German sportswear maker Adidas has its eye on further growth after revealing a jump in profits in 2021.
Last year, following a pandemic-driven dip in 2020, Adidas increased revenues by 16% to €21.2 billion.
Net income from continuing operations grew more than €1 billion to €1.492 billion, the firm said.
However, fourth quarter sales were weaker than hoped due to supply chain disruptions, a challenging market environment in China and higher costs, the company said.
Turnover in the quarter decreased by a currency-adjusted 3% to €5.1 billion.
The company said that currency-neutral sales should increase at a rate between 11-13% this coming year, with the growth mostly in North and Latin America as well as the European region.
The projection takes into consideration a risk of up to €250 million in the company’s Russia and the Commonwealth of Independent States (CIS) business, which represents about half of Adidas’ total revenues in the region. This was due to the war in Ukraine and reflects the suspension of the company’s retail and e-commerce operations in Russia.
“In 2021, we delivered a strong set of results despite several external factors weighing on both demand and supply throughout the year,” said chief executive Kasper Rorsted.
“Taking it all together, 2021 was a successful first year within our new strategic cycle. In 2022, we will build on this momentum and continue to grow both our top and bottom-line at double-digit rates amid heightened uncertainty.”
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