Business news :Mammut Posts Solid Growth in 2012 on Strength of Asia and North America

Mammut Sports Group’s net revenues grew by 10.3 percent currency-neutral to CHF 232.5 million ($254 mm) from CHF 210.8 million in 2011, the Swiss outdoor sporting goods company’s parent reported. After adjustments for currency and acquisition effects, the growth in net revenue amounted to 8.4 percent.

Market expansion focused on the Asian region, where the highest growth rates were recorded. Mammut acquired a majority holding in its previously independent distributor in South Korea, the world’s second biggest outdoor equipment market. At the same time, Mammut began building up its own sales company in China and sustained robust performance in Europe. Sales were strong in Germany, while the rest of the euro zone was affect by economic uncertainties.

Switzerland saw modest growth, indicating a slowdown in the cross-border shopping trend, though the pressure on prices was still apparent. Mammut also generated strong revenue growth in North America. The highest sales growth was in the hardware product segment, where avalanche protection systems were particularly popular with customers.

Mammut opened 16 new mono-brand stores worldwide in 2012, bringing the total to more than 50 and helping to boost the brand’s popularity. Mammut marked its 150th anniversary by sponsoring the conquest of 150 mountain peaks worldwide, it most important brand awareness campaign in recent years. Mammut also built a new European logistics center in Wolfertschwenden near Memmingen (Germany), which came on stream in fall 2012, taking over supplies to the whole of Europe.

Trends and outlook
Mammut's parent company Conzetta, which owns an array of industrial businesses, said it entered 2013 amidst continued uncertainty in Europe and growing optimism over Asia.

"The 2013 business year will continue to be influenced by the unresolved currency and financial crisis, and increasingly also by political uncertainties," the company said in announcing its results for 2012. "Although for the moment there are hopes of the situation easing, the underlying problem of the overindebtedness of some eurozone countries is not resolved. This leads time and again to mistrust in the markets and prompts customers to adopt a more cautious attitude. The crisis of trust in the euro and the resulting flight into the Swiss franc will continue to distort currency relations and hamper the export of Swiss products to the eurozone. In these circumstances, the stabilization of the Swiss franc by the Swiss National Bank continues to be an important factor, which at least in the short term offers a measure of security in planning.

"As in the previous year, Conzzeta is more confident about the outlook in the Asian markets than it is about the prospects in Europe. In view of the unstable political and economic situation in the mature industrial economies, the Group is unable to make reliable forecasts. As experience shows, periods of uncertainty for customers soon make themselves felt in the order intake.

"Conzzeta is continuing to prepare itself for an uncertain business climate, staying flexible and keeping costs down so that it is able to respond quickly to any slump in sales. To further reduce its exposure to currency effects, Conzzeta remains on its chosen course of maintaining its own manufacturing capacity in the markets it serves and purchasing in local currencies."

( Source Mammut through SportsOnesource)