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Running shoe company On achieved massively higher sales in 2023

The running shoe company On achieved significantly higher sales and profits in the 2023 financial year. The Zurich-based company, which is listed on the New York Stock Exchange, wants to continue to grow significantly in the coming years. On aims to become "the strongest global premium sports brand".

Sales rose by a whopping 47 percent to 1.79 billion Swiss francs last year, as On announced on Tuesday. The strong Swiss franc had a significant negative impact on growth. At constant exchange rates, On reported sales growth of 55 percent.

This increase was due in particular to strong growth in the most important market, America, where sales rose by 52% to 1.16 billion. However, the Asia-Pacific region saw the most dynamic growth with +76% to 141 million. However, On also grew significantly in Europe with an increase of 29% to 489 million.

Higher profitability

Profitability increased at the same time. Adjusted operating profit (adj. EBITDA) was therefore 68% higher at CHF 277 million. The corresponding margin thus rose from 13.5 percent to 15.5 percent.

This is likely to be due not least to the rising share of direct-to-consumer (DTC) sales. In the final quarter of 2023, the DTC share was already slightly above the medium-term target of 60%.

The bottom line for 2023 was a net profit of 80 million francs. This is 38 percent more than in the previous year. However, the Group still did not hold out the prospect of paying a dividend.

Even bigger and more profitable

For the time being, On wants to become bigger and even more profitable. The company, in which Roger Federer also has a stake, has now set itself the goal of becoming "the strongest global premium sports brand", as it says.

Adjusted for currency effects, sales are expected to increase by "at least 30 percent" in the current year. At current exchange rates, this would correspond to 2.25 billion Swiss francs. At the same time, the adjusted EBITDA margin is expected to rise to between 16.0% and 16.5% in 2024.

The medium-term targets issued in October 2023 were also confirmed: The share of direct sales is to increase by 2026 and revenue is to rise by an average of 26% per year in constant currency. On sees the adjusted EBITDA margin at 18% in the medium term.


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