On the evening of March 5th, AmerSports, Inc. disclosed its 2023 annual report, and on the same day, ANTA Sports also disclosed a voluntary announcement. Data shows that in 2023, Yamafin Sports revenue was approximately 4.368 billion US dollars, a year-on-year increase of 23.1%, with a net loss of approximately 209 million US dollars, a decrease in the amount of loss compared to 2022.
Securities Daily reporter learned from Yamafen Sports that the company's 2023 performance benefited from the growth of high-end sports and outdoor markets, as well as the impressive performance of the Chinese market.
In February of this year, Yamafen Sports successfully went public on the New York Stock Exchange. "The listing of Yamafen Sports can be said to be the 'touchstone' for the internationalization of ANTA Sports." Zhang Qing, President of Beijing Key Path Sports Consulting Company, told Securities Daily that Yamafen Sports and ANTA Sports are actually in the same group system, and will have a positive impact in terms of personnel flow, business philosophy, and marketing promotion.
Greater China leads the world in growth rate
According to the disclosure, in 2023, Yamafin Greater China led the world in growth rate, with revenue increasing by 61% year-on-year. The Asia Pacific region also achieved a 40% year-on-year growth. The company's three major business sectors, outdoor functional clothing, mountain outdoor clothing and equipment, as well as ball and racket equipment, all achieved steady growth.
Zheng Jie, CEO of Yamafen Sports, stated that in 2023, under the leadership of the flagship brand Archaeopteryx, the company will continue to lead in the high-end sports and outdoor markets. As the company continues to transform towards a direct sales model, its profit scale will continue to grow.
Zhang Yi, CEO of iMedia Consulting, analyzed to Securities Daily that Yamafen's revenue growth is partly due to the growth of market demand. After the global COVID-19 epidemic, consumers have paid more and more attention to health and outdoor sports, and the demand for high-end sports market has increased significantly. In addition, the transformation of Yamafen Sports to the same direct sales channel model as ANTA Sports has also brought about an increase in performance.
According to public data, from 2020 to 2022, the revenue of Yamafin Sports was 2.446 billion US dollars, 3.067 billion US dollars, and 3.549 billion US dollars, with a compound annual growth rate of 20.4% and gross profit margins of 47.0%, 49.1%, and 49.7%, respectively.
Zhang Yi believes that since Anta Sports took the lead in acquiring Yamafen Sports in 2019, its strategic positioning has been relatively clear, and the internationalization process of Anta Sports has been accelerated through the acquisition of well-known international brands. At the same time, high-end outdoor brands under Yamafen Sports have formed complementary effects with the existing brand of ANTA Sports, further improving the product matrix layout. Both sides have also formed strong synergies in resource integration.
Improving debt and deleveraging remains a key focus
According to public information, Yamafin Sports is a globally renowned sports and outdoor brand group, with its main brands including Archaeopteryx, Salomon, and Wellson. In March 2019, Anta, together with Tencent, Fangyuan Capital, and others, completed the acquisition of Yamafen Sports.
It is worth noting that in terms of financial treatment, Yamafen Sports is a joint venture of ANTA Sports, and ANTA Sports has not consolidated its financial statements. However, in terms of shareholding equity, according to the 2023 semi annual report disclosure, ANTA Sports holds 52.70% of the equity of ASHolding, the parent company of Yamafen, corresponding to an investment of 9.21 billion yuan in Yamafen Sports accounts, accounting for 11.0% of ANTA Sports's total assets.
This year, Yamafin Sports went public on the New York Stock Exchange, achieving a debt refinancing of $1.8 billion (with Anta Sports subscribing to $220 million). But currently, from the perspective of financial performance, the company still faces significant pressure.
According to data, as of September 2023, the total assets of Yamafin Sports were $8.147 billion, with total liabilities of $8.138 billion, including a total of $6.702 billion in long-term liabilities. From 2020 to 2022, the company's net profit losses were 237 million US dollars, 126 million US dollars, and 253 million US dollars respectively, with cumulative losses exceeding 600 million US dollars.
Andrew Page, Chief Financial Officer of Amafin Sports, stated that improving the company's balance sheet and deleveraging will continue to be the company's top priorities.
In the eyes of industry insiders, the listing and subsequent development of Yamafen Sports will also have a significant impact on ANTA Sports.
Regarding the follow-up operation of Yamafen Sports, Zhang Yi stated that from a trend perspective, there is currently fierce competition in high-end sports and outdoor brand tracks, which will also bring operational costs and other pressures to companies such as Yamafen Sports. In addition, in the process of internationalization, changes in overseas markets can also bring risks. In this regard, enterprises should continue to increase their innovation and research and development efforts, and have a keen insight into changes in consumer trends.