Currently the subject of a cash tender offer from the Mascot Bidco Oy investor consortium, Amer Sports has released its Q4 2018 financial results.
In the October-December 2018 period, Amer Sports reported net sales of €874.2 million from continuing operations. This compares to €786.0 million in the Q4 2017 period. In local currencies, net sales rose +10%. Organic growth was 5%.EBIT excluding items affecting comparability (IAC) was €96.7 million (versus €98.1 million in Q4 2017).
Continuing operations operations for the full year of 2018 saw the company generate net sales of €2,678.2 million (2017: €2,574.6 million). In local currencies, net sales for the year rose +7%. Organic growth was 4%. EBIT excl IAC was €231.2 million (€214.4 million in 2017).
Due to the terms and conditions of the ongoing tender offer for all the shares in Amer Sports Corporation, the Board of Directors has proposed that at this time no dividend shall be distributed to shareholders.
In 2019, Amer Sports’ net sales in local currencies as well as EBIT excludling IAC are expected to increase on 2018. The company adds that it will ‘prioritize sustainable, profitable growth, focusing on its strategic priorities in Apparel and Footwear, Direct to Consumer, China, and USA, whilst continuing its consumer-led transformation.’
Heikki Takala, Amer Sports’ President and CEO said, “We closed the year 2018 with a solid Q4. Top-line was up 10% (organic +5%), driven by our strategic acceleration priorities and on-going transformation.
“Growth was strongest in apparel (+41%), boosted by the acquisition of Peak Performance. D2C (+23%) and e-tail (+15%) were again the winning channels, and China (+16%) and USA (+10%) drove geographical growth. Fitness (+9%) had strong top-line momentum but profitability requires further work.
“In Q4, we continued to prepare strategically for a more focused portfolio as we proceeded the cycling sale process, and in the core business we continued to invest into future growth to ensure a strong pipeline of initiatives for 2019 and beyond.”
He added, “In 2018, we delivered again record sales and profits as we closed the ninth consecutive year of profitable growth and broad-based improvement. We continued to drive our strategic transformation. Apparel became our largest business area, and softgoods now represents 40% of our sales. Modern channels (own D2C and e-tail) reached 30% of our sales, and China and USA now represent 45% of the company sales.
“In short, our strategies are delivering results with the vast majority of our businesses making good progress. I want to thank our organization for the strong contribution in 2018, looking forward to another good year of growth and improvement in 2019.”
Mascot Bidco Oy is an investor consortium that is currently aiming to acquire Amer Sports. It is formed by ANTA Sports, FV Fund (FountainVest Partners), Anamered Investments and Tencent Holdings (which will invest through Mount Jiuhua Investment as a limited partner in FV Fund).
Back in September, having confirmed it was considering the sale of its Mavic and ENVE cycling operation, Amer Sports received an indication of interest from a consortium including Chinese sportswear company ANTA Sports Products.