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As On announced on Tuesday, sales rose by a whopping 47 percent to 1.79 billion francs last year. The strong franc had a significant impact on growth. At constant exchange rates, On reported its sales increased by 55 percent.
The increase was particularly driven by strong growth in America, the most important market; Sales here increased by 52 percent to 1.16 billion. However, the Asia-Pacific region showed the most dynamic growth at +76 percent, reaching 141 million. However, On also recorded significant growth in Europe, with a 29 percent increase to 489 million.
At the same time, profitability also increased. Adjusted operating profit (EBITDA) increased by 68 percent to 277 million francs. The relevant margin increased from 13.5 to 15.5 percent.
This is likely due to the increasing share of direct sales (DTC). In the last quarter of 2023, the DTC share was slightly above the 60 percent target in the medium term.
As a result, the net profit for 2023 was 80 million francs. This is 38 percent more than the previous year. But there was no chance the group would still pay dividends.
For now, On primarily aims to become larger and more profitable. The company, in which Roger Federer also owns a share, has now set the goal of becoming, in his own words, “the strongest global premium sports brand”.
When adjusted for exchange rate effects, sales are expected to increase “at least 30 percent” this year. At current exchange rates, this corresponds to 2.25 billion Swiss francs. At the same time, adjusted EBITDA margin is expected to increase to 16.0 to 16.5 percent in 2024.
The medium-term targets published in October 2023 were also confirmed: by 2026, the proportion of direct sales is expected to increase and sales are expected to increase by an average of 26 percent per year after adjusting for exchange rate effects. He sees adjusted EBITDA margin at 18 percent in the medium term. (SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
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