PUMA SE’s financial statements have been prepared pursuant to the rules of the German Handelsgesetzbuch (HGB - German Commercial Code).

PUMA SE is the parent company of the PUMA Group. PUMA SE's results are significantly influenced by the directly and indirectly held subsidiaries and shareholdings. The business development of PUMA SE is essentially subject to the same risks and opportunities as the PUMA Group.

PUMA SE is responsible for wholesale business in the DACH region, consisting of the home market of Germany, Austria, and Switzerland. Furthermore, PUMA SE is also responsible for the pan-European distribution for individual key accounts and sourcing products from European production countries as well as global licensing management. In addition, PUMA SE acts as a holding company within the PUMA Group and is as such responsible for international product development, merchandising, international marketing, the global areas of finance, operations and PUMA’s strategic direction.

Net sales rose in the financial year 2019 overall by 7.0% to € 722.3 million. The increase resulted from both increased product sales and commission income from license management. Revenue from PUMA SE product sales increased by 7.6% to € 354.6 million. The royalty and commission income included in net sales increased by 10.7% to € 335.6 million. The other revenue, which mainly consisted of recharges of costs to affiliated companies was € 32.1 million in 2019 (previous year: € 42.4 million).

Other operating income amounted to € 62.1 million in 2019 (previous year: € 50.8 million) and includes in particular realized and unrealized gains from currency conversion related to the measurement of receivables and payables in foreign currencies on the balance sheet date.

The total expenditure from material expenses, personnel expenses, depreciation and other operating expenses increased by 10.5% to € 926.6 million compared to the previous year (previous year: total € 838.8 million). The increase in material expenses was associated with the increase in sales. Depreciation increased primarily due to investments in IT and the expansion of the administration building in Herzogenaurach in the previous year. Other operating expenses increased compared to the previous year due to higher marketing expenditures as a result of new sponsoring agreements with clubs and athletes. Furthermore, higher warehousing and freight costs, in relation to the increase in sales and higher inventory, contributed to the increase in other operating expenses.

The financial result improved compared to the previous year by 5.0% to € 223.5 million. The improvement was due to higher dividends from affiliated companies, while the income from the transfer of profits from affiliated companies decreased and expenses from loss transfers increased.

Income before taxes fell in 2019 by 18.7% from € 100.1 million to € 81.3 million. Taxes on income amounted to € 12.8 million (previous year: € 16.8 million). These include current income taxes for 2019 totaling € 2.1 million, taxes on income from previous years of € 0.1 million, and expenditures for foreign withholding taxes on license and dividend payments in 2019 of € 15.8 million. In addition, income tax reimbursements of € 5.2 million for previous years, after a mutual agreement procedure has been settled, are included. Net income in the financial year 2019 was € 68.5 million compared to € 83.3 million in the previous year.

12/31/2019 12/31/2018
€ million % € million % +/- %
Total non-current assets 1,053.7 63.0% 657.9 48.4% 60.2%
Inventories 59.8 3.6% 52.9 3.9% 13.2%
Receivables and other current assets 504.8 30.2% 576.4 42.4% -12.4%
Cash and cash equivalents 47.2 2.8% 59.5 4.4% -20.6%
Total current assets 611.8 36.6% 688.8 50.6% -11.2%
Other 8.0 0.5% 13.9 1.0% -42.5%
Total assets 1,673.5 100.0% 1,360.6 100.0% 23.0%
Shareholders' equity 582.8 34.8% 564.3 41.5% 3.3%
Accruals / provisions 112.1 6.7% 101.5 7.5% 10.5%
Liabilities 978.6 58.5% 694.5 51.0% 40.9%
Other 0.0 0.0% 0.3 0.0% -100.0%
Total liabilities and shareholders' equity 1,673.5 100.0% 1,360.6 100.0% 23.0%

Non-current assets increased in 2019 by 60.2% to € 1,053.7 million. The increase was mainly due to capital increases at the subsidiaries of PUMA SE, leading to an increase in these investments in affiliated companies. The investments in a new building with showrooms at the Herzogenaurach location and in IT also contributed to the increase.

Within current assets, inventories increased by 13.2% to € 59.8 million. By contrast, trade receivables and other assets fell by 12.4% to € 504.8 million compared to the previous year. This development is primarily due to the decrease in receivables from affiliated companies. Cash and cash equivalents decreased by 20.6% to € 47.2 million compared to the previous year.

On the liabilities side, equity increased by 3.3% to € 582.8 million due to the net income for 2019, taking into account the dividend paid out in 2019. Provisions increased by 10.5% to € 112.1 million compared to the previous year due to higher provisions for personnel and outstanding invoices. The increase in liabilities by 40.9% to € 978.6 million was mainly the result of an increase in liabilities to affiliated companies. Due to this development, the equity ratio fell from 41.5% to 34.8% on the balance sheet date.

Financial Position