Acushnet 2022 Financials – Key Takeaways
2022 Complete gross sales prime $2.27 billion
Almost six-percent enhance over 2021**
Almost $200 million in web revenue
Distant second to Topgolf Callaway**
The Acushnet 2022 financials are out and you may have a look at them a few alternative ways.
From one perspective, you would say Acushnet’s picture in Topgolf Callaway’s rearview mirror is getting smaller by the day.
However from a barely totally different perspective, it may very well be a case of the picture within the mirror being nearer than it seems.
Acushnet is reporting 2022 gross sales of $2.27 billion. Which will sound like a pittance in comparison with the almost $4 billion in gross sales reported by Topgolf Callaway final month. However as the brand new company moniker suggests, Topgolf Callaway is within the strategy of morphing right into a golf-focused life-style and leisure model.
Acushnet is morphing, too. Simply to not the identical extent nor in the identical path as its chief competitor.
As at all times, the numbers inform an fascinating story and we’re going to unpack all of them in a second. However that is the spot the place we’ve got to difficulty the usual MyGolfSpy disclaimer. We aren’t nor will we declare to be monetary consultants, funding counselors or Wall Road-level enterprise analysts. We’re merely golf trade geeks who prefer to learn.
With that out of the best way, let’s get cracking.
Acushnet 2022 Financials: Large Cash
Acushnet’s 2022 full-year gross sales complete of $2.27 billion is, by any measure, plenty of cabbage. It represents a virtually six-percent enhance over 2021. Moreover, Acushnet is reporting a sturdy $199.3-million web revenue for the yr. And that’s an 11.4-percent soar** over 2021.
(We’ll get to these asterisks in a bit, I promise.)
Gross sales had been up throughout the board for Acushnet, though some classes did higher than others. Within the U.S., Titleist membership gross sales had been up greater than 17 p.c for the yr whereas Titleist golf gear and equipment (hats, luggage, gloves, and so on) jumped greater than 10 p.c.
FootJoy gross sales within the U.S. rose 4.7 p.c whereas golf ball gross sales elevated 4.9 p.c.
Globally, Acushnet’s golf ball gross sales hit almost $679 million, solely a 1.7-percent enhance over 2021**. Golf membership gross sales topped $609 million, a ten.5-percent enhance over the earlier yr.** The Titleist Golf Gear and FootJoy divisions grew at similar charges of 6.4 p.c**. FootJoy topped $618 million in gross sales worldwide whereas Titleist Golf Gear hit almost $205 million.
Seeing as how Topgolf Callaway noticed a 36-percent enhance in golf ball gross sales, you’d assume that may be of concern for Acushnet. Nevertheless, in complete gross sales, Topgolf Callaway offered simply over $309 million value of golf balls final yr whereas Titleist offered greater than double that.
With that information on the desk, it’s time to have a look at these pesky asterisks (**).
Fixed Forex and the Sturdy Greenback
The idea of Fixed Forex has been a theme for Acushnet and Topgolf Callaway for the previous yr. When the U.S. greenback is robust it’s a boon for vacationers. Your cash goes lots farther whenever you journey abroad. For U.S.-based corporations with important overseas gross sales, nevertheless, it’s a superb swift kick to the monetary groin. These gross sales are, in essence, devalued.
To “normalize” these numbers, corporations use Fixed Forex which ties gross sales quantity to what the U.S. greenback was definitely worth the earlier yr. Each Acushnet and Topgolf Callaway added a Fixed Forex worth to their 2022 overseas gross sales figures which basically reveals what these gross sales could be value if the change price had stayed regular from 2021.
Utilizing Fixed Forex, Titleist golf membership gross sales really rose greater than 16 p.c (versus 10.5 p.c). FootJoy and Golf Gear gross sales every elevated by greater than 12 p.c. And golf ball gross sales jumped almost six p.c.
Fixed Forex additionally modifications Acushnet’s efficiency in Japan and Korea a bit. With out utilizing Fixed Forex, Japan’s gross sales dropped by over 14 p.c in 2022 whereas Korea dropped by simply over three p.c. However when the sturdy greenback is taken into account, Japan grew simply over two p.c whereas Korea was up over 9 p.c.
Acushnet 2022 Financials: What Does It All Imply?
It’s clear TopGolf Callaway put a little bit of dent in Titleist golf ball gross sales in 2022. The corporate acknowledges uncooked materials shortages hindered final yr’s golf ball gross sales. Availability, in any case, is king. And Acushnet does report the 2022 development is due primarily to increased promoting costs together with increased volumes.
Irrespective of the way you slice it, almost $200 million in revenue is a pleasant, tidy sum. Regardless of TopGolf Callaway’s a lot bigger gross sales quantity, it confirmed a 2022 web revenue of solely $158 million. EBITDA, nevertheless, paints a barely totally different image.
EBITDA stands for Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization and is used to mirror gross sales efficiency versus bills earlier than the finance division will get concerned. Acushnet’s 2022 EBITDA is a reported $338 million. Topgolf Callaway’s is $558 million.
Apples to Apples
On one degree, Topgolf Callaway and Acushnet aren’t even enjoying the identical company recreation.
On one other degree, nevertheless, the 2 corporations are extra comparable than it could seem.
If we take Topgolf and attire out of the equation, we are able to drill right down to how the 2 corporations stack up on simply golf stuff. By means of that lens, we see that Callaway golf membership gross sales hit almost $1.1 billion in 2022 in comparison with almost $610 million for Titleist. Each corporations skilled a 16-percent Fixed Forex gross sales enhance in 2022.
As talked about, Callaway golf ball gross sales topped $309 million final yr. That represents a 36-percent enhance and a high-water mark of 21-percent market share. Titleist, nevertheless, nonetheless reigns supreme in golf balls with almost $679 million in gross sales.
In the event you mix the exhausting items (simply balls and golf equipment), Topgolf Callaway hits $1.4 billion whereas Acushnet is available in at $1.29 billion. As we stated, photos within the mirror could also be nearer than they seem. And whereas we don’t know the place the privately held TaylorMade stands, it’s a good guess that it’s also a member of the Billion Greenback Membership.
Callaway’s Lively Way of life Division (TravisMathew, OGIO, Jack Wolfskin and different gear and equipment) additionally topped $1 billion in gross sales final yr. Acushnet’s comp is FootJoy and Titleist Golf Gear which offered greater than $823 million. Simply final month, Acushnet added Membership Glove to its secure of corporations because it continues to diversify into areas of the enterprise past balls and golf equipment.
Acushnet 2022 Financials: Remaining Ideas
In fact, you possibly can’t take Topgolf out of the equation. It’s a $1.5-billion juggernaut of a division and is rising. Moreover, Topgolf gives alternatives for extra folks to expertise Callaway tools in what the corporate calls the brand new “golf ecosystem.” A number of new Topgolf facilities function demo and becoming areas which create new avenues for direct-to-consumer gross sales.
At this level, Acushnet has proven little interest in taking place the leisure/life-style path. By nature, it’s a extra conservative firm that’s intent on maximizing its core enterprise, which is conventional, on-course golf, and its core prospects, who’re conventional, on-course golfers.
It’s clear to anybody with eyes that Topgolf Callaway has develop into a diversified company behemoth specializing in the golf life-style. We’ve stated earlier than that in that individual context, Topgolf Callaway is enjoying chess whereas the remainder of the trade is enjoying Candyland. However whenever you break down Acushnet’s financials, you may make a barely adjusted case. Sure, Topgolf Callaway is enjoying chess and, sure, the remainder of the trade by comparability is enjoying Candyland.
Acushnet, nevertheless, seems to be enjoying golf.
*We could earn a fee whenever you purchase by way of hyperlinks on our web site.
