Reebok 2012 Annual Report Download - page 153

adidas Group
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2012 Annual Report
Group Management Report – Financial Review
131
2012
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03.2
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Group Business Performance
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Income Statement
Commercial irregularities discovered
at Reebok India Company
As announced in an ad hoc release on April 30, 2012, commercial
irregularities were discovered at Reebok India Company. The discovery
of these irregularities resulted in the identification of material errors
in the prior period financial statements of Reebok India Company. As a
consequence of these errors, material misstatements are also included
in the consolidated financial statements of adidas AG for the 2011
financial year and for previous financial years, which have to be corrected
in accordance with IAS 8.41 et seqq. These corrections are reflected
in the consolidated financial statements as at December 31, 2012,
in which the comparative figures for the year 2011 are restated. The
financial years prior to 2011 have not been individually restated due
to impracticality. To the extent that earlier periods are affected, the
misstatements have been cumulatively adjusted in the opening balance
sheet at January 1, 2011. Details and in-depth explanations of these
restatements are outlined in the Notes in this Annual Report
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SEE
NOTE 03, P. 203. All figures in the subsequent discussion of our 2012
financial performance in the Income Statement, Statement of Financial
Position and Statement of Cash Flows as well as other sections of
this Annual Report are based on a comparison of the 2012 figures and
the restated 2011 figures. All financial year figures prior to 2011 are
presented as they were originally reported.
Income Statement
adidas Group currency-neutral sales grow 6%
In 2012, Group revenues grew 6% on a currency-neutral basis, as a result
of double-digit sales increases in Retail and Other Businesses. This
development is in line with initial Management expectations of a mid- to
high-single-digit Group sales increase. Currency translation effects had
a positive impact on sales in euro terms. Group revenues grew 12% to
€ 14.883 billion in 2012 from € 13.322 billion in 2011
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DIAGRAM 07.
Group sales increase driven by double-digit growth
in Retail and Other Businesses
In 2012, currency-neutral Wholesale revenues increased 2%, as sales
growth at adidas more than offset sales declines at Reebok. Currency-
neutral Retail sales increased 14% versus the prior year, driven by 7%
comparable store sales growth as well as new store openings in line
with the Group’s retail expansion. Revenues in Other Businesses were
up 17% on a currency-neutral basis, mainly driven by a strong double-
digit sales increase at TaylorMade-adidas Golf. Currency translation
effects had a positive impact on segmental sales in euro terms.
Wholesale revenues increased 7% to € 9.533 billion from € 8.949 billion
in 2011. Retail sales rose 21% to € 3.373 billion versus € 2.793 billion
in the prior year. Sales in Other Businesses grew 25% to € 1.977 billion
(2011: € 1.580 billion).
08
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Net sales by quarter (€ in millions)
Q1 2012 3,824
Q2 2012 3,517
Q3 2012 4,173
Q4 2012 3,369
07
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Net sales 1) (€ in millions)
2012 14,883
2011 13,322
2010 11,990
2009 10,381
2008 10,799
1) 2011 restated according to IAS 8, see Note 03, p. 203. Prior years are not restated, see p. 131.
10
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Net sales by segment
2012 1
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64% Wholesale
2
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23% Retail
3
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13% Other Businesses
1
2
3
09
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Net sales by region
2012
1
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27% Western Europe
2
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23% North America
3
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16% Other Asian Markets
4
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13% European Emerging Markets
5
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11% Greater China
6
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10% Latin America
6
5 1
2
3
4