.
JANUARY-JUNE 2017
- Net sales EUR 1,148.9 million (January-June 2016: 1,112.9), up by 3%. In local currencies, net sales increased by 2%.
- Gross margin 44.9% (46.3).
- EBIT excluding IAC EUR 13.4 million (33.9). Items affecting comparability were EUR -5.7 million (-6.3).
- Earnings per share excluding IAC EUR 0.00 (0.11).
- Free cash flow EUR 60.9 million (-21.5).
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
| EUR million | 4-6/2017 | 4-6/2016 | 1-6/2017 | 1-6/2016 | 2016 |
| Net sales | 487.3 | 477.4 | 1,148.9 | 1,112.9 | 2,622.1 |
| Gross profit | 216.8 | 213.6 | 516.4 | 515.1 | 1,213.5 |
| Gross profit % | 44.5 | 44.7 | 44.9 | 46.3 | 46.3 |
| EBITDA excl. IAC*) | -7.0 | 1.5 | 50.4 | 62.8 | 281.7 |
| EBIT excl. IAC | -24.8 | -12.1 | 13.4 | 33.9 | 221.7 |
| EBIT % excl. IAC | 1.2 | 3.0 | 8.5 | ||
| IAC**) | +1.0 | - | -5.7 | -6.3 | -16.9 |
| EBIT | -23.8 | -12.1 | 7.7 | 27.6 | 204.8 |
| EBIT % | 0.7 | 2.5 | 7.8 | ||
| Financing income and expenses | -8.6 | -8.0 | -13.8 | -15.9 | -31.8 |
| Earnings before taxes | -32.4 | -20.1 | -6.1 | 11.7 | 173.0 |
| Net result | -24.0 | -14.7 | -4.5 | 8.5 | 126.9 |
| Earnings per share excluding IAC, EUR | -0.21 | -0.13 | 0.00 | 0.11 | 1.18 |
| Free cash flow***) | 7.0 | -54.3 | 60.9 | -21.5 | 64.4 |
| Equity ratio, % at period end | 35.4 | 35.8 | 36.9 | ||
| Net debt/equity at period end | 0.69 | 0.70 | 0.53 | ||
| Personnel at period end | 8,680 | 8,514 | 8,526 | ||
| Average rates used, EUR/USD | 1.10 | 1.13 | 1.08 | 1.12 | 1.11 |
*) 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 second quarter, consumer demand for our brands continued to be high, and we grew at strong double-digit rate in our strategic priority areas Apparel, own retail, e-commerce, and China. Whilst our sell-through in most of the US wholesale market was strong, our sales into the channel were still down as we annualized the 2016 customer bankruptcies with now lower number of physical doors.
In H1, we continued to pave the way for acceleration in Fitness and Sports Instruments, although the quarterly growth remains uneven. We invested into the company transformation and opened several new retail stores, grew our consumer database, and built further capabilities in e-commerce, own retail, and digital consumer engagement. We also completed our EMEA and North-American Go to Market re-organization into
omni-channel model which is now well aligned to the changing consumer shopping habits to enable our future growth.
In line with our expectations, entering into H2, we see the trading conditions gradually improving. This improvement, coupled with our robust pipeline of brand initiatives and strengthened omni-channel capabilities, is supporting our growth in the second half of the year and beyond. Importantly, we prioritize profitable growth, and continue to drive productivity, enabled by ongoing transformation and restructuring.
For further information, please contact:
Heikki Takala, President and CEO, tel. +358 20 712 2510
Jussi Siitonen, CFO, tel. +358 20 712 2511
Päivi Antola, Director, Corporate Communications and IR, tel. +358 20 712 2537
TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held at 3:00 p.m. Finnish time. To participate in the conference call, please call +44 20 7572 1187or +49 (0) 69 2222 4998, PIN 95913689#. The conference can also be followed live via https://amersports.videosync.fi/half-yearfinancialreport2017. A replay of the conference call and a transcript will be available later. The replay number is +44 20 3426 2807 or +49 69 2222 33985, PIN 681824#.
CAPITAL MARKETS DAY
Amer Sports is hosting a Capital Markets Day for analysts and institutional investors in Helsinki on August 31, 2017.
THIRD QUARTER RESULTS BULLETIN
Amer Sports will publish its Q3/2017 results bulletin on Thursday, October 26, 2017 at approximately 1:00 p.m. Finnish time.
INVESTOR RELATIONS NEWSLETTER
Subscribe to Amer Sports Investor Relations Newsletter at www.amersports.com/investors/subscribe.
DISTRIBUTION
Nasdaq Helsinki, main media, www.amersports.com
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).
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Amer Sports Oyj via Globenewswire