Reebok 2006 Annual Report Download - page 79
Download and view the complete annual report
Please find page 79 of the 2006 Reebok annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69 -
70 -
71 -
72 -
73 -
74 -
75 -
76 -
77 -
78 -
79 -
80 -
81 -
82 -
83 -
84 -
85 -
86 -
87 -
88 -
89 -
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
 |
 |
adidas Group ›075
Group Sales Surpass € 10 billion in 2006
In 2006, Group sales increased 53% on a currency-neutral
basis, strongly supported by the first-time consolidation
of Reebok. In euro terms, Group revenues grew 52% to
€ 10.084 billion in 2006 from € 6.636 billion in 2005, exceeding
the € 10 billion level for the first time in the Group’s history.
Sales for the adidas Group excluding Reebok increased 14%
on a currency-neutral basis. Double-digit growth was gener-
ated in all regions except Europe, where sales increased by
high-single-digit rates. Sales for the adidas Group exclud-
ing Reebok grew 14% in euro terms to € 7.548 billion in 2006
from € 6.636 billion in the prior year, representing the high-
est organic growth of the adidas Group within the last eight
years.
Double-Digit Growth at adidas and TaylorMade-adidas Golf
The adidas segment was the main driver of the Group’s
organic sales growth in 2006. Currency-neutral adidas reve-
nues grew 14% in 2006 driven by increases in nearly all Sport
Performance categories as well as double-digit growth in the
Sport Heritage and Sport Style divisions. First-time consoli-
dation of the Reebok segment added € 2.473 billion in sales
to the adidas Group. At TaylorMade-adidas Golf, currency-
neutral revenues increased 22%. This strong performance
was driven by solid growth in nearly all major product cat-
egories. Further, the inclusion of the Greg Norman apparel
business, which was acquired as part of the Reebok acquisi-
tion, also had a positive impact on the Group’s sales devel-
opment. Sales recorded in the HQ/Consolidation segment
increased by 97% on a currency-neutral basis, as a result
of the Group’s cooperation agreement with Amer Sports
Corporation. Currency translation effects had only a minor
negative impact on sales in euro terms. adidas sales in euros
increased 13% to € 6.626 billion in 2006 from € 5.861 billion in
2005. TaylorMade-adidas Golf sales in euro terms grew 21%
to € 856 million in 2006 from € 709 million in 2005. HQ/Con-
solidation sales in euro terms increased 96% to € 129 million
in 2006 from € 66 million in 2005.
Sales Increase Strongly in All Regions
adidas Group sales grew robustly in all regions driven by
the first-time inclusion of Reebok as well as strong rev-
enue increases at both adidas and TaylorMade-adidas Golf.
Group sales in Europe grew 32% on a currency-neutral
basis. This represents an improvement of 31% in euro
terms to € 4.162 billion in 2006 from € 3.166 billion in the
prior year. Currency-neutral sales in Europe for the adidas
Group excluding Reebok increased 8% due to adidas’ stron-
gest growth in three years. In euro terms, this represents an
increase of 7% to € 3.390 billion in 2006 from € 3.166 billion
in the prior year. In North America, Group sales increased
107% on a currency-neutral basis. In euro terms, sales also
grew 107% to € 3.234 billion in 2006 from € 1.561 billion in
2005. Currency-neutral sales in North America for the adidas
Group excluding Reebok increased 14% driven by double-
digit growth rates at both adidas and TaylorMade-adidas Golf.
In euro terms, revenues increased 13% to € 1.768 billion in
2006 from € 1.561 billion in the prior year. Sales for the adidas
Group in Asia increased 35% on a currency-neutral basis. In
euro terms, revenues in Asia grew 33% to € 2.020 billion in
2006 from € 1.523 billion in 2005. Currency-neutral sales in
Asia for the adidas Group excluding Reebok increased 20%
during the period, primarily driven by strong growth at brand
adidas. This marks the third consecutive year of double-digit
underlying growth for our Group in the region. In euro terms,
revenues grew 18% to € 1.791 billion in 2006 from € 1.523 bil-
lion in the prior year. In Latin America, currency-neutral sales
increased 53%. In euro terms, sales grew 56% to € 499 mil-
lion in 2006 from € 319 million in 2005. Currency-neutral
sales in Latin America for the adidas Group excluding Reebok
increased 31% in 2006. This represents the highest regional
growth within the Group as a result of continued strong devel-
opment of the adidas brand. In euro terms, sales increased
35% to € 429 million from € 319 million in the prior year.
1) Including Reebok business segment from February 1, 2006 onwards, excluding
Greg Norman wholesale business from December 1, 2006 onwards.
Net Sales by Segment1)
HQ/Consolidation 1% adidas 66%
TaylorMade-adidas
Golf 8%
Reebok 25%
1) Excluding HQ/Consolidation. Including Reebok business segment from February 1,
2006 onwards, excluding Greg Norman wholesale business from December 1, 2006
onwards.
Net Sales by Region1)
Latin America 5% Europe 42%
Asia 20%
North America 33%
Net Sales by Region € in millions
North Latin
Europe America Asia America Total1)
2002 3,200 1,960 1,166 163 6,523
2003 3,365 1,562 1,116 179 6,267
20042) 3,068 1,332 1,192 224 5,860
20052) 3,166 1,561 1,523 319 6,636
20063) 4,162 3,234 2,020 499 10,084
1) Including HQ/Consolidation.
2) Figures reflect continuing operations as a result of the divestiture of the Salomon
business segment.
3) Including Reebok business segment from February 1, 2006 onwards, excluding Greg
Norman wholesale business from December 1, 2006 onwards.
» Income Statement