Adidas sees ‘strong’ bottomline improvement in 2023

In 2023, the company expects the non-recurrence of the one-off costs of around EUR 500 million occurred in 2022 to have a positive impact on the net income development in the same magnitude. In addition, in light of the challenging market environment, adidas established a business improvement program to safeguard the company’s profitability in 2023. As part of this program the company has launched several initiatives to mitigate the significant cost increases resulting from the inflationary pressure across the company’s value chain as well as unfavorable currency movements. In total, the program, which will result in one-off costs of around EUR 50 million in the fourth quarter of 2022, is expected to compensate cost headwinds of up to EUR 500 million in 2023. In addition, it is expected to deliver a positive profit contribution of around EUR 200 million next year. The company sees a "strong" bottomline improvement in 2023.