Amer Sports Corporation Financial Statements Bulletin 2016

Amer Sports Corporation                          


February 9, 2017 at 1:00 p.m.

Amer Sports Corporation Financial Statements Bulletin 2016


  • In a challenging market, net sales in local currencies decreased by 2% and were EUR 772.4 million (October-December 2015: 783.7). Organic growth was -2%. In Winter Sports Equipment and Footwear, deliveries peaked earlier in the year. The planned Sports Instruments product launches were postponed to 2017 due to technical issues. There was also a delayed impact from some Fitness product launches.
  • Gross margin 44.7% (43.8).
  • EBIT excluding items affecting comparability (IAC) EUR 81.3 million (84.0). Items affecting comparability were EUR -8.2 million (-).
  • Earnings per share excl. IAC EUR 0.45 (0.46). Earnings per share 0.41 (0.46).
  • Free cash flow EUR 152.8 million (159.4).


  • Record net sales, gross margin and EBIT:
    • Net sales EUR 2,622.1 million (2015: 2,534.4). In local currencies, net sales increased by 4%. Organic growth was 3%.
    • Gross margin 46.3% (45.2).
    • EBIT excl.  IAC EUR 221.7 million (212.1), representing 8.5% of net sales (8.4). Items affecting comparability were EUR -16.9 million (-8.0).
  • Earnings per share excl. IAC EUR 1.18 (1.09). Earnings per share 1.08 (1.04)
  • Free cash flow EUR 64.4 million (121.7).
  • Net debt/EBITDA excl. IAC 1.9 (December 31, 2015: 1.7).
  • Amer Sports Board of Directors is proposing a capital repayment of EUR 0.62 per share (dividend 0.55).
  • Due to the challenging market conditions, Amer Sports paces its short-term growth and expands the on-going cost restructuring program initiated in August 2016, with the objective to reduce operating expenses worth approximately 100 EBIT margin basis points in the coming 24 months.


New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) were effective for the financial year 2016. Amer Sports presents APMs to reflect the underlying business performance and to enhance comparability between financial periods. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. As of Q1 2016, Amer Sports relabels the previously referenced “excluding non-recurring items” with “excluding items affecting comparability” (IAC). Operating segments’ EBIT is reported excluding IAC. Items affecting comparability and APMs used by Amer Sports are defined in note 10 of this report.


In 2017, Amer Sports’ net sales in local currencies are expected to increase from 2016, despite short-term market softness. The growth is expected to be biased to the second half of the year. 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.


EUR million 10-12/



Ch %

Ch %*)
2016 2015  

Ch %

Ch %*)
Net sales 772.4 783.7 -1 -2 2,622.1 2,534.4 3 4
Gross profit 345.1 343.0 1   1,213.5 1,145.9 6  
  Gross profit % 44.7 43.8     46.3 45.2    
EBITDA excl. IAC **) 96.6 98.5     281.7 263.2    
EBIT excl. IAC 81.3 84.0 -3   221.7 212.1 5  
EBIT % excl. IAC 10.5 10.7     8.5 8.4    
IAC***) -8.2     -16.9 -8.0    
EBIT 73.1 84.0     204.8 204.1    
EBIT % 9.5 10.7     7.8 8.1    
Financing income and expenses -7.9 -10.7     -31.8 -36.1    
Earnings before taxes 65.2 73.3     173.0 168.0    
Net result 47.9 53.3     126.9 121.6    
Earnings per share excl. IAC, EUR 0.45 0.46     1.18 1.09    
Free cash flow****) 152.8 159.4     64.4 121.7    
Equity ratio, % at period end         36.9 37.2    
Net debt/equity at period end         0.53 0.48    
Personnel at year end         8,526 7,954    
Average rates used, EUR/USD        



*) In local currencies

**) 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).


In the fourth quarter, the market softened further, hence we pursued sustainable, non-promotional growth. Due to issues with technical readiness, we postponed some planned launches in Sports Instruments to 2017, and there was also a delayed impact from some Fitness product launches. We improved gross margins, and executed short-term expense reductions, whilst continuing to invest into our 2020 acceleration priorities, most notably digitalization, retail openings, and developing new products and technologies for future commercialization.

2016 was another year of record sales and profit, despite a challenging trading environment. Our strategic acceleration areas Footwear, Apparel, Business to Consumer, and China continued the strong growth, and our gross margin was all time high. With the continuously improving performance and the healthy balance sheet, the Board of Directors is proposing yet another increased payout to the shareholders.

We have now delivered seven consecutive years of profitable growth in line with our Sustainable Growth Model. Going into 2017, our pipeline of new initiatives is strong, and we continue to invest into the prioritized acceleration areas. However, as the market is challenging, we adjust our short-term growth ambitions and elevate our focus on profit, cash and asset efficiency. We proactively expand the restructuring program started in August 2016, with the objective to reduce our operating expenses worth approximately 100 EBIT margin basis points in the coming 24 months.

We are looking forward to another year of growth and improvement.

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


A conference call for investors and analysts will be held at 3:00 p.m. Finnish time. To participate, please dial +44 20 7572 1187 or +49 69 2222 4998, PIN 26928255#.

The call can also be followed live via and

A replay and a transcript will be available later. The replay number is +44 20 3426 2807 or +49 69 2222 33985, conference number 681349#.


Amer Sports Annual General Meeting will be held on Thursday, March 9, 2017 starting at 2:00 p.m. at Messukeskus, Expo and Convention Centre Helsinki, Messuaukio 1, 00520, Helsinki, Finland.


Amer Sports will publish its Q1/2017 interim report on Thursday, April 27, 2017 at approximately 1:00 p.m. Finnish time.


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Amer Sports ( 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).