Amer Sports Corporation reports interim results from January-June 2014 and second quarter results from April - June 2014.
Net sales totaled EUR 376.1 million (April-June 2013: EUR 377.2 million). In local currencies, net sales increased by 4%. Double-digit growth in Apparel, Footwear and Cycling, offset by a minor decline in Ball Sports mainly due to continuous clean-up of unprofitable sales. Gross margin 43.9% (43.6%). EBIT excluding non-recurring items was EUR -17.6 million (-18.7). Non-recurring items were EUR -1.2 million (0) and were related to Ball Sports.
Earnings per share were EUR -0.16 (-0.16). Net cash flow after investing activities EUR -38.7 million (-50.0). Pre-orders in Winter Sports Equipment declined by 4% indicating market share increases. Outlook for 2014 unchanged.
Net sales were EUR 877.6 million (January-June 2013: EUR 870.2 million). In local currencies, net sales increased by 5%. Gross margin 44.1% (43.9%). EBIT excluding non-recurring items was EUR 3.0 million (7.7). Non-recurring items were EUR -1.2 million (0). Earnings per share EUR -0.09 (-0.03). Net cash flow after investing activities EUR 5.5 million (17.9).
Outlook For 2014
Amer Sports expects global trading conditions to remain challenging, with some regional improvements. In 2014, Amer Sports' net sales growth in local currencies is expected to meet at minimum the company's long-term annual 5% growth target and EBIT excluding non-recurring items to improve from 2013. The company will continue to focus on the growth of Apparel and Footwear, consumer-driven product and marketing innovation, commercial expansion and operational excellence.
Heikki Takala, President and CEO, "The second quarter is typically a low sales quarter for Amer Sports, nevertheless we continued to deliver a solid 4% currency neutral growth, driven by Apparel and Footwear, Business to Consumer, China as well as Cycling and Fitness. We continued to define and execute a new strategy for Ball Sports, with the objective to first improve the gross margins and then re-ignite profitable growth. In this context, we discontinued some unprofitable Wilson product lines, and this affected our Ball Sports sales.
"The trading conditions have continued to be quite challenging, partially due to the Winter Sports Equipment market being cautious and due to the political uncertainties especially in Russia and Argentina. However, we continue to have strong momentum in the majority of the businesses, with significant further acceleration opportunities especially in Apparel and Footwear, Business to Consumer, emerging markets, and increasingly in digital products and services. To capitalize on these acceleration opportunities faster, and to speed up the Ball Sports turnaround, we will start the next phase of our restructuring as announced.