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Egyptian billionaire Nassef Sawiris has now lost more than $566 million since the start of 2022 as the value of his most valuable investment has plummeted in reaction to the predicted impact of Russia’s military activities in Ukraine, along with the impact of interruptions from Vietnam.
Despite witnessing his net worth fall below $6 billion for the first time since 2020, Sawiris remains Egypt’s richest man, with a net worth of $5.93 billion, ranking him 418th in the world.
Research conducted by Billionaires.Africa revealed that since the start of 2022, Sawiris’ net worth has dropped from $6.5 billion on Jan. 1 to $5.93 billion as of the time of writing, representing a year-to-date wealth loss of 8.7 percent, or $566 million for the billionaire businessman.
The recent decline in his net worth can be attributed to a drop in the market value of his 3.22-percent stake in German sportswear giant Adidas, as shares in the company fell in response to a profit warning that revealed that sales may be impacted by the COVID-19 disruptions in Vietnam, as well as its decision to close operations in Russia.
The sportswear manufacturer operates about 500 stores in Russia, accounting for one-quarter of its total store count. It disclosed that the Russia-Ukraine crisis posed a risk to sales of up to €250 million ($272.8 million), or about half its revenue in the region in 2021, roughly one percent of total group sales.
Despite not experiencing a larger impact on consumer confidence from the Russia-Ukraine war, Adidas shares have lost more than six percent of their value since the start of the crisis, as investors respond to the group’s decision to liquidate stores in Russia.
Since the start of 2022, the company’s shares have fallen more than 21 percent, from €259.1 ($282.74) to €204 ($222.61), as investors sold down their positions in the company in response to recent interruptions from Russia and Vietnam.
Adidas has shuttered plants in Vietnam owing to interruption from COVID-19, in addition to its decision to cease operations in Russia.
The sportswear powerhouse anticipates a supply shock, which would reduce first-quarter sales by €600 million ($658 million) before a robust comeback in the second quarter.
