Amer Sports Corporation
INTERIM REPORT
April 27, 2017 at 1:00 p.m.
Amer Sports Corporation Interim Report January-March 2017
JANUARY-MARCH 2017
* Net sales EUR 661.6 million (January-March 2016: 635.5), up by 4%. In local
currencies, net sales increased by 2%.
* Gross margin 45.3% (47.4). The decline was due to less favorable USD hedges
compared to early 2016.
* EBIT excluding items affecting comparability (IAC) EUR 38.2 million (46.0).
Items affecting comparability were EUR -6.7 million (-6.3).
* Earnings per share excluding IAC EUR 0.21 (0.24).
* Free cash flow after investing activities EUR 53.9 million (32.8).
* Outlook for 2017 updated.
OUTLOOK FOR 2017
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 1-3/2017 1-3/2016 2016
---------------------------------------------------------
Net sales 661.6 635.5 2,622.1
Gross profit 299.6 301.5 1,213.5
Gross profit % 45.3 47.4 46.3
EBITDA excl. IAC*) 57.4 61.3 281.7
EBIT excl. IAC 38.2 46.0 221.7
EBIT % excl. IAC 5.8 7.2 8.5
IAC**) -6.7 -6.3 -16.9
EBIT 31.5 39.7 204.8
EBIT % 4.8 6.2 7.8
Financing income and expenses -5.2 -7.9 -31.8
Earnings before taxes 26.3 31.8 173.0
Net result 19.5 23.2 126.9
Earnings per share excl. IAC, EUR 0.21 0.24 1.18
Free cash flow***) 53.9 32.8 64.4
Equity ratio, % at period end 36.8 35.6 36.9
Net debt/equity at period end 0.61 0.63 0.53
Personnel at period end 8,617 8,289 8,526
Average rates used, EUR/USD 1.06 1.10 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 first quarter, we delivered solid growth despite the soft retail
landscape especially in the US. We continued to successfully accelerate in
Apparel, own retail, e-commerce, and China. We made strong progress in Winter
Sports Equipment, and started to rebound in Fitness. And we continued to gain
market shares in several categories, most notably performance tennis. Whilst we
did not deliver target performance in Sports Instruments and Cycling, we
continued to strengthen our new product development with exciting initiatives in
the pipeline. On Gross Margin, we achieved our target level of 45+%. Our higher
Gross Margin in early 2016 was impacted by extraordinarily favorable hedges.
As the market place and the consumer habits and practices are changing rapidly,
we are further accelerating our investment into the omni-channel and digital
transformation of the company. This will give us longer term benefits but weigh
in our short-term profitability. We continue to execute at the maximum speed,
guided by our strategic glidepath and priorities.
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
CONFERENCE CALL
A conference call for investors and analysts will be held at 3:00 p.m. Finnish
time. To participate, please call +44 (0) 20 7572 1187 or +49 (0) 69 2222 4998,
PIN 34112398#.
The call can also be followed live via www.amersports.com or
https://amersports.videosync.fi/financialstatements-q1-2017.
A replay and a transcript will be available later at the same address. The
replay dial-in number is +44 20 3426 2807 or +49 69 2222 339 85, conference
number 681843#.
SECOND QUARTER RESULTS BULLETIN
Amer Sports will publish its Q2/2017 results bulletin on Thursday, July
27, 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).
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