Annual Report 2024

de

Topics Filter

Results

The image shows a group of young athletes who appear to be engaged in discussions or strategizing.

Latin America

Revenues in Latin America increased 28% on a currency-neutral basis. In euro terms, sales in Latin America improved 21% to € 2,772 million from € 2,291 million in 2023. On a currency-neutral basis, this improvement was driven by strong double-digit growth in most Performance categories. In Lifestyle, Originals and Sportswear also grew at strong double-digit rates.

Net sales in Latin America

+28%

C.N.
€ 2,772 million

Latin America at a glance € in millions

 

 

2024

 

2023

 

Change

 

Change
(currency-neutral)

Net sales

 

2,772

 

2,291

 

21%

 

28%

Gross margin

 

47.9%

 

45.6%

 

2.3pp

 

–

Segmental operating profit

 

614

 

482

 

27%

 

–

Segmental operating margin

 

22.2%

 

21.0%

 

1.1pp

 

–

Gross margin in Latin America increased 2.3 percentage points to 47.9% (2023: 45.6%). Benefits from lower sourcing costs, price increases, an improved business mix, and lower discounting more than offset significant negative currency developments. Operating expenses were up 27% to € 717 million from € 564 million in 2023. This development reflects increases in both marketing expenditure and operating overhead costs. Operating expenses as a percentage of sales increased 1.2 percentage points to 25.9% (2023: 24.6%). Operating profit in Latin America increased 27% to € 614 million versus € 482 million in 2023. The operating margin increased 1.1 percentage points to 22.2% from 21.0% in 2023.

Lifestyle category
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 expenses
Expenses that 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.
Performance category
Under the ‘Performance‘ category, we subsume all footwear, apparel, and ‘accessories and gear‘ products that 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.

Related Links

Related Links