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Irregularities at Indian arm stop Adidas' profit run,[link widoczny dla zalogowanych]
Adidas said it has corrected its consolidated financial statements as on December 31,[link widoczny dla zalogowanych], 2012,[link widoczny dla zalogowanych], in which the comparative figures for the year 2011 are restated and the opening balance-sheet for 2011 is reported to the extent that earlier periods are affected.
Adidas made a fourth quarter operating loss of million,[link widoczny dla zalogowanych], compared with analyst expectations for profit of million.
results of these restatements led to a reduction of net income attributable to shareholders of million for 2011. In addition,[link widoczny dla zalogowanych], shareholders equity of the opening balance sheet for 2011 is negatively impacted by million,[link widoczny dla zalogowanych], the company said in a statement.
Adidas has posted six per cent increase in overall sales to billion,[link widoczny dla zalogowanych], while its net cash position stood at million.
Last year,[link widoczny dla zalogowanych], Reebok India had filed an FIR alleging Rs 870 crore fraud by its former MD Subhinder Singh Prem and COO Vishnu Bhagat,[link widoczny dla zalogowanych], which both of them denied. Following this,[link widoczny dla zalogowanych], the company undertook a restructuring programme where in it moved from a minimum guarantee to a cash and carry model. It shut over 400 stores and gave voluntary retirement schemes to 200 employees.
Tushar Goculdas,[link widoczny dla zalogowanych], Brand Director,[link widoczny dla zalogowanych], Adidas India,[link widoczny dla zalogowanych], says that this is a year of innovation for the brand. To start with the company is focussing on various sports each month to achieve high double digit growth.
With March being dedicated to running,[link widoczny dla zalogowanych], the brand has introduced Energy Boost running shoes. Priced at Rs 10,[link widoczny dla zalogowanych],000,[link widoczny dla zalogowanych], the shoes are being targeted at next Gen runners and youth. Goculdas claims that it has received good response.
He said during the coming months,[link widoczny dla zalogowanych], the company will be targeting sports like cricket with exclusive IPL jerseys on offer and football with nitro-charge series of shoes.
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