Reebok 2015 Annual Report Download - page 121

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117
3
GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Group Business Performance – Income Statement
OPERATING MARGIN EXCLUDING GOODWILL IMPAIRMENT DECREASES
0.1 PERCENTAGE POINTSTO 6.5%
Group operating profit increased 20% to € 1.059 billion in 2015 versus € 883 million in 2014. The operating
margin of the adidas Group increased 0.2 percentage points to 6.3% (2014: 6.1%). Excluding the goodwill
impairment losses, operating profit grew 14% to € 1.094 billion from € 961 million in 2014, representing
an operating margin of 6.5%, down 0.1 percentage points from the prior year level (2014: 6.6%). This
development was due to higher other operating expenses as a percentage of sales, which more than offset
the increase in the gross margin.
NET FINANCIAL EXPENSES DECREASE STRONGLY
Financial income increased to € 46 million in 2015 from € 19 million in the prior year, mainly as a result
of positive exchange rate effects. Financial expenses remained virtually unchanged at € 67 million in 2015
(2014: € 67 million). An increase in interest expenses compared to the prior year period was offset by the
non-recurrence of negative exchange rate effects. As a result, net financial expenses decreased 57% to
€ 21 million from € 48 million in 2014.
INCOME BEFORE TAXES EXCLUDING GOODWILL IMPAIRMENT UP 18%
Income before taxes (IBT) for the adidas Group increased 24% to € 1.039 billion from € 835 million in
2014. IBT as a percentage of sales increased 0.4 percentage points to 6.1% in 2015 (2014: 5.7%). Excluding
the goodwill impairment losses, IBT was up 18% to € 1.073 billion from € 913 million in 2014 and, as
a percentage of sales, increased 0.1 percentage points to 6.3% compared to the prior year level (2014: 6.3%).
see Diagram 20
see Diagram 21
see Diagram 22
see Note 33, p. 236
see Diagram 23
20OPERATING PROFIT 1, 2, 3, 4, 5, 6€ IN MILLIONS
2015 1,094
2014 961
2013 1,233
2012 1,185
2011 953
1 2015, 2014 and 2013 reflect continuing operations as a result of the divestiture of the
Rockport business.
2 2015 exluding goodwill impairment of € 34 million.
3 2014 exluding goodwill impairment of € 78 million.
4 2013 excluding goodwill impairment of € 52 million.
5 2012 excluding goodwill impairment of € 265 million.
6 2011 restated according to IAS 8 in the 2012 consolidated financial statements.
21OPERATING MARGIN 1, 2, 3, 4, 5, 6IN %
2015 6.5
2014 6.6
2013 8.7
2012 8.0
2011 7.2
1 2015, 2014 and 2013 reflect continuing operations as a result of the divestiture of the
Rockport business.
2 2015 exluding goodwill impairment of € 34 million.
3 2014 exluding goodwill impairment of € 78 million.
4 2013 excluding goodwill impairment of € 52 million.
5 2012 excluding goodwill impairment of € 265 million.
6 2011 restated according to IAS 8 in the 2012 consolidated financial statements.
22NET FINANCIAL EXPENSES 1€ IN MILLIONS
2015 21
2014 48
2013 68
2012 69
2011 84
1 2011 restated according to IAS 8 in the 2012 consolidated financial statements.
23INCOME BEFORE TAXES 1, 2, 3, 4, 5, 6€ IN MILLIONS
2015 1,073
2014 913
2013 1,165
2012 1,116
2011 869
1 2015, 2014 and 2013 reflect continuing operations as a result of the divestiture of the
Rockport business.
2 2015 exluding goodwill impairment of € 34 million.
3 2014 exluding goodwill impairment of € 78 million.
4 2013 excluding goodwill impairment of € 52 million.
5 2012 excluding goodwill impairment of € 265 million.
6 2011 restated according to IAS 8 in the 2012 consolidated financial statements.