If someone hired Charles Dickens to write a story about financial reports Acushnet and Topgolf Callaway 2024, he would call it A tale of two cities.
This is not to say that for one company it was the best of the times and for the other it was the worst times. Far from it. It is only that each report tells the stories of these two companies better than any golf writer or financial analyst ever. They tell the tale of two golf companies (soon there are three): one seemingly accumulated with drama, the other stable with progress.
As always, it is important to read beyond the titles, dig deep and find out what is happening. Do it and you’ll find out that something that sounds devastating like, oh, don’t know, a billion $ 1.45 Loss For the year, it’s not really a bad thing. However, you will find that two years of rectangle of sales can be a cause for concern for a company’s stalwart divisions.
Before we jump inside, we must say clearly:
We are not, nor pretend to be, financial experts, investment advisers or Wall Street business analysts. We are just geeks of the golf industry they want to read.
With this outside, here are five main receipts from Acushnet 2024 financial reports and Topgolf Callaway.
#1: Posted Topgolf Callaway HOW a great loss?
Topgolf Callaway posted Net revenue of $ 4.24 billion in 2024. I don’t care who you are, that’s a lot. It is slightly lowered, with just over one percent, from 2023 numbers. Much of this landing came from a drop of $ 88 million in active living sales.
This said, as in hell lost Topgolf Callaway – check notes – $ 1.45 billion per year?
The short answer is that there is no. The long answer can be found in what the finance magicians call a good will and intangible damage to the assets.
As you know well, Topgolf and Callaway are being divided into two companies separate this year. It is a division rather than a sale or a deposit as Topgolf Callaway shareholders are taking dollar-to-dollar shares in both independent Callaway and Topgolf. Part of this process is the reproach of goodwill and the intangible value of wealth in the balance sheet.
Callaway paid a premium to join Topgolf in 2021. Now that they are divorcing (friendly, of course), the value of the book like brand recognition and equality, intellectual property, employee talent, market position, clients and other intangibles should be reduced to the current market value. It is a boring accounting thing, which is why the annual loss was well buried in the financial report itself.
If you remove the damage, Topgolf Callaway posted $ 256 million from operations and a net income of $ 42 million. EBITDA ended the year at $ 588 million. Companies use EBITDA (interest income, taxes, depreciation and depreciation) to reflect the effectiveness of sales, marketing and business before the finance department makes its magic.
Revenue from operations, net income and EBITDA are all from 2023 but at least that paint is black instead of red.
#2. Acushnet simply continues to roll
The parent company of the title, on the other hand, posted a Little regular growth for 2024. Acushnet ended the year at $ 2.46 billion in sale, an increase of nearly four percent when considering foreign exchange rates.
Acushnet is also posting a net profit of $ 214 million for the year. This is up to eight percent over 2023. EBITDA was also at 7.5 percent, at $ 404 million.
“Golf equipment for the title posted healthy profits, driven by the successful presentation of GT and SM10 wedges and the continued success of the ball,” CEO David Maher told investors last week. “The golf industry is healthy with record rounds of the SH.BA game in 2024, and world rounds grow nearly 20% over the past five years.”
The title club sales reached $ 721 million in 2024, a 10 percent increase over 2024. Growth is impressive given that the sales of the Callaway club, which reached $ 1 billion, were essentially flat compared to ’23. As you will expect, the title remains the King of the Golf Ball World, reaching over $ 786 million in ball sales, a four percent global increase in 2023.
This is more than the 2024 dual Callaway ball sales of $ 321 million. For the record, Callaway says it is now in the highest part of the Golf ball market ever, 20.6 percent. A decade ago, the Callaway ball part was below 10 percent.
#3: Both companies have a noticeable dress problem
Topgolf Callaway ruins its business in three units: Topgolf, golf equipment and active lifestyle. All three businesses have been behemoths billions of dollars on their own, but the active sharing of the lifestyle is sputing only one tad. Its 2024 revenues made $ 1 billion high, but this has decreased eight percent by 2023. In particular, global clothing sales fell five percent while gears, accessories and other (bags, hats, gloves, etc.) fell 12 percent.
That is to say, the active lifestyle returned a profit of $ 82 million in 2024. Unfortunately, this is down 30 percent from 2023.
Acushnet, on the other hand, is looking at a leg problem. Sales descended for the second straight year with lower volumes of sales in all categories, especially shoes. The landing was small, only two percent compared to the sales of ’23. However, 2023 sales decreased 3.5 percent compared to 2022. Volume decrease was partially offset by the highest average sales prices.
The title Golf Gear, however, had increased five percent in 2024. Acushnet says the growth is largely due to the increase in sales of travel products as buying the club’s glove is now fully integrated into the company’s operations.
Are the decline only the market glitches? Clothing and shoe markets have evolved over the past five years. There are more independent brands, warm companies and startups selling high quality clothing and shoes today than in 2019. Like a package of hyenas receiving a lion, each of those small companies is taking little bite from someone’s sales.
Those few bites increase over time.
#4 Preparation for Callaway-Topgolf partition
We know the separation was coming Since the past SeptemberBut it is surprising to see how the division is affecting the way Topgolf Callaway’s finances are presenting. Specifically, the 2024 report distinguishes between Topgolf results and “basic business” results.
The basic business is what Callaway will move forward which includes golf equipment and active living business units. Together, those units reported sales of just over $ 2.43 billion in 2024. Topgolf only made up more than $ 1.8 billion in sale. This is a nearly three percent increase over 2023 revenues.
The problem, which ultimately played a key role in the decision to share companies, is that growth came exclusively due to the 10 new Topgolf sites that opened in 2024. Sales of the same year have fallen for the last two years, compensating for the country’s new sales. After all, this makes increasing unstable if something does not change.
Topgolf remains lucrative, with $ 114 million in black in color in ’24. This is up to five percent over 2023. The company says the same sales from the country’s countries, while still below a year more than exceeding the Q4 expectations, as well as the scene margins, cash flow and regulated EBITDA.
The pending division, of course, led to the good will not the money of Topgolf Callaway and the damage to non-material assets. The division is expected to end somewhere in the beginning of Q3.
#5: Both companies see 2025 as more gold and less bull
Both companies are waiting to violate water in 2025. Topgolf Callaway, ironically, is a little more careful than acushnet in this regard. Topgolf Callaway expects total income to decrease slightly in ’25, with one of the $ 4 billion projected to $ 4,185 billion. This is reduced by $ 4.24 billion reported in 2024.
Keeping in mind the division, the company predicts the essential business income of $ 2.275 billion to $ 2.35 billion. This is reduced by $ 2.43 billion last year. There is a wider Topgolf revenue projection, everywhere from $ 1,725 ​​billion to $ 1,835 billion, approximately a pace of $ 100 million. The company still expects sales in the same country to sit down, but is projecting a medium-digit decline. This is a significant improvement during last year’s score.
Acushnet, on the other hand, predicts sales to reach $ 2,485 billion to $ 2,535 billion, everywhere from 2.5 to 4.6 percent over 2024. The company expects new Pro V1 Golf balls, Scotty Cameron Putters and GT-1 metals to promote that growth. Moreover, the company is expanding its golf equipment and shoe mounting network and has moved to the production of feet from China and Vietnam.
Both companies quote foreign currency concerns and potential tariffs such as “Headwinds” performance. Translated freely, “Headwind” is another way to say “business challenges that are out of our control”.
Acushnet and Topgolf Callaway 2024 Financial Reports: Final Thoughts
To return to our original Dickensian topic, Acushnet finances and Topgolf Callaway 2024 are really one Tale of the two cities. No city is destroyed, but one continues at a steady and predictable pace, the other is passing what it achieves in a friendly divorce.
Is seductive to characterize Topgolf Callaway as Duddy (Once you have drawn a David Copperfield and making $ 1.47 billion disappear) and Acushnet as High expectations But it is not even correct. Acushnet will continue running his business in his sober way. However, I have to take a look at what is happening with footjoy. Two years of fair sales are not an excellent trend.
Topgolf and Callaway, on the other hand, must emerge from their divorce as applicable independent entities. The company has an enviable free money position. This will help, just as each company is focusing on its own business needs.
However, after the dust settles this fall, Callaway will find himself looking up in the acushnet in general sales. Callaway has not been in that position this decade and if there is one thing that every dog ​​knows it is this:
If you are not the noise of the lead, every view is the same.
office Five Main Mortions from Acushnet and Topgolf Callaway 2024 Financial Reports first appeared in MygolfSSS.
