On Running Shoes Company Grows Significantly in the Third Quarter

Specifically, the company reported sales of 218 million Swiss francs for the third quarter of the year. On Tuesday, Aon announced that this represented a 68 percent increase over the previous year.

Adjusted earnings before depreciation and amortization (adjusted EBITDA) rose by the same amount to CHF37.9 million. The net profit was 60 percent higher than the net profit of 12.9 million.

All regions contribute to growth

“The third quarter of 2021 was the strongest in the company’s history in terms of net sales, gross earnings and adjusted EBITDA,” co-CEO and CFO Martin Hoffman said in the statement. All regions and product categories contributed to the high growth.

With the current numbers, the company can maintain its high growth rate. From 2018 to 2020, On grew by an average of about two-thirds per year.

Temporary delivery jams

However, On expects delivery bottlenecks and higher air freight costs due to the recently announced coronavirus-related shutdown of factories in southern Vietnam. The fourth quarter of 2021 and the first half of 2022 are also expected to be affected by temporary delivery bottlenecks.

However, since the beginning of November, all production facilities have reopened and sales and EBITDA projections have exceeded original assumptions, according to Hoffman.

Specifically, the company expects sales of CHF710 million for the whole of 2021, which is a 67 percent increase over 2020. So it sees adjusted EBITDA at 92 million, which is a plus 85 percent.