Adidas to up profits on back of Olympics

Adidas to up profits on back of Olympics

FRANKFURT - Agence France-Presse
German sportswear maker Adidas said yesterday that strong demand for its brand pushed it to record earnings in 2011 and it hoped to beat those again this year on the back of the 2012 Olympics.

Adidas said in a statement its net profit rose by 18 percent to 671 million euros ($881 million) last year, with earnings per share hitting a record high of 3.20 euros.

Operating profit grew by 13.1 percent to 1.011 billion euros on an 11.3-percent increase in sales to 13.344 billion euros.

“We enjoyed our fastest organic (sales) growth rate since 2006,” boasted chief executive Herbert Hainer.
“We made progress on improving profitability. And we ended the year with our balance sheet in top shape,” Hainer said.

The 2012 Olympics in London and the UEFA football championships would enable Adidas to race to record earnings again this year, the chief executive said.

“We begin 2012 fully energized and fully prepared for another bright year for our group. There is always great buzz and excitement around major sports events, and they don’t come bigger than the London 2012 Olympic Games and the UEFA Euro 2012,” he said.

However, investors were not convinced with expectations and Adidas shares were the biggest losers on the Frankfurt stock exchange yesterday, shedding 3 percent to 56.00 euros.