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22.01.2024

Adient again ranked as Top Employer

Adient, a leader in automotive seating, has been certified for the second time by the Top Employers Institute as a European Top Employer for several of its EMEA locations.
 
23 of the automotive supplier’s locations in the Czech Republic, Hungary, North Macedonia, Poland, Romania, and Serbia underwent an extensive assessment by the institute and were evaluated in categories such as People Strategy, Work Environment, Talent Acquisition, Learning, Diversity & Inclusion, Wellbeing and more. All six assessed markets obtained the certification, having already done so in last year’s edition.
 
While the organization’s overall score improved by 4.5% compared to 2023, Adient stands out the most from its competitors in the areas of People Strategy and DE&I practices, at 11% and 7%, respectively.

The Top Employers Certification Program has been created to provide guidance on people practices of employers in a wide range of industries. It evaluates companies worldwide and provides feedback on their working culture based on a best practice survey.

Adient, a leader in automotive seating, has been certified for the second time by the Top Employers Institute as a European Top Employer for several of its EMEA locations.
 
23 of the automotive supplier’s locations in the Czech Republic, Hungary, North Macedonia, Poland, Romania, and Serbia underwent an extensive assessment by the institute and were evaluated in categories such as People Strategy, Work Environment, Talent Acquisition, Learning, Diversity & Inclusion, Wellbeing and more. All six assessed markets obtained the certification, having already done so in last year’s edition.
 
While the organization’s overall score improved by 4.5% compared to 2023, Adient stands out the most from its competitors in the areas of People Strategy and DE&I practices, at 11% and 7%, respectively.

The Top Employers Certification Program has been created to provide guidance on people practices of employers in a wide range of industries. It evaluates companies worldwide and provides feedback on their working culture based on a best practice survey.

Adient presented seating innovations at IAA (c) Adient
11.10.2023

Adient presented seating innovations at IAA

Adient, a leader in automotive seating, has presented its latest innovations at the IAA 2023.
 
The current automotive business landscape is marked by shifting industry dynamics, showcasing a strong desire for mobility, with an emphasis on digitalization, cost, and sustainable products. In line with this, Adient’s overall approach is characterized by responding to the need for more sustainable material use, while taking advantage of the potential that sustainable practices hold for streamlining processes.

Adient, a leader in automotive seating, has presented its latest innovations at the IAA 2023.
 
The current automotive business landscape is marked by shifting industry dynamics, showcasing a strong desire for mobility, with an emphasis on digitalization, cost, and sustainable products. In line with this, Adient’s overall approach is characterized by responding to the need for more sustainable material use, while taking advantage of the potential that sustainable practices hold for streamlining processes.

Responding to the need for overall cost and complexity reduction in manufacturing, the Pure Essential seat is especially lightweight. Environmentally-conscious practices such as material separation and recycling, and design for disassembly are embedded into the manufacturing process from the development stage. The visionary seat consists of two materials only – green steel and recyclable polyester (PET).
 
New customer needs in terms of premium comfort are met with the Autonomous Elegance seat, specifically developed to fit Advanced Driver Assistance Systems (ADAS). State-of-the-art findings on ergonomics and human body kinematics have been incorporated following extensive occupant research. They are complemented by advanced comfort assets such as noise cancellation and advanced climate functions. “Our seat demonstrators provide solutions to our customers’ main concerns, and we are looking forward to continuing the strategic product dialogue with them, based on our new demonstrators” highlights David Herberg, Vice President Engineering Adient EMEA. Most features of the seat can already be offered for sourcing, such as the metal structure and seat kinematics (adjustment functions and mechanisms).

Considering optimized use of space as well as sustainability aspects, the automotive supplier has also given its Smart Efficiency seat an update: the seat features a slimmer appearance than its predecessor without compromising on comfort. This design does not only help save space, but also paves the way for new mobility concepts based on battery packaging in electric vehicles.
 
The showcased products will be available for demonstration in customer roadshows as of December 2023.

Source:

Adient

NOPINZ now runs the majority of their production out of its microfactory based in Devon, UK. Photo NOPINZ
NOPINZ now runs the majority of their production out of its microfactory based in Devon, UK.
28.09.2023

NOPINZ using Mimaki’s textile dye sublimation solutions

Founded in 2013, NOPINZ is a UK-based manufacturer of clothing for cyclists and triathletes. The company's first product was the ‘SpeedPocket’, a product that allows competitors to attach their race numbers more easily (and with ‘no pins’) while improving the all-important aerodynamics. Soon recognising the customer demand for premade attire with incorporated number pockets, the company embarked on a mission to manufacture these new product lines itself. Today, NOPINZ boasts a diverse portfolio, with 60% of its products made in-house, catering to a growing customer base across the UK and international markets. NOPINZ creates speed suits for some of the world’s top cycling teams, as well as competitive amateurs.

Founded in 2013, NOPINZ is a UK-based manufacturer of clothing for cyclists and triathletes. The company's first product was the ‘SpeedPocket’, a product that allows competitors to attach their race numbers more easily (and with ‘no pins’) while improving the all-important aerodynamics. Soon recognising the customer demand for premade attire with incorporated number pockets, the company embarked on a mission to manufacture these new product lines itself. Today, NOPINZ boasts a diverse portfolio, with 60% of its products made in-house, catering to a growing customer base across the UK and international markets. NOPINZ creates speed suits for some of the world’s top cycling teams, as well as competitive amateurs.

NOPINZ places a strong emphasis on sustainability and is committed to minimising its environmental impact. Using a microfactory approach gives better oversight and control of the manufacturing process, including sourcing materials sustainably and locally where possible, reducing transportation, and improving access to recycling. “Our ‘zero to landfill’ policy, means that we reduce our wastage where possible and either recycle or donate excess product to charity,” Blake adds. “We hope to become a B-Corp company in the future.”

“We tested out a few printers, before we ultimately settled on Mimaki,” Blake Pond, the founder of NOPINZ explained. Now the company’s line-up entirely consists of Mimaki’s textile dye sublimation solutions.
“During our search we prioritised the ability to produce fluorescence and accurately replicate colours. Customers often come to us with existing kit made by other manufacturers, which they want to match, so accurately replicating colour is extremely important. And even without existing kit, customers occasionally ask for specific pantone colours. When it comes to cycling kit, colour is often pivotal when considering where to buy from.”

As two flagship dye sublimation printers, both the TS300P-1800 and TS55-1800 are equipped to print on the various technical fabrics that are needed for cycling attire and faithfully reproduce colours to meet customer expectations.

Source:

Mimaki EMEA

24.03.2023

adidas: FY Results of 2022 and Outlook for 2023

Major developments FY 2022

  • Currency-neutral revenues up 1% reflecting growth in all markets except Greater China
  • Double-digit increases in North America and Latin America, EMEA up high single digits
  • Gross margin declines to 47.3% due to strong increase in supply chain costs and discounting  
  • Operating profit at € 669 million, including one-off costs of € 312 million
  • Operating margin decreases to 3.0%  
  • Net income (continuing operations) of € 254 million includes € 350 million one-off costs
  • Executive and Supervisory Boards propose dividend of € 0.70 per share

Major developments Q4 2022

Major developments FY 2022

  • Currency-neutral revenues up 1% reflecting growth in all markets except Greater China
  • Double-digit increases in North America and Latin America, EMEA up high single digits
  • Gross margin declines to 47.3% due to strong increase in supply chain costs and discounting  
  • Operating profit at € 669 million, including one-off costs of € 312 million
  • Operating margin decreases to 3.0%  
  • Net income (continuing operations) of € 254 million includes € 350 million one-off costs
  • Executive and Supervisory Boards propose dividend of € 0.70 per share

Major developments Q4 2022

  • Currency-neutral revenues decline 1% impacted by termination of Yeezy partnership
  • Gross margin at 39.1% reflecting increased supply chain costs and higher discounting
  • Operating loss of € 724 million
  • Net loss from continuing operations of € 482 million

Outlook for 2023
Underlying operating profit expected to be around break-even level

In 2023, adidas expects currency-neutral revenues to decline at a high-single-digit rate as macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in Europe and North America as well as uncertainty around the recovery in Greater China continue to exist. The company’s revenue development will also be impacted by the initiatives to significantly reduce high inventory levels. In addition, while the company continues to review future options for the utilization of its Yeezy inventory, the guidance already reflects the revenue loss of around € 1.2 billion from potentially not selling the existing stock. Accounting for the corresponding negative operating profit impact of around € 500 million, the company’s underlying operating profit is projected to be around the break-even level in 2023.

Reported operating loss of € 700 million projected
Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the potential write-off of the existing Yeezy inventory and would lower the company’s operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024. If all these effects were to materialize, the company expects to report an operating loss of € 700 million in 2023.

Source:

adidas AG

08.03.2023

adidas announces changes to its Executive Board

The Supervisory Board of adidas AG has extended the appointment of Harm Ohlmeyer as Chief Financial Officer of the company by another three years until the beginning of 2028. Harm Ohlmeyer has been member of the Executive Board of adidas AG since March 2017 and the company’s CFO since May 2017.

At the same time, the Supervisory Board appointed Arthur Hoeld as Executive Board member, responsible for Global Sales, as of April 1, 2023. Hoeld has been with adidas for 25 years, most recently as Managing Director of the company’s EMEA region since 2018. He will succeed Roland Auschel, who has decided to step down from his role, pass on the baton and leave the company after 33 years with adidas, including ten years as an Executive Board member.    

The Supervisory Board of adidas AG has extended the appointment of Harm Ohlmeyer as Chief Financial Officer of the company by another three years until the beginning of 2028. Harm Ohlmeyer has been member of the Executive Board of adidas AG since March 2017 and the company’s CFO since May 2017.

At the same time, the Supervisory Board appointed Arthur Hoeld as Executive Board member, responsible for Global Sales, as of April 1, 2023. Hoeld has been with adidas for 25 years, most recently as Managing Director of the company’s EMEA region since 2018. He will succeed Roland Auschel, who has decided to step down from his role, pass on the baton and leave the company after 33 years with adidas, including ten years as an Executive Board member.    

Furthermore, Brian Grevy, Executive Board member of adidas AG, responsible for Global Brands, has informed adidas AG’s Supervisory Board that he will step down from the Executive Board and leave the company. In mutual agreement with Brian Grevy, the Supervisory Board approved the termination of his appointment as an Executive Board member as of March 31, 2023. adidas CEO Bjørn Gulden will assume responsibility for Global Brands. In this role, Gulden will lead adidas product and marketing activities, which will enable the required fast decision-making across all business units and departments.

Thomas Rabe thanked Brian Grevy for his many important contributions during his years of service with the company. Grevy initially joined adidas in 1998 and held leadership positions of increasing responsibility for adidas on a local, regional and global level before leaving the company in 2016. At the beginning of 2020, Brian Grevy returned to adidas as the company’s Executive Board member for Global Brands.

As of April 1, 2023, the company’s new Executive Board will consist of Bjørn Gulden (Chief Executive Officer and Global Brands), Arthur Hoeld (Global Sales), Harm Ohlmeyer (Chief Financial Officer), Amanda Rajkumar (Global Human Resources, People and Culture) and Martin Shankland (Global Operations).

More information:
adidas executive board
Source:

adidas AG

(c) Adient
As a symbol for a sustainable cooperation, Michel Berthelin (Executive Vice President EMEA, 2nd from left) and Henrik Henriksson (CEO H2 Green Steel, 1st from right) planted a ginkgo tree together with their teams in front of the Adient EMEA headquarters in Burscheid, Germany.
01.09.2022

Adient: Cooperation with H2 Green Steel to reduce carbon footprint

Adient, a supplier of seating systems for the automotive industry, has entered into a cooperation with Swedish steelmaker H2 Green Steel (H2GS) to reduce the carbon footprint in its value chain.
 
On 1st September Michel Berthelin, Executive Vice President Adient EMEA, and Henrik Henriksson, CEO of H2 Green Steel, have mutually signed an agreement to supply fossil-free steel with low carbon footprint from 2026 on and subsequently use it in Adient's metal products.

Adient, a supplier of seating systems for the automotive industry, has entered into a cooperation with Swedish steelmaker H2 Green Steel (H2GS) to reduce the carbon footprint in its value chain.
 
On 1st September Michel Berthelin, Executive Vice President Adient EMEA, and Henrik Henriksson, CEO of H2 Green Steel, have mutually signed an agreement to supply fossil-free steel with low carbon footprint from 2026 on and subsequently use it in Adient's metal products.

Michel Berthelin explains the background to the cooperation: “As a company, we are committed to the Science Based Targets Initiative, a collaboration between leading global institutions to set a science-based climate target. We also support the Carbon Disclosure Project, which helps companies and cities to understand and disclose their environmental impacts. The decision to shift parts of the steel volume sourced for our production to a steel with low carbon footprint is part of our sustainability strategy. It is our goal to reduce emissions at our production sites that are caused directly by our own sources or indirectly by our energy suppliers by 75% by 2030. In parallel, we aim to reduce emissions along our supply chains by 35% over the same period. In doing so, Adient actively fosters the industry's transformation towards a more responsible use of natural resources.”

Steel from H2 Green Steel is produced with up to 95% less CO2 emissions compared to conventional steel production. The company achieves this by replacing coal with green hydrogen in production and by the use of electricity from non-fossil sources. In this way, mainly water and heat are produced as waste products.

Source:

Adient

04.08.2022

adidas with strong growth in Western markets in Q2

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected.

  • Currency-neutral sales up 4%, despite more than € 300 million negative impact from macroeconomic constraints
  • Markets representing more than 85% of the business grow 14% overall
  • Gross margin down 1.5pp to 50.3% reflecting significantly higher supply chain costs
  • Operating profit reaches € 392 million
  • Net income from continuing operations amounts to € 360 million
  • FY 2022 outlook reflects double-digit growth during the second half of the year

“Our Western markets continued to show strong momentum in the second quarter amid heightened macroeconomic uncertainty. With Asia-Pacific returning to growth, markets combined representing more than 85% of our business grew at a double-digit rate,” said adidas CEO Kasper Rorsted. “With sports back at center stage this summer, revenues in our strategic growth categories Football, Running and Outdoor all increased by double digits. However, the macroeconomic environment, particularly in China, remains challenging. The recovery in this market is – due to continued covid-19-related restrictions – slower than expected. And we have to take into account a potential slowdown in consumer spending in all other markets for the remainder of the year.”

Currency-neutral revenues increase 4% despite macroeconomic constraints
In the second quarter, currency-neutral revenues increased 4% as adidas continued to see strong momentum in Western markets. This growth was achieved despite continued challenges on both supply and demand. Supply chain constraints as a result of last year’s lockdowns in Vietnam reduced top-line growth by around € 200 million in Q2 2022. In addition, the company’s decision to suspend its operations in Russia reduced revenues by more than € 100 million during the quarter. Continued covid-19-related lockdowns in Greater China also weighed on the top-line development in Q2. From a channel perspective, the top-line increase was to a similar extent driven by the company’s own direct-to-consumer (DTC) activities as well as increases in wholesale. Within DTC, e-commerce, which now represents more than 20% of the company’s total business, showed double-digit growth reflecting strong product sell-through. From a category perspective, revenue development was strongest in the company’s strategic growth categories Football, Running and Outdoor, which all grew at strong double-digit rates. In euro terms, revenues grew 10% to € 5.596 billion in the second quarter (2021: € 5.077 billion).

Strong demand in Western markets
Revenue growth in the second quarter was driven by Western markets despite last year’s lockdowns in Vietnam still reducing sales, particularly in EMEA and North America, by
€ 200 million in total. In addition, the top-line development in EMEA was also impacted by the loss of revenue in Russia/CIS of more than € 100 million. Nevertheless, currency-neutral sales grew 7% in the region. Revenues in North America increased 21% during the quarter driven by growth of more than 20% in both DTC and wholesale. Revenues in Latin America increased 37%, while Asia-Pacific returned to growth. Currency-neutral revenues increased 3% in this market despite still being impacted by limited tourism activity in the region. In contrast, the company continued to face a challenging market environment in Greater China, mainly related to the continued broad-based covid-19-related restrictions. As a result, currency-neutral revenues in the market declined 35% during the three-months period, in line with previous expectations. Excluding Greater China, currency-neutral revenues in the company’s other markets combined grew 14% in Q2.

Operating profit of € 392 million reflects operating margin of 7.0%
The company’s gross margin declined 1.5 percentage points to 50.3% (2021: 51.8%). Significantly higher supply chain costs and a less favorable market mix due to the significant sales decline in Greater China weighed on the gross margin development. This could only be partly offset by a higher share of full price sales, first price increases and the benefits from currency fluctuations. Other operating expenses were up 19% to € 2.501 billion (2021: € 2.107 billion). As a percentage of sales, other operating expenses increased 3.2 percentage points to 44.7% (2021: 41.5%). Marketing and point-of-sale expenses grew 8% to € 663 million (2021: € 616 million). The company continued to prioritize investments into the launch of new products such as adidas’ new Sportswear collection, the next iteration of its successful Supernova running franchise and first drops related to the Gucci collaboration as well as campaigns around major events like ‘Run for the Oceans.’ As a percentage of sales, marketing and point-of-sale expenses were down 0.3 percentage points to 11.8% (2021: 12.1%). Operating overhead expenses increased by 23% to a level of € 1.838 billion (2021:
€ 1.492 billion). This increase was driven by adidas’ continuous investments into DTC, its digital capabilities and the company’s logistics infrastructure as well as by unfavorable currency fluctuations. As a percentage of sales, operating overhead expenses increased 3.5 percentage points to 32.8% (2021: 29.4%). The company’s operating profit reached a level of € 392 million (2021: € 543 million), resulting in an operating margin of 7.0% (2021: 10.7%).

Net income from continuing operations reaches € 360 million
The company’s net income from continuing operations slightly declined to € 360 million (2021: € 387 million). This result was supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision. Consequently, basic EPS from continuing operations reached € 1.88 (2021: € 1.93) during the quarter.

Currency-neutral revenues on prior year level in the first half of 2022
In the first half of 2022, currency-neutral revenues were flat versus the prior year period. In euro terms, revenues grew 5% to € 10.897 billion in the first six months of 2022 (2021:
€ 10.345 billion). The company’s gross margin declined 1.7 percentage points to 50.1% (2021: 51.8%) during the first half of the year. While price increases as well as positive exchange rate effects benefited the gross margin, these developments were more than offset by the less favorable market mix and significantly higher supply chain costs. Other operating expenses increased to € 4.759 billion (2021: € 4.154 billion) in the first half of the year and were up 3.5 percentage points to 43.7% (2021: 40.2%) as a percentage of sales. adidas generated an operating profit of € 828 million (2021: € 1.248 billion) during the first six months of the year, resulting in an operating margin of 7.6% (2021: 12.1%). Net income from continuing operations reached € 671 million, reflecting a decline of € 219 million compared to the prior year level (2021: € 890 million). Accordingly, basic earnings per share from continuing operations declined to € 3.47 (2021: € 4.52).

Average operating working capital as a percentage of sales slightly decreases
Inventories increased 35% to € 5.483 billion (2021: € 4.054 billion) at June 30, 2022 in anticipation of strong revenue growth during the second half of the year. Longer lead times as well as the challenging market environment in Greater China also contributed to the increase. On a currency-neutral basis, inventories were up 28%. Operating working capital increased 23% to € 5.191 billion (2021: € 4.213 billion). On a currency-neutral basis, operating working capital was up 14%. Average operating working capital as a percentage of sales decreased 0.4 percentage points to 21.0% (2021: 21.4%), reflecting an overproportional increase in accounts payable due to higher sourcing volumes and product costs.

Adjusted net borrowings at € 5.301 billion
Adjusted net borrowings amounted to € 5.301 billion at June 30, 2022, representing a year-over-year increase of € 2.155 billion (June 30, 2021: € 3.146 billion). This development was mainly due to the significant decrease in cash and cash equivalents.

FY 2022 outlook reflects double-digit growth during the second half of the year
On July 26, adidas adjusted its guidance for FY 2022 due to the slower-than-expected recovery in Greater China since the start of the third quarter resulting from continued widespread covid-19-related restrictions. 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% to 13% range), reflecting a double-digit decline in Greater China (previously: significant decline). While 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 market other than Greater China, the adjusted guidance also accounts for a potential slowdown of consumer spending in those markets during the second half of the year as a result of the more challenging macroeconomic conditions. Therefore, growth in EMEA is now expected to be in the low teens (previously: mid-teens growth), while revenues in Asia-Pacific are projected to grow at a high-single-digit rate (previously: mid-teens growth). Despite the more conservative view on the development of consumer spending in the second half of the year, adidas has increased its forecasts for North America and Latin America reflecting the strong momentum the brand is enjoying in these markets. In North America, currency-neutral revenues are now expected to increase in the high teens. Sales in Latin America are projected to grow between 30% and 40% (both previously: mid- to high-teens growth).   

Due to the less favorable market mix and the impacts from initiatives to clear excess inventories in Greater China until the end of the year, gross margin is now expected to reach a level of around 49.0% (previously: around 50.7%) in 2022. Consequently, the company’s operating margin is now forecast to be around 7.0% (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 to € 1.9 billion range).

More information:
adidas financial year 2022
Source:

adidas

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

05.05.2022

adidas und Foot Locker, Inc. announce partnership for sports community and sneaker culture

adidas AG and Foot Locker, Inc. announced a new and enhanced partnership built around product innovation, elevated experiences, and deeper consumer connectivity. This enhanced relationship will establish Foot Locker as the lead partner for adidas in the basketball category, accelerate energy and hype launches, as well as include the development and expansion of key franchises across women’s, kids, and apparel. Including all Foot Locker banners in North America, EMEA, and Asia-Pacific, the new strategic partnership will target over $2 billion in retail sales by 2025, nearly tripling levels from 2021. In 2022, adidas expects to generate incremental revenues of up to €100 million as a result of the new partnership.  

adidas AG and Foot Locker, Inc. announced a new and enhanced partnership built around product innovation, elevated experiences, and deeper consumer connectivity. This enhanced relationship will establish Foot Locker as the lead partner for adidas in the basketball category, accelerate energy and hype launches, as well as include the development and expansion of key franchises across women’s, kids, and apparel. Including all Foot Locker banners in North America, EMEA, and Asia-Pacific, the new strategic partnership will target over $2 billion in retail sales by 2025, nearly tripling levels from 2021. In 2022, adidas expects to generate incremental revenues of up to €100 million as a result of the new partnership.  

Foot Locker will lead adidas' basketball offering, led by Fear of God founder and designer Jerry Lorenzo, spanning the lifestyle and performance categories, and develop exclusive positions in both areas. In addition, the collaboration will focus on key Originals franchises including NMD, Superstar and Stan Smith, and on the adidas influencer partnership portfolio. It will also include a prominent role for Foot Locker in the launch of adidas’ new Sportswear product division targeting the lifestyle consumer.

To execute the new plan, adidas will provide Foot Locker with a dedicated team to deliver an elevated consumer experience both in stores and online to help create demand and elevate the marketplace. This will involve partnership on product development, exclusive Foot Locker positioning, increased product allocations, shared marketing spend, and an elevated premium presence across Foot Locker’s entire portfolio of banners with a special focus on key cities and communities that the companies jointly serve. Lastly, to provide consumers with a seamless consumer journey, on and offline, both partners will increase their digital focus and accelerate the rollout of the adidas partner program at Foot Locker.

Source:

adidas AG

20.12.2021

Freudenberg Performance Materials increases prices for nonwoven performance materials

Freudenberg Performance Materials announces a general upward adjustment of their prices for nonwoven performance materials for flooring and filtration applications in EMEA. This revision, effective January 1, 2022, has become necessary because of sustained and unprecedented surge in cost for raw materials, packaging, freight, consumables and energy combined with disruptions in their inbound supply chain.

Prices across all categories have by far outpaced their expectations and are forecasted to remain on high levels throughout 2022. This historic price trend has placed significant pressure on Freudenberg Performance Materials, and they understand in a similar way on their customers.

At this stage their business can no longer absorb the effects of such high price levels. Freudenberg Performance Materials will therefore adjust our prices for all their Colback® and Lutradur branded nonwoven products for flooring and filtration application by double-digit increases depending on product types.

Freudenberg Performance Materials announces a general upward adjustment of their prices for nonwoven performance materials for flooring and filtration applications in EMEA. This revision, effective January 1, 2022, has become necessary because of sustained and unprecedented surge in cost for raw materials, packaging, freight, consumables and energy combined with disruptions in their inbound supply chain.

Prices across all categories have by far outpaced their expectations and are forecasted to remain on high levels throughout 2022. This historic price trend has placed significant pressure on Freudenberg Performance Materials, and they understand in a similar way on their customers.

At this stage their business can no longer absorb the effects of such high price levels. Freudenberg Performance Materials will therefore adjust our prices for all their Colback® and Lutradur branded nonwoven products for flooring and filtration application by double-digit increases depending on product types.

Freudenberg Performance Materials will continue to work on improving productivity to offset inflationary pressure to keep attractive price levels and to avoid further price adjustments. They will continue to monitor the market development and in case of sustained and unexpected downward trends they will adjust our prices accordingly.

Source:

Freudenberg Performance Materials Holding SE & Co. KG

10.11.2021

adidas' performance in a challenging environment during Q3 2021

  • Currency-neutral sales up 3%, despite € 600 million drag from external factors*
  • Strong top-line momentum in EMEA, North America and Latin America with double-digit
  • increase across these regions*
  • DTC business growing at double-digit rate in EMEA, North America and Latin America*
  • Gross margin at 50.1% as significantly higher full-price sales partly compensate
  • negative currency impact and higher supply chain costs*
  • Operating margin at 11.7% despite strong double-digit increase in marketing spend*
  • Net income from continuing operations reaches € 479 million*
  • Inventories down 23% currency-neutral*
  • 2021 top- and bottom-line outlook confirmed*

“adidas performed well in an environment characterized by severe challenges on both the supply and demand side,” said adidas CEO Kasper Rorsted.

  • Currency-neutral sales up 3%, despite € 600 million drag from external factors*
  • Strong top-line momentum in EMEA, North America and Latin America with double-digit
  • increase across these regions*
  • DTC business growing at double-digit rate in EMEA, North America and Latin America*
  • Gross margin at 50.1% as significantly higher full-price sales partly compensate
  • negative currency impact and higher supply chain costs*
  • Operating margin at 11.7% despite strong double-digit increase in marketing spend*
  • Net income from continuing operations reaches € 479 million*
  • Inventories down 23% currency-neutral*
  • 2021 top- and bottom-line outlook confirmed*

“adidas performed well in an environment characterized by severe challenges on both the supply and demand side,” said adidas CEO Kasper Rorsted. “As a consequence of successful product launches we are experiencing strong top-line momentum in all markets that operate without major disruption. Double-digit growth in our direct-to-consumer businesses in EMEA, North America and Latin America is a testament to the strong consumer demand for our products. At the same time, we are navigating through the current world-wide supply chain constraints. Despite all challenges, we are on track to delivering a successful first year within our new strategic cycle.”
 

*See attached document for more information.

More information:
adidas Covid-19
Source:

adidas AG

(c) Montalvo
Mike Cunningham, Europe Director of Sales and Service
28.10.2021

Montalvo names new European Director of Sales and Service

Montalvo, international specialist in web tension control, has hired Mr. Mike Cunningham as their new Europe Director of Sales and Service. Mr. Cunningham will oversee Montalvo’s European sales and service efforts, implementing Montalvo’s regional strategy, increasing and developing the sales service, and support for Montalvo across EMEA. Mr. Cunningham’s primary responsibilities include: developing and coordinating partnerships, forming new alliances with key players while bringing new innovations into the market, and leading both Montalvo’s direct sales, technical, and customer service teams, as well as their resellers and distributors.

Montalvo Chief Executive Officer Bryon Williams said, “This is very exciting for all of us here at Montalvo, as we are expanding our European foothold and market. Mike brings an exciting energy to the team and the market, with a unique perspective and customer focus to which our customers are already responding well. In addition, Mike is bringing new ideas and innovations to our growing business while expanding our reach and responsiveness in the EMEA region. We look forward to what the future holds.”

Montalvo, international specialist in web tension control, has hired Mr. Mike Cunningham as their new Europe Director of Sales and Service. Mr. Cunningham will oversee Montalvo’s European sales and service efforts, implementing Montalvo’s regional strategy, increasing and developing the sales service, and support for Montalvo across EMEA. Mr. Cunningham’s primary responsibilities include: developing and coordinating partnerships, forming new alliances with key players while bringing new innovations into the market, and leading both Montalvo’s direct sales, technical, and customer service teams, as well as their resellers and distributors.

Montalvo Chief Executive Officer Bryon Williams said, “This is very exciting for all of us here at Montalvo, as we are expanding our European foothold and market. Mike brings an exciting energy to the team and the market, with a unique perspective and customer focus to which our customers are already responding well. In addition, Mike is bringing new ideas and innovations to our growing business while expanding our reach and responsiveness in the EMEA region. We look forward to what the future holds.”

Mr. Cunningham has a background in product design and engineering and complex bespoke industrial solutions with a bias towards computing and networking solutions in the manufacturing industry. Mr. Cunningham holds an engineering degree from the prestigious Brunel University School in London.

Source:

The Montalvo Corporation

27.09.2021

Baldwin realigns sales teams for customers’ needs

In a move to optimize interactions and simplify customer access to one of the printing industry’s largest portfolios of process-improvement and consumables technologies, Baldwin Technology Company Inc. is excited to announce changes across its print and packaging sales teams for Europe, the Middle East, Africa and Russia, as well as the Americas, effective October 1. After this realignment, customers will benefit from having a single point of contact for all of Baldwin’s product lines.

“Effective October 1, our sales teams in EMEAR and the Americas will be realigned to cover smaller regional geographies, and our regional teams will have access to the full Baldwin portfolio of equipment, consumables and service products, as well as industry product expertise, powered by our new Industry 4.0 AMP IoT (Internet of Things) data-aggregation and process-monitoring software platform,” said Peter Hultberg, Baldwin’s Chief Commercial Officer. “This means our customers will have a single sales point of contact for all products, while simplifying their access to the technical experts throughout our business.”

In a move to optimize interactions and simplify customer access to one of the printing industry’s largest portfolios of process-improvement and consumables technologies, Baldwin Technology Company Inc. is excited to announce changes across its print and packaging sales teams for Europe, the Middle East, Africa and Russia, as well as the Americas, effective October 1. After this realignment, customers will benefit from having a single point of contact for all of Baldwin’s product lines.

“Effective October 1, our sales teams in EMEAR and the Americas will be realigned to cover smaller regional geographies, and our regional teams will have access to the full Baldwin portfolio of equipment, consumables and service products, as well as industry product expertise, powered by our new Industry 4.0 AMP IoT (Internet of Things) data-aggregation and process-monitoring software platform,” said Peter Hultberg, Baldwin’s Chief Commercial Officer. “This means our customers will have a single sales point of contact for all products, while simplifying their access to the technical experts throughout our business.”

Source:

Baldwin Technology Company Inc.

Mimaki supports Printers Worldwide in Global Innovation Days Event (c) EMEA, Mimaki Europe B.V
17.06.2021

Mimaki supports Printers Worldwide in Global Innovation Days Event

Mimaki held their global event Innovation Days (2-4 June 2021) to great success. The event brought together printers, journalists and experts from Mimaki Japan, USA and Europe, to nurture innovation in the sign graphics, industrial, textile and 3D markets and drive success within the industry. The global event also introduced the market to Mimaki’s recent product releases, the JFX550, JFX600 and SUJV-160.

In a week of webinars, workshops, demonstrations, and networking events, over 1,300 attendees from all across the world logged in to participate, with the demonstration of UJV100 and JV100 printers, 3D printing workshop and car wrap workshop being the most popular events. As a first of its kind for Mimaki, visitors were able to speak with regional Mimaki representatives, gaining greater insight into the global printing industry as it recovers from the COVID-19 pandemic.

Mimaki held their global event Innovation Days (2-4 June 2021) to great success. The event brought together printers, journalists and experts from Mimaki Japan, USA and Europe, to nurture innovation in the sign graphics, industrial, textile and 3D markets and drive success within the industry. The global event also introduced the market to Mimaki’s recent product releases, the JFX550, JFX600 and SUJV-160.

In a week of webinars, workshops, demonstrations, and networking events, over 1,300 attendees from all across the world logged in to participate, with the demonstration of UJV100 and JV100 printers, 3D printing workshop and car wrap workshop being the most popular events. As a first of its kind for Mimaki, visitors were able to speak with regional Mimaki representatives, gaining greater insight into the global printing industry as it recovers from the COVID-19 pandemic.

A stand-out attraction of the event was the recently released 100 Series, which is priced affordably to allow printers entry into different markets, as many look to expand their portfolio in these uncertain times. The new JFX600-2513 and JFX550-2513, which debuted a few weeks prior at virtual drupa, similarly are higher end but still affordable printers, when compared to other large format UV flatbed machines in its class. 3D full colour print technology also featured heavily in the event, as Mimaki explored the exciting propositions it opens up in different markets and how the brand continues to extend the reach and accessibility of cutting-edge 3D technologies with its upcoming 3DUJ-2207 printer.

Mr. Kazuaki Ikeda, President of Mimaki Engineering commented, “I’d like to extend my thanks to everyone who joined us during this exciting new virtual event. During the pandemic, carrying on innovating has been central to Mimaki’s objectives, with eight new products having been released since October, and even more scheduled to come out over the course of this year. I hope that we can soon all meet at in-person events, once it’s safe to do so, but until then I’m excited to see the results of the continued collaboration and innovation of print industry that we saw in our Innovation Days event.”

Source:

EMEA, Mimaki Europe B.V

Mimaki appoints Mark Sollman as Product Manager EMEA (c) Mimaki Europe BV
Mark Sollman, Product Manager EMEA
21.05.2021

Mimaki appoints Mark Sollman as Product Manager EMEA

Mimaki, a manufacturer of inkjet printers and cutting systems, has today announced that long-standing employee, Mark Sollman, will be appointed to the role of Product Manager, EMEA on the 1st July 2021. Sollman has been with Mimaki for over 15 years and as such, his extensive knowledge of the business and its diverse product portfolio makes him the clear choice for this esteemed management position.

Sollman will be succeeding Bert Benckhuysen. After four years with Mimaki, Benckhuysen has decided to take on a new challenge as Business Development Director at Colourama. A valued Mimaki customer, Colourama is a company Benckhuysen knows well, having also previously been employed as Production Manager at this thriving Polish textile printer.

Mimaki, a manufacturer of inkjet printers and cutting systems, has today announced that long-standing employee, Mark Sollman, will be appointed to the role of Product Manager, EMEA on the 1st July 2021. Sollman has been with Mimaki for over 15 years and as such, his extensive knowledge of the business and its diverse product portfolio makes him the clear choice for this esteemed management position.

Sollman will be succeeding Bert Benckhuysen. After four years with Mimaki, Benckhuysen has decided to take on a new challenge as Business Development Director at Colourama. A valued Mimaki customer, Colourama is a company Benckhuysen knows well, having also previously been employed as Production Manager at this thriving Polish textile printer.

Source:

Mimaki Europe B.V / Bespoke