Reebok 2015 Annual Report Download - page 149

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GROUP MANAGEMENT REPORT – FINANCIAL REVIEW
Business Performance by Segment – MEAA (Middle East, Africa and other Asian markets)
MEAA MIDDLE EAST, AFRICA AND OTHER ASIAN MARKETS
SALES IN MEAA INCREASE 14%
In 2015, sales in MEAA increased 14% on a currency-neutral basis, as a result of double-digit sales growth
at both adidas and Reebok. From a market perspective, the main contributors to the increase were South
Korea, the United Arab Emirates, Turkey, Israel and Australia, where revenues grew at double-digit rates
each. Currency translation effects positively impacted revenues in euro terms. Sales in MEAA grew 24%
to € 2.388 billion from € 1.925 billion in 2014.
adidas revenues in MEAA grew 13% on a currency-neutral basis in 2015. This development was mainly due to
double-digit sales increases in the training and running categories as well as at adidas Originals. Currency
translation effects had a positive impact on revenues in euro terms. adidas sales in MEAA increased 23%
to € 2.091 billion (2014: € 1.693 billion).
Reebok revenues in MEAA increased 15% on a currency-neutral basis in 2015, driven by double-digit sales
growth in the training, running and studio categories as well as in Classics. Currency translation effects
had a positive impact on revenues in euro terms. Reebok sales in MEAA were up 28% to € 298 million from
€ 232 million in the prior year.
OPERATING PROFIT IN MEAA UP 20%
Gross margin in MEAA decreased 0.2 percentage points to 51.4% in 2015 from 51.7% in 2014. The positive
impact from a more favourable pricing, product and channel mix was more than offset by negative currency
effects and higher input costs. Gross profit in MEAA increased 23% to € 1.228 billion versus € 995 million
in 2014.
Operating expenses were up 28% to € 565 million versus € 442 million in 2014. This was due to higher sales
expenditure as well as an increase in expenditure for point-of-sale and marketing investments. Operating
expenses as a percentage of sales increased 0.7 percentage points to 23.7% (2014: 22.9%).
Operating margin decreased 1.0 percentage points to 27.8% (2014: 28.8%), due to the gross margin decline
as well as the negative effect from higher operating expenses as a percentage of sales. Operating profit in
MEAA increased 20% to € 664 million versus € 555 million in the prior year.
see Table 08
see Table 08
see Table 08
08MEAA ATAGLANCE€ IN MILLIONS
2015 2014 Change Change
(currency-neutral)
Net sales 12,388 1,925 24% 14%
adidas 2,091 1,693 23% 13%
Reebok 298 232 28% 15%
Gross profit 1,228 995 23% –
Gross margin 51.4% 51.7% (0.2pp) –
Segmental operating profit 664 555 20% –
Segmental operating margin 27.8% 28.8% (1.0pp) –
1 Rounding differences may arise in totals.