Samsonite Inter - SMSEY STOCK NEWS

Samsonite International reported a 6.8% decrease in Q3 2024 consolidated net sales compared to 2023, with total sales of US$877.7 million. The company maintained a gross profit margin of 59.3% and Adjusted EBITDA margin of 17.6%. Despite market challenges, Samsonite generated strong Free Cash Flow of US$94.2 million, up US$5.4 million year-on-year. The company returned US$222.0 million to shareholders through a US$150.0 million cash distribution and US$72.0 million in share buybacks. The company maintained substantial liquidity of US$1.4 billion and a healthy total net leverage ratio of 1.68x as of September 30, 2024.

Samsonite International has announced ambitious climate targets aligned with the Science Based Targets initiative (SBTi). The company commits to maintaining 100% renewable electricity in its operations and reducing Scope 3 emissions from purchased goods and services by 52% by 2030 on an intensity basis per unit gross profit. The strategy focuses on increasing recycled materials usage, with products containing recycled materials accounting for 34% of net sales in 2023, up from 23% in 2022. Over 95% of the Group's emissions come from its value chain, with nearly 80% from purchased goods and services.

Samsonite International announced its financial results for the six months ended June 30, 2024, showing a 2.8% increase in net sales year-on-year.

Gross profit margin expanded by 140 basis points to 60.2%, and Adjusted EBITDA margin increased by 10 basis points to 18.9%, both records for the first half. Profit attributable to equity holders rose 7.7% year-on-year to US$164.3 million.

The company generated Free Cash Flow of US$81.6 million, improving by US$18.2 million from the previous year. The net leverage ratio improved to 1.39x, the lowest since the 2016 acquisition of Tumi. Samsonite will pursue a dual listing in the United States.

Net sales saw a 2.0% increase in Asia, 4.6% in Europe, and 20.3% in Latin America, while remaining consistent in North America. The Samsonite brand reported a 5.8% net sales increase, while Tumi saw a slight increase of 0.3%, and American Tourister decreased by 0.9%.

The company increased investment in marketing and added 82 company-operated retail stores, now totaling 1,083 stores.

Samsonite International reported a 4.1% year-on-year increase in net sales for Q1 2024, reaching $859.6 million, driven primarily by growth in Asia. The company's gross profit margin expanded to 60.4%, and Adjusted EBITDA margin reached 18.8%. Adjusted EBITDA and Adjusted Net Income grew by 8.5% and 13.1%, respectively. Free Cash Flow improved by $67.9 million to $6.5 million, and net leverage ratio dropped to 1.48x. A secondary listing of shares is being pursued, and refinancing efforts are expected to save $4.9 million in annual cash interest payments. The company noted strong sales in China, Japan, and South Korea, while Europe and North America saw more modest growth.