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Samsonite (1910.HK) reported revenue of USD1565mn in CY11 against
USD1215mn in CY10, up a strong 28.8%, backed by traction in travel (up
33.9%) and business (up 71.8%) segments. Revenues from Asia stood at
USD578mn in CY11 against USD405mn in CY10, growing 42.7%, largely
driven by China (57.4%), India (41.1%) and South Korea (50.3%). It
contributed 37% to Samsonite’s total sales and 40% to EBIDTA. During the
same period VIP has registered ~20% domestic growth (largely driven by
30% soft luggage growth) much lower than Samsonite growth thereby
leading to loss of market share for VIP.
Strong growth across regions
Samsonite reported revenues of USD1565mn in CY11 over USD1215mn in CY10, marking
strong revenue growth of 28.8% primarily due to increased traction in travel (up 33.9%)
and business (up 71.8%) segments. It grew robustly across Asia (42.7%), Europe (17.8%),
North America (28.1%) and Latin America (22.1%). Excluding sales from Lacoste and
Timberland, revenues grew 34.4%. EBIDTA margins for CY11 stood at 15.8% compared
with 15.5% in CY10. Reported PAT stood at USD103mn in CY11 against USD367mn,
dipping 72%; however, adjusted for one offs, adjusted PAT grew 29.6%. Excluding
contribution from Lacoste and timberland, PAT grew 56.6%. The company has added
~2900 touch points (of which 400 is in Asia), taking total touch points to 40000 worldwide.
Asia drives growth
Revenues from Asia stood at USD578mn in CY11 against USD405mn in CY10, growing
42.7%, largely driven by China (57.4%), India (41.1%) and South Korea (50.3%). The
geography contributed 37% to Samsonite’s total sales and 40% to EBIDTA. Within Asia,
wholesale channel has grown at 44% with retail growth at 37%. EBIDTA margins for Asia
stood at 18.2% in CY11 compared with 19.8% in CY10 primarily due to increase in
advertisement spend from 8.8% of sales in CY10 to 10.1% of sales in CY11. We believe
that given the increase in competition intensity, VIP is likely to spend additional 100 bps
on advertisement next year thereby arresting margin expansion. Brand wise, within Asia
Samsonite grew at 42% with American Tourister growing at 77.1%.
Outlook: ‐ Positive over long term
The global travel market continues to be strong despite ups and downs particularly in
European countries. International tourist arrivals are expected to grow at 3‐4% to reach
USD1bn in 2012 according to latest UNWTO world tourism barometer. The company
expects upper single digit growth in US and Europe and 15‐20% growth in Asia as the base
expands.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Samsonite (1910.HK) reported revenue of USD1565mn in CY11 against
USD1215mn in CY10, up a strong 28.8%, backed by traction in travel (up
33.9%) and business (up 71.8%) segments. Revenues from Asia stood at
USD578mn in CY11 against USD405mn in CY10, growing 42.7%, largely
driven by China (57.4%), India (41.1%) and South Korea (50.3%). It
contributed 37% to Samsonite’s total sales and 40% to EBIDTA. During the
same period VIP has registered ~20% domestic growth (largely driven by
30% soft luggage growth) much lower than Samsonite growth thereby
leading to loss of market share for VIP.
Strong growth across regions
Samsonite reported revenues of USD1565mn in CY11 over USD1215mn in CY10, marking
strong revenue growth of 28.8% primarily due to increased traction in travel (up 33.9%)
and business (up 71.8%) segments. It grew robustly across Asia (42.7%), Europe (17.8%),
North America (28.1%) and Latin America (22.1%). Excluding sales from Lacoste and
Timberland, revenues grew 34.4%. EBIDTA margins for CY11 stood at 15.8% compared
with 15.5% in CY10. Reported PAT stood at USD103mn in CY11 against USD367mn,
dipping 72%; however, adjusted for one offs, adjusted PAT grew 29.6%. Excluding
contribution from Lacoste and timberland, PAT grew 56.6%. The company has added
~2900 touch points (of which 400 is in Asia), taking total touch points to 40000 worldwide.
Asia drives growth
Revenues from Asia stood at USD578mn in CY11 against USD405mn in CY10, growing
42.7%, largely driven by China (57.4%), India (41.1%) and South Korea (50.3%). The
geography contributed 37% to Samsonite’s total sales and 40% to EBIDTA. Within Asia,
wholesale channel has grown at 44% with retail growth at 37%. EBIDTA margins for Asia
stood at 18.2% in CY11 compared with 19.8% in CY10 primarily due to increase in
advertisement spend from 8.8% of sales in CY10 to 10.1% of sales in CY11. We believe
that given the increase in competition intensity, VIP is likely to spend additional 100 bps
on advertisement next year thereby arresting margin expansion. Brand wise, within Asia
Samsonite grew at 42% with American Tourister growing at 77.1%.
Outlook: ‐ Positive over long term
The global travel market continues to be strong despite ups and downs particularly in
European countries. International tourist arrivals are expected to grow at 3‐4% to reach
USD1bn in 2012 according to latest UNWTO world tourism barometer. The company
expects upper single digit growth in US and Europe and 15‐20% growth in Asia as the base
expands.
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