Adidas Ireland 5% profits boost helped by Pogba
By Gordon Deegan
Sales of Manchester United Paul Pogba replica shirts and Cristiano Ronaldo Real Madrid tops helped the Irish arm of Adidas to increase profits.
A 5% increase to €885,000 in pre-tax profits in 2016 for Adidas Ireland Ltd came as its revenues jumped 12% to €34.89m.
However, sales still fell some way short of the record of €43m it generated in 2012.
The company, kit supplier to the Munster rugby team, said the 2016 sales boost was “primarily due to growth in the wholesale market”.
The firm paid a €750,000 dividend to its parent company. Adidas signed a £750m deal to make Manchester United’s kit for 10 years from the end of the 2015 season, replacing Nike as kit supplier.
The sales of Munster rugby tops and Real Madrid jerseys would have contributed to Adidas revenues in Ireland along with sales of the strips for European football giants Bayern Munich.
The accounts show that at the end of 2016, the Irish unit had accumulated profits of €763,000 and total shareholder funds of €2.79m.
Administrative costs fell from €3m to €2.3m, while distribution costs were cut from €1.79m to €1.2m.
Its cost of sales increased from €20m to €25.5m. It cut staff numbers by three to 12 in the year, and payroll costs fell from €892,000 to €497,000 as a result.
Operating lease costs reduced from €193,000 to €155,000. Non-cash depreciation costs totalled €599,000. The firm spent very little on restructuring, compared with €111,000 it spent in the previous year.
