Adidas Reveals 2011 Financial Results

Adidas has released its full year financial results for 2011, revealing a Group revenue increase of 13% on a currency-neutral basis, as a result of double-digit sales increases in Wholesale, Retail and Other Businesses at the sports brand. 

This development exceeded initial Management expectations of a mid- to high-single-digit Group sales increase. 

Currency translation effects had a negative impact on sales in euro terms but Group revenues grew 11% to €13.344bn in 2011 from €11.99bn in 2010.

Results also revealed a currency-neutral wholesale revenue increase of 11%, thanks to double-digit sales growth.

Currency-neutral retail sales increased 20%, driven by 14% comparable store sales growth, while revenues in other businesses were also up 13% – mainly driven by a sales boost at TaylorMade-adidas Golf. 

In the fourth quarter of 2011, Group revenues grew 11%. Currency-neutral sales in the Wholesale and Retail segments increased 9% and 18%, respectively. 

In European Emerging Markets, currency-neutral sales were up 20% as a result of double-digit revenue growth at both adidas and Reebok. 

Group gross profit increased 9% to €1.489bn compared to €1.362bn in 2010. 

Other operating expenses as a percentage of sales decreased 0.2 percentage points to 46.9%, primarily due to lower marketing investments as a percentage of sales. 

Other operating income increased to €48m compared to €19m in the previous year, reflecting higher income from insurance compensation. 

As a result, operating profit grew 34% to €38m compared to €28m in 2010. 

Net financial expenses decreased 50% to €10m.