The Strategist

Adidas net profit jumps by 16% in 2019

03/12/2020 - 09:14

The net profit attributable to the shareholders of one of the world's largest manufacturers of sportswear and accessories, the German Adidas AG, grew by 16.1% in 2019 compared to the previous year and reached €1.976 billion, the company said in a press release.

BrokenSphere via flickr
BrokenSphere via flickr
Diluted earnings per share increased to €10 from €8.42 in 2018. The company's revenue grew by 8%, amounting to €23.64 billion. At the same time, the company's revenue in Russia and the CIS fell by 10%, to €658 million.

Net profit of Adidas in the fourth quarter amounted to €167 million, which is 1.5 times higher than a year ago. Diluted earnings per share were €0.85 against earnings per share of €0.54 a year ago. Revenues in the fourth quarter increased by 11.5% and amounted to €5.838 billion.

“In 2019, we proved the sustainability of our business and again showed a good year. We recorded revenue growth in all regions. The growth of our customer-oriented business was double-digit due to e-commerce, which is one of our strategic growth areas,” commented Adidas CEO Kasper Rorsted.

In 2020, Adidas forecasts a 6-8% increase in revenue adjusted for exchange rates, an increase in operating margin in the range of 11.5-11.8%, and a net profit from operating activities by 10-13%.

Adidas AG, founded in 1924 by Adolf Dassler, is one of the world leaders in the production of sports shoes, clothing and equipment.