Adidas profit grows and company action hits record

SAO PAULO-The Adidas shares rise 6.2% in today's trading Frankfurt Stock Exchange and the share price of EUR 84.42, the largest since its initial public offering, November 1995, after the company surprised the market with its first-quarter balance sheet.
The German manufacturer of sports materials achieved net profits of 308 million euros from January to March this year, an increase of 6.5% compared to the same period in 2012.
At the same time, the European Group's net revenue fell 1.9 percent to 3.75 billion euros. According to the balance sheet, the demand was lower in Western Europe, which led to a low of 7% in sales in the region, to 1.1 billion euros. In Asia, excluding China, there was also a reduction of 10% to 533 million euros.
Nevertheless, Adidas reported that both the emerging markets of Europe and North and Latin America showed growth, which prevented a larger drop in sales. If the exchange rate effect on sales is disregarded, the level presented in the quarter would be virtually the same as the period in 2012.
The published figures were higher than market projections. Analysts polled by FactSet forecast net profit of 297 million euros, plus a recipe at 3.74 billion euros.
But was assured that the high efficiency in the last line of the balance sheet. The cost of sales fell 6.4%, reaching 1.87 billion euros, bringing the total gross profit in 3% to 1.88 billion euros. Operating expenses, however, were up 1.1%, reaching 1.48 billion euros.
Even so, the operating results of the Adidas was greater in 8.1%, reaching 442 million. The margin on this profit was 10.7% to 11.8% in 12 months.