According to Amer Sports´ new financial targets, the net sales in 2020 must be at least 3.5 billion Euros.
"This means that we are back on the path of accelerated growth. The CAGR will be at least 6.5%",
Siitonen pointed out.
With regard to profit, the focus is on continuous improvement.
"The annual EBIT growth must be ahead of our net sales growth meaning the target is to improve profitability every year."
According to Siitonen, Amer Sports has steadily built its capabilities and platforms for accelerated growth.
"We are not the same company we were in 2010, and we know how to run the machine. We have driven integration so it provides benefits for the core businesses and the five selected growth areas, and our scalable model delivers profitability improvement."
Since 2010 Amer Sports has made roughly 100 million Euros investments in Apparel and Footwear, USA, China and Business to Consumers.
"Now these investments in platforms and capabilities are largely completed. Our next strategic investments are primarily targeted to Connected Devices and Services."
Siitonen pointed out that acceleration drives not only higher profitability, but also asset efficiency.
"We have already improved our Group capital turnover from 1.5x in 2009 to 1.8x in 2015. The old glidepath would have improved our turnover only marginally. Now, with the new glidepath, we are aiming at turnover of over 2x."
According to Siitonen, the growth of selected areas leads also to a better balance of the company structure and therefore lower risk.
"In 2009, the sales of Footwear and Apparel were less than 20% of our topline and Winter Sports Equipment 25%. At the end of our new glidepath, Footwear and Apparel are over 40% of our sales, Winter Sport Equipment 10%."
How well is Amer Sports equipped for the growth?
"Our cash flow and balance sheet are not barriers for growth. Also, our long-term funding is in place to enable acceleration."
"We can secure organic growth, maintain sustainable dividend growth and also enable acquisitions",
Watch Jussi Siitonen’s CMD presentation:
Source Amer Sports