Consumer goods On exceeds two billion in sales for the first time
On continued to grow strongly in the past financial year and achieved sales of more than two billion Swiss francs for the first time. In its anniversary year 2025, the Zurich-based running shoe manufacturer is aiming for further growth and is relying on global stars such as Roger Federer and Zendaya.
04.03.2025, 11:32
SDA
Sales at On Holding rose by 29 percent to 2.32 billion Swiss francs in 2024, as the Group announced on Tuesday. The strong Swiss franc had a negative impact on growth. At constant exchange rates, growth amounted to 33 percent.
The company, which is listed on the New York Stock Exchange, generated sales of 1.48 billion Swiss francs in its largest market, America, alone, which is 27 percent more than in the previous year. On grew fastest in Asia: +85 percent to 260 million. However, sales in the EMEA region also rose significantly to 578 million (+18%).
The Zurich-based company continued to generate the majority of its sales with shoes. Shoe sales rose by 29 percent to 2.20 billion Swiss francs. However, the clothing and accessories segments grew much faster, with growth rates of around 50 percent. However, their share of sales remained very low at CHF 101 million and CHF 18 million respectively.
On also benefited from investments in advertising: partnerships with stars such as Roger Federer and Zendaya have made On a popular brand that crosses cultures and appeals to several generations.
Even bigger and more profitable
At the same time, On was able to increase its profitability last year. The operating result (adj. EBITDA) rose by 40 percent to 388 million Swiss francs. The corresponding margin amounted to 16.7 percent after 15.5 percent in the previous year.
The higher profitability is due not least to the increasing share of more profitable direct sales (DTC). At 943 million francs, they accounted for almost 41% of total sales in the reporting year. In the previous year, this figure was 37 percent.
Net profit amounted to 242 million francs last year. This is a good three times as much as in the previous year. Shareholders will still have to do without a dividend. The Group has not held out the prospect of a distribution.
Further growth planned
On is continuing to focus on growth and wants to become even more profitable. For its 15th anniversary year in 2025, the company is forecasting currency-adjusted sales growth of "at least" 27%. At current exchange rates, this would correspond to sales of CHF 2.94 billion or more.
At the same time, the adjusted EBITDA margin is expected to rise to between 17.0% and 17.5% in 2025. The further expansion of the DTC channel will contribute to this. In the following year, 2026, the operating profit margin should then reach 18 percent.
