Egypt’s wealthiest man Nassef Sawiris has recorded a $190-million decline in his net worth in the past seven days, as shares in Adidas slumped by five percent after the German sportswear maker cut earnings forecasts due to supply-chain worries and the challenging market in China.
Research conducted by Billionaires.Africa revealed that since Nov. 16, exactly one week ago, Sawiris’ net worth has dropped from $7.14 billion to $6.95 billion as of the time of writing.
This translates to a $170-million net-worth loss in the past week for the billionaire, who ranks as Egypt’s wealthiest man through his holdings in Adidas, the largest sportswear and sports equipment manufacturer in Europe.
The recent decline in his stake can be linked to the slump in Adidas’ shares, as investors sell off their holdings in the sportswear maker after it reported a €600-million ($696 million) cut back in quarterly revenue. The decrease in revenue is primarily the result of the increasingly challenging market in China, COVID-19-related lockdowns throughout Asia and supply-chain disruptions.
These factors caused the share price of the sportswear maker to decline by more than five percent in just a week from €286.25 ($322.36) on Nov. 16 to €271.85 ($306.15) as of the time of writing.
Analysts believe Adidas’ financial performance will continue to struggle until current supply chain and pandemic-related difficulties subside. As a result, its share price will likely continue to decline.
Despite the drop in Sawiris’ net worth, the billionaire has seen his wealth increase by more than $350 million since the year began due to the net-worth gains he recorded toward the end of March and in the first week of July.
The rise in his net worth this year lags behind the wealth gains of other African billionaires such as South African magnates Johann Rupert and Nicky Oppenheimer and Africa’s richest man, Nigerian billionaire Aliko Dangote, who have all seen their wealth increase by over $1 billion in 2021.
