Amer Sports interim nine month 2012 report

In its interim report for January to September 2012, Amer Sports has reported that net sales totalled €601.9 million. This is a rise of 8% when compared to July-September 2011, when the company recorded net sales of €559.2 million. In local currency terms, net sales increased by 2%.

Strong growth in Apparel (+27%), Sports Instruments (+24%) and Fitness (+10%) was offset by a decline in Winter Sports Equipment (-15%).

Overall gross margin was 45.3% and was static year-on-year. EBIT (earnings before interest and taxation) was €80.8 million; and earnings per share were €0.47 – compared to €0.45 in the previous year period.

Amer Sports noted in its report that it is starting a restructuring program in order to sustain growth and to drive further scale and synergies. The program is estimated to deliver an annual cost saving of €20 million, once fully executed by the end of 2014.

Amer has a diverse portfolio of brands, which include: bike wheel, apparel and accessories business, Mavic; outdoor gear brand Salomon; and sports instruments business Suunto. Other brands in the group’s portfolio include: Wilson, Precor, Atomic and Arc’teryx.

The group’s outlook for 2012 is unchanged. In the full year of 2012, Amer Sports’ net sales in local currencies are expected to increase from 2011 in line with the company’s annual 5% growth target. The outlook is based on an unchanged view on Winter Sports Equipment, Apparel and Footwear, and on-going improvement in Sports Instruments and Fitness.

Heikki Takala, Amer Sports President and CEO said “Our Q3 sales were driven by strong on-going momentum in Apparel (27% growth), as well as continuous improvement in Suunto (+24%), Fitness (10%), Tennis (+8%) and Cycling (+7%). As expected, Winter Sports Equipment declined in line with the previously communicated low pre-orders, despite our strengthened market position.”

Takala added, “The external trading environment is admittedly quite challenging, but we have successfully continued to execute our strategic programs with extra focus on working capital management and especially the health of our inventories. We have also continued to invest into the long-term strategic programs, like expansion in China and Russia, own retail and soft goods.

“Now the majority of the new capabilities are starting to be in place. In order to sustain the growth, and to drive further scale and synergies, we’re also starting a group-wide restructuring program.”


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