Sportswear giant Adidas has announced that it has completed the first tranche of its multi-year share buyback programme announced in March 2018.
Between March 22, 2018, and December 4, 2018, Adidas has bought back 5.1 million shares, corresponding to 2.5 percent of the company’s share capital, for a total consideration of 1 billion euros.
Total cash return to shareholders surpasses 1.5 billion euros in 2018, with the average purchase price per share being 196.45 euros.
Adidas plans to buy back its own shares up to 3 billion euros in total until May 2021, with a second tranche expected in January 2019, which it adds will complement its stated policy to pay an annual dividend to shareholders in the range of 30 percent to 50 percent of net income from continuing operations.
Harm Ohlmeyer, Adidas chief financial officer said in a statement: “Our strategy ‘Creating the New’ includes a strong commitment to returning cash to our shareholders, through both dividends and share buybacks. In 2018 we clearly delivered on this promise once again.”
Adidas intends to cancel the majority of the repurchased shares, and a total of 8.8 million treasury shares, which resulted from the current and the previous buyback programme, were cancelled in October, reducing the company’s share count and stock capital correspondingly.