Acushnet’s 2021 Monetary Report – Key Takeaways
- Acushnet’s 2021 internet gross sales approached $2.2 billion.
- Up 33 p.c over 2020 and 31 p.c over 2019
- Full-year internet revenue was practically $179 million.
- Acushnet tasks a comparatively flat 2022.
There are some mighty fascinating tidbits in Acushnet’s 2021 financial report. A few them are so fascinating that they compelled us to return and evaluate Callaway’s 2021 monetary report.
And what did we discover? Extra fascinating stuff.
To begin with, it doesn’t take Warren Buffett to look within the rearview mirror and see Acushnet’s days as golf’s largest firm getting smaller within the distance. Callaway’s acquisition of Topgolf noticed to that. However, regardless of the widening hole, the 2 corporations are extra alike than you may assume.
And, relying on how you retain rating, they’re rather a lot nearer than you may assume.
As we dive into Acushnet’s financials, it’s time to remind everybody that we aren’t—nor will we fake to be—monetary whiz youngsters. We’re only a gang who loves the golf enterprise and we wish to learn. So with that in thoughts, let’s leap in.
Acushnet’s 2021 Monetary Report: $2.2 Billion
The report, launched yesterday, says Acushnet offered practically $2.2-billion price of golf gear final yr. That’s a 33-percent enhance over the pandemic yr of 2020 and a 30-percent leap over the non-pandemic 2019.
I don’t care who you might be. These are fairly good numbers.
The corporate’s 2022 internet earnings was $179 million, up greater than 86 p.c over 2020 and greater than 48 p.c over 2019.
I nonetheless don’t care who you might be. These are nonetheless some fairly good numbers.
Right here’s the place it begins to get slightly fascinating. We are able to all agree Callaway’s $3.1 billion is a depraved massive quantity. However Topgolf was accountable for simply over $1 billion of that complete. Which means Callaway’s conventional golf enterprise—golf equipment, balls, attire and equipment—was proper round $2.1 billion, only a wee bit south of Acushnet.
Objects within the mirror could also be nearer than they seem.
“We delivered large leads to 2021, together with 33 p.c internet gross sales development,” stated Acushnet CEO David Maher in a press release. “All whereas navigating unprecedented provide chain challenges.”
Breaking Down The Numbers
For the yr, Acushnet’s golf ball gross sales had been up 31 p.c over 2020, totaling practically $668 million.
Thanks, Professional V1.
Moreover, Titleist membership gross sales rose 32 p.c to $551 million, Titleist gear gross sales (luggage, gloves, hats and such) had been up 29 p.c to just about $193 million and FootJoy gross sales jumped 40 p.c to $580 million.
Acushnet says the expansion in membership gross sales was attributable to increased promoting costs throughout all classes together with increased gross sales volumes throughout all classes. Besides one. It must be no shock to anybody who tried to purchase a Vokey wedge final summer season that Acushnet’s wedge quantity was down final yr because of our buddy, the worldwide provide chain disaster.
Acushnet additionally says all of its Titleist gear classes jumped in quantity whereas FootJoy noticed each increased quantity and better common promoting costs.
By area, U.S. gross sales jumped 34 p.c in 2021 to $1.125 billion. European gross sales had been up 35 p.c to $296 million. Japan was up 24 p.c to $118 million. Korea grew 31 p.c to $322 million. What Acushnet calls the Remainder of the World was up as properly, practically 40 p.c at $216 million.
However like Callaway, Acushnet additionally posted a This autumn lack of $26 million. There are a few causes. The primary was a $4-million goodwill impairment write-off attributable to Acushnet’s acquisition of European golf and ski attire firm KJUS. Extra importantly, Acushnet. like Callaway, began shifting This autumn manufacturing to merchandise that wouldn’t be offered till 2022, which meant a gross revenue hit.
Moreover, the corporate cites elevated inbound freight prices, uncooked materials and part shortages and better promoting, promotional and promoting bills.
Contrasts and Similarities
Once more, if you happen to take away Topgolf from the equation, Callaway and Acushnet are neck and neck with what you may name conventional golf gross sales. However how every firm bought there’s a little totally different. Callaway, for instance, is the golf membership king, with practically $1 billion in gear gross sales final yr. Titleist membership gross sales had been slightly greater than half that.
Then again, Titleist ball gross sales reached $668 million, practically triple Callaway’s complete of $235 million. If this ball struggle was a boxing match, the ref would have stopped the struggle.
Then again, if you happen to add up each corporations’ gear, equipment and attire gross sales, they’re fairly near even, with FootJoy tipping the scales in Acushnet’s favor.
Taking a look at income, Acushnet’s $179-million revenue on practically $2.2 billion in gross sales works out to round an 8.3-percent revenue margin. Callaway’s margin for 2021 stood at round 10.4 p.c.
You need one other similarity? In the event you once more take away Topgolf from the equation, each Callaway and Acushnet are projecting comparatively flat 2022 conventional golf gross sales.
Yep, flat.
That one, fairly frankly, caught us slightly unexpectedly.
The 2022 Outlook
In its 2021 monetary report, Callaway projects 2022 revenue to be within the $3.8-billion vary with $1.5 billion of that coming from Topgolf. Which means $2.3 billion will come from conventional golf gross sales. Since Callaway’s 2021 conventional golf gross sales had been roughly $2.1 billion, it seems Callaway is a comparatively small $200-million enhance for 2022.
Acushnet, for its half, is projecting 2022 gross sales to be simply over $2.2 billion. Since 2021 completed slightly below $2.2 billion, it seems Acushnet can also be a comparatively small enhance for 2022.
Now, we get $200 million in gross sales for a whole yr is a pipe dream for any OEM outdoors of the Large 5 however, significantly, what offers?
It could be simple to conclude neither firm thinks the post-COVID golf increase will proceed and the gear feeding frenzy will decelerate. That could be a part of it however each firm experiences anticipate continued development in participation. And each say retail stock is lean regardless of document gross sales, which implies retailers are turning their stock and shifting product.
A much bigger a part of the image could also be one thing that’s plaguing nearly each business in 2022: that damned provide chain. Corporations are basing gross sales projections much less on what they consider they will truly promote and extra on what they know they will truly make and ship.
Extra merely, demand could in actual fact be outpacing pandemic-strained provide. With rounds performed up 20 p.c and with greater than 800,000 new golfers taking on the sport within the U.S. since 2019, the patron facet of the enterprise seems wholesome. It’s affordable to imagine some natural slowdown of recent gamers however the provide chain is bottlenecking practically each business.
It actually helps clarify why golf’s two largest corporations, coming off record-setting years, are mainly projecting flat golf gear gross sales for 2022.
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