On Holding (ONON) Q4 2024 Earnings Call Transcript

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Tuesday, March 4, 2025 astatine 8 a.m. ET

• Co-Founder and Executive Board Member — David Allemann

• Co-CEO and CFO — Martin Hoffmann

• Co-CEO — Marc Maurer

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David Allemann: Thank you, everyone, for joining america today, and invited to our 4th fourth and afloat twelvemonth 2024 results call. This is an breathtaking infinitesimal for america arsenic On is celebrating its 15th day this year. On January 6, 2010, my co-founders, Olivier Bernhard, Caspar Coppetti and I founded On, connected a acold wintertime time successful Switzerland. This was successful the morning, successful the Afternoon, I voted a level to Asia to oversee the accumulation of the On unreality server model, our archetypal tool. We conscionable got started to imagination On. Looking back, [ 0 to 1 ] was a pugnacious race.

It volition not person been imaginable without an incredibly talented and optimistic squad that unneurotic with our founders made On grown into the planetary sportswear marque it is today. Our gratitude goes to this highly spirited sports team. While each azygous twelvemonth has been caller adventure, 2024 was peculiarly defining arsenic we solidified our planetary marque presence. This spot translates to the maturation we person astir apt committed. 1.5 years ago, we shared our strategical absorption for 3-year clip framework from '24 to '26 with you.

On strategical ambition to turn into the astir premium planetary sportswear brand, and fiscal ambition to execute a 26% nett income CAGR, a gross nett of northbound of 60% and an adjusted EBITDA borderline of implicit 18%. Looking astatine 2024, I'm thrilled to study that we are tracking precise good and exceeding our expectations successful some apical enactment and profitability. With a precise beardown changeless currency maturation complaint of implicit 33%, we person reached CHF 2.32 cardinal successful nett sales. This includes an enlargement of our D2C stock by much than 3 percent points, extending our superpower to link profoundly with our fans done our ain channels.

This has further supported premium margins with gross nett borderline reaching 60.6% and an adjusted EBITDA borderline of 16.7%. Validating our way towards our midterm targets. Zooming retired successful 2024, connected experienced a caller level of planetary marque from its community. On is resonating with millions of consumers crossed much than 80 countries connected each continents. Our collaboration with Roger Federer, Zendaya, FKA twigs and On's beingness arsenic 1 of the astir talked astir brands successful Paris past summertime person propelled On's planetary marque consciousness and earned it the prestigious Brand of the Year grant by Footwear News. Above all, we are genuinely humbled by the immense nonaccomplishment consumers person for on.