Falling down: Adidas profits plunge to €1.5m
THE official kit supplier to the Munster rugby team, Adidas, last year sustained a collapse in its pre-tax profits in its Irish operations, new accounts show. They indicate that Adidas Ireland Ltd's pre-tax profits suffered a 85pc drop from €10.4m to €1.5m
The sharp fall in pre-tax profits occurred after the company recorded a 3pc drop in sales from €52.7m to €34.6m to the end of December last. The directors state that "the results for the year were satisfactory in the face of extremely difficult trading conditions".
Earlier this year, Adidas extended its deal with Munster as the team's official kit supplier to 2014.
However, the German-owned subsidiary has decided to end its 13-year association with the Dublin city marathon, which attracted record numbers on Monday.
The Irish arm of the international sports giant would have benefited last year from sales of Steven Gerrard (Liverpool) and Didier Drogba (Chelsea) replica shirts.
Along with sponsoring Liverpool and Chelsea, Adidas also produces the jerseys for the world's richest club and nine-time European Cup winners, Real Madrid.
Adidas also sponsors the All-Blacks and its revenues last year would have received a boost from its sponsorship deal with the British and Irish Lions through the South African test series.