Adidas FY17 profit up, currency-neutral revenues up 16%
Staff Writer |
Adidas reported that its fiscal 2017 net income from continuing operations rose 25.2% to 1.35 billion euros from 1.08 billion euros, previous year.
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Earnings per share from continuing operations were 6.63 euros compared to 5.29 euros. Excluding negative onetime tax impact, net income from continuing operations rose 32.2% to 1.43 billion euros.
Excluding negative onetime tax impact, earnings per share was 7.00 euros compared to 5.29 euros. Fiscal 2017 operating profit grew 31% to 2.070 billion euros from 1.582 billion euros, prior year, representing an operating margin increase of 1.2 percentage points to 9.8%.
In 2017, adidas reported an increase in currency-neutral revenues of 16%. This development mainly reflects an 18% increase at brand adidas. Revenues at the Reebok brand grew 4%. In euro terms, sales were up 15% to 21.218 billion euros in 2017 from 18.483 billion euros, prior year.
The Executive and Supervisory Boards will recommend paying a dividend of 2.60 euros per dividend-entitled share to shareholders at the Annual General Meeting on May 9, 2018. This represents an increase of 30% compared to the prior year dividend.
In 2018, the company expects sales to increase at a rate of around 10% on a currency-neutral basis. The company projects the operating margin to increase between 0.5 and 0.7 percentage points to a level between 10.3% and 10.5%.
Net income from continuing operations is projected to increase to a level between 1.615 billion euros and 1.675 billion euros. Basic EPS from continuing operations is expected to increase at a rate between 12% and 16% compared to the prior year level of 7.05 euros, excluding the negative one-time tax impact in 2017.
The company has also upgraded its 2020 profitability target. While adidas continues to forecast currency-neutral revenues to grow between 10% and 12% on average per year between 2015 and 2020, the company now projects net income from continuing operations to grow by an average of 22% to 24% per year (previously: 20% to 22%) between 2015 and 2020.
As a result, the company now expects to reach an operating margin of up to 11.5% by 2020 (previously: 11%). ■