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Herzogenaurach (euro adhoc) - PUMA exceeds annual earnings expectations as it
posts record sales of 3 billion Euros in 2011
2011 Fourth Quarter Highlights
Consolidated sales totaled in excess of EUR 720 million, a currency
increase of 15.8%
Gross profit margin improved to 46.7% despite continuing input price
EBIT rose by over 72% to EUR 48.1 million
Net earnings more than doubled to EUR 33.1 million
Consequently, EPS leapt from EUR 0.93 to EUR 2.21
Long-term sponsorship agreement signed with German football champions
Multi-year sponsorship of Mercedes GP Formula 1 team announced
2011 Full Year Highlights
PUMA delivers on its EUR 3 billion sales target for 2011
Gross profit margin continues to be in the upper echelons of the industry
EBIT rose by 8.6% to EUR 333.2 million
Net earnings rose by nearly 14% to just over EUR 230 million
EPS increased from EUR 13.45 to EUR 15.36
Outlook for the Financial Year 2012
Management is targeting high single digit sales growth in 2012.
PUMA enters the second year of its "Back on the Attack" strategy,
continuing with the execution of selective investments into the growth
Management foresees an improvement of net earnings in mid single-digits
for the full year.
"I am pleased to see that our sales and earnings performance in the financial
year 2011 bear testament to the fact that PUMA is "Back on The Attack", and
that our 5-year growth plan is already having a positive impact", said Franz
Koch, CEO of PUMA SE. "We managed to surpass our sales target this year,
eclipsing EUR 3 billion in sales for the first time, while PUMA´s net
also beat management´s expectations. With the support of a strong sports
marketing portfolio we are well on track to explore the opportunities of the
sports year 2012 as well as achieve our 2015 goal of EUR 4 billion in sales.
expect a sales increase in the high single digits for this year."
Americas region drives sales growth in the fourth quarter
PUMA´s fourth-quarter consolidated sales rose strongly to over EUR 720
up 15.8% currency adjusted and 15.6% in Euro terms when compared to last year,
and surpassing all of PUMA´s previous fourth quarter results. This exceptional
performance was once again underpinned by all regions, despite the continued
economic uncertainty stemming from the Euro-zone debt crisis, which continued
unabated during the last three months of 2011.
Sales growth in the Americas driven by strong performance in Latin America
PUMA excelled again in the Americas, where sales grew by 27.8% currency
adjusted to EUR 271 million. The Latin American market continued to be
significant growth driver for PUMA, and Motorsport remains the top performing
category in the region. The situation in the US improved, and sales accelerated
during the fourth quarter, while PUMA´s lifestyle products in particular
resonated well with consumers.
Despite reluctant consumer behavior amid the Euro-zone debt crisis, EMEA sales
rose by 8.3% currency adjusted to EUR 237 million. The UK and France
well, while Russia was at the forefront of improved performance in Eastern
Europe. Lifestyle products in particular continued to perform well, while our
participation in the Volvo Ocean Race boosted sales in PUMA´s Sailing category.
Fitness also posted significant growth rates.
Sales in Asia/Pacific improved by 11% currency adjusted to EUR 212
PUMA´s football shoes and lightweight running products, especially our FAAS
range, continued to stand out, while growing demand came from outdoor products
in the region. Results in Japan, India and Korea remained very strong while
China grew at the expected rate.
PUMA´s performance in terms of segments mirrors that of the regions, in that
all of them contributed strongly to the impressive performance. Footwear sales
came in at EUR 339 million, an increase of 11.4% currency adjusted. Apparel
by 12.7% currency adjusted to EUR 275 million and Accessories, including
consolidation of Cobra Golf, performed very well, up 43.6% currency adjusted to
EUR 107 million.
Gross Profit Margin improves
In the fourth quarter, PUMA´s gross profit margin was 46.7%, up from 45.4% last
year. The gross profit margin for footwear increased from 43.4% to 46.6%.
Apparel retreated from 47.0% to 45.9%, whereas Accessories rose to 49.0% from
48.4%. This increase stems from the overall product mix and an acceptance of
the selective price rises indicated previously by PUMA and implemented in the
fourth quarter of 2011.
Fourth quarter operating expenses rose in line with our growth strategy, by
18.4% to EUR 292.3 million, and was equivalent to 40.6% of sales, up from
for the same period last year. This increase derives from the further
investments under the aegis of our "Back on the Attack" strategic growth plan.
Additional funding in IT, the supply chain, marketing and product has grown as
planned, as we continue to aim for the targets set out at the end of 2010.
EBIT was up 72.6% in the fourth quarter, at EUR 48.1 million. This
6.7% of consolidated sales and is above last year´s ratio of 4.5%.
The financial result declined from EUR -1.2 million to EUR -8.9 million, largely
a result of foreign exchange impacts relating to financing activities.
EBT in the fourth quarter was up 47%, from EUR 26.7 million to EUR 39.3 million.
Net Earnings excel with a 137% improvement
Net earnings rose by EUR 19 million to EUR 33.1 million, a notable increase
137%, meaning that earnings per share followed suit, up to EUR 2.21 from EUR
(diluted earnings EUR 2.21 per share versus EUR 0.92 last year)
PUMA achieves its goal of EUR 3 billion in sales for the Full Year 2011
"Back on the Attack" growth plan already having a positive impact
Much of PUMA´s success in 2011 can be attributed to its long-term strategic
growth plan "Back on the Attack," launched in autumn 2010 and implemented from
the beginning of last year. PUMA´s annual results attest that this roadmap,
which aims to unlock our long-term brand potential of EUR 4 billion in sales
2015, has already had a positive impact on the company´s performance during
2011. One aspect of this strategy is increasing PUMA´s brand desirability by
differentiating PUMA´s Performance and Lifestyle categories.
In 2011, we strengthened PUMA´s roots in performance, particularly in football,
by significantly expanding the sports marketing portfolio of brand ambassadors.
PUMA signed Sergio `Kun´ Agüero and Yaya Touré of Manchester City, Radamel
Falcao of Atlético Madrid and Cesc Fàbregas of Barcelona. They will all feature
as central figures in our global marketing campaigns in the coming years. PUMA
signed up the reigning German football champions, Borussia Dortmund, to a new
partnership as well as the South African Football Federation, the host of the
next African Cup of Nations. With a portfolio of 12 African teams, we remain
the leading football sponsor on the African continent. All these strategic
moves underline our ambition to be the clear number 3 brand in the world of
Record sales increase to more than EUR 3 billion
Consolidated sales for the Full Year climbed 12.1% currency adjusted (11.2% in
Euro terms) to just over EUR 3 billion. With this record result, PUMA
achieved its sales target for the full year.
Once again, all regions contributed to this excellent performance. Sales in
EMEA rose by 7.7% currency adjusted to over EUR 1.31 billion. EMEA
accounted for 43.6% of total sales compared to the 2010 number of 45.1%. In the
Americas, sales increased by 17.7% currency adjusted, equal to EUR 967
and equal to 32.1% of total sales. Sales figures improved in every country in
the region. Asia/ Pacific also recorded a double digit increase, with sales
topping EUR 730 million, a currency adjusted increase of 13.3%. This
equivalent to 24.3% of total sales.
In terms of segments, Footwear continued to thrive, growing 9.9% currency
adjusted to EUR 1.54 billion. Apparel rose at the same rate, surpassing the
billion Euro mark for the first time. Accessories posted an impressive 27.3%
currency adjusted increase, up to EUR 434 million, after Cobra Golf had
integrated for a full year for the first time in the financial year 2011.
Retail sales rise by EUR 45 million
Of the total consolidated number, retail sales were EUR 515 million or
This is an increase in absolute terms of EUR 45 million, but a slight
from 17.4% of total sales in 2010. As part of our growth strategy, we are still
aiming for 20% of sales to be recorded in our own retail.
Gross profit margin remains stable
For the full year, gross profit margin is stable at 49.6% (prior year: 49.7%).
This was achieved in the face of higher wage pressures and increasingly
volatile commodity price movements. The Footwear margin rose slightly from
48.9% to 49.1%, Apparel dropped a percentage point to 49.6% and Accessories
moved up one percentage point, to 51.6%.
Full year operating expenses were up, by 14.8% to EUR 1,178 million, in line
the "Back on the Attack" growth strategy. Marketing & Retail rose by 9.8% to
550.7 million, but dropped slightly as a percentage of sales to 18.3%. Other
Selling Expenses rose in line with sales to EUR 387.1 million. As
under the plan, RD&D expenses rose by 21.0% to EUR 77.0 million, and General
Administrative expenses rose by 31.8% to EUR 195.3 million, due to
investments in infrastructure and systems to build the platform for future
growth. This caused the expense ratio to rise from 5.5% to 6.5%. In addition,
the Company reported other operating income of EUR 32.2 million, compared to
35.5 million in 2010.
EBIT rose by 8.6% to EUR 333.2 million. As a percentage of sales, EBIT was
for 2011, as compared to 11.3% for 2010.
The financial result for 2011 came in at EUR -12.8 million versus EUR -5.3
in 2010. Interest income rose by EUR 0.8 million to EUR 5.2 million, while
exchange rate fluctuations related to financing activities led to a negative
result of EUR 6.9 million which did not occur in 2010. Other financial
related items increased by EUR 1.4 million this year.
Full year EBT rose, by 6.3% from EUR 301.5 million to EUR 320.4 million.
expenses declined for the full year, by 9.4% to EUR 90.0 million. The tax
was therefore at a normalized rate of 28.1%, compared to 32.9% in 2010.
For the full year of 2011, net earnings jumped 13.8% to EUR 230.1 million, from
202.2 million last year. EPS increased strongly, by 14.2% to EUR 15.36.
Net Assets and Financial Position
Total assets (as of December 31, 2011) stood at EUR 2,581.8, an increase of
from last year´s EUR 2,366.6 million. Inventories and trade receivables were
main contributors. The equity ratio rose from 58.6% to 62.2%, which indicates
continued improvement in our capital base. In absolute figures, shareholders'
equity increased by 15.8% from EUR 1,386.4 million to EUR 1,605.2 million.
PUMA´s overall Working Capital increased by 32.0% to EUR 534.0
Inventories rose by 22.1% from EUR 439.7 million to EUR 536.8 million, which
necessary to accommodate our planned sales growth, and also a consequence of
higher procurement prices which, amongst other things, led to this increase.
Trade receivables also increased, up 19.3% from EUR 447.0 million to EUR
million as a result of our strong sales performance, particularly in the fourth
quarter. Trade payables also rose strongly by 25.3% to EUR 431.4 million,
balancing the increase in Working Capital.
Free Cashflow for the full year dropped slightly to EUR 16.8 million versus
17.1 million in 2010. With regards to our Capex, PUMA´s outgoings increased by
28.9% to EUR 71.1 million. As already discussed, this increase is almost
derived from investments in line with our growth strategy, into supply chain
improvement, IT systems and the ongoing expansion of our retail store
portfolio. Payments for acquisitions fell by almost 60% to EUR 44.2 million,
the 2010 number included PUMA´s purchase of Cobra Golf. The purchase of the
outstanding stake in our China business from our joint venture partner
accounted for the majority of acquisition payments made in 2011.
Total cash (as of December 31, 2011) fell by 6.5% to EUR 448.2 million.
debts were reduced by 18.0% to EUR 35.1 million. The net cash position
5.4%, from EUR 436.8 million to EUR 413.1 million.
The Administrative Board will propose to the Annual General Meeting on April
24, 2012, that an increased dividend of EUR 2.00 per share (EUR 1.80 in
previous year) be paid for the financial year 2011, due to the improvement in
net earnings and in spite of a flat free cash flow.
PUMA did not activate its share buyback program during the fourth quarter of
As of the balance sheet date, PUMA owned 147.831 of its own shares, equal to
Management believes that PUMA can achieve increases in sales in the upper
single-digit range in each of the next two years. This growth will be fuelled
by further investments into marketing, product design and development,
structure in emerging markets as well as the optimization of processes,
organization and systems. Assuming moderate input cost inflation, combined with
necessary operating expense increases, net earnings are expected to improve in
the mid-single digit range for both years.
Kerstin Neuber - Corporate Communications - PUMA SE - +49 9132 81 2984 -
Carl Baker - Finance - PUMA SE - +49 9132 81 3188 - firstname.lastname@example.org
Notes to the editors:
This press release and financial reports are posted on www.about.puma.com.
The detailed report of PUMA´s Environmental Profit and Loss Account 2010
is now available on www.about.puma.com
PUMA SE stock symbol:
Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603- WKN: 6969603
Notes relating to forward-looking statements:
This document contains forward-looking information about the Company´s
financial status and strategic initiatives. Such information is subject to a
certain level of risk and uncertainty that could cause the Company's actual
results to differ significantly from the information discussed in this
document. The forward-looking information is based on the current expectations
and prognosis of the management team. Therefore, this document is further
subject to the risk that such expectations or prognosis, or the premise of such
underlying expectations or prognosis, become erroneous. Circumstances that
could alter the Company's actual results and procure such results to differ
significantly from those contained in forward-looking statements made by or on
behalf of the Company include, but are not limited to those discussed be above.
PUMA is one of the world´s leading Sportlifestyle companies that designs and
develops footwear, apparel and accessories. It is committed to working in ways
that contribute to the world by supporting Creativity, SAFE Sustainability and
Peace, and by staying true to the principles of being Fair, Honest, Positive
and Creative in decisions made and actions taken. PUMA starts in Sport and ends
in Fashion. Its Sport Performance and Lifestyle labels include categories such
as Football, Running, Motorsports, Golf and Sailing. Sport Fashion features
collaborations with renowned designer labels such as Alexander McQueen, Mihara
Yasuhiro and Sergio Rossi. The PUMA Group owns the brands PUMA, Cobra Golf and
Tretorn. The company, which was founded in 1948, distributes its products in
more than 120 countries, employs more than 10,000 people worldwide and has
headquarters in Herzogenaurach/Germany, Boston, London and Hong Kong. For more
information, please visit http://www.puma.com
Further inquiry note:
Telefon: +49 (0)9132 81-2984
end of announcement euro adhoc
company: PUMA SE
PUMA Way 1
phone: +49 (0)9132 81 0
FAX: +49 (0)9132 81-2246
sector: Consumer Goods
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