Acushnet Holdings Corp (GOLF) Reports Mixed 2023 Results and Provides 2024 Outlook
Full Year Net Sales: Increased by 4.9% to $2.4 billion, 6.2% in constant currency.
Full Year Net Income: Slightly down by $0.9 million to $198.4 million year over year.
Adjusted EBITDA: Rose by 11.1% to $376.1 million for the full year.
Q4 Net Sales: Decreased by 7.7% to $413.0 million, 8.6% down in constant currency.
Q4 Net Loss: Attributable to Acushnet Holdings Corp was $26.8 million, a significant drop from the prior year.
Dividend: Quarterly cash dividend increased by 10.3% to $0.215 per share.
2024 Outlook: Expects net sales between $2.45 to $2.50 billion and Adjusted EBITDA of $385 to $405 million.
On February 29, 2024, Acushnet Holdings Corp (NYSE:GOLF) released its 8-K filing, detailing its financial results for the full year and fourth quarter ended December 31, 2023. Acushnet, a global leader in golf products, reported a full year net sales increase but faced a net income decline and a significant net loss in the fourth quarter.
Acushnet Holdings Corp is renowned for its design, development, manufacture, and distribution of golf products, including golf balls, clubs, gear, and wear, with a significant portion of revenue derived from golf balls and gloves. The company operates primarily in the United States but also has a substantial presence in EMEA, Japan, Korea, and other countries.
Annual Performance Highlights
The company's full year net sales growth was driven by higher sales volumes in Titleist golf balls, clubs, and gear, although partially offset by lower sales in FootJoy golf wear. The U.S. market saw significant increases across all segments, particularly in Titleist golf balls and clubs. Internationally, sales were mixed with increases in the Rest of World segment and decreases in Korea and EMEA.
Adjusted EBITDA for the year improved significantly, reflecting an 11.1% increase to $376.1 million, with a notable Adjusted EBITDA margin improvement from 14.9% to 15.8% compared to the prior year.
Fourth Quarter Challenges
The fourth quarter presented challenges, with net sales declining by 7.7% and a net loss of $26.8 million, a stark contrast to the minimal loss in the previous year. This was primarily due to decreased sales volumes in Titleist golf clubs and FootJoy golf wear, coupled with increased operating expenses.
Financial Table Summary
Financial Metrics | Q4 2023 | Q4 2022 | Full Year 2023 | Full Year 2022 |
|---|---|---|---|---|
Net Sales | $413.0M | $447.4M | $2.4B | $2.27B |
Net Income (Loss) | ($26.8M) | ($0.1M) | $198.4M | $199.3M |
Adjusted EBITDA | ($1.5M) | $25.4M | $376.1M | $338.4M |
Despite the fourth quarter's downturn, Acushnet's Board of Directors declared a 10.3% increase in its quarterly cash dividend to $0.215 per share. Additionally, the Board authorized an increase in the share repurchase program, bringing the total authorization to $1.0 billion since its inception in 2018.
Looking Forward
For 2024, Acushnet anticipates net sales to range from $2.45 to $2.50 billion and Adjusted EBITDA to be between $385 to $405 million. The company plans to invest in product development, operations, golfer connection, and digital engagement to support growth across all segments.
Acushnet's President and CEO, David Maher, expressed confidence in the company's strategy and the health of the golf industry, citing strong participation and the sport's appeal. He emphasized the company's focus on innovation and sustainable growth to create shareholder value.
Investors and stakeholders can expect Acushnet to share more details during its investor conference call, with a live webcast available on the company's investor relations website.
Value investors may find Acushnet's commitment to returning capital to shareholders and its strategic investments for future growth appealing, despite the mixed results in the latest earnings report.
Explore the complete 8-K earnings release (here) from Acushnet Holdings Corp for further details.
This article first appeared on GuruFocus.
