Adidas shares drop on bribery allegations in China

17th Jun 2024 12:17

(Sharecast News) - Shares in Adidas fell sharply on Monday after the German sports apparel and footwear manufacturer said it was investigating allegations of bribery in China.

The Financial Times first reported on Sunday that Adidas was looking into a whistleblower complaint by employees in China that accused senior staff of embezzling "millions of euros" through kickbacks from external suppliers commissioned by the company.

Among the people named in the anonymous letter was a senior manager involved with Adidas's €250m marketing budget for the country.

Adidas said it received the letter on 7 June, and was "takes allegations of possible compliance violations very seriously".

A spokesperson said in a statement that the company is "clearly committed to complying with legal and internal regulations and ethical standards in all markets where we operate".

Adidas generated €3.2bn in sales from the Greater China region in 2023, accounting for 15% of total group revenues.

The stock was down 3.4% at €217.30 by 1312 in Frankfurt.