Adidas Group reported that preliminary, unaudited results show it reached its updated top- and bottom-line financial targets on an underlying basis. Excluding the impact from the divestiture of Rockport, currency-neutral (c-n) Group sales increased 6 percent in 2014. In euro terms, sales were up 2 percent to €14.8 billion (2013: €14.5 billion).
Net income attributable to shareholders reached the earnings target of around €650 million, excluding goodwill impairment losses and the impact of the Rockport divestiture. All sales channels contributed to this positive top-line development, with strong double-digit growth in Retail. From a brand perspective, Adidas sales grew 11 percent currency-neutral for the full year. Reebok recorded its seventh consecutive quarter of growth in the fourth quarter and ended the year with a currency-neutral sales increase of 5 percent.
Adidas Group CEO Herbert Hainer said, “Our strong sales momentum for Adidas and Reebok continued through the fourth quarter, with the Group recording double-digit growth in Western Europe, Greater China, European Emerging Markets and Latin America. Despite continuing pressure as a result of further currency weakness in Russia/CIS, we achieved our 2014 earnings target. Now we are looking forward to 2015 where we will continue to invest in our growth opportunities and present our long-term vision for the successful future of the Adidas Group.”
The Adidas Group net income for 2014 will be impacted by two non-operational items. Goodwill impairment losses related to the Group’s Russia/CIS cash-generating unit largely as a result of the significant deterioration of the Russian ruble amount to around €80 million. In addition, the successful conclusion of negotiations to divest the Rockport business will have a negative non-operational P&L impact in a double-digit million Euro amount.
As reported, Adidas Group on Jan. 23 said it entered into a definitive agreement to sell its Rockport business to a new entity formed by Berkshire Partners and New Balance for a total consideration of $280 million, most of which will be paid in cash with the remainder comprised of notes.
Final full-year results will be released on Mar. 5.
