Adidas AG expects double-digit growth in its sales in 2022, as the company narrowed its losses compared with the previous year, according to a filing.
- The company reported a net financial result of -€133 million versus the -€167 million in 2020, with financial income down 32% to €19 million from €29 million while financial expenses declined 22% to €153 million from €196 million.
- Currency-neutral revenues jumped by 16% for the full-year 2021, even after the 3% decline recorded in the fourth quarter. COVID-19 lockdowns and the supply chain disruptions cut down revenue growth by over €1.5 billion.
- The company expects currency-neutral sales to jump between 11% to 13% in 2021, which includes a risk of up to €250 million in its business in Russia due to the ongoing conflict with Ukraine. This is equivalent to 1 percentage point of growth.
- Adidas recorded a 51% increase in its capital expenditure to €667 million from €442 million in 2020, with investments in new or remodeled own-retail stores, e-commerce, and the expansion of the IT infrastructure.
The fourth-quarter gross margin fell by 0.1 percentage points to 49.0%, due mainly to higher supply chain costs and continued headwinds.
ADS.DE is up 10.95%.