Adidas: 9m net profit reaches E1,369m
(CercleFinance.com) - Group sales increased by 24% over the first nine months of 2021 (on a currency neutral basis), driven by strong double-digit growth in all markets.
Revenue increased by 21% to 16.096 billion euros (vs. 13.294 billion euros in 2020). The company's gross margin increased by 0.9% to 51.2% (2020: 50.4%) in the first nine months of 2021.
Net income from continuing operations reached 1.369 billion euros, reflecting an improvement of over 1 billion euros compared to the previous year's level (2020: 318 million euros). EPS from continuing operations improved to 6.87 euros (2020: 1.61 euro).
Regarding its outlook, the group says that its operating margin and net profit from continuing operations are expected to reach the lower end of the previously communicated ranges of between 9.5% and 10% (operating margin) and between 1.4 and 1.5 billion euros for net profit from continuing operations.
"At the same time, due to significantly higher supply chain costs as well as a less favorable market mix, the gross margin is now expected to increase to a level between 50.5% and 51.0% in 2021 (previously: around 52%)," the group said.
The market seems to be focused on the group's caution, with the share currently down almost 5% in Frankfurt.
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