Adidas sees Irish profits rise 20%

A PARTIAL recovery in the retail market last year resulted in operating profits at the Irish arm of sportswear giant Adidas increasing by 20% to €1.2 million.

Documents just filed with the Companies Office show that revenues at Adidas (Ireland) Ltd last year increased by 25% from €34.6m to €43.2m in the 12 months to the end of December last.

The directors state that a key factor in the 25% sales increase “was the partial recovery in the Irish retail market”.

Last year, Adidas — which derives its turnover from the sale and distribution of sports and leisurewear in Ireland — extended its deal with the Munster rugby team as its official kit supplier to 2014. Adidas is also the kit suppliers to the newly-crowned rugby World Cup champions, New Zealand.

The directors state that the performance of the company last year was “satisfactory”.

The directors state that the cost savings generated last year have been maintained in the distribution costs, however, the increased sales activity led to a 49% increase in administrative costs during 2010.

No dividend was paid last year compared to a dividend of €13.3m in 2009 and dividend of €9.5m paid out in 2008.

Last year the German-owned subsidiary decided to end its 13-year association with the Dublin city marathon.

Along with sponsoring English Premier League teams Liverpool and Chelsea, Adidas also produces the jerseys for nine-time European Cup winners, Real Madrid.

The figures show that Adidas’s pre-tax profits dropped by 18% from €1.5m to €1.28m.

However, the chief factor in the drop was a net dividend of €501,000 received in 2009 that did not re-occur in 2009.

The accounts show that at the end of 2010, the company had accumulated profits of €1.4m with total shareholder funds amounting to €3.5m.

The filings show that the numbers employed by the company dropped last year, with the company’s staff costs increasing marginally from €1.13m to €1.14m.