Amer Sports released it’s Corporation Financial Statements Bulletin 2010 this morning detailing positive group performance and making optimistic predictions for the next year.
Here are some key points from the bulletin:
• Net sales increased by 21% to EUR 583.4 million (482.8). In local currencies, net sales
increased by 14%.
• EBIT excluding non-recurring items increased significantly and was EUR 56.0 million (44.4),
including a strategic EUR 4 million acceleration in marketing spend. Non-recurring items
were EUR -7.6 million (-5.0).
• Earnings per share totaled EUR 0.30 (0.37).
• Net cash flow after investing activities totaled EUR 57.7 million (129.2).
OUTLOOK AND GUIDANCE 2011
Amer Sports strategic development programs are expected to continue to contribute positively
to the Group performance in 2011. The sporting goods market is estimated to continue the
recovery started in 2010, with regional and sports specific differences. In Footwear and Apparel,
spring/summer pre-orders are indicating that the 2010 strong momentum will continue.
Overall, Amer Sports expects its 2011 net sales to increase from 2010 and EBIT to improve.
RESEARCH AND DEVELOPMENT
Amer Sports' strategy emphasizes excellence in consumer-centric product creation. Through
continuous research and development, Amer Sports seeks to develop new and better sporting
goods that appeal to consumers and its trade customers.
The Group has eight R&D centers globally serving different business areas as well as
increasingly collaborating across units. A total of EUR 57.4 million (52.0) was invested in
research and development in 2010, accounting for 8.8% of all operating expenses (2009: EUR
52.0 million, 9.0% of operating expenses; 2008: EUR 55.6 million, 9.6% of operating expenses).
Winter and Outdoor’s share of the R&D expenditure was 63%, while Ball Sports accounted for
14%, and Fitness for 23%.
On December 31, 2010, 514 (487) persons were employed in the company's research and
development activities, approximately 8% (8%) of the total number of people employed by Amer
WINTER SPORTS EQUIPMENT
In 2010, Winter Sports Equipment net sales totaled EUR 438.4 million (371.7) and were up by
12% in local currencies. The biggest product categories were alpine ski equipment, representing
75% of net sales, cross country 15%, and snowboards 10%. Net sales of alpine ski equipment
increased in local currencies by 9%, cross country ski equipment increased by 41% and
snowboards by 4%. In 2010, 70% of the Winter Sports Equipment business area's net sales
were derived from EMEA, 18% from the Americas, and 12% from Asia Pacific.
During the year, a major operational efficiency program was started at Winter Sports Equipment.
In October-December, Winter Sports Equipment net sales were EUR 252.8 million (203.7) with
an increase of 19% in local currencies. All categories and regions were contributing to the
HEIKKI TAKALA, PRESIDENT AND CEO:
"2010 results were facilitated by better economic environment and favorable snow conditions,
but most notably we made sustainable improvements through our own programs. As examples,
we drove Footwear sales up by 26% through strong commercial expansion, we now have 25%
more brand stores and outlets than in 2009, and in Winter Sports Equipment, we continued to
push down break-even points through operational effectiveness.
We improved gross margin by 2 percentage points in 2010. In Q4, gross margin came down in
line with a seasonal pattern and was only at previous year's level mainly due to year-end
inventory clean-up with lower margins. Gross margin remains a challenge in light of labor and
raw material cost increases but we have mitigation plans in place.
We improved underlying efficiency in operating expenses. However, 2010 includes some
accelerated strategic spending, costs related to setting up the new company structure, and
organizational incentives as a result of improved Group performance. In 2011, we continue to
drive synergies and scale across the company.
Year 2010 was good, and it is taking us closer to our long-term financial targets. 2011 will be
'Year of go-to-market', with special focus on improving customer service and driving commercial
For further information, please contact:
Heikki Takala, President and CEO, tel. +358 9 7257 8210
Jussi Siitonen, CFO, tel. +358 9 7257 8240
Päivi Antola, Director, IR and Financial Communications, tel. +358 9 7257 8233