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26.07.2022

adidas adjusts outlook for 2022: Declining revenues in Greater China expected

adidas is adjusting its outlook for the financial year 2022. While second quarter results were somewhat ahead of expectations reflecting continued strong momentum in Western markets and a return to growth in Asia-Pacific, the company has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter. Previously, the company had assumed that in absence of any major lockdowns as of Q3, currency-neutral revenues in the region would be flat during the second half of the year versus the prior year level. However, given the continued widespread covid-19-related restrictions, adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.

adidas is adjusting its outlook for the financial year 2022. While second quarter results were somewhat ahead of expectations reflecting continued strong momentum in Western markets and a return to growth in Asia-Pacific, the company has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter. Previously, the company had assumed that in absence of any major lockdowns as of Q3, currency-neutral revenues in the region would be flat during the second half of the year versus the prior year level. However, given the continued widespread covid-19-related restrictions, adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.

As a result, adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% – 13% range). Because of the less favorable market mix due to lower-than-expected revenues in Greater China as well as the impact from initiatives to clear excess inventories in this market until the end of the year, the company’s gross margin is now expected to be around 49.0% in 2022 (previously: around 50.7%). Consequently, the company’s operating margin is now forecasted to be around 7.0% in 2022 (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion – € 1.9 billion range).

So far, the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any other market. Nevertheless, the adjusted guidance also accounts for a potential slowdown of consumer spending in these markets during the second half of the year as a result of the more challenging macroeconomic conditions.

Despite these headwinds, adidas continues to expect double-digit revenue growth during the second half of the year for the total company. In addition to easier prior year comparables, the acceleration will be driven by adidas’ strong product pipeline, the restocking opportunity with its wholesale customers given unconstrained supply as well as the support from major sporting events.

Based on preliminary numbers, adidas’ currency-neutral revenues grew 4% during the second quarter. This increase was driven by strong double-digit growth in North America and Latin America, high-single-digit growth in EMEA (also double-digit growth excluding negative Russia/CIS impact) as well as a return to growth in Asia-Pacific. In euro terms, sales increased 10% to € 5.596 billion. The company’s gross margin declined 1.5 percentage points to a level of 50.3% and operating margin reached 7.0% during the second quarter (2021: 10.7%). Net income from continuing operations was € 360 million in Q2 (2021: € 387 million) supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision.

More information:
adidas financial year 2022
Source:

adidas AG

14.06.2022

AkzoNobel updates Q2 outlook based on impact of China lockdowns

AkzoNobel has updated its Q2 outlook based on the impact of the evolving business environment, including the effect of China lockdowns and the slower start to the EMEA DIY season.

Overall demand signs for paints and coatings remain robust, with North America still constrained in raw material availability and logistics, but sequentially improving. In Europe in particular, macro-economic uncertainty related to consumer confidence has increased.

Consumer demand in the Deco DIY channels in Europe – which represent 40% of total Deco EMEA revenue – got off to a slow start in Q2, subsequently impacted by inventory reductions in the DIY channel. In June, Deco DIY channel demand improved back to 2019 levels. Despite share gains and our Deco Professional business performing as anticipated, the total Q2 operating income for our Decorative Paints segment is expected to be down by approximately €50 million versus expectations entering the second quarter.

AkzoNobel has updated its Q2 outlook based on the impact of the evolving business environment, including the effect of China lockdowns and the slower start to the EMEA DIY season.

Overall demand signs for paints and coatings remain robust, with North America still constrained in raw material availability and logistics, but sequentially improving. In Europe in particular, macro-economic uncertainty related to consumer confidence has increased.

Consumer demand in the Deco DIY channels in Europe – which represent 40% of total Deco EMEA revenue – got off to a slow start in Q2, subsequently impacted by inventory reductions in the DIY channel. In June, Deco DIY channel demand improved back to 2019 levels. Despite share gains and our Deco Professional business performing as anticipated, the total Q2 operating income for our Decorative Paints segment is expected to be down by approximately €50 million versus expectations entering the second quarter.

COVID-19 lockdowns in China during Q2 impact both paints and coatings. This impact was mainly on our coatings business, while paints was able to almost offset by progressing with its geographical expansion initiatives. The re-opening in June is showing a positive rebound, but not enough to catch up on all the missed revenue in the quarter, resulting in a negative operating income impact of approximately €40 million for the quarter, versus expectations entering Q2.

AkzoNobel continues to focus on achieving its €2 billion adjusted EBITDA target for 2023, despite the volatile market environment having a material impact on the company’s Q2 2022 financials.

More information:
AkzoNobel Coatings Covid-19
Source:

AkzoNobel

06.05.2022

adidas grows double-digit in Western markets in Q1 2022

  • Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
  • Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
  • Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
  • Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
  • Net income from continuing operations reaches € 310 million
  • FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate.

  • Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
  • Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
  • Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
  • Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
  • Net income from continuing operations reaches € 310 million
  • FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate. Backed by an exceptionally strong wholesale order book and relentless focus on driving growth in our own DTC channels, we expect this positive development to continue for the rest of the year,” said adidas CEO Kasper Rorsted. “In the East, we will return to growth in Asia-Pacific in the second quarter, while we expect the challenging market environment in Greater China to continue. With strong double-digit growth in the vast majority of our markets, representing more than 80% of our business, we are well positioned for success in 2022. “

For the full press release, see attached document.

Source:

adidas AG

03.03.2021

JEC WORLD 2021 postponed

  • Next Jec World Will Take Place From March 8 To 10, 2022

The continued impact of the Covid-19 pandemic unfolding throughout 2021 has forced the JEC World team to reexamine the possibility of holding the next edition of JEC World this year. Thus, after thorough consultation of clients and partners, the JEC World team has decided to postpone the next edition of JEC World to March 8 to 10, 2022.

Amidst growing concern among our exhibitors and partners surrounding the critical situation of the Covid 19 restrictive measures and other limitations in place in many countries, the JEC World team has decided to work on a new timeline to hold the next edition of the event in the best conditions in 2022. Thus, JEC World exhibitors were asked to respond to a survey offering two new dates to determine which one would suit them the most. It appeared that 89% of respondents favored holding the next JEC World session from March 8 to 10, 2022.

  • Next Jec World Will Take Place From March 8 To 10, 2022

The continued impact of the Covid-19 pandemic unfolding throughout 2021 has forced the JEC World team to reexamine the possibility of holding the next edition of JEC World this year. Thus, after thorough consultation of clients and partners, the JEC World team has decided to postpone the next edition of JEC World to March 8 to 10, 2022.

Amidst growing concern among our exhibitors and partners surrounding the critical situation of the Covid 19 restrictive measures and other limitations in place in many countries, the JEC World team has decided to work on a new timeline to hold the next edition of the event in the best conditions in 2022. Thus, JEC World exhibitors were asked to respond to a survey offering two new dates to determine which one would suit them the most. It appeared that 89% of respondents favored holding the next JEC World session from March 8 to 10, 2022.

“The coronavirus pandemic situation has taken the central stage, so in light of the current situation, it would not be possible for us to satisfy our customers’ requirements for such an international trade fair as JEC World in June. We truly regret having to make this difficult decision once again. However, we are all committed, starting today, to deliver the best JEC World experience to our clients in 2022.” says Eric Pierrejean, CEO of JEC Group. “While waiting for welcoming the international composites community back to Paris in March 2022, JEC Group team is preparing various online Rendez-Vous in June enabling the entire composites community to discover trends and innovations, and to connect″, he added.

The leading composites event will take place from March 8 to 10, 2022, at Paris Nord Villepinte (same venue) and online for a new augmented experience.

As the leading trade show of the composites industry, JEC World will bring together the whole composites materials value chain and professionals from application sectors, experts from the scientific and academic world, associations, and media from more than 112 countries, introducing in 2022 its audience its new digital platform, JEC World Augmented.

“JEC World 2022 and the augmented platform  will bring the international composites community and specialists together to resume business, network, hold business meetings. They will also have the chance to participate in conferences, workshops, and discover the latest composites innovations,” says Adeline Larroque, Show director and EMEA events.

Source:

JEC Group

03.11.2020

JEC WORLD announces new 2021 Dates

  • New digital platform unveiled
  • Due to the continued impact of the Covid-19 pandemic and after thorough consultation of clients and partners, the JEC World team today announces that the next edition of JEC World is postponed from March 9 to 11 to June 1 to 3, 2021.

With the growing concern among our exhibitors and partners surrounding the critical situation of the Covid  19,  travel  restrictions,  quarantine,  and  lockdown  measures  announced  recently  in  many  countries, the JEC World team has decided to work on a new timeline to hold the next edition of the event in safer conditions in 2021.

  • New digital platform unveiled
  • Due to the continued impact of the Covid-19 pandemic and after thorough consultation of clients and partners, the JEC World team today announces that the next edition of JEC World is postponed from March 9 to 11 to June 1 to 3, 2021.

With the growing concern among our exhibitors and partners surrounding the critical situation of the Covid  19,  travel  restrictions,  quarantine,  and  lockdown  measures  announced  recently  in  many  countries, the JEC World team has decided to work on a new timeline to hold the next edition of the event in safer conditions in 2021.

Thus, JEC World exhibitors answered a survey proposing three dates to determine which one would suit  them  the  most.  It  appeared  that  a  large  majority  of  respondents  favored  holding  the  next  JEC  World session from June 1 to 3, 2021."We truly regret having to make this difficult decision. However, we are all committed, starting todayto deliver the best JEC World experience to our clients.  We look forward to welcoming the international composites community back to Paris in June 2021", says Eric Pierrejean, CEO of JEC Group. As the leading trade show of the composites industry, JEC World brings together the whole composites materials  value  chain  and  professionals  from  application  sectors,  experts  from  the  scientific  and  academic world, associations and media from more than 112 countries.

JEC  World  is  also  proud  to  introduce  its  audience  this  year,  its  new  digital  platform,  JEC  World  Augmented.

This online platform, programmed to take place alongside JEC World,istailored primarily for attendees who cannot be present physically at the show but still want to experience a tremendousdigital event immersion. "JEC  World  and  its  augmented platform  will  bring  the  international  composites  community  and  specialists   together   to   network   with   exhibitors,   hold   digital   business   meetings,   access   online   conferences, workshops, and discover the latest composites innovation,"  says Adeline Larroque, Show director and EMEA events. "Now, more than ever, the international composites sector needs to come together to discuss today's challenges and tomorrow's composites solutions," adds Larroque.

Source:

JEC Group