FRANKFURT, March 9 — German sportswear giant Adidas reported an almost-fivefold leap in its net profit today, 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 (RM9.6 billion) on its continuing operations in 2021, up from €432 million 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 , up from €461 million the previous year.

Across the board, the outfitter saw revenues rise by 15.2 per cent to €21.2 billion in 2021, despite strong headwinds. 

Coronavirus lockdowns, supply chain disruptions and "challenging conditions” in the key Chinese market shaved more than €1.5 billion 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 per cent in the last three months of 2021, limiting annual revenue growth to three per cent, while other market regions powered ahead.

Looking forward, the Bavarian group is aiming for revenue growth between 11 and 13 per cent in 2022, taking account of a "€250 million 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 , 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. — AFP