Adidas very satisfied with the results of their activities. “We achieved in the 2nd quarter of record turnover in the amount of 4.4 billion Euro”, – stressed in the letter to shareholders Chairman of the Board Herbert Hainer (Herbert Hainer). In an official statement the largest European manufacturer of sports clothing and shoes indicates double-digit revenue growth in all key regions of the world. Except Russia/CIS.
Adidas: the rate of profit rose, revenue in euros fell
If in North America, China and Western Europe, incomes have grown by about 30 percent, in Russia and other former Soviet countries – only 7 percent. But this is without taking into account changes in exchange rates. If you look at the money that the parent company actually received from its business after the exchange in Euro, the picture will be different.
In euros, revenue in the region where by a large margin the most important market is Russia, fell compared to the 2nd quarter of 2015 by 15.9% to 171 million. And when compared to the same period in 2014, when the exchange rate has not yet collapsed, the fall was approximately 42 percent.
Thus, the Adidas company though continues to earn money in Russia, and by reducing marketing costs and reducing other costs, even increased there rate of return but the value of this market, its share in total turnover and end profit falls. Today, the region accounts for less than 4 percent of revenue. But a few years ago, Herbert Hainer, was confident that the Russian market will become the third most important after the USA and China.
Metro: operating income fell due to exchange rate
For the trading group Metro Russia remains the third most important market after the German and Italian – in any case, judging by the number of operating shopping centers Metro Cash & Carry and Media-Saturn: they are now in Russia, 152. They are still popular among Russians, as evidenced by the notable growth of the ruble turnover in the last quarter. A completely different picture – in euros.
The report for the first nine months of the current fiscal year, Metro Group highlighted that the reduction in revenue of 1.6 percent to 44.3 billion euros occurred mainly because of changes in foreign currency exchange rates, primarily the Russian ruble. Because of his weakness fell and operating profit. “Its decline caused almost exclusively by losses in the currency exchange in the amount of 72 million euros, which are mainly associated with the Russian ruble”, – stated in the investors document.
Volkswagen is waiting for improvement, Rational already waited
The risks associated with exchange rates of different currencies, points in the semi-annual report and Europe’s largest avtostroitel Volkswagen. However, in Russia, according to the document, the main problem for him is still not the weakness of the ruble, and the weakness of the market. This is due, probably, to the fact that the concern has Russia’s own large-scale production where it is, accordingly, carries no foreign currency and ruble costs.
As for sales, after a precipitous reduction of their volumes in the Russian market in the previous two years, sales of the Volkswagen group in Russia in the first half of 2016 due to the ongoing recession, fell again: this time by 6.7 percent to 74 200 units. At the same time, global sales increased by 1.2 per cent to 4 788 354 units. Thus, Russia now has just over 1.5 percent of a sales team.
The assumption that the currency and macroeconomic issues in Russia in the coming weeks in its quarterly and semi-annual reports will indicate other joint stock companies of the stock index DAX. At the same time, there are no signs that large German business was thinking about the large-scale curtailment of its presence on the Russian market. Companies can optimize the structure, reduce costs, freezing their projects and expect the situation to improve.
Firm Rational to wait for him. It is an exchange society from the second tier, who supply kitchen equipment for canteens and restaurants, achieved in the 2nd quarter growth of 9 percent. In Europe, this success in addition to his native German market to a considerable extent ensured the recovery of the Russian market”, – stated in the financial report of the company.
