Topgolf Callaway sees mitigating ‘most, if not all’ of impact of supplier fire

In a regulatory filing, Topgolf Callaway stated: “Topgolf Callaway Brands Corp.manufactures golf balls in its owned golf ball manufacturing plant located in Chicopee, Massachusetts and also uses contract manufacturers in China and Taiwan. In 2022, approximately 75% of the Company’s golf balls (on a unit basis) were manufactured outside of the United States… Last Friday, there was a fire at the Launch Technologies golf ball manufacturing plant in Pintung County, Taiwan. We are working directly with Launch Technologies and local authorities to gather more information about the fire. A portion of the Company’s value oriented golf balls were manufactured in the facility that was directly impacted by the fire, including the Topgolf range balls. The majority of the golf balls supplied to Callaway Golf by Launch Technologies were manufactured in a separate dedicated facility that was not directly impacted by the fire. However, this separate facility is not currently operational due to both the ongoing investigation and certain shared resources. It is not clear when this separate facility will resume operations. Our world class supply chain team is diligently working to assess the situation and mitigate the impact of these events on future supply. The Company believes it will be able to mitigate most, if not all, of the impact to Callaway Golf’s golf ball business by shifting supply to its Chicopee plant and other suppliers. While Topgolf range balls were being manufactured at the Launch Technologies plant where the fire occurred, the Company is confident that the fire will not meaningfully impact Topgolf range ball supply or venue openings given current inventory levels and alternate supply sources. Our thoughts and prayers are with all the first responders, employees, and families of those who have been affected.”