Mammut Sports Group said the strong Swiss franc undermined its sales and last year as European customers flocked to less expensive products.


Sales at the outdoor sporting goods company fell by 4.7 percent to CHF 210.8 million ($239mm) from CHF 221.2 million in 2010. After adjustments to account for the sale of the Toko (ski wax) business in 2010, the purchase of Snowpulse (avalanche air bags) in 2011, and currency effects, growth amounted to 4.1 percent.

Across Europe, customers’ interest in winter sports products was curbed by the warm, dry start to the winter. Furthermore, the strength of the Swiss franc prompted customers in Switzerland to stock up in neighboring eurozone countries or buy products from abroad now available in the Swiss market at cheaper prices. Mammut responded with price reductions.  The Swiss franc appreciated 3.8 percent against the euro in 2011 and 3.4 percent against the U.S. dollar.


By contrast, in Germany, the strongest market for Mammut in terms of revenues, the Group reported double-digit growth in local currencies. Sales in the South Korean and Japanese markets grew strongly. The opening of additional mono-brand stores in these countries provided further growth impetus.


The business unit continued its efforts to make the Mammut brand and product range more visible by opening further stores in Germany, Switzerland and Spain.


Mammut expanded its portfolio by acquiring Snowpulse, a manufacturer of avalanche airbags. Specially designed for skiers, this system has a large airbag that reduces the danger of being completely covered by an avalanche. With the groundbreaking ceremony at the new European logistics center near Memmingen (D), Mammut embarked on the biggest investment in its history.


Mammut's parent company, Conzetta, said expects the economic environment will be difficult in 2012, due particularly to the unresolved currency and financial problems in Europe. As long as the debt crisis continues, the Swiss franc will remain strong. Although the intervention of the Swiss National Bank to stabilize the exchange rate did not bring the parity of the Swiss franc down to a satisfactory level for the long term, it did give a measure of security in planning.


The Group started the current business year with order books at the same level as in 2011. From the current perspective, further growth can be expected in the markets of Eastern Europe, America and Asia. In view of the almost daily mood swings on the financial markets, it is impossible to make reliable forecasts. Any further worsening of the debt crisis could lead to an immediate response on the part of customers in the form of a marked decline in demand. Overall, Conzzeta remains very cautious in its assessment of the situation and cannot rule out adverse affects on the consolidated financial statements.