Monday 16 March 2015

Adidas annual report 2014

Adidas, annual, report, 2014, front page

The share price increased at some point to over +4% on the day of the release. I did not see any surprise in the report since part of me buying the shares were based on the highly improved sales in Germany of the new world champion cloths. Once one becomes investor in a company the progress of that company is much more intensively followed and I must say that I have become more impressed with Adidas and all the channels they use to reach the consumers then I had never thought about or seen before. I guess that is part of the problem of getting married with a company. Anyway... what was then in this annual report?
To read the report in full please go here and to find out more about Adidas then please click on analysis of Adidas 2014.

As always, when I am not unhappy the reports gets shorter and that will also apply in this case. Below can be seen what they thought 2014 would look like and what it ended up being as well as an outlook for 2015. As can be seen they were expecting a very successful year due to the football championship and generally the expectation of a peaceful environment and they really did not manage to live up to that which was why the share price dropped down significantly during last year. The outlook for 2015 have also become very soft and by the look of it they are still worried about their golf section and their very important Russian market. Since their presence in the US has been dropping grounds they have no large benefit of the strong USD either.

Adidas, annual report, 2014, target & outlook

I will this time only show the highlights as they presented them. The revenue had a more or less inflation increase since last year. The net income was a bit more then -30% which is of course not good but it is also part of the reason for why I could jump in so cheap so I should not complain too much regarding that. The earnings per share became in the end 2.72 € and they proposed to pay once again 1.50 € in dividend which is great since I personally expected a decrease. It does not show in the table below but in the end of the year they started up a share buy back program which will help the EPS in 2015.

Adidas, highlight, annual report, 2014

Conclusion: 2014 was not an excellent year for Adidas and many of their expectations simply could not be fulfilled. In some cases due to them but in many cases due to external reasons. Personally I was very happy with the report and i have full confidence in Adidas for the future. I will remain as a shareholder for a long time.

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