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)*
|Ch %||Ch %*)||2018||2017
|Ch %||Ch %*)|
|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||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|
|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|
|Earnings per share excl. IAC, EUR||0.53||0.57||1.23||1.18|
|Free cash flow||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|
 EBITDA excl. IAC = EBIT excluding items affecting comparability and depreciation and amortization
 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.
 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 5th 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.
Nasdaq Helsinki, main media, www.amersports.com
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).