Amer Sports Corporation
STOCK EXCHANGE RELEASE
February 8, 2018 at 1:00 p.m.
Amer Sports Corporation Financial Statements Bulletin 2017:
Strong Q4 finishing another record year with broad-based improvement
OCTOBER-DECEMBER 2017
- Net sales EUR 803.1 million (October-December 2016: 772.4). In local currencies, net sales +9%.
- EBIT excluding items affecting comparability (IAC) EUR 92.6 million (81.3). Items affecting comparability EUR -6.7 million (-8.2).
- Earnings per share excl. IAC EUR 0.53 (0.45). Earnings per share 0.41 (0.41).
- Free cash flow EUR 156.2 million (152.8).
JANUARY-DECEMBER 2017
- Net sales EUR 2,685.2 million (2016: 2,622.1). In local currencies, net sales +4%.
- EBIT excl. IAC EUR 215.0 million (221.7), 8.0% of net sales (8.5). Items affecting comparability EUR -46.7 million (-16.9).
- Earnings per share excl. IAC EUR 1.18 (1.18). Earnings per share EUR 0.80 (1.08).
- Free cash flow EUR 161.3 million (64.4).
- Net debt/EBITDA excl. IAC 1.6 (December 31, 2016: 1.9).
- Amer Sports Board of Directors is proposing a capital repayment of EUR 0.70 per share (0.62).
OUTLOOK
In 2018, Amer Sports' net sales in local currencies as well as EBIT excl. IAC are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven. The company will prioritize sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer-led transformation.
HEIKKI TAKALA, PRESIDENT AND CEO:
We finished 2017 with a strong fourth quarter, driven again by our strategic acceleration priorities Softgoods, Direct to Consumer, and China. We continued to accelerate growth in Fitness and Sports Equipment. We also continued to make Winter Sports Equipment stronger, with solid growth and improving profitability. At the same time, in a turbulent market, we did have challenges to drive target growth, especially in Ball Sports and Cycling, and work remains to re-ignite them.
2017 was the eighth consecutive year of growth and broad-based improvement for Amer Sports. The consumer shopping behavior is changing rapidly, calling for a commercial business model transformation. We have pursued this transformation proactively, as we have invested significantly into our commercial omni-channel transformation and direct consumer engagement, with focus on long-term health and value creation. However, in 2017, we also continued to create short-term value as we reached record results in three of our four strategic financial targets: record sales, record cash flow, and strongest ever balance sheet.
We are looking forward to delivering our 2020 glidepath, and as part of that, another year of growth and improvement in 2018.
KEY FIGURES
| EUR million | 10-12/ 2017 | 10-12/ 2016 | Ch % | Ch %*) | 2017 | 2016 | Ch % | Ch %*) | ||||||||
| Net sales | 803.1 | 772.4 | 4 | 9 | 2,685.2 | 2,622.1 | 2 | 4 | ||||||||
| Gross profit | 356.8 | 345.1 | 3 | 1,215.3 | 1,213.5 | 0 | ||||||||||
| Gross profit % | 44.4 | 44.7 | 45.3 | 46.3 | ||||||||||||
| EBITDA excl. IAC**) | 109.3 | 96.6 | 284.4 | 281.7 | ||||||||||||
| EBIT excl. IAC | 92.6 | 81.3 | 14 | 215.0 | 221.7 | -3 | ||||||||||
| EBIT % excl. IAC | 11.5 | 10.5 | 8.0 | 8.5 | ||||||||||||
| IAC***) | -6.7 | -8.2 | -46.7 | -16.9 | ||||||||||||
| EBIT | 85.9 | 73.1 | 168.3 | 204.8 | ||||||||||||
| EBIT % | 10.7 | 9.5 | 6.3 | 7.8 | ||||||||||||
| Financing income and expenses | -6.3 | -7.9 | -26.3 | -31.8 | ||||||||||||
| Earnings before taxes | 79.6 | 65.2 | 142.0 | 173.0 | ||||||||||||
| Net result | 47.2 | 47.9 | 93.3 | 126.9 | ||||||||||||
| Earnings per share excl. IAC, EUR | 0.53 | 0.45 | 1.18 | 1.18 | ||||||||||||
| Free cash flow****) | 156.2 | 152.8 | 161.3 | 64.4 | ||||||||||||
| Equity ratio, % at period end | 34.1 | 36.9 | ||||||||||||||
| Net debt/equity at period end | 0.52 | 0.53 | ||||||||||||||
| Personnel at year end | 8,607 | 8,526 | ||||||||||||||
| Average rates used, EUR/USD | 1.13 | 1.11 | ||||||||||||||
*) 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.
****) Cash flow from operating activities - net capital expenditures - change in restricted cash (Net capital expenditures: Total capital expenditure less proceeds from sale of assets).
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
CONFERENCE CALL
A conference call for investors and analysts will be held at 3:00 p.m. Finnish time. To participate, please dial +44 (0) 20 7572 1187 or +49 (0) 69 2222 4998, PIN 70916118#.
The call can also be followed live via www.amersports.com and https://amersports.videosync.fi/financialstatements2017 (https://amersports.videosync.fi/financialstatements2017).
A replay of the conference call and a transcript will be available later at the same internet address. The replay numbers are +44 (0)20 3426 2807 or +49 (0) 69 2222 33985, conference number 694440#.
ANNUAL GENERAL MEETING
Amer Sports Corporation Annual General Meeting will begin at 2.00 p.m. on Thursday, March 8, 2018 at Finlandia Hall, Mannerheimintie 13 e, 00100 Helsinki, Finland.
INTERIM REPORT Q1/2018
Amer Sports will publish its Q1/2018 interim report on Thursday, April 26, 2018 at approximately 1:00 p.m. Finnish time.
INVESTOR RELATIONS NEWSLETTER
Subscribe to Amer Sports Investor Relations Newsletter at www.amersports.com/investors/subscribe (http://www.amersports.com/investors/subscribe).
DISTRIBUTION
Nasdaq 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).
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Amer Sports Oyj via Globenewswire
