New Balance UK arm cuts losses as key sponsor deals end
The conclusion of New Balance's high-profile sponsorship deals with football giants Liverpool FC and Celtic FC, helped slash losses at the US sportswear giant's UK arm by more than half during 2021, latest figures seen by BusinessLive show.
The UK division has reported reduced pre-tax losses of £5.9 million for the 2021 fiscal year, compared to a £11.9 million loss in 2020.
However, New Balance's UK turnover increased from £100.8m to £116.3 million in 2021 while its sales in the rest of the world rose from £166.2 million to £297.2 million.
A board statement read: "The reduction in year-on-year loss is largely attributable to the completion of the Liverpool Football Club and Celtic Football Club sponsorships contracts, which concluded part way through 2020.
"The generated loss was driven by increasing logistical costs that impact all industries, in addition to our continual strategic investment in the UK, particularly in both the running and football categories."
It added: "The market remains sensitive to price increases borne out of increased import costs and forecast and foreign currency exposure. We continue to respond to such increases responsible to maintain margin levels, whilst remaining competitive.
"Inflation has been the dark clouds hanging over consumer and retail companies since early 2022.
"Increasing uncertainties arise as a result of higher production costs as well as operational cost pressures, in addition to the generally declining consumer sentiment.
"Demand for the New Balance brand remains high, and inventory management will be crucial to weather the storm."
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