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Following a $7-million wealth increase in July, Egypt’s richest man Nassef Sawiris saw his net worth plummet by $130 million in August due to a reduction in the market value of his shareholding in German multinational sportswear company Adidas.
Sawiris, the youngest of three sons born to the late Egyptian industrial billionaire Onsi Sawiris, is a renowned businessman and one of Africa’s wealthiest people.
The majority of his fortune stems from his 38.8-percent stake in the Netherlands-based OCI N.V. and his six-percent shareholding in Adidas, which is valued at $2.1 billion.
According to data gathered from the Bloomberg Billionaires Index, Sawiris had a net worth of $6.92 billion at the start of business on Aug. 1, but his net worth dropped to $6.79 billion on Aug. 31, wiping out the $7 million that he gained the previous month.
The $130-million decline in his net worth was spurred by the performance of his six-percent stake in Adidas, which fell from $2.41 billion to $2.1 billion in August and outweighed the surge in the value of his 38.8-percent stake in OCI N.V.
Throughout August, European investors trimmed down their shareholdings in Adidas, leading the company’s stock to fall by more than 10 percent amid fears of a European economic downturn as inflation hit record highs due to rising energy and food prices.
Adidas’ earnings missed analysts’ forecasts and revenue fell short of expectations in the second quarter of 2022, as the company reported earnings per share of €1.8 ($1.798) on revenue of €5.6 billion ($5.59 billion), while analysts expected earnings per share of €1.84 ($1.83) on revenue of €5.61 billion ($5.6 billion).
Adidas’ shares have fallen by more than 44 percent this year.
Despite the continuing reduction in the market value of Adidas, a continued increase in Sawiris’ investment in OCI N.V. has brought his year-to-date net worth gains well past $90 million.
