Amer Sports Corporation
STOCK EXCHANGE RELEASE
April 23, 2015 at 1:00 pm
Amer Sports Corporation Interim Report January-March 2015
JANUARY-MARCH 2015
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Net sales EUR 575.9 million (501.5). In local currencies, net sales increased by 5% driven particularly by Apparel and Footwear.
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Gross margin 45.9% (44.3%).
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EBIT excluding non-recurring items (NRI) EUR 33.6 million (20.6).
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Earnings per share excluding NRI EUR 0.16 (0.07).
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Net cash flow after investing activities EUR 43.0 million (44.2).
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The operative improvement was further boosted by currencies.
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Outlook for 2015 unchanged.
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In March, Amer Sports announced the acquisition of a leading American baseball brand, Louisville Slugger. The acquisition had no impact on January-March 2015 financials. The acquisition was finalized on April 22.
OUTLOOK FOR 2015
In 2015, Amer Sports net sales in local currencies is expected to increase and EBIT margin excluding non-recurring items to improve from 2014, despite challenging market conditions. The company will continue to focus on apparel and footwear growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence.
KEY FIGURES
| EUR million | 1-3/2015 | 1-3/2014 | 2014 | |
| Net sales | 575.9 | 501.5 | 2,228.7 | |
| Gross profit | 264.2 | 222.3 | 979.0 | |
| Gross profit % | 45.9 | 44.3 | 43.9 | |
| EBIT excluding NRI | 33.6 | 20.6 | 168.3 | |
| EBIT % excluding NRI | 5.8 | 4.1 | 7.6 | |
| NRI*) | -1.4 | – | -54.2 | |
| EBIT total | 32.2 | 20.6 | 114.1 | |
| EBIT % | 5.6 | 4.1 | 5.1 | |
| Financing income and expenses | -8.3 | -9.2 | -37.1 | |
| Earnings before taxes | 23.9 | 11.4 | 77.0 | |
| Net result | 17.2 | 8.2 | 55.4 | |
| Earnings per share excluding NRI, EUR | 0.16 | 0.07 | 0.80 | |
| Net cash flow after investing activities | 43.0 | 44.2 | 53.5 | |
| Equity ratio, % at period end | 39.2 | 40.5 | 38.8 | |
| Net debt/equity at period end | 0.51 | 0.58 | 0.50 | |
| Personnel at period end | 7,650 | 7,370 | 7,630 | |
| Average rates used, EUR/USD | 1.13 | 1.37 | 1.33 | |
*) Non-recurring items (NRI) are exceptional transactions that are not related to normal business operations. The most common non-recurring items are capital gains, exceptional write-downs, provisions for planned restructuring and penalties. Non-recurring items are normally specified individually if they have a material impact on EBIT.
HEIKKI TAKALA, PRESIDENT AND CEO:
We started 2015 with solid growth and profit improvement, further boosted by currencies. The growth was particularly strong in Apparel and Footwear as well as in Sports Instruments, and the improved winter conditions drove re-orders in Winter Sports Equipment. In Fitness we declined mainly due to moving from third-party dealer model to in-house sales in the USA, resulting in de-stocking of the current dealer inventories.
Our Ball Sports recovery continues. Whilst total sales declined behind our new distribution strategy, we delivered solid growth across the focus growth areas, especially performance tennis and baseball, and we continued to improve gross margins and EBIT toward our mid-term targets. To accelerate profitable growth in baseball and softball, we announced the acquisition of Louisville Slugger, which makes us the global leader in baseball and softball equipment. The acquisition supports our strategic glidepath and confirms that we have progressed to a level where we can accelerate beyond organic growth, and we have the balance sheet strength to do so. Importantly, we still prefer organic growth and expansion, as we see significant potential to further leverage our current portfolio.
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
TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held at 3:00 p.m. Finnish time. To participate in the conference call, please call +44 (0)20 3427 1908 (UK/international dial-in number), confirmation code 3869951.The conference can also be followed live via www.amersports.com or http://edge.media-server.com/m/p/yv8a5yrf.
A replay of the conference call and a transcript will be available later at the same internet address. The replay number is +44 (0)20 3427 0598, passcode 3869951#.
SECOND QUARTER RESULTS BULLETIN
Amer Sports will publish its Q2/2015 results bulletin on Wednesday, July 29, 2015 at approximately 1:00 pm Finnish time.
DISTRIBUTION
NASDAQ OMX 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).
