Q3 2024 On Holding AG Earnings Call Transcript
Key Points
- On Holding AG (ONON) achieved record net sales of CHF636 million in Q3, marking a 33% growth on a constant currency basis.
- The company reported a strong gross profit margin of 60.6% and an adjusted EBITDA margin of 18.9%, the highest since going public.
- Significant growth in the APAC region, particularly in Japan and China, with over 85% growth on a constant currency basis in the first nine months.
- Increased brand awareness, especially among younger demographics, driven by partnerships with celebrities like Zendaya and FKA twigs.
- Successful product launches, including the Cloudsurfer Next and Cloudrunner 2, which have shown immediate blockbuster potential.
- The company faced operational constraints in Q2, which impacted their ability to capture full demand.
- Despite strong results, there were considerable unrealized FX losses of CHF37.2 million due to currency fluctuations.
- Apparel growth was slightly behind expectations due to supply constraints, though improvements are anticipated in Q4.
- The wholesale channel growth was moderate, partly due to door closures in Europe and inventory limitations.
- The company anticipates a higher inventory position at year-end, which could impact cash flow and operational efficiency.
Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to On Holdings AG Third Quarter 2024 Results Conference Call.
I would now like to turn the conference over to Jerrit Peter, Head of Investor Relations. Jerrit, you may begin.
Good afternoon, good morning to our investor community. Thank you for joining On 2024 Third Quarter Earnings Conference Call and Webcast. With me today on the call are On's Executive Co-Chairman and Co-Founder, Caspar Coppetti; CFO and Co-CEO, Martin Hoffmann; and Co-CEO, Marc Maurer.
Before we begin, I will briefly remind everyone that today's call will contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our 20-F filed with
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