- On achieves strong full-year results in 2022, reaching net
sales of CHF 1,222.1 million, surpassing the CHF 1 billion mark for
the first time in history and growing by 68.7% year-over-year. The
company reports a gross profit margin of 56.0%, net income of CHF
57.7 million, a net income margin of 4.7%, and an adjusted EBITDA
margin of 13.5%, showcasing On's commitment to managing the company
for long-term, sustainable growth and profitability.
- On reports fourth quarter net sales of CHF 366.8 million,
growing by 91.9% year-over-year, driven by an exceptional
underlying full-price demand throughout the holiday season across
regions and channels.
- On's gross profit margin in Q4 2022 reached 58.5%, continuing
the sequential improvement over the 2022 quarters and reflecting a
normalization of operations to return to sea freight as the main
mode of shipment.
- The ongoing exceptional demand for On's products, the strong
product pipeline and multi-channel success gives the company
confidence for achieving strong results in 2023. On the back of
this, On anticipates reaching net sales of at least CHF 1.7
billion, a gross profit margin of approximately 58.5% and an
adjusted EBITDA margin of 15.0% for the full year 2023.
- On continues to drive run culture with the launch of the global
event series "On Track Nights", the unveiling of innovative
technologies such as the next phase of CloudTec®, CloudTec Phase™,
and the signing of reigning Olympic Champion triathlete Kristian
Blummenfelt. In addition, On is taking its head-to-toe innovations
to the tennis courts and has announced the signing of top-ranked
tennis professionals, including women's number one ranked player,
Iga Świątek.
On Holding AG (NYSE: ONON) (“On,” “On Holding AG,” the
“Company,” “we,” “our,” “ours,” or “us”) today announced its
financial results for the fourth quarter and full year, and that it
has filed its annual report on Form 20-F (the "Form 20-F") for the
year ended December 31, 2022, with the U.S. Securities and Exchange
Commission (the "SEC").
Martin Hoffmann, Co-CEO and CFO of On, said: “After a great year
and exceptionally strong fourth quarter well beyond our own
expectations, we are heading into 2023 with a lot of momentum and
in a position of strength. After navigating through a challenging
2022, including supply shortages, tight production capacities and
disruption of global trade lanes, we are looking forward to a great
year with largely normalized operations. We have made significant
progress in many areas in the 18 months since our IPO, which will
set us up for ongoing success and market share gains. The rollout
of our new website, the purchase of the on.com domain, our latest
owned retail store in London and the next phase of CloudTec®,
CloudTec Phase™, are only a selection of recent drivers that excite
us about the opportunities which lie ahead. With the Paris Olympics
in 2024 as an important medium term target, we will continue to
invest in both our athlete team as well as pinnacle products at the
forefront of innovation."
David Allemann, Co-Founder and Executive Co-Chairman of On,
said: “We have often spoken about our commitment to drive growth
while at the same time driving profitability. Finishing our first
full year as a public company with net sales exceeding CHF 1.2
billion and a net income of CHF 57.7 million is a huge testament to
the incredible work that our team continues to do every day. We are
thrilled to see how our continued innovations are supporting the
expansion into new consumer groups and are building our community
of fans and incredible athletes. Running will continue to be our
focus in 2023, but we are also extremely excited to announce On is
increasing its presence on the tennis court too. We are honored
that the women's world number one ranked player, Iga Świątek, and
America's newest men's sensation, Ben Shelton, are joining the On
team on this journey."
Key Financial Highlights
Key highlights for fiscal year 2022 compared to fiscal year 2021
included:
- net sales increased 68.7% to CHF 1,222.1 million;
- net sales through the DTC sales channel increased 61.4% to CHF
445.1 million;
- net sales through the wholesale sales channel increased 73.1%
to CHF 777.0 million;
- net sales in North America, Europe, Asia-Pacific and Rest of
World increased 80.3% to CHF 738.5, 36.1% to CHF 354.3 million,
87.7% to CHF 80.2 million and 310.5% to CHF 49.1 million,
respectively;
- net sales from shoes increased 70.9% to CHF 1,167.5 million,
net sales from apparel increased 30.2% to CHF 47.3 million and net
sales from accessories increased 48.3% to CHF 7.4 million;
- gross profit increased 59.2% to CHF 684.9 million;
- gross profit margin decreased to 56.0% from 59.4%;
- net income increased to CHF 57.7 million from a net (loss) of
CHF (170.2) million;
- net income / (loss) margin changed to 4.7% from (23.5)%;
- basic EPS Class A (CHF) increased to 0.18 from (0.59);
- diluted EPS Class A (CHF) increased to 0.18 from (0.59);
- adjusted EBITDA increased 71.4% to CHF 165.3 million;
- adjusted EBITDA margin increased to 13.5% from 13.3%;
- adjusted net income increased to CHF 90.6 million from CHF 31.1
million;
- adjusted basic EPS Class A (CHF) increased to 0.29 from 0.11;
and
- adjusted diluted EPS Class A (CHF) increased to 0.28 from
0.11.
Key highlights for the three-month period ended December 31,
2022 compared to the three-month period ended December 31, 2021,
included:
- net sales increased 91.9% to CHF 366.8 million;
- net sales through the direct-to-consumer ("DTC") sales channel
increased 76.4% to CHF 149.4 million;
- net sales through the wholesale sales channel increased 104.3%
to CHF 217.3 million;
- net sales in North America, Europe, Asia-Pacific and Rest of
World increased 81.5% to CHF 242.1 million, 80.6% to CHF 79.6
million, 103.8% to CHF 21.6 million, and 680.5% to CHF 23.4
million, respectively;
- net sales from shoes, apparel and accessories increased 96.7%
to CHF 353.4 million, 15.4% to CHF 11.5 million and 30.9% to CHF
1.8 million;
- gross profit increased 91.9% to CHF 214.6 million;
- gross margin remained unchanged at 58.5%;
- net (loss) changed to CHF (26.4) million from CHF (187.0)
million;
- net (loss) margin changed to (7.2)% from (97.8)%;
- basic earnings per share (“EPS”) Class A (CHF) increased to
(0.60) from (0.08);
- diluted EPS Class A (CHF) increased to (0.60) from (0.08);
- adjusted EBITDA increased 451.7% to CHF 61.8 million;
- adjusted EBITDA margin increased to 16.8% from 5.9%;
- adjusted net income increased to CHF 7.5 million from CHF
(13.8) million;
- adjusted basic EPS Class A (CHF) increased to 0.02 from (0.04);
and
- adjusted diluted EPS Class A (CHF) increased to 0.02 from
(0.04).
Key balance sheet highlights as of December 31, 2022 compared to
December 31, 2021 included:
- cash and cash equivalents decreased 43.2% to CHF 371.0 million;
and
- net working capital was CHF 459.2 million which reflected an
increase of 144.9%.
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income,
adjusted basic EPS, adjusted diluted EPS and net working capital
are non-IFRS measures used by us to evaluate our performance.
Furthermore, we believe adjusted EBITDA, adjusted EBITDA margin,
adjusted net income, adjusted basic EPS, adjusted diluted EPS and
net working capital measures enhance investor understanding of our
financial and operating performance from period to period because
they enhance the comparability of results between each period, help
identify trends in operating results and provide additional insight
and transparency on how management evaluates the business. Adjusted
EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic
EPS, adjusted diluted EPS and net working capital should not be
considered in isolation or as a substitute for other financial
measures calculated and presented in accordance with IFRS. For a
detailed description and a reconciliation to the nearest IFRS
measure, see the section below titled “Non-IFRS Measures”.
Outlook
On finished the 2022 financial year on a high note and with a
further record net sales quarter. The exceptional ongoing momentum
across all regions, channels and product groups, combined with a
normalization of product supply and significantly improved
inventory position versus twelve months ago, has set On up to hit
the ground running in 2023. Compared to a supply constrained first
quarter of 2022, On expects a net sales growth rate of 61% in the
first quarter of 2023 versus the prior year period.
In line with On's mission and strategic focus to build a brand
that is set up for the long-term by emphasizing controlled and
durable growth, On expects to reach net sales of at least CHF 1.7
billion for the full year 2023. This represents a year-over-year
growth rate of 39%, which takes into account approximately 300
basis points of the current foreign exchange headwinds and
therefore reflects a currency-neutral growth rate of 42%.
As a result of the normalized supply chain environment, On
currently does not expect exceptional air freight usage in 2023.
Together with a strong inflow of recent products, which will enable
a continued high share of full price sell-through, On foresees the
continuation of the gross profit margin expansion towards the
stated mid-term target of 60%. Considering current FX rates, On
currently anticipates a full year 2023 gross profit margin of
approximately 58.5%. Driven by ongoing scale gains in SG&A
expenses, somewhat offset by an intended re-acceleration of
marketing expenses, On expects its adjusted EBITDA margin for the
full year 2023 to increase to 15%.
Other than with respect to IFRS net-sales and gross profit
margin, On only provides guidance on a non-IFRS basis. The Company
does not provide a reconciliation of forward-looking adjusted
EBITDA to IFRS net income due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliation. As a result, we are not able to forecast with
reasonable certainty all deductions needed in order to provide a
reconciliation to net income. The above outlook is based on current
market conditions and reflects the Company’s current and
preliminary estimates of market and operating conditions and
customer demand, which are all subject to change. Actual results
and the timing of events could differ materially from those
anticipated in these forward-looking statements as a result of
risks and uncertainties, including those stated below and in our
filings with the SEC.
Conference Call Information
A conference call is scheduled for March 21, 2023 at 8 a.m. US
Eastern time (1 p.m. Central European Time). Those interested in
participating in the call are invited to dial the following
numbers:
United States:
+1-561-771-1427
United Kingdom:
+44-16-1250-8206
Switzerland:
+41-91-261-1447
Germany:
+49-69-244-37-186
China:
108-001-401-785 (Toll Free)
No access code necessary.
Additionally, a live webcast of the conference call will be
available on the Company's investor relations website and under the
following Link. Following the conclusion of the call, a replay of
the conference call will be available on the Company's website.
Annual Report
The Form 20-F can be accessed by visiting either the SEC's
website at www.sec.gov or the Company's website at
investors.on-running.com/. In addition, the Company's shareholders
may receive a hard copy of the Form 20-F, which includes the
Company's complete audited financial statements, free of charge by
requesting a copy from the Company contact below.
About On
On was born in the Swiss Alps with one goal: to revolutionize
the sensation of running by empowering all to run on clouds.
Thirteen years after market launch, On delivers industry-disrupting
innovation in premium footwear, apparel, and accessories for
high-performance running, outdoor, and all-day activities. Fueled
by customer-recommendation, On’s award-winning CloudTec®
innovation, purposeful design and groundbreaking strides in
sportswear’s circular economy have attracted a fast-growing global
fanbase — inspiring humans to explore, discover and dream on.
On is present in more than 60 countries globally and engages
with a digital community on www.on.com.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income,
adjusted basic EPS, adjusted diluted EPS and net working capital
are financial measures that are not defined under IFRS.
We use these non-IFRS measures when evaluating our performance,
including when making financial and operating decisions, and as a
key component in the determination of variable incentive
compensation for employees. We believe that, in addition to
conventional measures prepared in accordance with IFRS, these
non-IFRS measures enhance investor understanding of our financial
and operating performance from period to period, because they
enhance the comparability of results between each period, help
identify trends in operating results and provide additional insight
and transparency on how management evaluates the business. In
particular, we believe adjusted EBITDA, adjusted EBITDA margin,
adjusted net income and net working capital are measures commonly
used by investors to evaluate companies in the sportswear
industry.
However, adjusted EBITDA, adjusted EBITDA margin, adjusted net
income, adjusted basic EPS, adjusted diluted EPS and net working
capital should not be considered in isolation or as a substitute
for other financial measures calculated and presented in accordance
with IFRS and may not be comparable to similarly titled non-IFRS
measures used by other companies. The tables below reconcile each
non-IFRS measure to its directly comparable IFRS measure.
As noted above, we do not provide a reconciliation of
forward-looking adjusted EBITDA to IFRS net income due to the
inherent difficulty in forecasting and quantifying certain amounts
that are necessary for such reconciliation. The amount of these
deductions may be material and, therefore, could result in
projected net income being materially less than projected adjusted
EBITDA. These statements represent forward-looking information and
may represent a financial outlook, and actual results may vary.
Please see the risks and assumptions referred to in the
Forward-Looking Statements section of this news release.
Forward-Looking Statements
This press release includes estimates, projections, statements
relating to the Company's business plans, objectives, and expected
operating results that are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. In many cases, you can identify
forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "anticipates," "outlook," "believes,"
"intends," "estimates," "predicts," "potential" or the negative of
these terms or other comparable terminology. These forward-looking
statements also include the Company's guidance and outlook
statements. These statements are based on management's current
expectations but they involve a number of risks and uncertainties.
Actual results and the timing of events could differ materially
from those anticipated in the forward-looking statements as a
result of risks and uncertainties, which include, without
limitation: our ability to maintain the value and reputation of our
brand; the current COVID-19 coronavirus pandemic and related
government, private sector, and individual consumer responsive
actions; our highly competitive market and increasing competition;
and our ability to compete and conduct our business in the future;
our ability to anticipate consumer preferences and to continue to
innovate and to successfully develop and introduce new, innovative
and updated products; the acceptability of our products to
customers and our ability to connect with our consumer base; our
ability to accurately forecast consumer demand for our products and
manage product manufacturing decisions; changes in consumer tastes
and shopping preferences and shifts in distribution channels; our
international operations; our ability to expand internationally in
light of our limited operating experience and limited brand
recognition in new international markets; our ability to implement
our growth strategy and manage our growth and the increased
complexity of our business effectively; our ability to strengthen
our direct-to-consumer channel; our ability to successfully open
new store locations in a timely manner; seasonality; our
third-party suppliers, manufactures and other partners, including
their financial stability and our ability to find suitable partners
to implement our growth strategy; our reliance on and limited
control over third-party suppliers to provide materials for and to
produce our products; the operations of many of our suppliers are
subject to international and other risks; suppliers or
manufacturers not complying with our Vendor Code of Ethics or
applicable laws; our ability to deliver our products to the market
and to meet consumer expectations if we have problems with our
distribution system; our ability to distribute products through our
wholesale channel; the availability of qualified personnel and the
ability to retain such people; increasing labor costs and other
factors associated with the production of our products in South
Asia and South East Asia; the war in the Ukraine and its potential
consequences, including changes in commodity, oil, material,
distribution, air-freight and other operating costs; our ability to
safeguard against security breaches with respect to our information
technology systems; our compliance with privacy and data protection
laws; our reliance on complex IT systems and any material
disruption of our information systems, including security breaches;
our ability to have technology-based systems function effectively
and grow our e-commerce business globally; climate change, and
related legislative and regulatory responses; increased scrutiny
regarding our environmental, social, and governance; or
sustainability responsibilities; an economic recession, depression,
or downturn or economic uncertainty in our key markets; global
economic, demographic, political and business conditions; health
epidemics, pandemics and similar outbreaks, including the COVID-19
pandemic, the efficacy of vaccines and the prevalence of variants;
our ability to source and sell our merchandise profitably or at all
if new trade restrictions are imposed or existing trade
restrictions become more burdensome; changes in governmental
regulations or tax laws, including unanticipated tax liabilities;
our ability to comply with trade and other regulations;
fluctuations in foreign currency exchange rates; imitation by our
competitors; our ability to protect our intellectual property and
defend against allegations of violations of third-party
intellectual property by us; conflicting trademarks and the
prevention of sale of certain products; our exposure to various
types of litigation; our generation of net losses in the past and
potentially in the future; other factors that may affect our
financial condition, liquidity and results of operations; our
expectations regarding the time during which we will be an emerging
growth company under the JOBS Act and a foreign private issuer; and
other risks and uncertainties set out in filings made from time to
time with the United States Securities and Exchange Commission and
available at www.sec.gov, including, without limitation, our most
recent reports on Form 20-F and Form 6-K. You are urged to consider
these factors carefully in evaluating the forward-looking
statements contained herein and are cautioned not to place undue
reliance on such forward-looking statements, which are qualified in
their entirety by these cautionary statements. The forward-looking
statements made herein speak only as of the date of this press
release and the Company undertakes no obligation to publicly update
such forward-looking statements to reflect subsequent events or
circumstances, except as may be required by law.
Source: On Category: Earnings
Consolidated Financial
Information
Consolidated statements of income /
(loss)
Year ended December
31,
Three-month period ended
December 31,
(CHF in millions)
2022
2021
% Change
2022
2021
% Change
(Audited)
(Audited)
(Unaudited)
(Unaudited)
Net sales
1,222.1
724.6
68.7
%
366.8
191.1
91.9
%
Cost of sales
(537.2
)
(294.3
)
82.5
%
(152.2
)
(79.3
)
92.0
%
Gross profit
684.9
430.3
59.2
%
214.6
111.8
91.9
%
Selling, general and administrative
expenses
(599.8
)
(571.4
)
5.0
%
(199.9
)
(289.3
)
(30.9
) %
Operating result
85.1
(141.1
)
(160.3
) %
14.7
(177.5
)
108.3
%
Financial income
5.7
—
100.0
%
2.5
—
100.0
%
Financial expenses
(6.4
)
(3.6
)
79.4
%
(0.9
)
(1.4
)
(32.8
) %
Foreign exchange result
(6.5
)
(14.9
)
(56.3
) %
(40.7
)
(12.2
)
232.6
%
Income / (loss) before taxes
77.9
(159.6
)
(148.8
) %
(24.4
)
(191.0
)
(87.2
) %
Income taxes
(20.2
)
(10.6
)
89.4
%
(2.0
)
4.0
(148.6
) %
Net income / (loss)
57.7
(170.2
)
(133.9
) %
(26.4
)
(187.0
)
(85.9
) %
Earnings per share
Basic EPS Class A (CHF)
0.18
(0.59
)
(130.9
) %
(0.08
)
(0.60
)
(86.2
) %
Basic EPS Class B (CHF)
0.02
—
(0.01
)
—
—
Diluted EPS Class A (CHF)
0.18
(0.59
)
(130.6
) %
(0.08
)
(0.60
)
(86.2
) %
Diluted EPS Class B (CHF)
0.02
—
(0.01
)
—
—
Consolidated Balance Sheets
(CHF in millions)
12/31/2022
12/31/2021
(Audited)
(Audited)
Cash and cash equivalents
371.0
653.1
Trade receivables
174.6
99.3
Inventories
395.6
134.2
Other current financial assets
33.2
30.1
Other current operating assets
77.0
48.0
Current assets
1,051.5
964.6
Property, plant and equipment
77.2
34.4
Right-of-use assets
151.6
177.9
Intangible assets
70.3
57.5
Deferred tax assets
31.7
2.2
Non-current assets
330.9
271.9
Assets
1,382.4
1,236.5
Trade payables
111.0
45.9
Other current financial liabilities
31.2
20.1
Other current operating liabilities
81.7
121.7
Current provisions
5.0
14.9
Income tax liabilities
13.9
2.4
Current liabilities
242.7
205.0
Employee benefit obligations
6.3
5.9
Non-current provisions
7.2
4.4
Other non-current financial
liabilities
138.8
167.2
Deferred tax liabilities
17.9
5.6
Non-current liabilities
170.2
183.1
Share capital
33.5
33.5
Treasury shares
(26.1
)
(25.0
)
Capital reserves
1,105.1
1,044.0
Other reserves
—
(3.4
)
Accumulated losses
(142.9
)
(200.6
)
Equity
969.5
848.4
Equity and liabilities
1,382.4
1,236.5
Consolidated Statements of Cash
Flows
(CHF in millions)
2022
2021
(Audited)
(Audited)
Net income / (loss)
57.7
(170.2
)
Share-based compensation
38.3
192.4
Employee benefit expenses
4.8
1.1
Depreciation and amortization
46.4
31.4
Loss / (gain) on disposal of assets
0.9
—
Interest income and expenses
(0.8
)
2.8
Net exchange differences
(8.3
)
15.2
Income taxes
20.2
10.6
Change in provisions
(7.4
)
4.4
Change in working capital
(285.8
)
(74.4
)
Trade receivables
(78.6
)
(47.0
)
Inventories
(273.0
)
(31.8
)
Trade payables
65.8
4.3
Change in other current assets /
liabilities
(67.6
)
8.1
Interest received
5.6
—
Income taxes paid
(31.0
)
(4.4
)
Cash inflow / (outflow) from operating
activities
(227.0
)
16.9
Purchase of tangible assets
(60.3
)
(24.6
)
Purchase of intangible assets
(22.7
)
(11.6
)
Payment of contingent considerations
—
(0.2
)
Cash (outflow) from investing
activities
(82.9
)
(36.4
)
Payments of lease liabilities
(15.4
)
(13.3
)
Proceeds from issue of shares
—
0.1
Net proceeds from the IPO
—
618.2
Sale of treasury shares related to
share-based compensation
26.4
0.5
Equity transaction costs
—
(6.8
)
Interests paid
(4.7
)
(2.8
)
Cash inflow from financing
activities
6.3
595.9
Change in net cash and cash
equivalents
(303.6
)
576.4
Net cash and cash equivalents at January
1
653.1
90.6
Net impact of foreign exchange rate
differences
21.5
(13.9
)
Net cash and cash equivalents at December
31
371.0
653.1
Reconciliation of non-IFRS measures
Adjusted EBITDA and adjusted EBITDA margin
The table below provides a reconciliation between net income /
(loss) and adjusted EBITDA for the periods presented. Adjusted
EBITDA margin is equal to adjusted EBITDA for the period presented
as a percentage of net sales for the same period.
Fiscal year ended December
31,
Three-month period ended
December 31,
(CHF in millions)
2022
2021
% Change
2022
2021
% Change
Net income / (loss)
57.7
(170.2
)
133.9
%
(26.4
)
(187.0
)
(85.9
) %
Exclude the impact of:
Income taxes
20.2
10.6
89.4
%
2.0
(4.0
)
148.6
%
Financial income
(5.7
)
—
100.0
%
(2.5
)
—
100.0
%
Financial expenses
6.4
3.6
79.4
%
0.9
1.4
(32.8
) %
Foreign exchange result(1)
6.5
14.9
(56.3
) %
40.7
12.2
232.6
%
Depreciation and amortization
46.4
31.4
47.7
%
12.7
12.0
5.8
%
Share-based compensation(2)
33.8
198.5
(83.0
) %
34.4
176.2
(80.5
) %
Equity transaction costs(3)
—
7.6
(100.0
) %
—
0.4
(100.0
) %
Adjusted EBITDA
165.3
96.4
71.4
%
61.8
11.2
451.7
%
Adjusted EBITDA margin
13.5
%
13.3
%
16.8
%
5.9
%
(1)
Represents the foreign exchange impact
within the net financial result.
(2)
Represents non-cash share-based
compensation expense.
(3)
In connection with the 2021 IPO, we have
incurred expenses related to professional fees, consulting, legal,
and accounting that would otherwise not have been incurred. These
fees are not indicative of our ongoing costs.
Adjusted Net Income, Adjusted Basic EPS and Adjusted Diluted
EPS
We use adjusted net income, adjusted basic EPS and adjusted
diluted EPS as measures of operating performance in conjunction
with related IFRS measures.
Adjusted basic EPS is used in conjunction with other non-IFRS
measures and excludes certain items (as listed below) in order to
increase comparability of the metric from period to period, which
we believe makes it useful for management, our audit committee and
investors to assess our financial performance over time.
Diluted EPS is calculated by dividing net income by the weighted
average number of ordinary shares outstanding during the period on
a fully diluted basis. For the purpose of operational performance
measurement, we calculate adjusted net income, adjusted basic EPS
and adjusted diluted EPS in a manner that fully excludes the impact
of any costs related to share-based compensation and includes the
tax effect on the tax deductible portion of the non-IFRS
adjustments. In 2021, adjusted net income, adjusted basic EPS and
adjusted diluted EPS also exclude transaction costs relating to our
IPO.
The table below provides a reconciliation between net income /
(loss) to adjusted net income, adjusted basic EPS and adjusted
diluted EPS for the periods presented:
Fiscal year ended December
31,
(CHF in millions, except per share
data)
2022
2022
2021
2021
Class A
Class B
Class A
Class B
Net income / (loss)
51.4
6.3
(156.0
)
(14.2
)
Exclude the impact of:
Share-based compensation(1)
30.1
3.7
181.8
16.6
Equity transaction costs(2)
—
—
7.0
0.6
Tax effect of adjustments(3)
(0.8
)
(0.1
)
(4.4
)
(0.4
)
Adjusted net income / (loss)
80.7
9.9
28.5
2.6
Weighted number of outstanding
shares(5)
282,195,495
345,437,500
264,171,208
241,333,048
Weighted number of shares with dilutive
effects(5)(6)
2,354,500
6,891,423
5,278,761
2,099,551
Weighted number of outstanding shares
(diluted and undiluted)(4)(5)
284,549,995
352,328,923
269,449,969
243,432,599
Adjusted basic EPS (CHF)
0.29
0.03
0.11
0.01
Adjusted diluted EPS (CHF)
0.28
0.03
0.11
0.01
Three-month period ended
December 31,
(CHF in millions, except per share
data)
2022
2022
2021
2021
Class A
Class B
Class A
Class B
Net income / (loss)
(23.5
)
(2.9
)
(166.2
)
(20.8
)
Exclude the impact of:
Share-based compensation(1)
30.6
3.7
156.6
19.6
Equity transaction costs(2)
—
—
0.4
—
Tax effect of adjustments(3)
(0.4
)
—
(3.1
)
(0.4
)
Adjusted net income / (loss)
6.7
0.8
(12.3
)
(1.5
)
Weighted number of outstanding
shares(5)
283,102,252
345,437,500
276,607,211
345,437,500
Weighted number of shares with dilutive
effects(5)(6)
1,661,451
6,285,538
—
—
Weighted number of outstanding shares
(diluted and undiluted)(4)(5)
284,763,703
351,723,038
276,607,211
345,437,500
Adjusted basic EPS (CHF)
0.02
—
(0.04
)
—
Adjusted diluted EPS (CHF)
0.02
—
(0.04
)
—
(1)
Represents non-cash share-based
compensation expense.
(2)
In connection with the 2021 IPO, we
incurred expenses related to professional fees, consulting, legal,
and accounting in 2021 that would otherwise not have been incurred.
These fees were not indicative of our ongoing costs.
(3)
The tax effect has been calculated by
applying the local tax rate on the tax deductible portion of the
respective adjustments.
(4)
Weighted number of outstanding shares
(diluted and undiluted) are presented herein in order to calculate
adjusted basic EPS as adjusted Net Income for such periods.
(5)
Original share numbers have been
multiplied by 1,250 to give effect to the Share Capital
Reorganization that took place in 2021.
(6)
For the three-month period ended December
31, 2021, 8,248,683 shares and 8,329,740 shares were excluded from
the diluted EPS calculation for Class A ordinary shares and Class B
voting rights shares, respectively, as the impact of the shares are
considered anti-dilutive.
Net Working Capital
Net working capital is a financial measure that is not defined
under IFRS. We use, and believe that certain investors and
analysts, use this information to assess liquidity and management
use of net working capital resources. We define net working capital
as trade receivables, plus inventories, minus trade payables. This
measure should not be considered in isolation or as a substitute
for any standardized measure under IFRS.
Other companies in our industry may calculate this measure
differently than we do, limiting its usefulness as a comparative
measure.
Fiscal year ended December
31,
(CHF in millions)
2022
2021
% Change
Accounts receivables
174.6
99.3
75.9
%
Inventories
395.6
134.2
194.8
%
Trade payables
(111.0
)
(45.9
)
141.6
%
Net working capital
459.2
187.5
144.9
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230321005322/en/
For investor and media inquiries Investor: On
Holding AG Jerrit Peter investorrelations@on-running.com or ICR,
Inc. Brendon Frey brendon.frey@icrinc.com
Media: On Holding AG Vesna Stimac
press@on-running.com
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