adidas’ sales rose 13 per cent to a record €13.3 billion in 2011, prompting CEO Herbert Hainer to describe the results as a “perfect start to our Route 2015 journey” – the company’s strategic business plan unveiled in 2010.
Group sales were up in all regions, while net income increased 18 per cent to €671 million.
Says Hainer: “At the start to any strategic plan, it is important to gain momentum quickly and set a precedent by hitting targets. In this respect, we couldn’t have asked for a better start.
“We enjoyed the group’s fastest organic growth rate since 2006, we made progress on improving profitability and we ended the year with our balance sheet in top shape, average operating working capital as a percentage of sales remaining at an all-time low of 20.8 per cent and a net cash position of €90 million.”
Management forecasts group sales to increase at a mid to high single digit rate this year, and despite the high degree of uncertainty regarding the global economic outlook and consumer spending, adidas expects its positioning as the official sponsor of EURO 2012 and official sportswear partner of the London 2012 Olympic Games and Team GB to pay dividends.
“We begin 2012 fully energised and fully prepared for another bright year for our group,” says Hainer.
“There is always a great buzz and excitement around major sports events and they don’t come bigger than the London 2012 Olympic Games and EURO 2012.
“When the sporting elite take centre stage, the pinnacle of adidas’ innovation accompanies them.
“This year will be no different and through the power of our product pipeline, marketing strength and point of sale execution, we are all set to achieve new records and sustained momentum.”
