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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