Garmin

Garmin Ltd. is a manufacturer of GPS navigation equipment. Organized in 1989.

Performance indicators

2021

Share of global smartwatch sales - 4.6%

Data for 2021

Revenue growth by 19% to $4.98 billion

Garmin on February 17, 2022 announced the results of the 2021 financial year. The company reported record revenue and operating income for the year and is proposing to increase its dividend.

We are starting 2022 with an excellent line of recently introduced products and plan to present even more interesting new products throughout the year. I am very proud of what we have achieved in 2021 and look forward to the opportunities and challenges of the new year.

Key indicators for fiscal year 2021 include:

• Sixth consecutive year of revenue growth, with each of the five segments seeing double-digit year-over-year growth
• consolidated revenue of $4.98 billion, up 19% from 2020
• Gross profit was 58.0% compared to 59.3% for 2020
• Operating profit was 24.5% compared to 25.2% for 2020
• operating income amounted to $1.22 billion, an increase of 16% compared to 2020
• GAAP earnings per share were $5.61 and pro forma earnings per share were $5.82, up 13% from pro forma earnings per share for 2020

2021 was another remarkable year when demand for our products led to significant double-digit annual revenue growth in each of our five segments. We are starting 2022 with an excellent line of recently introduced products and plan to present even more interesting new products throughout the year. I am very proud of what we have achieved in 2021 and look forward to the opportunities and challenges of the new year. said Cliff Pemble, president and CEO.

History

2021: Opening a shop in shop in MEGA Khimki

On November 11, 2021, it became known that the official distributor of the world manufacturer of wearable equipment Garmin, Navikom JSC, opened the first corporate store in Russia at the MEGA Khimki shopping and entertainment center. By the end of 2022, Garmin expects to open up to 10 such stores in consumer electronics networks in Moscow, St. Petersburg and other regions.

The shop in shop format is a dedicated retail space with an area of ​ ​ 3-6 square meters. m. In the general hall of M.Video. This is a kind of closed stand, decorated in a single Garmin style.

The shop in shop format allows us to present the largest assortment, which cannot be done as part of sales in the general hall of consumer electronics networks, and implies the absence of proximity to competitive goods on one shelf. It favorably distinguishes our products among analogues and gives people the opportunity to calmly and carefully study the Garmin line of watches, - said Evgeny Dobrinin, Commercial Director of Navikom JSC. - Moreover, this format allows us to present not only products, but also the brand itself. The stand is equipped with screens that broadcast introductory videos about the Garmin brand and the capabilities of the watches presented in the store, which can be immediately viewed and tried on. Store employees, in turn, are ready to provide detailed advice on the assortment.

The store will feature Garmin series smartwatches such as Fenix, Venu, Vivo and Forerunner, in a wide price range - from 20 thousand rubles. up to 120 thousand rubles. The watch is suitable for both active lifestyles and professional athletes. In the Garmin watch, the list of pre-installed sports activities is fuller and wider than that of other manufacturers. Given the advanced functions of the watch, it is better to get face-to-face advice at the point of sale, which will help to squeeze the maximum benefit out of the watch. If the necessary smartwatches or accessories are not available, the consumer can pre-order.

Distributor Garmin is in talks to open up to 10 shop in shop stores in consumer electronics networks M.Video, Eldorado, Technopark and others by the end of 2022.

We are delighted to see our partner as such a major retail player. Garmin, in turn, is one of the players in the smartwatch markets, which in recent years has shown an active growth rate in demand. In the first half of 2021, smartwatches outstripped fitness trackers in terms of sales in kind. According to M.Video-Eldorado, in January-June 2.5 million wearable gadgets were sold in Russia, of which 55% were smart watches, while a year earlier the watch occupied less than half of the market, - said Evgeny Dobrinin. "We expect that the opening of a shop in shop store in MEGA Khimki shopping and entertainment center and other stores of this format will in the future make a significant contribution to the total revenue from Garmin sales in Russia and increase Garmin's recognition in the Russian market."

2020

Global Smartwatch Market Share - 7%

Garmin's global market share smartwatch was 7% (data). IDC More. here

Revenue growth to $4.19 billion

At the end of 2020, Garmin sales reached a record $4.19 billion against $3.76 billion in 2019. The company said that its revenue has been increasing for five years in a row.

In 2020, products used outdoors (sports watches, devices for active tourism, animal accessories, etc.) brought Garmin about $1.13 billion, which is 23% more than a year earlier. The fastest growing category in the manufacturer's assortment was solutions for marine navigation - their implementation rose by 29%, to $657.8 million.

Watches, bracelets and other fitness aids added $1.32 billion to the company's revenue in 2020, 26% higher than a year ago. The demand for fitness trackers and consumer smartwatches began to grow faster amid the COVID-19 coronavirus pandemic, when people began to monitor their health indicators more often.

Garmin revenue grows for five years in a row

From the reporting of Garmin, it also follows that at the end of 2020, the company raised almost $622.8 million for the sale of products for aviation. Compared to the same period in 2019, equipment sales decreased by 15%.

Sales of Garmin car navigators increased by 16% to $460.3 million. This business has been experiencing a decline for a long time, but growth was recorded in the fourth quarter, which the company attributed to programs from automakers and growing demand for consumer devices.

The main market for Garmin products remains the countries of the Americas. Here, the company's revenue in 2020 was equal to $1.97 billion, an increase of 8% on an annualized basis. In EMEA and Asia Pacific, sales increased 17% and 8%, respectively.

Garmin's net profit at the end of 2020 amounted to $992.32 million, an increase from $952.49 million.^[1]

Payment of a ransom of $10 million for restoring systems after a ransomware virus attack

At the end of July 2020, Garmin became a victim of a ransomware virus attack. The manufacturer of navigation devices paid hackers a ransom of $10 million to restore all services.

It is known that the attack affected wearable gadgets and related services, as well as flyGarmin and Garmin Pilot solutions, which are designed to support Garmin's aviation navigation products. The company allegedly fell victim to attackers who used the WastedLocker ransomware virus. Cybersecurity experts have linked him to the hacker group Evil Corp, which is allegedly led by Maxim Yakubets.

Officially, Garmin representatives refuse to answer the question of whether the attackers received the requested ransom. Nevertheless, experts argue that such an operational return to work can only be possible if Garmin gained access to the decryptor, for which it previously paid the money.

Garmin paid hackers a ransom of $10 million

In the US Treasury, transferring Evil Corp funds is considered a crime. So, if the company paid the ransom, then the country's authorities may consider this as a violation, as a result of which Garmin will be sanctioned.

Evil Corp and individuals associated with this organization are on the Specially Designated Nationals (SDN) list, which represents citizens and companies with whom US residents are prohibited from doing business. The start of the activity of the ransomware virus WastedLocker was recorded in May 2020. As a rule, ransomware is used against American companies. The ransom amounts Evil Corp demanded from victims run into millions of dollars. As of June 2020, at least 31 U.S. organizations and businesses have been affected by the WastedLocker attacks.^[2]

Buy heartbeat analysis software developer Firstbeat Analytics

In early July 2020, Garmin announced the acquisition of heartbeat analysis software developer Firstbeat Analytics. Read more here.

2019

Revenue growth by 12% to $3.76 billion

In 2019, Garmin raised a record $3.76 billion, up 12% from a year earlier. Growth was shown by all divisions of the company, except for one - automotive (navigators, DVRs, rear-view cameras, etc.).

The volume of Garmin's car-related business in 2019 amounted to $548.1 million, which is 14% less than a year ago. The largest increase in revenue - by 22% - was demonstrated by the divisions responsible for the production of fitness devices (here annual revenue amounted to $1.05 billion) and equipment for aviation ($735.5 million).

Garmin financials

Garmin sales in the marine aviation products market increased by 15% in 2019, reaching $508.9 million. The direction overseeing the development of solutions for active tourist holidays (tourist navigators, protected functionally advanced smart watches, walkie-talkies, etc.) in 2019 registered a 13 percent increase in turnover to $917.6 million.

The lion's share of Garmin's revenue still falls on the countries of the Americas: in 2019, the company earned $1.82 billion in this region, which is 14% higher than a year ago. In EMEA countries, revenues increased by 12% to $1.35 billion. In the Asia-Pacific region, turnover increased by 8% and reached $589.2 million at the end of 2019.

As for net profit, in 2019, Garmin had $952.4 million, falling from $694.1 million in 2018.

At the same time as the financial statements were published, Garmin reported an increase in quarterly dividend payments by 4 cents, to 61 cents per security.

On the day of the announcement of quarterly and annual results, as well as forecasts, Garmin shares rose in price by 7.4%, to $104.29. The company's stock price rose to a high not seen in more than 12 months.^[3]

Buying exercise bike maker Tacx

On February 12, 2019, Garmin announced the acquisition of exercise bike maker Tacx, bringing the customer into the indoor training market. Read more here.

2018: Revenue growth 7% to $3.35 billion

Garmin completed 2018 with revenue of $3.35 billion, which is 7% more than a year ago.

The company's largest business was selling smart watches, fitness trackers and other gadgets for people involved in sports or physical activity. According to the results of the 12-month period closed on December 29, 2018, the corresponding unit recorded revenue of $858.3 million, which is 13% more than a year earlier.

In the division of automotive products (navigators, DVRs, rear-view cameras, etc.), which for many years brought Garmin most of the revenue, in 2018 reduced sales by 19% to $634.2 million. This business continues to be in decline and remains the only one falling at the company.

Garmin financials

The direction responsible for products for active tourist recreation (tourist navigators, protected functionally advanced smartwatches, walkie-talkies, devices for preventing dog barking) showed a 16 percent increase in annual revenue - up to $809.9 million.

Garmin earned $441.6 million on marine navigation devices in 2018, which is 18% higher than revenues a year earlier. The sale of aircraft navigators and accessories rose by 20% on an annualized basis and amounted to $603.5 million.

The volume of deliveries of various Garmin devices in 2018 reached 15 million units, and for the entire time Garmin produced them in the amount of more than 205 million units, including 1 million aircraft products.

In 2018, Garmin's revenue in the Americas amounted to $1.6 billion, an increase of 6% compared to 2017. Turnover in EMEA countries increased by 3% to $1.2 billion, in the Asia-Pacific region - by 23% to $545.8 million.

In 2018, Garmin's net profit decreased to $694.1 million from $709 million in the previous year. At the same time, the company in the financial report for 2017 reported a profit of $695 million. Because of what the indicator was revised, it is not specified.^[4]

2017: Auto business pulls down but company revenue rises

In 2017, Garmin's revenue amounted to $3.08 billion, an increase of 2% compared to the previous year, despite a strong decline in the automotive business. Companies are helping to sell GPS devices for outdoor use (for example, watches that withstand immersion in water).

Garmin's net profit in 2017 reached almost $695 million, while in 2016 it was measured at $510.8 million.

Garmin revenue and earnings

Sales of navigators for cars, which bring Garmin one of the largest shares of revenue, amounted to $750.6 million, a decrease of 15% compared to 2016 due to the continuing weakening of demand for consumer devices. Instead of buying a separate GPS navigator, motorists are increasingly choosing to use smartphones with navigation applications.

Garmin's fitness gadget division declined by 7% to $762.2 million amid strong competition from smartwatch and wearable electronics manufacturers such as Fitbit and Apple.

The revenue of the business in the field of marine devices increased by 13% - up to $374 million. In the market of solutions used outdoors (sports watches, animal accessories, etc.), revenue jumped by almost 28%, reaching approximately $700 million. Apparently, soon this business will become the largest among the manufacturer, especially since revenues here have been increasing for nine quarters in a row.

Aviation decisions brought the company a little more than $500 million in annual revenue, which is 14% more than a year ago.

In 2017, Garmin entered new markets for itself, introducing, among other things, smart watches for Descent diving enthusiasts and sensors for the scope of golf clubs or Garmin Impact baseball bats.

It also follows from the financial report of Garmin that in 2017 the company delivered more than 15 million devices to the market, and the number of applications in the Connect IQ store exceeded 3,500.

Earlier, Garmin predicted that revenues in 2017 would amount to about $3.02 billion. The company expected an increase in profits in the outdoor goods sector, as well as in the sports, maritime and aviation sectors, but at the same time foresee a continued drop in sales in the automotive navigator market.^[5]

2016

The company's total revenue amounted to $3.019 billion, which is 7% more than $2.82 billion in 2015. Approximately 16.8 million devices were sold, which is 4% more than in the previous one.

The most significant income growth occurred in the segment of portable navigators and amounted to 33%, to $546.326 million. The next most profitable was the segment of sports devices, where income grew by 24% - to $818.486 million.

Revenue in the maritime navigation segment increased by 16% to $331.947 million. Income in the aviation navigation segment increased by 10% - to $439.348 million. Income in the automotive navigation segment decreased by 17% to $882.558 million.

Total sales revenue for all segments North America in showed an increase of 4% and amounted to $1.52 billion compared to $1.47 billion in 2015. Profit from sales To Europe in increased by 10% and amounted to $1.11 billion compared to $1.01 billion last year. The most significant increase in income for the year was recorded from sales in, Asia where profit increased by 14% and amounted to $387 million dollars , compared to $338 million a year earlier.

Notes