Acushnet Reports Steady Growth and Plans New Launches

Acushnet Holding Corp, the parent company of Titleist and FootJoy, announced a modest 1% increase in net sales year-over-year, reaching $684 million for the second quarter of 2024. However, adjusted EBITDA experienced a slight decline to $131 million. For the first half of 2024, net sales rose by 2%, reaching $1.39 billion, with adjusted EBITDA also up by 2% to $285 million.

Looking forward, Acushnet is optimistic about achieving its full-year net sales target of between $2.45 billion and $2.5 billion, alongside an adjusted EBITDA range of $385 million to $405 million. This outlook persists despite facing challenges from currency fluctuations and a tough market environment. The company plans to launch several new products, including Titleist GT Metals and seasonal collections, to foster growth in the latter half of the year.

### Key Takeaways
– Acushnet’s second-quarter net sales grew by 1% compared to last year, totaling $684 million.
– Adjusted EBITDA for the quarter saw a slight decrease of $1.1 million, landing at $131 million.
– Titleist Golf Balls and Clubs demonstrated global growth of 7% and 5%, respectively.
– The company is set to introduce new Titleist GT Metals, along with FJ and KJUS seasonal collections.
– The full-year net sales forecast remains at $2.45 billion to $2.5 billion, with adjusted EBITDA anticipated between $385 million and $405 million.
– Inventories have decreased by 14% year-over-year, with plans for an increase to support the new product launches.
– Acushnet returned $101 million to shareholders through share buybacks and dividends.

### Company Outlook
– Acushnet is optimistic about the second half of 2024, driven by new product introductions and growth in its brands.
– The upcoming GT driver launch is expected to stimulate early season demand, with a global release scheduled for August 23.
– Revenue is trending toward the conservative end of expectations, impacted by currency fluctuations and market conditions.
– The third-quarter is expected to contribute significantly to the second half’s totals.

### Potential Challenges
– The company is mindful of the impacts that currency fluctuations and volatile market conditions could have on overall performance.
– Revenue expectations are particularly challenged in the FootJoy and Titleist golf gear segments.

### Positive Highlights
– The U.S. market achieved double-digit growth, with Titleist Golf Balls and Clubs gaining momentum.
– Acushnet is confident in its supply chain readiness for the new GT driver demand.
– The upcoming Olympics is viewed as a long-term growth opportunity by introducing new demographics to the sport.

### Areas of Concern
– Operating cash flow decreased in the first half compared to the previous year due to reduced net income and deferred income tax expenses.
– The company reported a slight decline in second-quarter adjusted EBITDA compared to the same period last year.

### Q&A Highlights
– The management discussed the GT driver’s pricing, supply chain preparedness, and conditions in the U.S. market, as well as expectations for international markets to stabilize.
– Acushnet does not foresee a significant short-term impact from the Olympics but remains positive about the long-term benefits.

Acushnet Holding Corp is focused on its strategic priorities for 2024 and beyond, navigating market challenges while preparing for upcoming product launches. The commitment to enhancing shareholder value through share repurchases and dividends demonstrates the company’s robust financial health. With new product introductions and strong performances in its core sectors, Acushnet is positioned to maintain its competitive edge in the golf market.