Amer Sports, Inc. · NYSE:AS
Amer Sports — Q1 2024 Earnings Presentation
22 slides from Amer Sports's earnings presentation, May 21, 2024
Slide 1: Amer Sports 1Q 2024
Amer Sports 1Q 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation includes estimates, projections, statements relating to the business plans, objectives, and expected operating results of Amer Sports Inc. (“Amer Sports” or the “Company”) that are “forward-looking statements” within the meaning of the Private Securities
Slide 3: Strong Start to 2024
Change picture Strong Start to 2024 • First quarter revenue, adjusted operating margin, and adjusted diluted EPS above guidance • 1Q revenues increased 13% to $1.2 billion led by Technical Apparel segment • Strong gross margin expansion reflecting mix shift toward highest- margin brands, channels, a
Slide 4: Confident in Our Future
Confident in Our Future 1. Unique and valuable portfolio of premium outdoor and sports brands fueled by technical innovation. High engagement, conversion, satisfaction with consumers, but still small brands with room to grow. 2. Arc’teryx a breakout growth story with unprecedented growth and profita
Slide 5: Technical Apparel
Technical Apparel • 1Q24 revenue increased 44% to $510 million, driven by growth in both channels, with DTC up 46%, including 36% omni-comp Revenue ($B) and Adjusted Operating Margin growth, and wholesale up 40% • DTC growth was driven by both store network expansion, with a net increase of 19 new o
Slide 6: Outdoor Performance
Outdoor Performance • Revenue increased 6% to $400 million driven by strong top- line performance in Salomon soft goods, particularly in Asia Revenue ($B) and Adjusted Operating Margin Pacific and China, partially offset by WSE weakness due to warm weather and elevated inventory levels in the market
Slide 7: Ball & Racquet
Ball & Racquet • Revenue decreased 14% to $273 million as Wilson continues to be constrained by challenges in its core market Revenue ($B) and Adjusted Operating Margin compared to strong growth and profitability last year when the flow of inventory improved and both retailers and 8.4% consumers wer
Slide 8: Segment Last 4 Quarters Revenue Trends
Segment Last 4 Quarters Revenue Trends Group Technical Apparel Outdoor Performance Ball & Racquet 35% 79% 26% 69% 18% 24% 44% 11% 13% 26% 1% 10% 6% -3% 2% 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 -14% 8 May 21, 2024
Slide 9: Adjusted Gross Profit Margin bridge
Adjusted Gross Profit Margin bridge • Adjusted gross profit margin rose 110 basis points primarily 2.0% 54.3% driven by favorable segment revenue mix shift towards 53.2% Technical Apparel, which is 2.6% the highest gross margin segment in the Group -3.4% • Lower logistics costs also drove gross marg
Slide 10: Adjusted SG&A Bridge
Adjusted SG&A Bridge 43.7% of revenue • As expected, adjusted SG&A 517 expenses as a percentage of revenues increased 420 basis points on slower sales growth and represented 43.7% of 39.5% of revenue revenues for the first quarter 2024 415 • The increase was due to higher selling and marketing costs
Slide 11: Segment Revenue Growth and Margin Trends
Segment Revenue Growth and Margin Trends Group Technical Apparel Outdoor Performance Ball & Racquet 35% 79% 26% 69% 18% 24% 44% 11% 13% 26% 1% 10% 6% -3% 2% 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 -14% 2% 12% 10% 11% 13% 16% 23% 23% -6% 18% 9% 5% 3% 1% -10% 4%
Slide 12: Inventory
Inventory Yearly and quarterly revenue and inventory change (in %) Inventory and Sales growth • Inventories rose 6% year- over-year, below 13% revenue growth, finishing 54% 1Q24 in healthy position 25% 21% 23% 16% 13% 6% 3% 2021 2022 2023 1Q 2024 Inventory growth YoY Sales growth YoY 12 May 21, 2024
Slide 13: Balance sheet transformation underway
Balance sheet transformation underway 3/31/2024 ($B) Cash 0.3 • IPO proceeds of ~$1.5B including fully exercised Term loans 2.0** green shoe option Third party loans 0 • Significantly deleveraged the balance sheet Revolver 0 Total Debt to 3rd party 2.0 Net Debt 1.7 ** €700M EUR term loan, $500M USD
Slide 14: Outlook: Full Year 2024
Outlook: Full Year 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: approx. $250 million (including approx. $110 million of ROU depreciation) • Net finance cost: $215-225 million, inc
Slide 15: Outlook: Second Quarter 2024
Outlook: Second Quarter 2024 All guidance figures reference adjusted amounts • Reported revenue growth: approximately 10% • Gross margin: approximately 54.0% • Operating margin: approx. 0.0% • Net finance cost: $45-50 million • Effective tax rate on pre-tax income: approx. 38% • Fully diluted share
Slide 16: Amer Sports
AMER SPORTS oo. ‘
Slide 17: Amer Sports brand portfolio
ae arcterrx saLcomon Wilson PeakPerformance A ATOMIC evosHieLo ZA AMER SPORTS
Slide 18: Appendix
Appendix 1. Adjusted gross profit reconciliation 2. Adjusted SG&A reconciliation 3. Adjusted operating profit reconciliation 4. EBITDA, adjusted EBITDA and adjusted EBITDA margin reconciliation 18
Slide 19: Adjusted Gross Profit and SG&A Reconciliation
ADJUSTED GROSS PROFIT RECONCILIATION For the Three Months Ended March 31, 2024 and 2023 (Unaudited; $ in millions) Three Months Ended ($ 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 Mon
Slide 20: Adjusted Operating Profit Reconciliation
ADJUSTED OPERATING PROFIT RECONCILIATION (1) For the Three Months Ended March 31, 2024 and 2023 (Unaudited; $ in millions) Three Months Ended ($ in millions) 2024 2023 Income before tax $ 15 $ 46 PPA 11 11 Restructuring expenses 1 - Impairment related to goodwill and intangible assets - - Expenses r
Slide 21: EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin Reconciliation
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 ($ in millions) 2024 2023 Revenue $ 1,183 $ 1,050 Net income attributable to equity holders $ 5 $ 19 Net income attributable to non-c
Slide 22: Non-IFRS Disclaimer
NON-IFRS DISCLAIMER 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