On (ONON) Q4 2024 earnings summary

Executive summary

• Achieved CHF 2.32 billion in net sales for 2024, up 33.2% constant currency and 29.4% reported, surpassing growth targets across all regions and channels.

• Gross profit margin reached 60.6% and adjusted EBITDA margin was 16.7%, both ahead of midterm ambitions.

• Net income surged 204.5% to CHF 242.3 million, with Q4 net income at CHF 89.5 million.

• D2C share expanded by over three percentage points, reaching a record 48.8% in Q4, with record traffic and transaction volumes.

• Brand awareness and engagement surged globally, especially among Gen Z, with major product launches and partnerships fueling growth.

Financial highlights

• Q4 net sales grew 35.7% reported and 40.6% constant currency, reaching CHF 606.6 million.

• Full-year DTC sales grew 40.3% to CHF 942.8 million; wholesale up 22.8% to CHF 1,375.5 million.

• Q4 gross profit margin hit a record 62.1%, up 170 bps year-over-year.

• Adjusted EBITDA grew 40.0% to CHF 387.6 million; adjusted net income reached CHF 317.4 million.

• Operating cash flow for 2024 was CHF 510.6 million, with year-end cash balance at CHF 924.3 million.

Outlook and guidance

• 2025 net sales expected to grow at least 27% constant currency, targeting CHF 2.94 billion.

• Gross profit margin anticipated around 60.5% for 2025.

• Adjusted EBITDA margin expected to increase to 17%-17.5%, validating the 2026 target of 18%+.

• H1 2025 growth rate expected to be higher than H2, with strong Q1 growth in the low- to mid-30% range.