On AG(US:ONON)2022-03-17 16:00Financial Performance - Net sales increased by 70.4% to CHF 724.6 million in 2021 compared to 2020[270] - Direct-to-consumer (DTC) sales channel net sales rose by 71.9% to CHF 275.8 million, while wholesale sales channel net sales increased by 69.5% to CHF 448.8 million[278] - Net sales in North America surged by 96.8% to CHF 409.5 million, while Europe and Asia-Pacific saw increases of 38.8% to CHF 260.4 million and 85.8% to CHF 42.7 million, respectively[278] - Net sales for the fiscal year ended December 31, 2021, increased by CHF 299.3 million, or 70.4%, to CHF 724.6 million compared to CHF 425.3 million in 2020[303] - Net sales generated by the wholesale channel increased by CHF 184.0 million, or 69.5%, to CHF 448.8 million in 2021, while the DTC channel saw an increase of CHF 115.3 million, or 71.9%, to CHF 275.8 million[304][305] - North America accounted for 56.5% of total net sales in 2021, with a growth of 96.8%, while Europe represented 35.9% of net sales with a growth of 38.8%[306] - Net sales for the three-month period ended December 31, 2021 increased by CHF 66.8 million, or 53.7%, to CHF 191.1 million compared to CHF 124.3 million in the same period of 2020[321] Profitability - Gross profit rose by 86.2% to CHF 430.3 million, with gross margin increasing from 54.3% to 59.4%[278] - Gross profit for 2021 was CHF 430.3 million, representing a gross margin of 59.4%, compared to CHF 231.1 million and a gross margin of 54.3% in 2020, reflecting an 86.2% increase in gross profit[309] - Gross profit for the same period increased by CHF 47.5 million, or 74.0%, to CHF 111.8 million, with a gross profit margin of 58.5% compared to 51.7% in 2020[330] - Adjusted EBITDA increased by 93.8% to CHF 96.4 million, with adjusted EBITDA margin rising from 11.7% to 13.3%[278] - Adjusted EBITDA for the three-month period ended December 31, 2021, was CHF 11.2 million, with an Adjusted EBITDA Margin of 5.9%, a decrease of 35.0% compared to 9.0% in the same period of 2020[342] Expenses - Selling, general and administrative (SG&A) expenses rose by CHF 323.2 million, or 130.2%, to CHF 571.4 million in 2021, with SG&A as a percentage of net sales increasing to 78.9% from 58.4% in 2020[311] - Distribution expenses as a percentage of net sales increased to 13.3% in 2021 from 12.0% in 2020, primarily due to rising delivery and warehousing rates[312] - Marketing expenses increased by 120.4% to CHF 100.5 million in 2021, representing 13.9% of net sales compared to 10.7% in 2020[311] - Depreciation and amortization expenses increased by CHF 19.3 million, or 159.8%, to CHF 31.4 million in 2021, driven by investments in IT and retail stores[315] - Selling, general and administrative (SG&A) expenses surged by CHF 223.2 million, or 337.8%, to CHF 289.3 million, primarily due to share-based compensation[331] - Depreciation and amortization expenses rose by CHF 8.1 million, or 203.8%, to CHF 12.0 million, attributed to investments in IT and retail infrastructure[333] Cash Flow and Capital Expenditure - Cash increased by 620.5% to CHF 653.1 million, and net working capital rose by 66.0% to CHF 187.5 million[284] - Cash inflow from operating activities increased to CHF 16.9 million in 2021 from a cash outflow of CHF 14.7 million in 2020, representing a 215.1% change[356] - Cash outflow from investing activities rose to CHF 36.4 million in 2021, up from CHF 18.6 million in 2020, marking a 95.7% increase, primarily due to investments in IT infrastructure and new corporate offices[357] - Cash inflow from financing activities surged to CHF 595.9 million in 2021 compared to CHF 124.8 million in 2020, a 377.5% increase, largely driven by proceeds from the IPO[358] - Total capital expenditure was CHF 36.2 million in 2021, up from CHF 18.6 million in 2020, reflecting increased investments in infrastructure[358] Shareholder and Employee Compensation - Share-based compensation expenses surged by CHF 167.2 million to CHF 176.2 million during the three-month period ended December 31, 2021, from CHF 9.0 million in the same period of 2020[335] - Share-based compensation charges amounted to CHF 198.5 million for the year ended December 31, 2021, reflecting the company's incentive plans for employees[367] - The aggregate compensation for executive officers was CHF 83,623k, including CHF 67,328k in share-based compensation[412] - The total amount set aside for pension and retirement benefits for executive officers was CHF 14,373k for the year ended December 31, 2021[413] - The aggregate compensation for the board of directors for the year ended December 31, 2021, was CHF 295k[411] Employee Growth and Diversity - As of December 31, 2021, the total number of employees increased to 1,158 from 744 in 2020, representing a growth of approximately 55.6%[446] - The number of employees in the Asia-Pacific region rose significantly to 136 in 2021 from 58 in 2020, marking an increase of 134.5%[446] - The percentage of female employees increased to 47.8% in 2021 from 46.3% in 2020, indicating a positive trend in gender diversity[446] - The average age of employees decreased to 32.6 years in 2021 from 33.7 years in 2020, suggesting a younger workforce[446] Research and Development - Research and development expenses were CHF 5.3 million in 2021, compared to CHF 1.9 million in 2020 and CHF 1.6 million in 2019[378] Supply Chain and Operational Challenges - The company faced supply chain challenges due to COVID-19, resulting in approximately twelve weeks of lost production in Vietnam[281] - Increased use of airfreight due to supply chain disruptions is expected to continue into the first half of 2022, impacting costs[283] Future Outlook - The company anticipates continued investment in marketing capabilities and expects marketing expenses to increase in absolute dollars as new products are released and international expansion continues[295] - The company anticipates that existing cash and cash equivalents will be sufficient to meet net working capital and capital expenditure needs for at least the next 12 months[353] - Future capital requirements may vary significantly based on sales growth, R&D spending, and overall economic conditions, including the impact of COVID-19[354]