Fenix Outdoor International AG

Quarterly Report • Feb 11, 2025

FENIX OUTDOOR INTERNATIONAL AG

Interim condensed consolidated financial statements for the period ended 31 December 2024

Fourth quarter 2024-10-01 – 2024-12-31

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Period 2024-01-01 – 2024-12-31

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Dividend proposal

Holding of own shares

Events after period closing

Financial information

Contact person

COMMENTS BY THE EXECUTIVE CHAIRMAN

Another tough quarter

The quarter started promising, but a delay in winter weather meant it slowed down before improving again towards the latter part of the quarter. We did run into shortage of some winter merchandise due to more conservative purchasing because of the large inventory last year. We then did not anticipate the decrease of winter goods in inventory during Q1 2024, due to the cold weather and the higher-than-expected demand in the Nordics. On global basis we were hit by some credit problems with customers in North and South America, where we had to deliveries. Another trend globally was that the digital sales channels in general underperformed compared to brick and mortar. The brick and mortar showed growth on like for like basis. The North American brand retail showed promise on like for like basis, where we, in US, have closed six locations. The better sales were also driven by a digital billboard campaign in Times Square in New York.

This means that we, in Q4, fell slightly short on last year's sales 174.6 MEUR vs 180.2 MEUR, a decrease of 3.1%. Excluding the effect of the shop closures the sales on like for like basis was down 2.6%. Most of the drop in sales came from our wholesale business in Brands and Global Sales.

The operating result landed at 2.5 MEUR vs 0.4 MEUR last year.

During the year we have implemented several saving measures. We have seen positive effects of them. We have, however also seen market related increases as salary costs, but in total this means that for instance Brands shows a better result for the quarter compared to last year.

Brands

Our Brands segment had external sales of 45.7 MEUR (47.3) MEUR. A decrease of 3.3%. As this includes our Brands retail consumer sales, including USA where we run six less shops than last year, the sales on like for like was basically flat compared to last year. The South American holdback of deliveries, due to credit risk, also affected sales. The result was 5.0 MEUR up from -1.5 MEUR last year which reflects not only a more efficient operation, but also a positive effect from closure of the six shops. Hanwag made a promising recovery during the quarter after being hit by a large decrease after covid.

Global Sales

Global Sales reached external net sales of 31.9 MEUR (34.4 MEUR). The operating profit ended 1.8 MEUR (5.7 MEUR). The top line as well as the bottom line was negatively affected by both the held back orders due to credit risk in North America and some challenges in the Korean market. Lower sales to own Brand retail also affected the operating result negatively. The JV in China outperformed almost every other market and had a very good quarter.

Frilufts

Frilufts sales was almost flat, other Norway, was down. Interesting is that in all markets brick and mortar sales grew, whereas digital sales was down. Germany is still losing money but is showing an operational improvement due to improved operational efficiency. Norway showed increased sales but is still losing money. The UK operation is still facing a very volatile market.

This means that the Frilufts group came in at 97.0 MEUR of sales, a decrease of 1.5%. EBIT ended at 1.8 MEUR. For the full year Frilufts sales where 347.5 MEUR, a decrease of 1.3%. It should be noted that in terms of channels the brick-and-mortar sales performed better than the digital channels also for the year.

Digital/Direct to Consumer

In Q4 our direct-to-consumer sales was in total 132.5 MEUR (137.5) MEUR. Our digital direct to consumer sales was 41.3 MEUR (45.5), down 9.2% and the brick and mortar 91.3 MEUR), down 0.8%. This means that of our direct-to-consumer sales 45.2% (49.4%) was digital in Q4. On the year our total direct-to-consumer sales were 450.4 (461.9) MEUR -2.5%, of which 135.7 MEUR (146.9 MEUR), -7.6% was digital and 314.7 MEUR (315.1 MEUR), -0.1%, was brick and mortar. The proportion, on annual basis, of direct-to-consumer sale that was digital was 30.1% (31.8%) vs 69.9% (68.2%) for brick and mortar.

2024 and forward

We are still facing a challenging market in 2025. In terms of orderbooks for 2025 we do see an improvement for both fall and winter. There are still signs of retailers being cautious of taking risks in inventory. They are counting more on reorders from the brands. This means there is an increase of risk in our business, especially in purchasing, as we must take a larger risk to enable us to capitalize more in reordering. The supplychain as well as the political environment is also factors playing in. Due to how we see retail performing so far 2025 and the orderbooks, there seems to be room for improvement for Q1 2025, but a higher than usual dependence on reorders remains.

	Oct-Dec	Oct Dec	Jan Dec	Jan-Dec
MEUR	2024	2023	2024	2023
Net sales	174.6	180.2	685.6	739.4
EBITDA	17.2	17.5	95.3	113.7
Operating profit	2.6	0.4	37.4	55.0
Profit margin, %	1.5%	0.2%	5.5%	7.4%
Result before tax	7.6	-7.1	35.3	47.6
Net result for the period	-3.2	-6.8	14.7	32.0
Earnings per B-share, EUR *)	-0.24	-0.53	1.09	2.37
Solvency rate, % *)			60.2%	56.1%

*) Earnings per share are calculated on outstanding shares. Solvency rate are calculated as Equity as a percent of total assets.

Net sales, MEUR

THE OPERATION

Brands

	2024 (2023)	2024 (2023)
External sales	Q4 45.7 (47.3) -3.3%	Q1-Q4 173.2 (198.3) -12.6%
Operating profit	Q4 5.0 (-1.5)	Q1-Q4

Frilufts

	2024 (2023)	2024 (2023)
External sales	Q4 97.0 (98.5) -1,5%	Q1-Q4 347.5 (352.1) -1.3%
Operating result	O4 1.8 (5.7)	Q1-Q4 -5.7 (0.4)

Global sales

	2024 (2023)	2024 (2023)
External sales	Q4 31.9 (34.4) -7,3%	(Q1-Q4 164.6 (188.5) -12.6%
Operating result	Q4 -1.2 (0.6)	Q1-Q4 12.1 (25.7)

Common, Liquidity and financial standing

	2024 (2023) 2024 (2023)
Operating profit	Q4 -2.9 (-4.4)	Q1-Q4 -6.9 (-9.2)

THE OPERATION

External sales and operating result per segment

98,5 71,1 82,1 97,4 97,0 5,7 - 7,3 - 3,6 3,5 1,8 - 20,0 0,0 20,0 40,0 60,0 80,0 100,0 120,0 Q4, 2023 Q1, 2024 Q2, 2024 Q3, 2024 Q4, 2024 Frilufts External Net sales, MEUR Operating result, MEUR

34,4 47,6 32,4 52,8 31,9 0,6 7,8 - 1,3 6,8 - 1,2 - 10,0 0,0 10,0 20,0 30,0 40,0 50,0 60,0 Q4, 2023 Q1, 2024 Q2, 2024 Q3, 2024 Q4, 2024 Global sales External Net sales, MEUR Operating result, MEUR

	3 months		12 months
CONSOLIDATED INCOME STATEMENT
MEUR
Total income
Operating expenses
Operating profit
Profit/loss before tax
Net profit/loss for the period

	12 months
	3 months

CONSOLIDATED STATEMENT OF
FINANCIAL POSITION, MEUR
Assets
Non-current assets
Total non-current assets
Current assets
Total current assets
Total assets
Equity and liabilities
Total equity
Liabilities
Total non-current liabilities
Total current liabilities
Total Liabilities
Total equity and liabilities

Consolidated statement of changes in equity

				Foreign
		Other	Cash flow	currency				Non-
	Share	contributed	hedge	translation	Treasury	Retained		controlling	Total
MEUR	capital	capital	reserve	reserve	shares *)	earnings	Total	interests	Equity
01-01-2023	12.4	39.8	0.6	-11.6	-11.2	375.0	405.0	0.0	405.0
Net profit for the period						31.6	31.6	0.4	32.0
Other comprehensive income for the period			-0.6	-1.0		-0.1	-1.6	-0.1	-1.6
Total comprehensive income for the period	0.0	0.0	-0.6	-1.0	0.0	31.5	29.9	0.3	30.3
Transactions with non-controlling interests ***)						0.2	0.2	-0.3	-0.1
Share based payments ** )							0.0		0.0
Dividends resolved at Annual General Meeting						-17.7	-17.7		-17.7
Transfer of cash flow hedge reserve to inventories			-0.2				-0.2		-0.2
31-12-2023	12.4	39.8	-0.2	-12.5	-11.2	389.1	417.2	0.0	417.2

				Foreign
		Other	Cash flow	currency				Non-
	Share	contributed	hedge	translation	Treasury	Retained		controlling	Total
MEUR	capital	capital	reserve	reserve	shares *)	earnings	Total	interests	Equity
01-01-2024	12.4	39.8	-0.2	-12.6	-11.2	389.1	417.2	0.0	417.2
Net profit for the period						14.6	14.6	0.2	14.7
Other comprehensive income for the period			2.5	-4.4			-2.0	-0.1	-2.0
Total comprehensive income for the period	0.0	0.0	2.5	-4.4	0.0	14.5	12.6	0.1	12.7
Transactions with non-controlling interests ***)						0.5	0.5	-0.1	0.4
Share based payments ** )						0.4	0.4		0.4
Dividends resolved at Annual General Meeting						-17.1	-17.1		-17.1
Transfer of cash flow hedge reserve to inventories			-0.3				-0.3		-0.3
31-12-2024	12.4	39.8	2.0	-17.0	-11.2	387.3	413.3	0.0	413.3

Consolidated statement of cash flows
MEUR
OPERATING ACTIVITIES
Cash flow from operating activities before changes in working capital
Cash flow from operating activities
INVESTING ACTIVITIES
Cash flow from investing activities
FINANCING ACTIVITIES
Cash flow from financing activities

Notes to the financial report

Note 1 Accounting principles

Note 2 Right of use assets

			Global						Global
31.12.2024, MEUR	Brands	Frilufts	sales	Common	Total	31.12.2023, MEUR	Brands	Frilufts	sales	Common	Total
Right-of use assets	27.2	92.2	1.6	2.4	123.4	Right-of-use assets	30.3	98.1	1.4	0.6	130.4
Lease liabilties	-28.6	-94.3	-1.7	-3.6	-128.2	Lease liabilities	-32.6	-99.5	-1.3	-0.5	-133.9

			Global			Global Brands Frilufts sales Common Total
Depreciation	Brands -9.2	Frilufts -24.1	sales -1.0	Common -1.4	Total -35.6	Depreciation	-9.0	-23.2	-1.2	-0.8	-34.2
Interest cost	-0.8	-2.1	0.0	-0.1	-3.0	Interest cost	-0.8	-1.5	0.0	0.0	-2.3

Note 3 Exchange rates

		Average rate	Balance sheet closing rate
	Jan-Dec 2024	Jan-Dec 2023	2024-12-31	2023-12-31
EUR/SEK	11.4498	11.4842	11.4590	11.0960
EUR/CHF	0.9532	0.9712	0.9412	0.9260
EUR/USD	1.0803	1.0826	1.0389	1.1050
CHF/SEK	12.0123	11.8253	12.1749	11.9827

Note 4 Risks

Note 5 Hedge accounting

Market value, TEUR
FX Forwards

Note 6 Segment reporting – sales and operating result

	Brands			Frilufts	Global sales		Common and elimination		Group
	Oct-Dec	Oct-Dec	Oct-Dec	Oct-Dec	Oct-Dec	Oct-Dec	Oct-Dec	Oct-Dec	Oct-Dec	Oct-Dec
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
External Sales, MEUR
Internal Sales, MEUR
Sum Net Sales, MEUR
EBITDA, MEUR
Operating result, MEUR

Fourth quarter 2024-10-01 – 2024-12-31

	Brands		Frilufts		Global sales		Common		Total
External sales per market, MEUR	Oct-Dec 2024	Oct-Dec 2023	Oct-Dec 2024	Oct-Dec 2023	Oct-Dec 2024	Oct-Dec 2023	Oct-Dec 2024	Oct-Dec 2023	Oct-Dec 2024	Oct-Dec 2023
Switzerland
Sweden
Other Nordic countries
Germany
Benelux
Other Europe
Americas
Other World
Total

	Brands			Frilufts	Common and Global sales elimination			Group
	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec	Jan-Dec
	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
External Net sales, MEUR
Internal Net sales, MEUR
Total Net Sales, MEUR
EBITDA, MEUR
Operating result, MEUR
Number of Stores
of which are franchise
Non-current assets
Cap. Expenditures

Period 2024-01-01 – 2024-12-31

	Brands		Frilufts		Global sales		Common		Total
External sales per market, MEUR	Jan-Dec 2024	Jan-Dec 2023	Jan-Dec 2024	Jan-Dec 2023	Jan-Dec 2024	Jan-Dec 2023	Jan-Dec 2024	Jan-Dec 2023	Jan-Dec 2024	Jan-Dec 2023
Switzerland
Sweden
Other Nordic countries
Germany
Benelux
Other Europe
Americas
Other World
Total

Note 7 Outstanding options from acquisitions

whereof 16.8 % were exercised in June 2020. The present value of the redemption amount is recognized as a short-term liability for the amount of MEUR 0.5 and the non-controlling interests are derecognized.

The change of the option liabilities of MEUR 0.4 in 2024 are recognized in equity.

Note 8 Acquisitions, Partnership and Sale of business

2024

Artic Fox s.r.o.

In March 2024 Fenix Outdoor acquired 30 % of its local Hjällräven brand retail partner, Artic Fox s.r.o. Artic Fox runs six Fjallraven Stores and online business in the Czech Republic and Slovakia. The purchase price was MEUR 0.4. Fenix Outdoor has an option to increase its ownership over time. The transaction is not expected to have any significant effect in Fenix Outdoor's consolidated accounts.

Viomoda

In 2024 Fenix Outdoor entered into a partnership with the German outdoor brand Maloja to operate apparel production at their subsidiary production facility, Viomoda, in Plovdiv, Bulgaria. In 2024, as part of this agreement Fenix Outdoor provided convertible loans of 1.5 MEUR to Viomoda Austria maturing latest 31 December 2025. The loan is convertible into up to 40% of Viomoda shares at the option of Fenix Outdoor and 49% at the option of Maloja. The loan was converted into 49% of Viomoda shares per 30 January 2025.

2023

Primus

The divestment of Primus AB and its subsidiary Primus Eesti Ou was during quarter two 2023 calculated to a salesprice of MEUR 7.1. with a loss of MEUR -0.4. In quarter four 2023 the salesprice were adjusted to MEUR 6,9.

Exist Norway

In June 2023 Naturkompaniet AS, a subsidiary within the Fenix Outdoor group acquired the Norwegian ecommerce site Exist Internet AS and its two subsidiaries Fjellshop Tromso AS, including two stores, one in Lillehammer and one in Tromso. The consideration amounted to MEUR 2.0 and net cash acquired of MEUR 0.3 resulted in a cash outflow of MEUR 1.7. The acquisition had a limited effect on the total financial figures of the Group.

Note 9 Transactions with related parties

Note 10 Events after period closing

Alexander Koska

Calendarium