Amer Sports Corporation
STOCK EXCHANGE RELEASE
October 23, 2014 at 1:00 pm
Amer Sports Corporation Interim Report January-September 2014
JULY-SEPTEMBER 2014
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Net sales totaled EUR 645.8 million (July-September 2013: EUR 608.9 million). In local currencies, net sales increased by 6%.
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Gross margin was 44.7% (45.0). The decline was mainly due to early phasing of lower margin deliveries in Winter Sports Equipment, and adverse margin development in Russia.
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EBIT excluding non-recurring items was EUR 87.6 million (82.5). Non-recurring items were EUR -18.3 million (0), related to the restructuring program announced in July.
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Earnings per share excluding non-recurring items were EUR 0.49 (0.47). Earnings per share were EUR 0.36 (0.47).
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Net cash flow after investing activities was EUR -84.8 million (-119.3).
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Outlook for 2014 unchanged.
JANUARY-SEPTEMBER 2014
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Net sales were EUR 1,523.4 million (January-September 2013: EUR 1,479.1 million). In local currencies, net sales increased by 6%.
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Gross margin was 44.4% (44.3%).
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EBIT excluding non-recurring items was EUR 90.6 million (90.2). Non-recurring items were EUR -19.5 million (0).
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Earnings per share excluding non-recurring items were EUR 0.39 (0.44). Earnings per share were EUR 0.27 (0.44).
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Net cash flow after investing activities was EUR -79.3 million (-101.4).
OUTLOOK FOR 2014
Amer Sports expects global trading conditions to remain challenging, with some regional improvements. In 2014, Amer Sports’ net sales growth in local currencies is expected to meet at minimum the company’s long-term annual 5% growth target and EBIT excluding non-recurring items to improve from 2013. The company will continue to focus on the growth of Apparel and Footwear, consumer-driven product and marketing innovation, commercial expansion and operational excellence.
KEY FIGURES
| EUR million | 7-9/2014 | 7-9/2013 | 1-9/2014 | 1-9/2013 | 2013 |
| Net sales | 645.8 | 608.9 | 1,523.4 | 1,479.1 | 2,136.5 |
| Gross profit | 288.5 | 273.9 | 675.8 | 655.9 | 932.2 |
| Gross profit % | 44.7 | 45.0 | 44.4 | 44.3 | 43.6 |
| EBIT excluding non-recurring items | 87.6 | 82.5 | 90.6 | 90.2 | 154.9 |
| EBIT % excluding non-recurring items | 13.6 | 13.5 | 5.9 | 6.1 | 7.3 |
| Non-recurring items* | -18.3 | – | -19.5 | – | – |
| EBIT total | 69.3 | 82.5 | 71.1 | 90.2 | 154.9 |
| EBIT % | 10.7 | 13.5 | 4.7 | 6.1 | 7.3 |
| Financing income and expenses | -8.8 | -6.5 | -25.9 | -18.5 | -28.6 |
| Earnings before taxes | 60.5 | 76.0 | 45.2 | 71.7 | 126.3 |
| Net result | 43.3 | 54.8 | 32.4 | 51.6 | 90.3 |
| Earnings per share, EUR | 0.36 | 0.47 | 0.27 | 0.44 | 0.77 |
| Earnings per share excluding non-recurring items, EUR | 0.49 | 0.47 | 0.39 | 0.44 | 0.77 |
| Net cash flow after investing activities | -84.8 | -119.3 | -79.3 | -101.4 | 42.5 |
| Equity ratio, % at period end | 39.2 | 37.9 | 37.5 | ||
| Gearing, % at period end | 66 | 79 | 57 | ||
| Personnel at period end | 7,606 | 7,396 | 7,330 | ||
| Average rates used, EUR/USD | 1.33 | 1.32 | 1.36 | 1.32 | 1.33 |
*) Non-recurring items 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 continued to deliver solid growth and improvement in Q3. The growth was driven by our strategic focus areas, primarily Apparel and Footwear and Business to Consumer, as well as continuous momentum in Fitness and Sports Instruments. Winter Sports Equipment deliveries were stable vs. previous year due to improved agility in our supply chain. In Ball Sports, we are executing the new turnaround strategy with early positive impact on EBIT, driven by our Gross Margin intervention to re-set the base for profitable future growth.
The trading conditions have continued to be challenging, with significant headwinds in Russia on top of the adverse impact of the previous mild winter. We continue to mitigate the challenges with good overall progress. We stay the course and continue executing with confidence.”
TELEPHONE CONFERENCE
An English-language conference call for investors and analysts will be held today at 3:00 pm Finnish time. To participate in the conference call, please call +44(0)20 3427 1910 (UK/international dial-in number), confirmation code 7202766. The conference can also be followed live at www.amersports.com or http://www.media-server.com/m/p/mdsvjw2i.
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 7202766#.
FINANCIAL STATEMENTS BULLETIN 2014
Amer Sports financial statements bulletin 2014 will be published on Thursday, February 5, 2015 at approximately 1:00 pm Finnish time.
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
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 OMX Helsinki stock exchange (AMEAS).
