Investment case

Amer Sports is one of the leading sporting goods and outdoor companies in the world. The company has a strong brand portfolio and is positioned to benefit from long-term trends.
 
2016 was the 7th consecutive year of profitable growth and overall performance improvement following Amer Sports’ Sustainable Growth Model with annual growth, annual profit improvement, and annual investment for the future. This solid performance is the foundation of Amer Sports future growth and value creation. Thanks to the improving performance and stronger balance sheet, Amer Sports has increased the dividends paid to shareholders every year since the renewal of the strategy in 2010.
 
Amer Sports strategy is based on five strategic cornerstones, which enable the company to achieve its ambitions and long-term financial targets.

Financial targets and accelerated glidepath toward 2020

In August 2015, Amer Sports announced new financial targets and a new accelerated glidepath toward 2020 with focus on accelerating profitable growth.

Amer Sports’ financial targets toward 2020 are:

  • Net sales: At least EUR 3.5 billion with minimum mid-single digit organic, currency-neutral annual growth
  • Profit: Annual EBIT growth (excl. items affecting comparability) ahead of net sales growth
  • Cash flow conversion: Free cash flow / net profit at least 80%
  • Net debt / EBITDA: Year-end net debt / EBITDA ratio max 3

The accelerated glidepath consists of growing the core business and accelerating disproportionally in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer (own retail and e-commerce), as well as digitally connected devices and services.

In 2016, Amer Sports reached several strategic milestones, including

  • Footwear & Apparel net sales at approximately EUR 1 billion (approximately EUR 300 million in 2010);
  • Business to Consumer bypassing EUR 200 million, representing 8% of the Group sales (1% in 2010); and
  • China bypassing EUR 100 million, up more than 6x since 2010.

Amer Sports continues to invest into the 2020 acceleration priorities, most notably digitalization, retail openings, and developing new products and technologies for future commercialization.

 

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