Amer Sports Half Year Financial Report 2016

Amer Sports Corporation                          
July 28, 2016 at 1:00 p.m.

Amer Sports Half Year Financial Report January-June 2016


  • Net sales EUR 477.4 million (April-June 2015: 461.1). In local currencies, net sales increased by 6%. Organic growth was 5%, driven by Footwear and Apparel.
  • Gross margin 44.7% (44.1).
  • EBIT EUR -12.1 million (-9.0 excluding items affecting comparability, IAC).
  • Net sales and profitability were adversely impacted by the US customer bankruptcies.
  • Earnings per share EUR -0.13 (-0.11 excluding IAC).
  • Free cash flow EUR -54.3 million (11.5) due to seasonal fluctuation.
  • Outlook for 2016 unchanged.


  • Net sales EUR 1,112.9 million (January-June 2015: 1,037.0). In local currencies, net sales increased by 9%. Organic growth was 6%.
  • Gross margin 46.3% (45.1).
  • EBIT excluding IAC EUR 33.9 million (24.6). Items affecting comparability were EUR -6.3 million (-8.0).
  • Earnings per share excluding IAC EUR 0.11 (0.04).
  • Free cash flow EUR -21.5 million (54.5).

In 2016, Amer Sports net sales in local currencies are expected to increase and EBIT margin excluding items affecting comparability to improve from 2015, despite challenging market conditions. The company will focus on growing the core business and accelerating in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services.

New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) are 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.


EUR million 4-6/2016 4-6/2015 1-6/2016 1-6/2015 2015
Net sales 477.4 461.1 1,112.9 1,037.0 2,534.4
Gross profit 213.6 203.5 515.1 467.7 1,145.9
  Gross profit % 44.7 44.1 46.3 45.1 45.2
EBITDA excl. IAC*) 1.5 2.3 62.8 47.8 263.2
EBIT excl. IAC -12.1 -9.0 33.9 24.6 212.1
EBIT % excl. IAC 3.0 2.4 8.4
IAC**) -6.6 -6.3 -8.0 -8.0
EBIT -12.1 -15.6 27.6 16.6 204.1
EBIT % 2.5 1.6 8.1
Financing income and expenses -8.0 -9.4 -15.9 -17.7 -36.1
Earnings before taxes -20.1 -25.0 11.7 -1.1 168.0
Net result -14.7 -18.0 8.5 -0.8 121.6
Earnings per share excluding IAC, EUR -0.13 -0.11 0.11 0.04 1.09
Free cash flow***) -54.3 11.5 -21.5 54.5 121.7
Equity ratio, % at period end 35.8 37.7 37.2
Net debt/equity at period end 0.70 0.68 0.48
Personnel at period end 8,514 7,880 7,954
Average rates used, EUR/USD 1.13 1.10 1.12 1.12 1.11

*) 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).

The second quarter is traditionally our smallest, however we delivered a solid 6% growth despite short-term adverse business impact due to US customer disruptions, which impacted especially Ball Sports. During the quarter we executed a significant distribution center expansion in both the US and EMEA, and moved Arc’teryx into a larger production facility in Canada. These changes added short-term CAPEX and OPEX, however they support our mid/long-term growth.

Our outlook for the year remains positive, supported by robust pre-orders in most businesses, with the exception of Winter Sports Equipment where we expect a modest decline following the challenging previous winters. Our initiative pipeline for the Fall/Winter season is stronger than ever with strong joint business plans with our retail partners, continuous B2C expansion, and a robust innovation rollout across the brands.

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

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 1918 or +49(0)69 2222 10622, passcode 1763874. The conference can also be followed live via A replay of the conference call and a transcript will be available later. The replay number is +44(0)20 3427 0598 or +49(0)69 2222 2236, passcode 1763874.

Amer Sports is hosting a Capital Markets Day for analysts and institutional investors in Helsinki on September 1, 2016.

Amer Sports will publish its Q3/2016 results bulletin on Thursday, October 20, 2016 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).