Adidas keeps eye on objectives after Q1 profits leap

FRANKFURT AM MAIN: German sporting goods maker Adidas on Thursday said it was confident of meeting its objectives for the year, after a huge leap in profits in the first quarter.

Net profit at the group grew 29.6 percent to reach 455 million euros ($496 million) between January and March, outpacing revenue growth of 18.9 percent to 5.7 billion euros.

Operating, or underlying profit grew 28.8 percent to reach 632 million.

Adidas pointed to standout performances in North America and China, where revenues increased 31 and 30 percent, followed up by Japan and its Middle East and Africa region.

Growth was slower in Europe and Latin America, where last year's increased sales ahead of the Euro 2016 and Copa America championships made for a tough comparison against this year's first quarter.

"As consumer demand for our products was strong across the world, we were again able to significantly improve our profitability despite ongoing currency headwinds," chief executive Kasper Rorsted said.

Looking ahead to the full year, Adidas confirmed its objectives of an increase in sales of between 11 and 13 percent adjusting for currency effects, powering an increase of between 18 and 20 percent in net profit to between 1.2 and 1.225 billion euros.