German sportswear giant Adidas reported an almost-fivefold leap in its net profit Wednesday, with the group betting on double-digit growth in 2022 despite the impact of the war in Ukraine.
Adidas booked a net profit of 2.1 billion euros ($2.3 billion) on its continuing operations in 2021, up from 432 million euros the previous year, the company said in a statement.
Excluding the Reebok brand after Adidas agreed its sale in August, the net profit on continuing operations came in at 1.5 billion euros, up from 461 million the previous year.
Across the board, the outfitter saw revenues rise by 15.2 percent to 21.2 billion euros in 2021, despite strong headwinds.
Coronavirus lockdowns, supply chain disruptions and "challenging conditions" in the key Chinese market shaved more than 1.5 billion euros off the sales figure.
In China, the company has been facing a consumer boycott over its refusal to use cotton from Xinjiang in response to accusations of forced Uyghur labour.
Sales in the market were down 24 percent in the last three months of 2021, limiting annual revenue growth to three percent, while other market regions powered ahead.
Looking forward, the Bavarian group is aiming for revenue growth between 11 and 13 percent in 2022, taking account of a "250 million euro risk" in Russia and former Soviet republics due to the war in Ukraine.
The figure was equivalent to around half the group's revenues in the region and "represents around one percentage point of growth" in sales for the company.
The Bavarian group also said it was aiming for a net profit of between 1.8 and 1.9 billion euros, based on continuing operations.
Adidas said on Monday it would temporarily shutter its stores in Russia as well as closing its e-commerce business, following rivals like Nike and Puma.
The sportswear maker had already announced it was suspending its contract with the Russian Football Union.
Check out the latest DH videos here: