Performance Sports Group (PSG) has reported a 47 percent sales increase to $172.3 million for its second financial quarter ended Nov. 30. Sales rose by 51 percent on a constant-currency basis. They were driven by an organic sales increase of 10 percent, coming mainly from its Bauer hockey business, and from a 37 percent increase for its recently acquired Easton baseball/softball business, which contributed sales of 47.3 million in the quarter.
While PSG's lacrosse segment declined, its sales of hockey products grew by 9 percent to $113.4 million, and they were up by 12 percent in terms of local currencies in the fourth consecutive quarter of double-digit growth. Among the different product lines, helmets rose by 22 percent, protective equipment by 20 percent and skates by 19 percent. Apparel sales jumped by 31 percent, lifted by growth of 55 percent in the performance segment following the introduction of 37.5 technology during the first quarter.
The adjusted gross profit margin improved slightly to 36.1 percent. Operating profit before amortization (Ebitda) went up by 74 percent to $24.2 million, and it jumped by 100 percent in terms of constant currencies. Adjusted net income increased by 49 percent to $11.2 million in the quarter, but reported net income was off by 72 percent to $982,000 because of currency losses and various charges.
The management predicted that Bauer will continue to raise its share of the hockey market, but will be challenged by the sharp devaluation of the Russian ruble, even more than in the first half of its financial year. The company booked a 10 percent increase in adjusted net income to $33.8 million for the first six months on 36 percent higher revenues of $369.4 million, but on a reported basis, net earnings fell to $12.3 million from $24.6 million.
