Amer Sports Reports First Quarter 2024 Financial Results, Company Updates Full Year Guidance
Amer Sports (NYSE: AS) reported a 13% year-over-year revenue increase for Q1 2024, reaching $1.2 billion, driven by a 44% surge in the Technical Apparel segment, largely attributed to the Arc'teryx brand. Despite strong revenue growth, net income decreased to $7 million from $19 million in Q1 2023, with diluted EPS dropping to $0.01 from $0.05. Gross margin improved by 110 basis points to 54.3%. However, SG&A expenses rose significantly, impacting operating profit, which fell to $109 million from $130 million.
Net debt was reduced to $1.7 billion from IPO proceeds. Full-year 2024 guidance includes mid-teens revenue growth, a gross margin of 54%, and an operating margin between 10.5% and 11%. For Q2 2024, expected revenue growth is approximately 10% with an operating margin of 0.0%.
- Q1 2024 revenue increased by 13% to $1.2 billion.
- Technical Apparel segment saw a 44% increase in revenue.
- Adjusted gross profit margin improved by 110 basis points to 54.3%.
- Full-year guidance includes mid-teens revenue growth and a gross margin of 54%.
- Net debt reduced to $1.7 billion due to IPO proceeds.
- Arc'teryx brand showing strong performance with double-digit growth.
- Net income fell from $19 million in Q1 2023 to $7 million in Q1 2024.
- Diluted EPS decreased from $0.05 to $0.01.
- SG&A expenses increased significantly, impacting operating profit.
- Operating profit dropped to $109 million from $130 million.
- Ball & Racquet Sports segment revenue decreased by 14%.
- High SG&A expenses at 43.7% of revenues for Q1 2024.
- Technical Apparel segment's operating profit margin contracted by 40 basis points.
Insights
Amer Sports' first quarter results indicate a 13% year-over-year revenue increase to
From a financial perspective, gross margin rose to 54.0%, supported by a favorable mix shift towards high-margin brands and lower logistics costs. However, it's essential to note the increase in SG&A expenses, which climbed by 420 basis points. While this partially offsets the gross margin gains, it reflects the company's reinvestment in growth areas such as IT infrastructure and new store openings.
Another critical metric is the net debt reduction. The use of IPO proceeds to pay down
Overall, while Amer Sports reported lower net income compared to the previous year, the adjusted net income and EPS growth reflect an underlying improvement in profitability. For retail investors, these results suggest that the company is on a positive trajectory, though they should remain cautious about the impact of increased SG&A expenses and net finance costs.
The performance of Amer Sports’ Arc’teryx brand is a standout feature in this quarter's results. With double-digit new store growth and exceptional omni-channel performance, Arc’teryx is driving substantial revenue increases, particularly in the Asia Pacific and Americas regions. This broad-based growth underscores the strong consumer demand for high-performance technical products in these markets.
The strategic shift towards a brand-direct business model four years ago appears to be paying off, as evidenced by the 41% growth in DTC sales across all regions. This move not only enhances revenue growth but also supports margin expansion by reducing reliance on wholesale channels.
It's also noteworthy that despite the challenging comparisons from the prior year, the company's ability to maintain and grow its market share in premium sports and outdoor segments indicates a robust competitive position. The enhanced full-year guidance further reinforces confidence in sustained growth and profitability.
For investors, the shift towards DTC and the sustained momentum of high-margin brands like Arc’teryx are key indicators of future growth potential. The continued investment in retail expansion and IT infrastructure suggests Amer Sports is well-positioned to capitalize on emerging market opportunities and consumer trends.
- First quarter revenue, adjusted operating margin, and adjusted diluted EPS above guidance
-
First quarter revenue increased
13% year-over-year to$1.2 billion - Strong gross margin expansion reflecting mix shift toward highest-margin brands, channels, and regions
- Flagship Arc’teryx brand continues to generate best-in-class financial performance
-
IPO proceeds used to pay down
$1.4 billion $1.7 billion
1 Net debt is defined as loans from financial institutions and related parties less cash and cash equivalents
CEO James Zheng commented, “The momentum behind our strong financial performance has continued through the first quarter of 2024, as we delivered sales and profitability above our guidance. Our transformation to a brand-direct business model four years ago continues to fuel profitable growth today, and our high-performance technical products are resonating with consumers globally. We are gaining share in the premium sports and outdoor market and are well positioned to deliver another great year in 2024.”
CFO Andrew Page added, “The fast growth of our high-margin Arc’teryx franchise is elevating the growth and profitability profile of Amer Sports. This dynamic allows us to deliver profitable growth for shareholders while continuing to reinvest in the many opportunities across our unique portfolio of brands.”
FIRST QUARTER 2024 RESULTS
Revenue increased
At the Amer Sports Group level, DTC expanded
On a reported basis, gross margin for the first quarter of 2024 was
Adjusted gross profit margin rose 110 basis points to
Adjusted SG&A expenses as a percentage of revenues increased 420 basis points on slower sales growth and represented
Adjusted operating margin decreased 240 bps from
Adjusted net income for the first quarter 2024 was
Balance sheet. Year-over-year inventories were up
SEGMENT RESULTS
Technical Apparel. In the first quarter 2024, revenue increased
Outdoor Performance. Revenue increased
Ball & Racquet Sports revenue decreased
OUTLOOK
CFO Andrew Page said, “Despite facing difficult comparisons for our wholesale businesses in Q1, we delivered results ahead of our expectations led by Arc’teryx, which gives us increased confidence in our full year guidance. The continued outperformance of our fastest growing and highest margin franchise allows us to deliver great business performance and strong returns for shareholders, while reinvesting in our key opportunities. As increased demand materializes, we are well positioned to service the elevated demand.”
FULL-YEAR 2024
Amer Sports is updating guidance for the year ending December 31, 2024 (all guidance figures reference adjusted amounts):
- Reported revenue growth: Mid-teens %
-
Gross margin: approximately
54.0% -
Operating margin:
10.5% -11.0% -
D&A: approximately
$250 million $110 million -
Net finance cost:
$215 $225 million $30 million -
Effective tax rate: approximately
38% - Fully diluted share count: 500 million
-
Fully diluted EPS: toward the high end of the previous guidance range of
$0.30 $0.40 $0.03 $0.04 -
Technical Apparel: >
25% revenue growth; segment operating margin slightly above20% -
Outdoor Performance: mid-to-high-single-digit revenue growth; segment operating margin high-single digit %. Note: ENVE contributed approximately
$25 million - Ball & Racquet: low-to-mid single-digit revenue growth, and low-to-mid single-digit segment operating margin
SECOND QUARTER 2024
Amer Sports is providing the following guidance for the second quarter ending June 30, 2024 (all guidance figures reference adjusted amounts):
-
Approximately
10% , including the impact of the disposition of ENVE on May 1, 2024 -
Gross margin: approximately
54.0% -
Operating margin: approximately
0.0% -
Net finance cost:
$45 $50 million -
Effective tax rate: approximately
38% - Fully diluted share count: 510 million
-
Fully diluted EPS:
$(0.04) $(0.08)
Other than with respect to revenue, Amer Sports only provides guidance on a non-IFRS basis. The Company does not provide a reconciliation of forward-looking non-IFRS measures to the most directly comparable IFRS measures due to the difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations without unreasonable efforts. The Company is unable to address the probable significance of the unavailable reconciling items, which could have a potentially significant impact on its future IFRS financial results. The above outlook reflects the Company’s current and preliminary estimates of market and operating conditions and customer demand, which are all subject to change. Actual results may differ materially from these forward-looking statements, including as a result of, among other things, the factors described under “Forward-Looking Statements” below and in our filings with the SEC.
CONFERENCE CALL INFORMATION
The Company's conference call to review the results for the first quarter 2024 will be webcast live today, Tuesday, May 21, 2024 at 8:00 a.m. Eastern Time and can be accessed at https://investors.amersports.com.
ABOUT AMER SPORTS
Amer Sports is a global group of iconic sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Peak Performance, and Atomic. Our brands are known for their detailed craftsmanship, unwavering authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting-edge innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best.
With over 11,400 employees globally, Amer Sports’ purpose is to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices in
NON-IFRS MEASURES
Adjusted gross profit margin, adjusted SG&A expenses, adjusted operating profit margin, adjusted EBITDA, adjusted net (loss) income, and adjusted diluted (loss) income per share are financial measures that are not defined under IFRS. Adjusted gross profit margin is calculated as adjusted gross profit divided by revenue. Adjusted gross profit is calculated as gross profit excluding amortization related to certain purchase price adjustments (PPA) in connection with the acquisition and delisting of Amer Sports in 2019 and restructuring expenses. Adjusted SG&A also excludes PPA amortization, as well as adjustments to exclude restructuring expenses, expenses related to transaction activities, expenses related to certain legal proceedings, and certain share-based payments. Adjusted operating profit margin is calculated as adjusted operating profit divided by revenue. Adjusted operating profit is calculated as loss before tax with adjustments to exclude PPA amortization, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, certain share-based payments, finance costs, and finance income. Adjusted EBITDA is calculated as EBITDA with adjustments to exclude results from discontinued operations, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings and share-based payments. Adjusted net (loss) income is calculated as net (loss) income attributable to equity holders with adjustments to exclude PPA amortization, loss from discontinued operations, restructuring expenses, impairment losses on goodwill and intangible assets, expenses related to transaction activities, expenses related to certain legal proceedings, share-based payments and related income tax expense. “Omni comp” is defined as year over year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months.
The Company believes that these non IFRS measures, when taken together with its financial results presented in accordance with IFRS, provide meaningful supplemental information regarding its operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of our business, results of operations or outlook. In particular, adjusted EBITDA and adjusted net income (loss) are helpful to investors as they are measures used by management in assessing the health of the business and evaluating operating performance, as well as for internal planning and forecasting purposes. Non-IFRS financial measures however are subject to inherent limitations, may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as an alternative to IFRS measures. The supplemental tables below provide reconciliations of each non-IFRS financial measure presented to its most directly comparable IFRS financial measure.
FORWARD LOOKING STATEMENTS
This press release includes estimates, projections, statements relating to the business plans, objectives, and expected operating results of the Company that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “target,” “outlook,” “believes,” “intends,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology. These forward looking statements include, without limitation, guidance and outlook statements, our long-term targets and algorithm, statements regarding our ability to meet environmental, social and governance goals, expectations regarding industry trends and the size and growth rates of addressable markets, and statements regarding our business plan and our growth strategies. These statements are based on management’s current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of factors relating to, without limitation: the strength of our brands; changes in market trends and consumer preferences; intense competition that our products, services and experiences face; harm to our reputation that could adversely impact our ability to attract and retain consumers and wholesale partners, employees, brand ambassadors, partners, and other stakeholders; reliance on technical innovation and high-quality products; general economic and business conditions worldwide, including due to inflationary pressures; the strength of our relationships with and the financial condition of our third-party suppliers, manufacturers, wholesale partners and consumers; ability to expand our DTC channel, including our expansion and success of our owned retail stores and e-commerce platform; our plans to innovate, expand our product offerings and successfully implement our growth strategies that may not be successful, and implementation of these plans that may direct divert our operational, managerial and administrative resources; our international operations, including any related to political uncertainty and geopolitical tensions; our and our wholesale partners’ ability to accurately forecast demand for our products and our ability to manage manufacturing decisions; our third party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; the cost of raw materials and our reliance on third-party manufacturers; our distribution system and ability to deliver our brands’ products to our wholesale partners and consumers; climate change and sustainability or ESG-related matters, or legal, regulatory or market responses thereto; changes to trade policies, tariffs, import/export regulations, anti-competition regulations and other regulations in
Source: Amer Sports, Inc.
| CONSOLIDATED STATEMENT OF INCOME | ||||||||
| For the Three Months Ended March 31, 2024 and 2023 | ||||||||
| (Unaudited; $ in millions, except per share information) | ||||||||
Three Months Ended March 31, |
||||||||
2024 |
|
2023 |
||||||
| Revenue | $ |
1,182.9 |
|
$ |
1,050.3 |
|
||
| Cost of goods sold |
|
(544.4 |
) |
|
(495.4 |
) |
||
| Gross profit |
|
638.5 |
|
|
554.9 |
|
||
| Selling, general and administrative expenses |
|
(534.2 |
) |
|
(422.4 |
) |
||
| Impairment losses |
|
(1.3 |
) |
|
(2.8 |
) |
||
| Other operating income |
|
6.0 |
|
|
0.7 |
|
||
| Operating profit |
|
109.0 |
|
|
130.4 |
|
||
| Finance income |
|
2.7 |
|
|
1.3 |
|
||
| Finance cost |
|
(82.3 |
) |
|
(86.1 |
) |
||
| Loss on debt extinguishment |
|
(14.3 |
) |
|
- |
|
||
| Net finance cost |
|
(93.9 |
) |
|
(84.8 |
) |
||
| Income before tax |
|
15.1 |
|
|
45.6 |
|
||
| Income tax expense |
|
(8.2 |
) |
|
(26.6 |
) |
||
| Net income | $ |
6.9 |
|
$ |
19.0 |
|
||
| Income attributable to: | ||||||||
| Equity holders of the Company | $ |
5.1 |
|
$ |
19.0 |
|
||
| Non-controlling interests | $ |
1.8 |
|
$ |
- |
|
||
| Earnings per share | ||||||||
| Basic earnings per share | $ |
0.01 |
|
$ |
0.05 |
|
||
| Diluted earnings per share | $ |
0.01 |
|
$ |
0.05 |
|
||
| Weighted-average number of ordinary shares | ||||||||
| Basic |
|
463,422,683 |
|
|
384,499,607 |
|
||
| Diluted |
|
466,345,776 |
|
|
384,499,607 |
|
||
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||||
| As of March 31, 2024 and December 31, 2023 | ||||||||
| (Unaudited; $ in millions) | ||||||||
March 31, |
|
December 31, |
||||||
| ($ in millions) | 2024 |
|
2023 |
|||||
| ASSETS | ||||||||
| NON-CURRENT ASSETS | ||||||||
| Intangible assets | $ |
2,713.1 |
|
$ |
2,748.7 |
|
||
| Goodwill |
|
2,253.7 |
|
|
2,270.0 |
|
||
| Property, plant and equipment |
|
450.9 |
|
|
441.9 |
|
||
| Right-of-use assets |
|
348.1 |
|
|
317.1 |
|
||
| Non-current financial assets |
|
9.1 |
|
|
9.2 |
|
||
| Other non-current assets |
|
69.6 |
|
|
73.5 |
|
||
| Deferred tax assets |
|
160.3 |
|
|
161.7 |
|
||
| TOTAL NON-CURRENT ASSETS |
|
6,004.8 |
|
|
6,022.1 |
|
||
| CURRENT ASSETS | ||||||||
| Inventories |
|
1,100.6 |
|
|
1,099.6 |
|
||
| Accounts receivable, net |
|
560.4 |
|
|
599.8 |
|
||
| Prepaid expenses and other receivables |
|
164.7 |
|
|
162.3 |
|
||
| Current tax assets |
|
6.7 |
|
|
6.6 |
|
||
| Cash and cash equivalents |
|
337.3 |
|
|
483.4 |
|
||
| TOTAL CURRENT ASSETS |
|
2,169.7 |
|
|
2,351.7 |
|
||
| TOTAL ASSETS |
|
8,174.5 |
|
|
8,373.8 |
|
||
| SHAREHOLDERS' EQUITY (DEFICIT) AND LIABILITIES | ||||||||
| EQUITY (DEFICIT) | ||||||||
| Share capital |
|
16.9 |
|
|
642.2 |
|
||
| Share premium |
|
2,133.4 |
|
|
- |
|
||
| Capital reserve |
|
2,789.2 |
|
|
227.2 |
|
||
| Cash flow hedge reserve |
|
6.6 |
|
|
(10.6 |
) |
||
| Accumulated deficit and other |
|
(925.6 |
) |
|
(1,019.0 |
) |
||
| Equity (deficit) attributable to equity holders of the parent company |
|
4,020.5 |
|
|
(160.2 |
) |
||
| Non-controlling interests |
|
5.2 |
|
|
3.4 |
|
||
| TOTAL EQUITY (DEFICIT) |
|
4,025.7 |
|
|
(156.8 |
) |
||
| LIABILITIES | ||||||||
| LONG-TERM LIABILITIES | ||||||||
| Lease liabilities |
|
280.0 |
|
|
250.4 |
|
||
| Loans from financial institutions |
|
2,021.0 |
|
|
1,863.4 |
|
||
| Loans from related parties |
|
- |
|
|
4,077.0 |
|
||
| Defined benefit pension liabilities |
|
19.1 |
|
|
23.9 |
|
||
| Other liabilities |
|
20.6 |
|
|
29.4 |
|
||
| Provisions |
|
5.7 |
|
|
5.5 |
|
||
| Long-term tax liabilities |
|
31.4 |
|
|
32.1 |
|
||
| Deferred tax liabilities |
|
664.8 |
|
|
675.0 |
|
||
| TOTAL LONG-TERM LIABILITIES |
|
3,042.6 |
|
|
6,956.7 |
|
||
| CURRENT LIABILITIES | ||||||||
| Interest-bearing liabilities |
|
6.2 |
|
|
381.0 |
|
||
| Lease liabilities |
|
93.7 |
|
|
89.4 |
|
||
| Accounts payable |
|
387.4 |
|
|
426.5 |
|
||
| Other liabilities |
|
532.8 |
|
|
567.5 |
|
||
| Provisions |
|
28.8 |
|
|
29.9 |
|
||
| Current tax liabilities |
|
57.3 |
|
|
79.6 |
|
||
| TOTAL CURRENT LIABILITIES |
|
1,106.2 |
|
|
1,573.9 |
|
||
| TOTAL LIABILITIES |
|
4,148.8 |
|
|
8,530.6 |
|
||
| TOTAL SHAREHOLDERS' EQUITY (DEFICIT) AND LIABILITIES | $ |
8,174.5 |
|
$ |
8,373.8 |
|
||
| GEOGRAPHIC REVENUES | |||||||||
| For the Three Months Ended March 31, 2024 and 2023 | |||||||||
| (Unaudited; $ in millions) | |||||||||
Three Months Ended March 31, |
|||||||||
| ($ in millions) | 2024 |
2023 |
% Change |
||||||
| Geographic Revenues | |||||||||
| EMEA | $ |
359 |
$ |
357 |
1 |
% |
|||
|
410 |
|
410 |
(0 |
%) |
||||
|
310 |
|
205 |
51 |
% |
||||
|
104 |
|
78 |
34 |
% |
||||
| Total | $ |
1,183 |
$ |
1,050 |
13 |
% |
|||
| (1) Consists of mainland |
|||||||||
| (2) Excludes Greater China. | |||||||||
| CHANNEL REVENUES | |||||||||
| For the Three Months Ended March 31, 2024 and 2023 | |||||||||
| (Unaudited; $ in millions) | |||||||||
Three Months Ended March 31, |
|||||||||
| ($ in millions) | 2024 |
|
2023 |
|
% Change |
||||
| Channel Revenues | |||||||||
| Wholesale | $ |
694 |
$ |
703 |
(1 |
%) |
|||
| DTC |
|
489 |
|
347 |
41 |
% |
|||
| Total | $ |
1,183 |
$ |
1,050 |
13 |
% |
|||
| SEGMENT REVENUES | |||||||||
| For the Three Months Ended March 31, 2024 and 2023 | |||||||||
| (Unaudited; $ in millions) | |||||||||
Three Months Ended March 31, |
|||||||||
| ($ in millions) | 2024 |
|
2023 |
|
% Change |
||||
| Segment Revenue | |||||||||
| Technical Apparel | $ |
510 |
$ |
355 |
44 |
% |
|||
| Outdoor Performance |
|
400 |
|
377 |
6 |
% |
|||
| Ball & Racquet Sports |
|
273 |
|
318 |
(14 |
%) |
|||
| Total | $ |
1,183 |
$ |
1,050 |
13 |
% |
|||
| SEGMENT ADJUSTED OPERATING PROFIT | ||||||||||||||
| For the Three Months Ended March 31, 2024 and 2023 | ||||||||||||||
| (Unaudited; $ in millions) | ||||||||||||||
Three Months Ended March 31, |
||||||||||||||
| ($ in millions) | 2024 |
|
% of Segment
|
|
2023 |
|
% of Segment
|
|||||||
| Segment Adjusted Operating Profit | ||||||||||||||
| Technical Apparel | $ |
117 |
|
23.0 |
% |
$ |
83 |
|
23.4 |
% |
||||
| Outdoor Performance |
|
19 |
|
4.8 |
% |
|
31 |
|
8.2 |
% |
||||
| Ball & Racquet Sports |
|
11 |
|
4.0 |
% |
|
46 |
|
14.4 |
% |
||||
| Reconciliation (1) |
|
(17 |
) |
NM |
|
(19 |
) |
NM |
||||||
| Total | $ |
130 |
|
11.0 |
% |
$ |
141 |
|
13.5 |
% |
||||
| (1) Includes corporate expenses, which have not been allocated to the reportable segments. | ||||||||||||||
| (2) The operating profit (loss) for the Reconciliation is not presented as it is not a meaningful metric (NM). | ||||||||||||||
| TECHNICAL APPAREL DTC OPERATING DATA | |||||||||
| For the Three Months Ended March 31, 2024 and 2023 | |||||||||
| (Unaudited) | |||||||||
Three Months Ended March 31, |
|
|
|||||||
| ($ in millions) | 2024 |
|
2023 |
|
% Change |
||||
| Store count (1) | |||||||||
| Arc'teryx | 146 |
|
130 |
|
12 |
% |
|||
| Peak Performance | 44 |
|
41 |
|
7 |
% |
|||
| Total | 190 |
|
171 |
|
11 |
% |
|||
| Omni comp | 36 |
% |
61 |
% |
|||||
| (1) Reflects the number of Technical Apparel owned retail stores open at the end of the fiscal period | |||||||||
| (2) Omni comp reflects year over year revenue growth from owned retail stores and e-commerce sites that have been open at least 13 months | |||||||||
| ADJUSTED GROSS PROFIT RECONCILIATION | ||||||
| For the Three Months Ended March 31, 2024 and 2023 | ||||||
| (Unaudited; $ in millions) | ||||||
Three Months Ended March 31, |
||||||
| ($ in millions) | 2024 |
|
2023 |
|||
| Gross profit | $ |
638 |
$ |
555 |
||
| PPA |
|
4 |
|
4 |
||
| Restructuring expenses |
|
- |
|
- |
||
| Adjusted gross profit | $ |
642 |
$ |
559 |
||
| ADJUSTED SG&A RECONCILIATION | ||||||
| For the Three Months Ended March 31, 2024 and 2023 | ||||||
| (Unaudited; $ in millions) | ||||||
Three Months Ended March 31, |
||||||
| ($ in millions) | 2024 |
|
2023 |
|||
| Selling, general and administrative expenses | $ |
534 |
$ |
422 |
||
| Restructuring expenses |
|
1 |
|
- |
||
| PPA |
|
7 |
|
7 |
||
| Expenses related to transaction activities |
|
6 |
|
0 |
||
| Expenses related to certain legal proceedings |
|
- |
|
- |
||
| Share-based payments |
|
3 |
|
- |
||
| Adjusted SG&A expenses | $ |
517 |
$ |
415 |
||
| ADJUSTED OPERATING PROFIT RECONCILIATION(1) | ||||||||
| For the Three Months Ended March 31, 2024 and 2023 | ||||||||
| (Unaudited; $ in millions) | ||||||||
Three Months Ended March 31, |
||||||||
| ($ in millions) | 2024 |
|
2023 |
|||||
| Income before tax | $ |
15 |
|
$ |
46 |
|
||
| PPA |
|
11 |
|
|
11 |
|
||
| Restructuring expenses |
|
1 |
|
|
- |
|
||
| Impairment related to goodwill and intangible assets |
|
- |
|
|
- |
|
||
| Expenses related to transaction activities (2) |
|
24 |
|
|
0 |
|
||
| Expenses related to certain legal proceedings |
|
- |
|
|
- |
|
||
| Share-based payments |
|
3 |
|
|
- |
|
||
| Finance costs |
|
65 |
|
|
86 |
|
||
| Loss on debt extinguishment |
|
14 |
|
|
- |
|
||
| Finance income |
|
(3 |
) |
|
(1 |
) |
||
| Adjusted operating profit | $ |
130 |
|
$ |
141 |
|
||
(1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals. |
||||||||
(2) Includes approximately |
||||||||
| ADJUSTED NET INCOME RECONCILIATION | ||||||||
| For the Three Months Ended March 31, 2024 and 2023 | ||||||||
| (Unaudited; $ in millions, except per share information) | ||||||||
Three Months Ended March 31, |
||||||||
| ($ in millions) | 2024 |
|
2023 |
|||||
| Net income attributable to equity holders | $ |
5 |
|
$ |
19 |
|
||
| PPA |
|
11 |
|
|
11 |
|
||
| Restructuring expenses |
|
1 |
|
|
- |
|
||
| Impairment losses on goodwill and intangible assets |
|
- |
|
|
- |
|
||
| Expenses related to transaction activities |
|
24 |
|
|
0 |
|
||
| Expenses related to certain legal proceedings |
|
- |
|
|
- |
|
||
| Share-based payments |
|
3 |
|
|
- |
|
||
| Income tax expense |
|
(5 |
) |
|
(3 |
) |
||
| Adjusted net income | $ |
39 |
|
$ |
27 |
|
||
| Adjusted total diluted income per share | $ |
0.08 |
|
$ |
0.07 |
|
||
| EBITDA, ADJUSTED EBITDA, AND ADJUSTED EBITDA MARGIN RECONCILIATION(1) | ||||||||
| For the Three Months Ended March 31, 2024 and 2023 | ||||||||
| (Unaudited; $ in millions) | ||||||||
Three Months Ended March 31, |
||||||||
| ($ in millions) | 2024 |
|
2023 |
|||||
| Revenue | $ |
1,183 |
|
$ |
1,050 |
|
||
| Net income attributable to equity holders | $ |
5 |
|
$ |
19 |
|
||
| Net income attributable to non-controlling interests |
|
2 |
|
|
- |
|
||
| Income tax expense |
|
8 |
|
|
27 |
|
||
| Finance cost (2) |
|
82 |
|
|
86 |
|
||
| Loss on debt extinguishment |
|
14 |
|
|
- |
|
||
| Depreciation and amortization (3) |
|
63 |
|
|
52 |
|
||
| Finance income |
|
(3 |
) |
|
(1 |
) |
||
| EBITDA | $ |
171 |
|
$ |
182 |
|
||
| Restructuring expenses |
|
1 |
|
|
- |
|
||
| Impairment losses on goodwill and intangible assets |
|
- |
|
|
- |
|
||
| Expenses related to transaction activities |
|
6 |
|
|
0 |
|
||
| Expenses related to certain legal proceedings |
|
- |
|
|
- |
|
||
| Share-based payments |
|
3 |
|
|
- |
|
||
| Adjusted EBITDA | $ |
182 |
|
$ |
183 |
|
||
| Net income margin |
|
0.4 |
% |
|
1.8 |
% |
||
| Adjusted EBITDA Margin |
|
15.3 |
% |
|
17.4 |
% |
||
| (1) The presented figures and percentages are subject to rounding adjustments, which may cause discrepancies between the sum of the individual figures and the presented aggregated column and row totals. | ||||||||
| (2) Total interest expense on lease liabilities under IFRS 16, Leases was |
||||||||
| (3) Depreciation and amortization includes amortization expense for right-of-use assets capitalized under IFRS 16, Leases of |
||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240521237182/en/
Investor Relations:
Omar Saad
Vice President, Finance and Investor Relations
omar.saad@amersports.com
Media:
Anu Sirkiä
Senior Vice President, Communications
anu.sirkia@amersports.com
Source: Amer Sports, Inc.
FAQ
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