Adidas Ireland scores with 35% rise in profits

Sales of Manchester United replica shirts and Ronaldo Real Madrid tops helped the Irish arm of Adidas last year to increase its pre-tax profits by 35% to €839,000.

Revenues at Adidas Ireland Ltd last year climbed 23% to almost €31.1m from €25.4m in 2014.

According to the directors’ report, the 23% sales increase followed a 12% slump in 2014 and was “primarily due to growth in the wholesale market”.

The firm, which is also the kit supplier to the Munster rugby team, paid a dividend of €400,000 and plans to pay a dividend of €750,000 in the current year.

Sales have risen significantly but they still some distance short of matching the revenues of €43m recorded in 2012.

Adidas signed a £750m deal to make Manchester United’s kit for 10 years from the end of the 2015 season, replacing Nike as the team’s kit supplier.

Globally, the German sports giant employs more than 55,000 people in over 160 countries, and generated sales of €16.4bn in 2015.

The sales of Munster rugby tops and Real Madrid jerseys, along with Bayern Munich and Manchester United tops helped boost Adidas revenues in Ireland.

The accounts show that at the end of 2015 the Irish unit had accumulated profits of €780,000, while shareholder funds amounted to €2.8m.

The figures show that the company increased its administrative spend from €2.12m to €3m while distribution costs reduced from €2.6m to €1.79m.

The firm’s cost of sales increased from €20m to €25.5m, according to the filings. Staff numbers fell last to 15 from 16 people, with payroll costs having fallen to €781,000 from €837,000.

Operating lease costs fell to €193,000 from €255,000. Non-cash depreciation costs last year came to €220,000. The firm also incurred restructuring costs of €111,000.