ADS Adidas AG

   By Pietro Lombardi 
 

Adidas AG raised its dividend after a strong increase in fourth-quarter net profit helped boost results for the year, but it warned that its 2020 guidance may be affected by the coronavirus.

Net profit for the quarter rose 54% to 167 million euros ($189.5 million), the German sporting-goods company said Wednesday.

Revenue grew almost 12% to EUR5.84 billion for the quarter.

Profit and revenue also increased for the full year, by 16% and 7.9% respectively.

Growth across regions boosted the top line last year, the company said, with operating margins also increasing.

However, the coronavirus epidemic in China has significantly affected the company's business, it said, in particular since Lunar New Year. The coronavirus may also affect the guidance for this year.

"We cannot yet reliably quantify the magnitude of the overall financial impact in 2020," Chief Executive Kasper Rorsted said.

For this year, the company expects revenue growth of between 6% and 8% at constant currency. Operating margin is seen increasing to between 11.5% and 11.8%, while the company targets a growth of 10% to 13% in net income from continuing operations. The outlook doesn't include any impact from the coronavirus.

Adidas proposed a 15% increase in the dividend to EUR3.85 a share.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

March 11, 2020 02:56 ET (06:56 GMT)

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