Head N.V. / HEAD NV and HTM Sport GmbH Announce the Audited
Results for the Twelve Months Ended 31st December 2014 and the
Filing of Head NV's Annual Report for the Year ended 31st December
2014. . Processed and transmitted by NASDAQ OMX Corporate
Solutions. The issuer is solely responsible for the content of this
announcement.
Amsterdam - 12th March
2015 - Head NV (VSX: HEAD; U.S. OTC: HEDYY.PK), a leading global
manufacturer and marketer of sports equipment, announced the
following results today.
Net Revenues for the full year
were up 4.7% compared to the prior year driven by growth in all the
divisions. At constant currency, revenue growth would have been
even stronger growing at 5.3% compared to the prior year.
For the year to 31st December
2014, Head's Winter Sports revenues grew by 2.9% (3.4% at constant
currency) despite the second consecutive year of late snow. This
growth was a consequence of higher volumes in skis and bindings and
also a favorable product mix for skis and boots achieved as a
result of the success of the race team and the excellent product
offerings that have created brand momentum.
The Racquet Sports division
reported an increase in revenues of 3.3% for the year (4.4% at
constant currency). This growth has been achieved through an
increase in the volume of both tennis racquets and Head branded
tennis balls sold, a favorable product mix across the key
categories and improved revenues for accessories.
Diving revenues increased by 9.2%
for the year (9.3% at constant currency). This growth was due to
the inclusion from the 1st of January
2014 of the newly acquired dive certification business (SSI) offset
by lower equipment sales. The European dive markets remain tough
but some growth was achieved in North America and Asia.
Sportswear revenues increased by
3.4% in 2014 (2.7% at constant currency) mainly due to improved
sales of Winter Sports apparel offset by lower bag sales in the
UK.
Licensing revenues increased 38.1%
mainly due to better than expected sales.
Gross margin for the group also
improved in the year by 2.5 percentage points mainly due to higher
licensing revenues, lower cost of sales for our tennis ball
business and a change in the mix in our diving business due to the
new SSI business which, combined with improved revenues, gave rise
to a gross profit for the year to 31st December
2014 of €161.1m compared to €144.9m in 2013.
The improvement in gross profit of
€16.3m was offset by cost increases of €14.9m resulting in a net
improvement in adjusted operating profit of €1.4m from €12.1m in
the year to 31st December
2013 to €13.6m in 2014.
The cost increases were driven by
€8.0m in selling and marketing due to higher advertising costs in
our Racquet Sports and Winter Sports divisions and to the inclusion
of the departmental selling costs of our new SSI business and the
increase in departmental selling costs in the Winter Sports and
Racquet Sports divisions.
General and administrative
expenses also increased by €1.4m mainly due to the inclusion of the
new SSI business.
Other operating expenses increased
by €5.5m due to an increase in the provisions for litigation,
higher costs in the diving division, foreign exchange losses and
the non recurrence of the income of €0.9m recorded in 2013 due to
the release of a provision in that year.
Interest and other finance
expenses increased by €1.3m in 2014 compared to 2013 due to the
higher debt levels in the Company.
Other non-operating expenses
increased from an income of €0.2m to an expense of €2.2m mainly due
to foreign exchange movements. Tax and interest income remained
broadly flat in the year resulting in profit for the year ended
2014 down by €2.4m from €5.3m in 2013 to €2.8m in 2014.
Net cash used by operating
activities for the year to 31st December
2014 amounted to €2.7m compared to €5.0m of net cash provided in
2013. The decline of €7.7m was due predominantly to higher working
capital cash outflows for inventory during 2014 when compared to
working capital cash outflows for inventory during 2013.
Net debt increased by €53.5m from
31st December
2013 to 31st December
2014 predominantly due to the share buy back that took place in the
second and fourth quarters of 2014 (€31.5m) and the payments for
the acquisitions in the period (€9.8m) in addition to the cash used
in operations over the twelve month period.
For 2015 we believe that there
maybe some impact of the late snow in the 2014/2015 season and the
financial pressure on consumers continues, but we hope that these
can be offset by the momentum that our brand has due to its product
offering and the success of our athletes.
Head NV has filed its Annual
Report for the Year ended 31st December
2014 with the Authority for Financial Markets in the Netherlands
(AFM) and the Vienna Stock Exchange (VSE). Copies of the report are
available on our website:
http://head.com/corporate/investors/annual_reports.php
The Annual General Meeting of
Shareholders of Head NV will be held on Tuesday, the 28th of April,
2015 at 2pm (local time) at the Sheraton Amsterdam Airport Hotel,
Schiphol Boulevard 101, 1118 BG Amsterdam, The Netherlands. Details
concerning the Annual General Meeting will be published on the
17th March
2015.
About
Head
HEAD NV is a leading global
manufacturer and marketer of premium sports equipment and
apparel.
HEAD NV's ordinary shares are
listed on the Vienna Stock Exchange ("HEAD") until 31st March
2015.
Our business is organized into
five divisions: Winter Sports, Racquet Sports, Diving, Sportswear
and Licensing. We sell products under the HEAD (alpine skis, ski
bindings, ski boots, snowboard and protection products, tennis,
racquetball, paddle and squash racquets, tennis balls and tennis
footwear, sportswear and swimming products), Penn (tennis balls and
racquetball balls), Tyrolia (ski bindings), Mares and SSI (diving)
brands.
For more information, please visit
our website: www.head.com
Analysts, investors, media and others seeking
financial and general information, please contact:
Clare Vincent, Investor
Relations
Tel: +44 207 499 7800
Fax: +44 207 491 7725
E-mail: Investor-Relations@head.com
Gunter Hagspiel, Chief Financial
Officer
Tel: +43 5574 608
Fax: +43 5574 608 130
E-mail: g.hagspiel@head.com
Forward-Looking
Statements
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "anticipate", "believe",
"could", "estimate", "expect", "intend", "may", "plan", "predict",
"project", "will" and similar terms and phrases, including
references to assumptions, as they relate to Head NV, its
management or third parties, identify forward-looking statements.
Forward-Looking statements include statements regarding Head NV's
business strategy, financial condition, results of operations, and
market data, as well as any other statements that are not
historical facts. These statements reflect beliefs of Head NV's
management as well as assumptions made by its management and
information currently available to Head NV. Although Head NV
believes that these beliefs and assumptions are reasonable, the
statements are subject to numerous factors, risks and uncertainties
that could cause actual outcomes and results to be materially
different from those projected. These Factors include, but are not
limited to, the following: global economic turmoil, weather and
other factors beyond our control, competitive pressures and trends
in the sporting goods industry, our ability to implement our
business strategy, our liquidity and capital expenditures, our
ability to obtain financing, our ability to compete, including
internationally, our ability to introduce new and innovative
products, legal proceedings and regulatory matters, our ability to
fund our future capital needs, and general economic conditions.
These factors, risks and uncertainties expressly qualify all
subsequent oral and written forward-looking statements attributable
to Head NV or persons acting on its behalf.
Head NV
Prins Bernhardplein 200,
1097 JB Amsterdam
Shares:
ISIN: NL0000238301
Stock Market: Official Market of the Vienna Stock Exchange until
31st March
2015
Bond:
ISIN: CH0222437011
Market: SIX Swiss Exchange
The press release can also be
downloaded from the following link:
Results 2014
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Head N.V. via Globenewswire
HUG#1902205
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