Amer Sports Corporation
STOCK EXCHANGE RELEASE
April 22, 2016 at 11:00 a.m.
Amer Sports Corporation Interim Report January-March 2016
OUTLOOK FOR 2016
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.
IMPACT OF NEW ESMA GUIDELINES
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 interim report.
|Gross profit %||47.4||45.9||45.2|
|EBITDA excl. IAC*)||61.3||45.5||263.2|
|EBIT excl. IAC||46.0||33.6||212.1|
|EBIT % excl. IAC||7.2||5.8||8.4|
|Financing income and expenses||-7.9||-8.3||-36.1|
|Earnings before taxes||31.8||23.9||168.0|
|Earnings per share excl. IAC, EUR||0.24||0.16||1.09|
|Free cash flow***)||32.8||43.0||121.7|
|Equity ratio, % at period end||35.6||39.2||37.2|
|Net debt/equity at period end||0.63||0.51||0.48|
|Personnel at period end||8,289||7,650||7,954|
|Average rates used, EUR/USD||1.10||1.13||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 - restricted cash (Net capital expenditures: Total capital expenditure less proceeds from sale of assets).
HEIKKI TAKALA, PRESIDENT AND CEO:
We started 2016 with solid profitable growth as we continued to successfully accelerate especially in our five priority areas: Apparel & Footwear, USA, China, Business to Consumer, and Digital. Gross margin was very healthy, supported by clean inventory and pricing ahead of currency related pressures. The improved gross margin enabled us to invest back into acceleration especially in Digital and Business to Consumer. Our growth was further boosted by the 2015 acquisitions of Louisville Slugger and Queenax. To re-ignite growth in our Cycling category, we announced the acquisition of ENVE Composites LLC which we are now integrating for growth, scale and synergies.
The trading conditions have remained challenging with disruptions in the retailer landscape. We work relentlessly to anticipate and mitigate these challenges, whilst we build the company fundamentals and accelerate guided by our strategic targets and priorities.
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 1:00 p.m. Finnish time. To participate in the conference call, please call +44 (0)20 3427 1934 or +49 (0)69 2222 10644, passcode 4107738.
The conference can also be followed live via www.amersports.com or
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 or +49 (0)69 2222 2236, passcode 4107738 .
SECOND QUARTER RESULTS BULLETIN
Amer Sports will publish its Q2/2016 results bulletin on Thursday, July 28, 2016 at approximately 1:00 p.m. Finnish time.
Nasdaq Helsinki, main media, www.amersports.com
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).