Annual Report 2022


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Latin America

Revenues in Latin America increased 44% on a currency-neutral basis. In euro terms, sales in Latin America improved 46% to € 2,110 million from € 1,446 million in 2021. On a currency-neutral basis, this improvement was driven by strong double-digit growth in both Performance and Lifestyle. Within Performance, all categories grew at strong double-digit rates.

Net sales in Latin America



€ 2,110 million

Latin America at a glance € in millions1









Change (currency-neutral)

Net sales









Gross margin








Segmental operating profit








Segmental operating margin









Figures reflect continuing operations as a result of the reclassification of the Reebok business to discontinued operations.

Gross margin in Latin America decreased 0.7 percentage points to 47.5% (2021: 48.2%). While better pricing had a significant positive impact on the margin development, negative currency developments and higher supply chain costs weighed on the gross margin in the region. Operating expenses were up 24% to € 539 million from € 434 million in 2021, reflecting double-digit increases both in marketing expenditure and operating overhead costs. However, operating expenses as a percentage of sales decreased 4.5 percentage points to 25.5% (2021: 30.0%). Operating profit in Latin America increased 79% to € 473 million versus € 265 million in 2021. As a result of the increased sales and lower operating expenses as a percentage of sales, operating margin improved 4.1 percentage points to 22.4% from 18.3% in 2021.

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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.
Under the ‘Performance’ category, we subsume all footwear, apparel and ‘accessories and gear’ products which are of a more technical nature, built for sport and worn for sport. These are, among others, products from our most important sport categories: Football, Training, Running, and Outdoor.
This Group Management Report is a combined management report. It contains the Group Management Report of the adidas Group and the Management Report of adidas AG.
The Declaration on Corporate Governance is part of the Annual Report.
Declaration on Corporate Governance