From July to September, sales rose 50 percent to CHF 328.0 million, as the company announced on Wednesday. Extraordinarily high growth of over 85 percent in the Asia-Pacific region was effective in the increase. But they say consistently strong demand in North America (+57%) also helps.
Gross margin of 57 percent in the third quarter was slightly lower than the same period last year (60%), but slightly higher than the previous quarter (55%). The margin has been burdened by unfavorable exchange rates and – albeit reduced – a persistently high share of air transport.
Following temporary supply bottlenecks caused by factory closures, the running shoe maker has increasingly delivered its products by airfreight this year, which has had an impact on costs. In the last few months of the current year, Ten expects a full normalization here.
Despite the increase in adjusted operating profit (adjusted EBITDA) compared to the previous year (+48.5% to CHF 56.3 million), the corresponding margin of 17.2 percent is slightly below the previous year’s 17.4 percent left. Net profit, meanwhile, was 20.6 million, up almost 59 percent from the previous year.
Looking ahead, Ten remains optimistic and once again raises its forecast for 2022 as a whole. The Zurich-based company, which is traded on the US stock exchange Nasdaq, now expects sales of CHF 1.25 billion – previously CHF 1.1. billion. Looking at 855.4 million nine months later, the target looks pretty realistic.
The adjusted EBITDA margin is expected to remain at 13.2 percent. Ten no longer assumes that margin will remain under pressure due to the increased use of air transport at this time. However, the group expects the pressure on the exchange rate to continue. However, current demand puts On in a good position to further increase absolute and relative profitability.
(SDA)