The German sporting goods manufacturer Adidas obtained in the first quarter of the year an attributable net profit of 558 million euros, 1,700% more than in the same period of 2020, due to the recovery of sales, especially in China and online.
Adidas reported today that turnover improved in the same period to 5,268 million euros (+20.2%) despite continued containment measures in many countries in Europe and shortages of some raw materials and bottlenecks for some products.
Excluding exchange rate effects, turnover would have risen by 27 %.
E-commerce sales rose by 43 % in the first three months of the year.
Adidas emphasized the strong increase in revenues from sales of athletic footwear (+31 %) and sportswear for training and running, as well as its sports fashion items.
Operating profit improved to 704 million euros (+1,362.6 %) and the operating profit margin on sales recovered to 13.4 % (1.1 % a year earlier) and was at the level prior to the coronavirus pandemic.
Adidas, which received state aid worth 2.4 billion euros last year to overcome difficulties due to store closures during the pandemic, wants to divest Reebok, which caused costs of 60 million euros in the first quarter.
Adidas CEO Kasper Rorsted has revised upwards his forecasts for the whole of 2021 because they are confident of ‘strong recovery’, even if it is not yet back to normal.
It is confident that the European Championship and America’s Cup will provide a unique stage to showcase its brand and products to a global audience and boost its revenues.
Adidas, which has cleared its inventories built up over the past year due to the pandemic, is forecasting an operating profit margin this year of 9-10% , up from 4% in 2020, and costs from the Reebok divestment of €250 million.