The German sporting goods provider ADIDAS AG has completed the 2024 financial year, as expected, with strong growth in sales and results. Management is now predicting further increases for the current year.
The figures that the company came on on Wednesday were not surprising because essential key data had already been published in advance in January. Last year, the group turnover reached an amount of 23.7 billion euros, which corresponded to an increase of 10.4 percent compared to the previous year. Adjusted to change exchange rate changes grew revenues by twelve percent.
In Europe, sales grow by almost 20 percent
In Europe, the most important market region, sales rose by 19.8 percent (currency -adjusted +18.9 percent) to 7.55 billion euros. In Latin America, Adidas achieved an increase of 21.0 percent (currency -adjusted +27.6 percent) to 2.77 billion euros, in the Emerging Markets segment, the proceeds grew by 16.2 percent (adjusted for currency +19.4 percent) to 3.31 billion euros.
In China, sales increased by 8.4 percent (currency -adjusted +10.3 percent) to EUR 3.46 billion, in Japan and South Korea by 3.6 percent (adjusted for currency +10.1 percent) to 1.34 billion euros. The company only had to accept slight losses in North America, where the proceeds were 1.8 percent (adjusted to currency -1.6 percent) to 5.13 billion euros.
Adidas returns to the profit zone
An improvement in the gross margin from 47.5 to 50.8 percent, which, according to the company, was “mainly due to lower freight and product costs, a more advantageous business mix and fewer discounts”, contributed to the fact that the operational profit, which had been at EUR 268 million in the previous year, jumped to 1.34 billion euros.
The bottom line was a net result of 764 million euros due to the shareholder, after a corresponding loss of 75 million euros had to be booked in 2023.
For 2025, the group predicts further growth in sales and operating profit
In view of the figures submitted, CEO Bjørn Gulden drew a positive balance of the past financial year. “This development was much better than we expected, and of course we are very satisfied with it,” he said in a statement. “Although we are not yet where we want to be in the long term, it was a very successful year that confirmed the strength of the adidas brand, the potential of our company and the fantastic job that our teams did. There is still a lot that we have to improve, but I am very proud of what our people have achieved in 2024. ”
For 2025, management now expects further growth. A currency -adjusted increase in sales in the high single -digit percentage range is forecast. Two -digit growth in the core brand Adidas is expected. The operating result is to be improved to 1.7 to 1.8 billion euros.