Adidas Irish unit scores with Munster shirt sales

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Adidas Irish unit scores with Munster shirt sales


Sam Arnold of Munster, wearing the side’s distinctive Adidas kit, is tackled by Maxime Machenaud of Racing 92
Sam Arnold of Munster, wearing the side’s distinctive Adidas kit, is tackled by Maxime Machenaud of Racing 92
Adidas now also supplies kits to rugby rivals Leinster

Sales of Munster rugby tops last year contributed to pre-tax profits at the Irish arm of sports giant Adidas increasing by 3pc to €909,000.

New accounts filed by Adidas (Ireland) Ltd show that pre-tax profits at the company last year increased, despite revenues decreasing by 11pc – going from €34.9m to €31.1m.

The business achieved the increase in profits after cutting back on administrative and distribution costs. In July 2016, Munster Rugby extended its deal with Adidas as the official kit manufacturer to the province for a further five years.

The five-year deal was the third extension to the contract that was first signed in 2007.

Following on from the successful tie-up with Munster Rugby, Adidas announced a five-year kit deal with Leinster Rugby earlier this year and the team will wear the famous three stripes for the 2018-19 season.

The addition of Leinster follows Adidas already supplying kit to New Zealand and France.

On the Irish arm’s fortunes in the year to the end of December last, the directors state that sales decreased by 11pc and “this is primarily due to a decline in the local wholesale market”.

The directors state that “during 2017, distribution costs decreased by €209,000 and 2017 also saw a €146,000 decrease in administrative expenses”.



Adidas now also supplies kits to rugby rivals LeinsterAdidas now also supplies kits to rugby rivals Leinster

Adidas now also supplies kits to rugby rivals Leinster

On the company’s going concern status, a note attached to the accounts states that the company is expected to continue to generate positive cash flows.

The accounts disclose that €148,000 was paid out for “compensation for loss of office as employee”. The firm incurred non-cash depreciation costs of €576,000 and operating lease costs of €134,000.

Numbers employed last year reduced from 12 to seven with numbers employed in sales and marketing remaining static at seven while numbers employed in retail reduced from five to zero.

As a result, wages and salaries of staff reduced from €427,000 to €383,000.

The company paid dividends last year of €750,000 and this followed a dividend payout of €750,000 in 2016.

Adidas supplies kits to some of the biggest names in the soccer world including Manchester United, Bayern Munich, Real Madrid, Juventus and the German national team.

Recently, Adidas recorded a major coup when it sold 520,000 Juventus jerseys bearing Ronaldo’s name over a 24-hour period – this compared to the club selling a total of 850,000 shirts during the 2016-17 season.

Irish Independent

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