Samsonite International S.A. Announces Final Results for the Year Ended December 31, 2023
Consolidated net sales increased by 30.4% 1 , 2 year-on-year driven by strong growth across all regions and core brands
Gross profit margin and Adjusted EBITDA margin3 expanded significantly in 2023, driven by
increased net sales contribution from higher-margin
Continued to deleverage balance sheet, driven by strong profit growth and Free Cash Flow 4 with net leverage ratio 5 at lowest level since 2016 acquisition of Tumi
In this press release, certain financial results for the year ended
Overview
Commenting on the results, Mr.
"During 2023 the Group registered strong double-digit net sales growth year-on-year, while its gross profit margin and Adjusted EBITDA margin3 both reached record highs, reflecting our efficient cost structure and the increased net sales contribution from our higher-margin
"We intensified our efforts to embed sustainability into the business in 2023. Among other accomplishments, we increased the share of Samsonite's net sales that came from products made at least in part from recycled materials to approximately 34%, up from about 23% in 2022. We also achieved 100% renewable electricity usage in all our own operations, two years earlier than our 2025 target date. We will continue to advance Samsonite's "Our Responsible Journey" sustainability initiatives, leveraging our scale to lead the transformation of the luggage industry to become more sustainable."
"We will continue to invest in our core brands in 2024, focusing on product innovation, sustainability initiatives and further enhancements to our global retail store network, all supported by increased investment in marketing. We are targeting 2024 marketing spend of approximately 7.0% of net sales, and we are confident that, with the amazing new products and exciting advertising campaigns planned for 2024, the Group will continue to deliver robust net sales growth, with strength in the higher-margin
Table 1: Key Financial Highlights for the Three Months Ended |
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Expressed in US$ millions, except per share data |
Three months |
Three months |
Percentage increase (decrease) 2023 vs. 2022 |
Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Net sales |
948.5 |
818.5 |
15.9 % |
15.8 % |
Gross profit |
568.3 |
462.9 |
22.8 % |
22.9 % |
Gross profit margin |
59.9 % |
56.5 % |
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Operating profit 8 |
248.9 |
210.5 |
18.3 % |
18.6 % |
Operating profit excluding total non-cash impairment reversals and restructuring (reversals) charges 8, 9 |
164.6 |
128.0 |
28.6 % |
29.1 % |
Profit attributable to the equity holders |
149.2 |
198.2 |
(24.8) % |
(27.7) % |
Adjusted Net Income 10 |
95.8 |
147.8 |
(35.2) % |
(39.2) % |
Adjusted EBITDA6 |
181.0 |
142.5 |
27.0 % |
27.4 % |
Adjusted EBITDA margin3 |
19.1 % |
17.4 % |
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Basic earnings per share –Expressed in US$ per share |
0.103 |
0.138 |
(25.2) % |
(28.1) % |
Diluted earnings per share –Expressed in US$ per share |
0.102 |
0.137 |
(25.6) % |
(28.6) % |
Adjusted basic earnings per share 11 – Expressed in US$ per share |
0.066 |
0.103 |
(35.6) % |
(39.5) % |
Adjusted diluted earnings per share11 – Expressed in US$ per share |
0.066 |
0.102 |
(36.0) % |
(39.9) % |
2023 Fourth Quarter Highlights
For the three months ended
The Group's gross profit margin expanded to 59.9% in the fourth quarter of 2023, an increase of 340 basis points year-on-year, driven mainly by year-on-year gross profit margin improvements in all regions and
The Group recorded an income tax expense of
Compared to the corresponding period in 2019, Samsonite's net sales for the fourth quarter of 2023 increased by 15.1%1, 2, 12; gross profit margin increased by 580 basis points; Adjusted EBITDA6 and Adjusted EBITDA margin3 increased by 25.0% and 400 basis points, respectively; and Adjusted Net Income10 increased by 68.4%; despite marketing spend as a percentage of net sales rising by 290 basis points. This remarkable improvement from 2019 highlights the Group's strong operating leverage and fundamentally enhanced margin profile as net sales continued to grow.
Table 2: Key Financial Highlights for the Year Ended
Expressed in US$ millions, except per share data |
Year ended |
Year ended |
Percentage increase (decrease) 2023 vs. 2022 |
Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Net sales |
3,682.4 |
2,879.6 |
27.9 % |
30.0 % |
Gross profit |
2,182.8 |
1,605.4 |
36.0 % |
38.4 % |
Gross profit margin |
59.3 % |
55.8 % |
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|
Operating profit8 |
743.7 |
492.1 |
51.1 % |
53.6 % |
Operating profit excluding total non-cash impairment reversals and restructuring (reversals) charges 8 , 9 |
659.1 |
421.2 |
56.5 % |
59.4 % |
Profit attributable to the equity holders |
417.0 |
312.7 |
33.3 % |
34.6 % |
Adjusted Net Income10 |
392.4 |
296.0 |
32.5 % |
33.8 % |
Adjusted EBITDA6 |
709.3 |
472.3 |
50.2 % |
54.0 % |
Adjusted EBITDA margin3 |
19.3 % |
16.4 % |
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Basic earnings per share –Expressed in US$ per share |
0.289 |
0.218 |
32.7 % |
33.9 % |
Diluted earnings per share –Expressed in US$ per share |
0.287 |
0.217 |
32.1 % |
33.3 % |
Adjusted basic earnings per share11 – Expressed in US$ per share |
0.272 |
0.206 |
31.9 % |
33.2 % |
Adjusted diluted earnings per share11 – Expressed in US$ per share |
0.270 |
0.206 |
31.3 % |
32.6 % |
Results for the Year Ended
The Group's performance for the year ended
The Group's net sales increase was driven by the continued recovery and growth in leisure and business travel globally and the resulting increased demand for the Group's products. Supported by substantial investments in marketing behind Samsonite's industry-leading brands and product assortments, as well as the strength of the Group's direct-to-consumer business, the Group achieved double-digit year-on-year net sales growth in all regions in 2023.
Year Ended
For the year ended
Year Ended
Compared to 2019, the Group's net sales for the year ended
Net Sales Performance by Region
Table 3:
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Region13 |
Year ended US$ millions |
Year ended US$ millions |
Percentage increase (decrease) 2023 vs. 2022 |
Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
|
1,427.8 |
916.4 |
55.8 % |
61.7 % |
|
1,267.2 |
1,117.3 |
13.4 % |
13.7 % |
|
776.9 |
675.7 |
15.0 % |
15.1 % |
|
209.5 |
168.8 |
24.1 % |
25.7 % |
Corporate |
1.1 |
1.5 |
(27.2) % |
(27.2) % |
Net sales15 |
3,682.4 |
2,879.6 |
27.9 % |
30.0 % |
Year Ended
For the year ended
Year Ended
Compared to 2019, the Group's net sales in
Year Ended
For the year ended
Year Ended
For the year ended
For the year ended
Year Ended
For the year ended
Year Ended
For the year ended
Year Ended
For the year ended
Year Ended
For the year ended
Table 4:
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Brand |
Year ended US$ millions |
Year ended US$ millions |
Percentage increase (decrease) 2023 vs. 2022 |
Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Samsonite |
1,849.0 |
1,444.3 |
28.0 % |
30.1 % |
Tumi |
878.6 |
654.2 |
34.3 % |
35.8 % |
American Tourister |
654.5 |
519.4 |
26.0 % |
28.7 % |
Other18 |
300.3 |
261.7 |
14.8 % |
17.0 % |
Net sales |
3,682.4 |
2,879.6 |
27.9 % |
30.0 % |
The Group's core brands all achieved strong net sales gains during 2023 driven by the continued recovery and growth in leisure and business travel globally and the resulting increased demand for the Group's products.
For the year ended
Net sales of the Tumi brand increased by
Net sales of the American Tourister brand increased by
Table 5:
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Product Category |
Year ended US$ millions |
Year ended US$ millions |
Percentage increase (decrease) 2023 vs. 2022 |
Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Travel |
2,435.9 |
1,891.8 |
28.8 % |
30.7 % |
Non-travel 19 |
1,246.5 |
987.8 |
26.2 % |
28.5 % |
Net sales |
3,682.4 |
2,879.6 |
27.9 % |
30.0 % |
The Group's net sales in the travel product category continued to improve driven mainly by the continued recovery and growth in leisure and business travel and increased demand for the Group's products. Net sales in the travel product category increased by 30.7%1 year-on-year and accounted for 66.2% of total net sales in 2023 compared to 65.7% of total net sales in 2022. Total non-travel product category19 net sales increased by 28.5%1 year-on-year and accounted for 33.8% of total net sales in 2023 compared to 34.3% of total net sales in 2022.
Table 6:
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Distribution Channel |
Year ended US$ millions |
Year ended US$ millions |
Percentage increase (decrease) 2023 vs. 2022 |
Percentage increase (decrease) 2023 vs. 2022 excl. foreign currency effects1 |
Wholesale |
2,247.2 |
1,794.1 |
25.3 % |
27.4 % |
DTC |
1,433.9 |
1,083.8 |
32.3 % |
34.2 % |
Other20 |
1.3 |
1.6 |
(21.6) % |
(21.6) % |
Total net sales |
3,682.4 |
2,879.6 |
27.9 % |
30.0 % |
The Group's wholesale net sales increased by 27.4%1 to
For the year ended
During the year ended
The Group's DTC e-commerce channel also experienced strong growth, with net sales increasing by
Gross Profit
The Group's gross profit increased by
Investment in Marketing
The Group substantially increased marketing activities as planned, spending US$241.5 million during the year ended
Distribution Expenses
Distribution expenses increased by
General and Administrative Expenses
General and administrative expenses increased by
Operating Profit
The Group reported an operating profit of
The Group recorded an operating profit of
Profit Attributable to the Equity Holders
The Group reported profit attributable to the equity holders of
The Group recorded profit attributable to the equity holders of US$356.3 million8, 9 for the year ended
Adjusted EBITDA and Adjusted Net Income
Year Ended
For the year ended
For the year ended
Adjusted Net Income10 increased by
Year Ended
Comparing the year ended
Adjusted Net Income10 was
Working Capital
The Group continued to optimize its working capital, particularly inventories, to support net sales growth. At
Trade and other receivables increased by
Total Capital Expenditures
As the business recovers, the Group is prudently increasing its spending on total capital expenditures towards retail expansion in key markets and refreshing its retail store fleet after a few years of tight control. During the year ended
Balance Sheet and Free Cash Flow
The Group continued to focus on cash management and debt reduction. With strong profits and prudent cash management, Samsonite generated strong Free Cash Flow4 of
The Group utilized part of its Free Cash Flow4 to further deleverage its balance sheet, repaying
The reduction in net debt, together with the strong growth in Adjusted EBITDA6, enabled the Group to significantly lower its net leverage ratio5 to 1.53x as of
The Group had total liquidity of
2023 Final Results – Briefing for Analysts and Investors: |
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Date: |
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Time: |
09:00 |
Venue: |
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Webcast Link: |
About Samsonite
With a heritage dating back to 1910,
For more information, please contact: |
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Tel: +852 2422 2611
Email: william.yue@samsonite.com |
Email: helena.sau@samsonite.com |
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Tel: Tel: +1 212 355 4449 |
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Notes |
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1 |
Results stated on a constant currency basis, a non-International Financial Reporting Standards ("IFRS") Accounting Standards measure, are calculated by applying the average exchange rate of the quarter/year under comparison to current period local currency results. |
2 |
On |
3 |
Adjusted EBITDA margin, a non-IFRS measure, is calculated by dividing adjusted earnings before interest, taxes, depreciation and amortization of intangible assets ("Adjusted EBITDA") by net sales. |
4 |
Free Cash Flow is defined as net cash generated from (used in) operating activities less (i) purchases of property, plant and equipment and software ("total capital expenditures") and (ii) principal payments on lease liabilities (each as set forth on the consolidated statements of cash flows). |
5 |
The total net leverage ratio is calculated by dividing total consolidated net debt minus the aggregate amount of unrestricted cash by the consolidated Adjusted EBITDA for the trailing four fiscal quarters on a pro forma basis as defined in the credit agreement. |
6 |
Adjusted EBITDA, a non-IFRS measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges. The Group believes these measures provide additional information that is useful in gaining a more complete understanding of its operational performance and of the underlying trends of its business. |
7 |
Total liquidity is calculated as the sum of cash and cash equivalents per the consolidated statements of financial position plus available capacity under the Group's revolving credit facility. As of |
8 |
Results for the three months ended |
9 |
Operating profit and profit attributable to the equity holders, both excluding total non-cash impairment reversals and restructuring reversals (charges), are non-IFRS measures and, as calculated herein, may not be comparable to similarly named measures used by other companies and should not be considered comparable to operating profit and profit attributable to the equity holders in the Group's consolidated statements of income. |
10 |
Adjusted Net Income, a non-IFRS measure, eliminates the effect of a number of costs, charges and credits and certain other non-cash charges, along with their respective tax effects, that impact the Group's reported profit attributable to the equity holders, which the Group believes helps to give securities analysts, investors and other interested parties a more complete understanding of the Group's underlying financial performance. |
11 |
Adjusted basic and diluted earnings per share, both non-IFRS measures, are calculated by dividing Adjusted Net Income by the weighted average number of shares used in the basic and diluted earnings per share calculations, respectively. |
12 |
On |
13 |
The geographic location of the Group's net sales generally reflects the country/territory from which its products were sold and does not necessarily indicate the country/territory in which its end customers were actually located. |
14 |
When excluding the Group's net sales in |
15 |
When excluding the Group's net sales in |
16 |
Net sales reported for |
17 |
Net sales reported for the |
18 |
Other includes certain other non-core brands owned by the Group, such as Gregory, High Sierra, Kamiliant, ebags, Xtrem, Lipault, Hartmann, Saxoline and Secret. |
19 |
The non-travel product category includes business, casual, accessories and other products. |
20 |
"Other" primarily consists of licensing revenue. |
21 |
Net working capital efficiency is calculated as net working capital (the sum of inventories and trade and other receivables, minus accounts payable) divided by annualized net sales. |
22 |
For the year ended |
23 |
As of |
Non-IFRS Measures
The Company has presented certain non-IFRS measures in this press release because each of these measures provides additional information that management believes is useful for securities analysts, investors and other interested parties to gain a more complete understanding of the Group's operational performance and of the trends impacting its business. These non-IFRS measures, as calculated herein, may not be comparable to similarly named measures used by other companies, and should not be considered comparable to IFRS measures. Refer to the relevant announcement/report published by the Company for the corresponding period for reconciliations of the Group's non-IFRS Accounting Standards financial information. Non-IFRS measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, an analysis of the Group's financial results as reported under IFRS Accounting Standards.
Forward-looking Statements
This press release contains forward-looking statements. Forward-looking statements reflect the Company's current views with respect to future events and performance. These statements may discuss, among other things, the Company's net sales, gross profit margin, operating profit, Adjusted Net Income, Adjusted EBITDA, Adjusted EBITDA margin, cash flow, liquidity and capital resources, potential impairments, growth, strategies, plans, achievements, distributions, organizational structure, future store openings or closings, market opportunities and general market and industry conditions. The Company generally identifies forward-looking statements by words such as "expect", "seek", "believe", "plan", "intend", "estimate", "project", "anticipate", "may", "will", "would" and "could" or similar words or statements. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties.
If one or more of these risks or uncertainties materialize, or if management's underlying beliefs and assumptions prove incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Among the factors that could cause actual results to differ materially are: the effect of worldwide economic conditions; the effect of political or social unrest and armed conflict; the effects of inflation; a general economic downturn or generally reduced consumer spending; significant changes in consumer spending patterns or preferences; competition; interruptions or delays in the supply of finished goods or key components; the performance of the Group's products within the prevailing retail environment; and financial difficulties encountered by customers and related bankruptcy and collection issues.
Forward-looking statements speak only as of the date on which they are made. The Company's shareholders, potential investors and other interested parties should not place undue reliance on these forward-looking statements. The Company expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws and regulations.
Rounding
Certain amounts presented in this
press release
have been rounded up or down to the nearest tenth of a million, unless otherwise indicated. There may therefore be discrepancies between the actual totals of the individual amounts in the tables and the totals shown, between the amounts in the tables and the amounts given in the corresponding analyses in the text of this
press release
and between amounts in this
press release
and other publicly available documents. All percentages and key figures were calculated using the underlying data in whole US Dollars.
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SOURCE Samsonite