Currency-neutral adidas Group sales decline 6% in 2009
16 Mar '10
3 min read
adidas Group announces full year 2009 results.
Highlights: • Currency-neutral Group sales stable in the fourth quarter • Group inventories down 27% currency-neutral versus the prior year • Net borrowings decrease by € 1.272 billion to reach € 917 million • Full year diluted EPS at € 1.22
In the fourth quarter of 2009, the adidas Group changed its organisational structure to increase its responsiveness to consumer needs and to support sustainable long-term growth. As a consequence of the subsequent changes in internal reporting and in accordance with the new IFRS 8, the adidas Group has now divided its operating activities into six segments: Wholesale, Retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and Other Centrally Managed Brands.
The results of the adidas and Reebok brands are now combined under Wholesale and Retail. For clarity of presentation, the financial results of TaylorMade-adidas Golf, Rockport and Reebok-CCM Hockey (the latter two were formerly part of the Reebok segment) as well as Other Centrally Managed Brands (formerly part of the adidas segment) are aggregated under Other Businesses. Following the elimination of regional headquarters, the Group distinguishes seventeen markets which are aggregated into six geographies: Western Europe, European Emerging Markets, North America, Greater China, Other Asian Markets and Latin America.
Herbert Hainer: “We rose to the challenge”
“Without question, 2009 was the most difficult year since I became CEO of the Group,” commented Herbert Hainer, adidas Group CEO. “However, we rose to the challenge. Despite a 53% decline in operating profit, we generated a 141% increase in net cash from operations for a record € 1.2 billion. This is definitely the outstanding achievement of the year and a credit to all the hard work and dedication of our employees.”
Herbert Hainer stated: “We emerge from the challenges of 2009 with a very healthy financial position and renewed optimism. And I am convinced that all our brands can capitalise on a rebounding consumer environment in the current year. When I look around the marketplace today, I do not see any other company with a product pipeline as compelling, original or technologically advanced as ours. Therefore, in 2010, we will go on a marketing offensive focussing on three major initiatives: We will convert the excitement of the FIFA World Cup into new record sales for the football category."
"We will launch a new global campaign for adidas Sport Style to accelerate our momentum with the lifestyle consumer. And, last but not least, with the energy we are creating for Reebok in toning and conditioning, we will return the brand to growth in 2010.”."