Latin America
Revenues in Latin America increased 47% on a currency-neutral basis. In euro terms, sales in Latin America improved 40% to € 1.446 billion from € 1.035 billion in 2020. On a currency-neutral basis, this improvement was driven by exceptional sales growth in both Performance and . All key categories – Training, Running, Football, and Outdoor – grew at strong double-digit rates.
Net sales in Latin America
+47%
C.N.
€ 1.446 bn
|
|
2021 |
|
2020 |
|
Change |
|
Change (currency-neutral) |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Net sales |
|
1,446 |
|
1,035 |
|
40% |
|
47% |
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Gross margin |
|
48.2% |
|
44.2% |
|
3.9pp |
|
– |
||||
Segmental operating profit |
|
265 |
|
33 |
|
709% |
|
– |
||||
Segmental operating margin |
|
18.3% |
|
3.2% |
|
15.1pp |
|
– |
||||
|
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Gross margin in Latin America increased 3.9 percentage points to 48.2% (2020: 44.2%). While a more favorable pricing mix due to lower promotional activity had a positive impact on the gross margin development, negative currency developments, a less favorable channel mix, and higher sourcing costs had an adverse impact. Operating expenses were up 1% to € 434 million from € 429 million in 2020, reflecting a double-digit increase in expenditure while overhead costs declined. Operating expenses as a percentage of sales decreased 11.5 percentage points to 30.0% (2020: 41.5%). As a result of the higher gross margin and lower operating expenses as a percentage of sales, operating margin improved 15.1 percentage points to 18.3% from 3.2% in 2020. Operating profit in Latin America increased 709% to € 265 million versus € 33 million in 2020.
Lifestyle
Under the ‘Lifestyle’ category, we subsume all footwear, apparel, and ‘accessories and gear’ products that are born from sport and worn for style. ‘adidas Originals,’ which is inspired by sport and worn on the street, is at the heart of the ‘Lifestyle’ category.
Marketing expenditure
Expenditure that relates to point-of-sale and marketing investments. While point-of-sale investments include expenses for advertising and promotion initiatives at the point of sale as well as store fittings and furniture, marketing investments relate to sponsorship contracts with teams and individual athletes as well as to advertising, events and other communication activities. Marketing overhead expenses are not included in marketing expenditure.
Operating overhead Costs
Expenses which are not directly attributable to the products or services sold, such as distribution and selling as well as general and administration costs, but not including marketing and point-of-sale expenses.