Reebok International reports strong financial performance in 2024

Reebok International Limited and its subsidiary RILUK IPCO Limited, reported a strong financial performance for the year ended December 31, 2024.

Group profit after taxation increased to 179.9 million dollars, up from 163.6 million dollars in 2023 and revenue increased to 302.4 million dollars. This profit surge was driven by the expansion of the global Reebok business, which benefited from improvements in licensee performance and the addition of new partners. Global Reebok royalty income increased to 302 million dollars, while operating profit rose to 192 million dollars.

Following the acquisition by ABG, the Reebok business model has focused on licensing to regional retail partners, allowing the brand's potential to be realised without the burden of high marketing and overhead costs. The company expects this trend to continue, providing significant cash inflows and reinforcing the strength of the Reebok brand intangible asset.

The company said in a filing with the Companies House that the primary business risks relate to international retail market conditions and the wider economic environment, with movements in global tariff policy emerging as a potential uncertainty. To mitigate credit risk, the licensing strategy adopts a structure of robust guaranteed minimum royalties, often paid in advance, and letters of credit are frequently required. For liquidity, the Group's policy is to manage cash generation from its subsidiary and rely on financial support from its ultimate parent, Authentic Brands Group LLC, which has indicated its intent to continue providing necessary funds.

The Group paid dividends amounting to 256.4 million dollars during the year. Looking ahead, the Group has no plans to curtail any part of the business and expects to continue earning brand licensing revenue, with cash distributions advanced to the ultimate parent to be converted to dividends at a future date.

RILUK IPCO Limited, a company registered in Britain, operates the activities of the Reebok brand from a branch in New York, USA. Reebok International Limited serves as the holding company for RILUK IPCO Limited within the wider group of companies owned by Authentic Brands Group.