Adidas Q4 Net Profit Increase and Dividend Increase; sees higher FY22 results; Store

(RTTNews) – Shares of Adidas AG gained around 8% in morning trading in Germany after the sportswear maker said on Wednesday it expected higher results for fiscal 2022 after announced strong growth in net income attributable to the fourth quarter. Quarterly net income from continuing operations, meanwhile, was lower, with revenues nearly flat. The company also announced a higher dividend.

For fiscal 2022, the company expects net income from continuing operations to increase to between €1.8 billion and €1.9 billion.

The company’s operating margin should increase significantly between 10.5 and 11.0%.

Following the recovery from the coronavirus pandemic in 2021, adidas expects double-digit revenue growth to continue in 2022 amid heightened uncertainty. Sales without currency would increase at a rate between 11% and 13% with an increase in all markets.

The revenue growth vision already includes a risk of up to 250 million euros in the company’s activities in Russia/CIS, which represents around 50% of total adidas revenues in the region, due of the war in Ukraine and reflects the suspension of adidas retail. and e-commerce operations in Russia.

The amount represents approximately 1 percentage point of growth for the entire company.

Kasper Rorsted, CEO, said: “Overall, 2021 has been a successful first year in our new strategic cycle. In 2022, we will build on this momentum and continue to grow both our turnover and our double-digit results. rates in a context of heightened uncertainty.

Additionally, adidas said its management and supervisory boards will recommend the payment of a dividend of 3.30 euros per share to shareholders at the annual general meeting on May 12. This represents a 10% increase over the previous year’s dividend.

For the fourth quarter, net profit attributable to shareholders climbed 33.6% to 202 million euros against 151 million euros last year. Earnings per share increased by 35.6% to 1.05 euro against 0.77 euro a year ago.

Net income from continuing operations decreased by 13.8% to 123 million euros compared to 143 million euros last year. Earnings per share from continuing operations amounted to 0.58 euro, compared to 0.70 euro a year ago.

During the quarter, gross margin decreased slightly by 0.1 percentage point to 49%. The operating margin also decreased to 1.3% from 4.4% last year.

adidas’ revenues were 5.137 billion euros, almost flat compared to 5.142 billion euros last year. Currency-neutral revenue in the fourth quarter decreased by 3%.

According to the company, significant supply shortages following shutdowns in Vietnam last year, the difficult market environment in Greater China as well as covid-19 related shutdowns in Asia-Pacific reduced the growth of income.

Currency-neutral revenue in North America declined 4%, primarily impacted by supply shortages, with nearly half of the total negative impact recorded in this particular market.

Compared to the 2019 level, e-commerce revenue increased by 39% in the fourth quarter.

In Germany, adidas shares traded at 203.95 euros, up 8.20%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

James T. Quintero