Amer Sports Corporation
STOCK EXCHANGE RELEASE
February 7, 2019 at 1:00 p.m.
Amer Sports Financial Statements Bulletin 2018:
Solid Q4 closed yet another year of record sales and profits
OCTOBER-DECEMBER 2018 (continuing operations)*
* Net sales EUR 874.2 million (October-December 2017: 786.0). In local
currencies, net sales +10%. Organic growth was 5%.
* EBIT excluding items affecting comparability (IAC) EUR 96.7 million (98.1).
Items affecting comparability EUR -12.9 million (-5.4).
* Earnings per share excl. IAC EUR 0.53 (0.57). Earnings per share 0.44
(0.44).
* Free cash flow EUR 187.7 million (156.2).
JANUARY-DECEMBER 2018 (continuing operations)*
* Net sales EUR 2,678.2 million (2017: 2,574.6). In local currencies, net
sales +7%. Organic growth was 4%.
* EBIT excl. IAC EUR 231.2 million (214.4), 8.6% of net sales (8.3). Items
affecting comparability EUR -22.3 million (-44.9).
* Earnings per share excl. IAC EUR 1.23 (1.18). Earnings per share EUR 1.08
(0.80).
* Free cash flow EUR 34.9 million (161.3).
* Net debt/EBITDA excl. IAC 2.5 (December 31, 2017: 1.6).
* Due to the terms and conditions of the ongoing tender offer for all the
shares in Amer Sports Corporation, the Board of Directors proposes that at
this time no dividend shall be distributed to shareholders.
OUTLOOK FOR 2019
In 2019, Amer Sports' net sales in local currencies as well as EBIT excl. IAC
are expected to increase from 2018. The company will prioritize sustainable,
profitable growth, focusing on its strategic priorities in Apparel and Footwear,
Direct to Consumer, China, and USA, whilst continuing its consumer-led
transformation.
HEIKKI TAKALA, PRESIDENT AND CEO:
We closed the year 2018 with a solid Q4. Topline was up 10% (organic +5%),
driven by our strategic acceleration priorities and on-going transformation.
Growth was strongest in Apparel (+41%), boosted by the acquisition of Peak
Performance. D2C (+23%) and e-tail (+15%) were again the winning channels, and
China (+16%) and USA (+10%) drove geographical growth. Fitness (+9%) had strong
topline momentum but profitability requires further work. In Q4, we continued to
prepare strategically for a more focused portfolio as we proceeded the Cycling
sale process, and in the core business we continued to invest into future growth
to ensure a strong pipeline of initiatives for 2019 and beyond.
In 2018, we delivered again record sales and profits as we closed the ninth
consecutive year of profitable growth and broad-based improvement. We continued
to drive our strategic transformation. Apparel became our largest business area,
and Softgoods now represents 40% of our sales. Modern channels (own D2C and e-
tail) reached 30% of our sales, and China and USA now represent 45% of the
company sales. In short, our strategies are delivering results with the vast
majority of our businesses making good progress. I want to thank our
organization for the strong contribution in 2018, looking forward to another
good year of growth and improvement in 2019.
KEY FIGURES (continuing operations)*
10-12/2017 2017
EUR million 10-12/2018 restated Ch % Ch %*) 2018 restated Ch % Ch %*)
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Net sales 874.2 786.0 11 10 2,678.2 2,574.6 4 7
Gross profit
excl. IAC 389.5 348.8 12 1,221.0 1,160.3 5
Gross margin
excl. IAC 44.6 44.4 45.6 45.1
EBITDA excl.
IAC[1] 116.8 113.8 303.6 279.7
EBIT excl. IAC 96.7 98.1 -1 231.2 214.4 8
EBIT % excl. IAC 11.1 12.5 8.6 8.3
IAC[2] -12.9 -5.4 -22.3 -44.9
EBIT 83.8 92.7 208.9 169.5
EBIT % 9.6 11.8 7.8 6.6
Financing income
and expenses -16.2 -6.3 -42.2 -26.6
Earnings before
taxes excl. IAC 80.5 91.8 189.0 187.8
Earnings before
taxes 67.6 86.4 166.7 142.9
Net result 51.0 51.7 124.9 93.8
Earnings per
share excl. IAC,
EUR 0.53 0.57 1.23 1.18
Free cash flow[3] 187.7 156.2 34.9 161.3
Net debt/equity
at period end 0.82 0.52
Personnel at
period end 9,489 8,607
Average
rates used,
EUR/USD 1.14 1.17 1.18 1.13
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[1] EBITDA excl. IAC = EBIT excluding items affecting comparability and
depreciation and amortization
[2] Items affecting comparability (IAC) are material items or transactions,
which are relevant for understanding the underlying operational 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 on business disposals, acquisition and disposal-related costs,
significant write-downs, provisions for planned restructuring and other items
that are not related to normal business operations from Amer Sports' management
view.
[3] Cash flow from operating activities - net capital expenditures - change in
restricted cash (Net capital expenditures: Total capital expenditure less
proceeds from sale of assets).
*) On 5(th) September, as part of the strategy update, Amer Sports announced a
decision to place its Cycling business under strategic review. Following the
decision, the company has started a formal process to actively find a potential
buyer for the asset. As required by the reporting standards, all income and
expenses of the Cycling business are reported as discontinued operations for
2018 and comparative figures for 2017 are adjusted accordingly. Balance sheet
items related to Cycling business are reported under assets and liabilities
held-for-sale as of September 2018 onwards.
The comparative figures have been restated in accordance with IFRS 15 Revenue
from contracts with customers and IFRS 9 Financial instruments.
For further information, please contact:
Samppa Seppälä, Director, Corporate Communications and IR, tel. +358 50 568 0533
ANNUAL GENERAL MEETING
Due to the ongoing tender offer, the date of Amer Sports Corporation Annual
General Meeting will be announced later.
HALF-YEAR FINANCIAL REPORT 2019
Due to the ongoing tender offer, Amer Sports has updated its financial reporting
calendar and will publish its half-year financial report 2019 on Thursday, July
25, 2019 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, Arc'teryx, Peak
Performance, Atomic, Mavic, Suunto, Wilson 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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