A total of one billion euros: Adidas announces another share buyback

Dhe sporting goods manufacturer Adidas is buying back its own shares for one billion euros this year. After the first 550 million euros share buyback program had been exhausted since the end of September, the second largest sporting goods manufacturer in the world launched a second program on Thursday: From Monday to the end of the year, shares are to be acquired for a further 450 million euros.

“The decision to launch another share buyback program reflects both our strong financial profile and the successful start of the implementation of our ‘Own the Game’ strategy,” explained Chief Financial Officer Harm Ohlmeyer. The majority of the shares are to be withdrawn. As one of the favorites in the Dax, the papers continued their latest attempt at recovery with an increase of 2.80 percent to 270.20 euros. Most recently, however, they had also fallen significantly from the record high of a good 336 euros reached at the beginning of August.

Adidas boss Kasper Rorsted had promised to distribute eight to nine billion euros to shareholders by 2025 through dividends and share buybacks. They will have received almost 1.6 billion euros – including the dividend – in the current year when the buyback program is completed. The majority of the proceeds from the sale of the US brand Reebok, which could bring in more than two billion euros, will be added, said Ohlmeyer.

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The company from Herzogenaurach in Franconia started buying back its own shares after the corona shock in July. In March 2020, Adidas stopped the third tranche of its three billion euro buyback program launched in 2018 after the company threatened to run out of money in the Corona crisis. With the repayment of a billion dollar government loan, share buybacks became possible again.

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