An investigation is on into commercial irregularities at Reebok India
German sports titan Adidas announced its preliminary first quarter figures
on Monday.
It follows the sudden and unexplained departure of two of Adidas India
Replacements
No reason was given for the exit of the Managing Director, Mr Subhidher
Singh Prem, and the Chief Operating Officer, Mr Vishnu Bhagat.
Mr Claus Heckerott, Adidas Vice-President for Finance and Global Sales, was
brought in as Mr Prem's replacement effective immediately, while Mr Frederic
Serrant will take over as Sales Director from May 1.
Irregularities' impact
Adidas said that the irregularities could impact its consolidated results
from previous years to a pre-tax maximum of €125 million, while restructuring
costs associated with changes being brought in by the new management “including
changes to commercial business practices” could lead to an additional one-off
cost of €70 million.
Management has assured its stakeholders that it has, and will continue to
pursue a course of action to protect the Group's interests, which has already
resulted in the appointment of a new local leadership team in India
Q1 revenues up
Due to the sensitivity of the on-going investigation, specific details will
be disclosed as appropriate in due course.
It came as Adidas announced a 14 per cent increase in first quarter
revenues, driven by China , Japan
It raised its target for full year sales growth to 10 per cent, from
five-nine per cent previously.
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