Income Statement
Changes in segmental reporting following reorganisation initiatives
In the fourth quarter of 2009, the adidas Group changed its organisational structure to increase its responsiveness to consumer needs and to support sustainable long-term growth see Group Strategy. As a consequence of the subsequent changes in internal reporting and in accordance with the new IFRS 8, the adidas Group has now divided its operating activities into six segments: Wholesale, Retail, TaylorMade-adidas Golf, Rockport, Reebok-CCM Hockey and Other centrally managed brands. The results of the adidas and Reebok brands are now combined under Wholesale and Retail. For clarity of presentation, the financial results of TaylorMade-adidas Golf, Rockport and Reebok-CCM Hockey (the latter two were formerly part of the Reebok segment) as well as Other centrally managed brands (formerly part of the adidas segment) are aggregated under Other Businesses.
Following the elimination of regional headquarters, the Group now distinguishes seventeen markets which are aggregated into six geographies: Western Europe, European Emerging Markets, North America, Greater China, Other Asian Markets and Latin America.
Changes in accounting policy
The Group’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS as adopted by the EU). In 2009, there were relevant changes in IFRS which were reflected in the Group’s consolidation and accounting principles see Note 1. However, the impact on the Group’s consolidated financial statements from any such changes was not material in the reporting period.
Consolidation of new businesses impacts results of Wholesale and Other Businesses segments
The consolidation of new companies in Latin America and of Ashworth, Inc. in 2008 impacted the comparability of adidas Group results in the Wholesale and TaylorMade-adidas Golf segments in the reporting period.
Effective April 1, 2008, the adidas Group acquired 99.99% of the shares of Reebok Productos Esportivos Brazil Ltda. (formerly Comercial Vulcabras Ltda.), the distribution company for Reebok products in Brazil and Paraguay. Effective June 2, 2008, the Group also founded a new company in Argentina for the distribution of Reebok products, in which the adidas Group holds 99.99% of the shares. Ashworth Inc., a leader in cotton casual golf apparel, has been consolidated within the adidas Group since November 20, 2008.
adidas Group currency-neutral sales decrease 6% in 2009
In 2009, Group revenues decreased 6% on a currency-neutral basis, as a result of lower Wholesale and Other Businesses sales, which more than offset an increase in Retail revenues. This development was in line with initial Management expectations of a low- to mid-single-digit Group sales decline. Currency translation effects positively impacted sales in euro terms. Group revenues declined 4% to € 10.381 billion in 2009 from € 10.799 billion in 2008.
| 2009 net sales by segment1) | 09 |
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| 1) | HQ/Consolidation accounts for less than 1% of sales. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2009 net sales by region1) | 10 |
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| 1) | Excluding HQ/Consolidation. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
