Acushnet Holdings reported sales of $624.9 million in the second year, up by a reported 108.3 percent on the year earlier and 99.9 percent higher in constant-currency terms, as the company racked up another “terrific” quarter and outpaced its guidance of a 70 to 80 percent rise in its top line.
Sales also were 35 higher than in the comparable 2019 period. The sharp increase from last year was mainly due to a favorable comparative effect as Covid-19 lockdowns hit sales in the second quarter of 2020. Volume increases were recorded across all reportable segments as rounds of play and consumption remained high for golf-related products. The strong performance was led by the introduction of Titleist’s new Pro V1 and Pro V1x golf balls, as well its new TSi drivers. The Kjus brand of apparel participated in the improvement.
In the three months to June 30, the group’s net attributable profit stood at $81.1 million, compared with just $2.3 million the year earlier. The bottom line was also 111 percent higher than in the second quarter of 2019. Adjusted Ebitda in the quarter amounted to $127.8 million, up by 286.1 percent on the year earlier and 68.8 percent higher than in 2019.
Sales in the U.S. increased by 117.1 percent to $315.3 million. Sales outside of the U.S. grew by a reported 100.0 percent and were 83.7 percent higher on a constant-currency basis. Despite persistent travel restriction, the EMEA region scored a 186 percent jump to $97.4 million. Elsewhere, Japan was up by 106 percent, Korea by 47 percent and the rest of the world by 113 percent.
Global sales of Titleist golf balls rose by 98.1 percent in the quarter and were 91.6 percent higher on a constant-currency basis, supported by round-the-clock production at the company’s ball manufacturing operations in the U.S. They are now suffering from raw material shortages caused by the storms that hit Texas in the past winter.
Sales of Titleist golf clubs rose by a reported 110.0 percent, or 103.6 percent at constant currency rates, as prices rose across all categories. For Titleist golf gear, sales were up by 100.6 percent in dollars and by 92.9 percent in local currencies. FootJoy golfwear boasted increases of 141.0 percent in dollars and 129.3 percent on a currency-neutral basis, as volumes rose in all product categories and selling prices were higher in apparel and gloves.
Acushnet raised its outlook for the full year. It now sees sales of $1,930 million to $1,990 million, compared with $1,795 million to $1,875 million in prior guidance. The company is budgeting adjusted Ebitda of around $285 million to $305 million versus $255 million to $285 million previously.
The forecast assumes no further worsening of the Covid pandemic and no additional supply chain disruptions, but the management feels that the situation will not return to normal before the end of the first half of 2022. Acushnet has exposure to Vietnam for bags and headwear. Factories in Thailand that make gloves and some balls have been temporarily closed or limited their operations because of the virus.
