Home » Egyptian tycoon Nassef Sawiris gains $478.7 million on back of positive analyst forecasts for Adidas

Egyptian tycoon Nassef Sawiris gains $478.7 million on back of positive analyst forecasts for Adidas

by Omokolade Ajayi

Egypt’s wealthiest person Nassef Sawiris has seen his stake in Adidas AG rise by €406.14 million ($478.71 million) in 87 days.

Investors’ reaction to the company’s Q1 2021 financial results coupled with analysts’ estimates of a 48-percent surge in net sales in Q2 2021 spurred the 87-day-long rise in the company’s share price on the “Deutsche Börse” stock exchange in Frankfurt.

Adidas also launched a new share buyback program on July 1 worth up to €550 million ($653.62 million).

A member of Adidas’ supervisory board since 2016, Sawiris holds a 3.72-percent stake in the Herzogenaurach-based sportswear and sports equipment manufacturer.

Herzogenaurach is a town in Erlangen-Hoechstadt, Germany, known as the home of Adidas, Puma and the car parts manufacturer, Schaeffler Group. 

Adidas is the largest sportswear and sports equipment manufacturer in Europe.

The company recorded a revenue of €19.84 billion ($23.43 billion) in 2020 from the sale of 379 million pairs of footwear, 465 million units of apparel and 100 million units of accessories and gear.

In its consensus earnings estimates for Q2 2021, the company stated that analysts expect its sales to rise by 48 percent to €4.96 billion ($5.86 billion) in Q2 2021.

The news comes as the resumption of large-scale sporting events is expected to drive demand for sportswear and sports equipment. Analysts also revealed that Adidas’ net sales for the year could rise 18 percent from last year to €21.73 billion ($25.66 billion).

Buying interest spurred by expectations of improved performance in 2021 has seen shares in the company increase from €256.85 ($302.74) on April 30 to €312.95 ($368.87) per share as of press time 3:20 PM (UTC), July 26.

The rise in the company’s share price has captured a 22-percent gain for shareholders in 87 days.

Sawiris, who is the executive chairman and a member of the board of OCI N.V., holds 7,239,544 shares in Adidas.

Research conducted by Billionaires.Africa revealed that the market value of his stake has risen from €1.86 billion ($2.19 billion) on April 30 to €2.27 billion ($2.67 billion) as of press time.

This translates to a gain of €406.14 million ($478.71 million) for the billionaire in 87 days.

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