Adidas Q1 revenues up 14%Monday, 30 April 2012
Sporting goods major Adidas’ revenues for the first quarter of 2012 increased 14% on a
currency-neutral basis. It performed well in Greater China and Japan. The group’s gross margin declined to 47.7%, but operating margin improved 1.1 percentage points to 10.7%.
In absolute terms, the group’s operating profit grew 30% to € 409 million. Due to lower financial expenses and a lower tax rate, the group’s net income attributable to shareholders increased 38% to € 289 million. Management also expects that commercial irregularities discovered at Reebok India Company in India are likely to affect the consolidated financial statements of the Adidas Group.
The currently estimated maximum negative impact could be up to a pre-tax amount of € 125 million. With a new team, the management is further planning an accelerated restructuring of its business activities in India. This could lead to additional one-time charges in the remaining quarters of 2012 in an estimated amount of up to € 70 million.
The group’s sales for the full year are now expected to grow at a rate approaching 10% on a currency-neutral basis (previously: mid- to high-single-digit). Net income attributable to shareholders is expected to increase at a rate between 12% and 17% (previously between 10% and 15%).
The Adidas Group is one of the global leaders within the sporting goods industry, offering a broad range of products around the core brands: Adidas, Reebok, TaylorMade, Rockport and Reebok-CCM Hockey. Headquartered in Herzogenaurach, Germany, the group generated sales of € 13.3 billion in 2011.