The annual financial statements of PUMA SE are prepared in accordance with the rules of the German Commercial Code (German GAAP, HGB), taking into account the SEAG (German SE Implementation Act) and the German Stock Corporation Act (AktG).
PUMA SE is the parent company of the PUMA Group. PUMA SE’s results are to a large extent 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 area, consisting of the home market of Germany, Austria, and Switzerland. Furthermore, PUMA SE is also responsible for pan-European distribution for individual key accounts and for 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.
|
|
2020 |
2019 |
|
||
|
|
€ million |
% |
€ million |
% |
+/- % |
|
Net Sales |
709.7 |
100.0% |
722.3 |
100.0% |
-1.7% |
|
Other operating income |
40.4 |
5.7% |
62.1 |
8.6% |
-34.9% |
|
Material expenses |
-237.2 |
-33.4% |
-233.8 |
-32.4% |
1.5% |
|
Personnel expenses |
-94.2 |
-13.3% |
-107.2 |
-14.8% |
-12.1% |
|
Depreciation |
-25.4 |
-3.6% |
-24.8 |
-3.4% |
2.6% |
|
Other operating expenses |
-512.1 |
-72.2% |
-560.8 |
-77.6% |
-8.7% |
|
Total expenses |
-868.9 |
-122.4% |
-926.6 |
-128.3% |
-6.2% |
|
Financial result |
359.5 |
50.7% |
223.5 |
30.9% |
60.8% |
|
Income before taxes |
240.7 |
33.9% |
81.3 |
11.3% |
195.9% |
|
Taxes on income |
-11.0 |
-1.6% |
-12.8 |
-1.8% |
-14.0% |
|
Net income |
229.7 |
32.4% |
68.5 |
9.5% |
235.4% |
Net sales decreased overall by 1.7% to €709.7 million in the financial year 2020, due to the negative impact of the COVID-19 pandemic. This was the result of decreased revenue from product sales as well as reduced commission income in connection with license management. Revenue from PUMA SE product sales decreased by 1.2% to €350.5 million. The royalty and commission income included in net sales decreased by 1.9% to €329.2 million. Other revenue, which mainly consisted of recharges of costs to affiliated companies, totaled €30.0 million in 2020 (previous year: €32.1 million).
Other operating income amounted to €40.4 million in 2020 (previous year: €62.1 million) and includes in particular realized and unrealized gains from currency conversion related to the measurement of receivables and liabilities in foreign currencies.
The total expenditure from material expenses, personnel expenses, depreciation and other operating expenses decreased by 6.2% to €868.9 million compared to the previous year (2019: total of €926.6 million). The increase in material expenses compared to the previous year was mainly due to higher inventory write-downs. The decrease in personnel expenses was related to short-term work programs resulting from the COVID-19 pandemic and lower performance-related staff bonuses. Other operating expenses decreased year-on-year due to cost-saving measures implemented directly in response to the COVID-19 pandemic at the end of the first quarter and during the second quarter. However, the decrease in marketing and administration expenses was partially offset by higher costs for warehousing and logistics.
The financial result improved by 60.8% compared to the previous year, to €359.5 million. The increase was mainly due to significantly higher dividends from shareholdings in affiliated companies, while the income from the transfer of profits from affiliated companies decreased and expenses from loss transfers increased.
Despite a slight decline in sales, the decreased expenses and the improved financial result led to a significant increase in earnings before taxes of 195.9%, from €81.3 million in the previous year to €240.7 million in 2020. Taxes on income amounted to €11.0 million (previous year: €12.8 million). Accordingly, PUMA SE’s net income under German Commercial Code (German GAAP, HGB) increased by 235.4% in the financial year 2020 to €229.7 million (previous year: €68.5 million).
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|
12/31/2020 |
12/31/2019 |
|
||
|
|
€ million |
% |
€ million |
% |
+/- % |
|
1,072.0 |
58.5% |
1,053.7 |
63.0% |
1.7% |
|
|
65.5 |
3.6% |
59.8 |
3.6% |
9.5% |
|
|
424.3 |
23.1% |
504.8 |
30.2% |
-16.0% |
|
|
260.2 |
14.2% |
47.2 |
2.8% |
450.8% |
|
|
750.0 |
40.9% |
611.8 |
36.6% |
22.6% |
|
|
11.5 |
0.6% |
8.0 |
0.5% |
43.6% |
|
|
Total assets |
1,833.5 |
100.0% |
1,673.5 |
100.0% |
9.6% |
|
815.1 |
44.5% |
582.8 |
34.8% |
39.9% |
|
|
89.0 |
4.9% |
112.1 |
6.7% |
-20.6% |
|
|
929.4 |
50.7% |
978.6 |
58.5% |
-5.0% |
|
|
Total liabilities and shareholders’ equity |
1,833.5 |
100.0% |
1,673.5 |
100.0% |
9.6% |
Fixed assets increased by 1.7% to €1,072.0 million in 2020, mainly due to further investments in IT infrastructure
Within current assets, inventories increased by 9.5% to €65.5 million. In contrast, receivables and other current assets fell by 16.0% to €424.3 million compared to the previous year. This development is primarily due to the decrease in receivables from affiliated companies. The decrease in receivables from affiliated companies as of the balance sheet date resulted from offsetting these receivables against liabilities to affiliated companies. Cash and cash equivalents increased by 450.8% to €260.2 million compared to the previous year.
On the liabilities side, equity rose by 39.9% to €815.1 million, as a result of the net income in 2020. This led, despite an increased balance sheet total, to an increase of the equity ratio at the balance sheet date, from 34.8% in the previous year to 44.5% as of December 31, 2020.
Accruals and provisions decreased by 20.6% to €89.0 million compared to the previous year due to lower provisions for personnel and outstanding invoices. The decrease in liabilities by 5.0% to €929.4 million was mainly due to reduced liabilities to affiliated companies as a result of the offsetting. In contrast, liabilities to banks increased as a result of the issue of new promissory note loans in 2020.
|
|
2020 |
2019 |
|
|
|
€ million |
€ million |
+/- % |
|
Net cash from operating activities |
24.9 |
27.6 |
-9.8% |
|
Net cash used in investing activities |
-194.7 |
-114.0 |
70.8% |
|
Free cash flow |
-169.9 |
-86.4 |
96.6% |
|
Net cash from financing activities |
382.8 |
74.2 |
>100% |
|
Change in cash and cash equivalents |
213.0 |
-12.2 |
>-100% |
|
Cash and cash equivalents at the beginning of the financial year |
47.2 |
59.5 |
-20.7% |
|
Cash and cash equivalents at the end of the financial year |
260.2 |
47.2 |
>100% |
Net cash from operating activities in 2020 is based on the significant increase in earnings before taxes. However, taking into account the equally significant increase in non-cash expenses in connection with higher dividends from shareholdings in affiliated companies, the net cash from operating activities in the past financial year was almost unchanged at €24.9 million (previous year: €27.6 million).
The net cash used in investing activities in 2020 includes investments in fixed assets and cash outflows from the granting of receivables to affiliated companies. This resulted in an overall decrease in free cash flow from €-86.4 million in the previous year to €-169.9 million in 2020.
Net cash from financing activities showed a cash inflow of €382.8 million in 2020 (previous year: €74.2 million). The cash inflow was mainly attributable to an increase in liabilities to affiliated companies and an increase in liabilities to banks due to the issue of new promissory note loans. In order to limit cash outflows during the COVID-19 pandemic, the dividend payout was waived in 2020. In the previous year, a payout of €52.3 million to equity holders was included in the net cash used in financing activities.
We expect a moderate increase in net sales in PUMA SE’s financial statements under German Commercial Code (German GAAP, HGB) for the financial year 2021. However, due to significant lower dividends from shareholdings in affiliated companies, we expect earnings before taxes to decline significantly in the financial year 2021.
