The Swiss sporting goods provider On Holding AG missed market expectations in the fourth quarter of the 2023 financial year. As a result, the company’s share price temporarily slipped by over 16 percent immediately after the publication of the current results on Tuesday afternoon.
In the period from October to December, sales amounted to 447.1 million Swiss francs (466.3 million euros), exceeding the level of the previous year’s quarter by 21.9 percent (+31 percent adjusted for currency effects). Analysts had previously predicted an even clearer plus. The result also fell short of expectations: the net loss increased slightly from 26.4 to 26.8 million Swiss francs (28.0 million euros). The market experts had previously expected a surplus.
Annual sales grow by almost 47 percent
The figures for the entire financial year still read impressively: The sports shoe specialist achieved an increase in sales of 46.6 percent (currency-adjusted +55 percent) to 1.79 billion Swiss francs (1.87 billion euros).
In America, the company’s most important market region, revenue rose by 52.2 percent (currency-adjusted +61 percent) to 1.16 billion Swiss francs. In the EMEA region, which includes Europe, the Middle East and Africa, they increased by 29.2 percent (currency-adjusted +35 percent) to 488.7 million Swiss francs, and in the Asia-Pacific region by 75.9 percent (currency-adjusted + 96 percent) to 141.1 million Swiss francs.
Sales and earnings are expected to rise sharply again in 2024
Earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for special effects grew by 67.6 percent to 276.9 million Swiss francs. The bottom line was a net profit of 79.6 million Swiss francs (83.0 million euros), which was an increase of 37.9 percent compared to 2022.
Management is targeting further strong growth for 2024. Sales are expected to increase by at least 30 percent after adjusting for currency effects, which would result in revenue of 2.25 billion Swiss francs based on current exchange rates. However, negative currency effects are still expected, especially in the first half of the year. The EBITDA margin adjusted for special effects, which was 15.5 percent in 2023, is to be improved to 16.0 to 16.5 percent.