2024-03-12 12:44:04 ET
On Holding AG (ONON)
Q4 2023 Earnings Conference Call
March 12, 2024 08:00 AM ET
Company Participants
Jerrit Peter - Head, IR
David Allemann - Executive Co-Chairman and Co-Founder
Martin Hoffmann - CFO and Co-CEO
Marc Maurer - Co-CEO
Conference Call Participants
Aubrey Tianello - BNP Paribas
Chad Britnell - Morgan Stanley
Jonathan Komp - Baird
Jay Sole - UBS
Abbie Zvejnieks - Piper Sandler
Jim Duffy - Stifel
Olivia Townsend - JP Morgan
Ashley Owens - KeyBanc Capital Markets
John Kernan - TD Cowen
Presentation
Operator
Jerrit Peter
Good afternoon, good morning, and thank you for joining On's 2023 Fourth Quarter and Full Year Earnings Conference Call and Webcast. With me today on the call are Executive Co-Chairman and Co-Founder, David Allemann; CFO, and Co-CEO, Martin Hoffmann; and Co-CEO, Marc Maurer.
Before we begin, I would briefly remind everyone that today's call will contain forward-looking statements within the meaning of the Federal Securities Laws. These forward-looking statements reflect our current expectations and beliefs only and are subject to certain risks and uncertainties that could cause actual results to differ materially. Please refer to our 20-F filed with the SEC earlier this morning for a detailed discussion of such risks and uncertainties.
We will further reference certain non-IFRS financial measures such as adjusted EBITDA and adjusted EBITDA margin. These measures are not intended to be considered in isolation or as a substitute for the financial information presented in accordance with IFRS. Please refer to today's release for reconciliation to the most comparable IFRS measures. We will begin with David, followed by Martin, leading through today's prepared remarks, after which we are looking forward to opening the call for a Q&A session.
With that, I'm very happy to turn over the call to David.
David Allemann
Thank you, Jerrit, and welcome everyone to our fourth quarter and full year 2023 results call. I'm talking to you from Forrli (ph) in Zurich while my partners Marc and Martin are tuning in live from the New York Stock Exchange. I'm excited to tell you that 2023 has been another exceptional year for our brand. Also, very significant revenue growth of 47% to CHF1.79 billion in 2023. This turns into even 55% growth on a constant currency basis and exceeds the expectations that we had for the year. It means that On is capturing market share faster than competitors.
I would also like to point out a gross profit margin of 59.6% on our journey to becoming the most premium global sports brand. Today, I would like us to speak about why On is a performance sports brand that appeals to a far wider audience. As you know, the journey of On is deeply rooted in our commitment to innovation, catering first to athletes and runners. In 2023, we witnessed our running products soar to new heights, further solidifying their dominant position in our portfolio.
Let me share an example of this success with the Cloudmonster. Launched just two years ago, this running shoe has quickly ascended to be our highest absolute growth franchise in 2023, but we don't pause here. Just two weeks ago, we unveiled the Cloudmonster 2, and in early April, we will launch the innovation-packed Cloudmonster Hyper. This move not only amplifies the momentum in running, but also introduces a range of options for our channel partners, smart-tiering (ph) is in our playbook....
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On Holding AG (ONON) Q4 2023 Earnings Call Transcript