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➔
  • MAGAZINE
  • COMPANY OVERVIEW
  • SUSTAINABILITY
  • COMBINED MANAGEMENT REPORT
  • CONSOLIDATED FINANCIAL STATEMENTS
  • ADDITIONAL INFORMATION
➔
  • FAMILY TALK
  • Interview with Bjørn Gulden and Neymar Jr.
  • What does PUMA Family mean to you?
  • Cara Delevigne, Model, Actress and Activist
  • Antoine Griezmann, Football Player
  • Dzsenifer Marozsán, Football Player
  • Karsten Warholm, Hurdler
  • Lewis Hamilton, Racing Driver
  • Armand „Mondo“ Duplantis, Pole Vaulter
  • Alica Schmidt, Track & Field Athlete
  • Marco Reus, Football Player
  • Virat Kohli, Cricketer
  • Boris Becker, Tennis Legend
  • Lothar Matthäus, Football Legend
  • STRONGER TOGETHER
  • Our Way 2020
  • PUMA Value Chain Infographic
  • GLOBAL VILLAGE
  • PUMA Leaders about the Challenges in 2020
➔
  • To our Shareholders
  • CEO Letter
  • Report by the Supervisory Board
  • OUR BRAND AND PRODUCTS
  • Interview with Adam Petrick
  • Teamsport
  • Running and Training
  • Basketball
  • Golf
  • Motorsport
  • Sportstyle
  • Accessories
  • Licensing
  • OUR PEOPLE
  • PUMA Family
  • Culture
  • Personal Journey
➔
SUSTAINABILITY
  • Foreword
  • PUMA’s 10FOR25 Sustainability Strategy
  • Social Aspects
  • Health and Safety
  • Environment
  • Summary and Outlook
  • GRI Index
  • Deloitte Assurance Statement
➔
Combined Management Report
  • Overview 2020
  • PUMA Group Essential Information
  • Commercial Activities and Organizational Structure
  • Targets and Strategy
  • Product Development and Design
  • Sourcing
  • Employees
  • Management System
  • Information regarding the Non-financial Report
  • Economic Report
  • General Economic Conditions
  • Sales
  • Regional Development
  • Results of Operations
  • Dividends
  • Net Assets and Financial Position
  • Cash Flow
  • Statement regarding the Business Development and the Overall Situation of the Group
  • Comments on the Financial Statements of PUMA SE in accordance with the German Commercial Code (HGB)
  • Further Information
  • Information concerning Takeovers
  • Compensation Report
  • Corporate Governance Statement in accordance with Section 289f and Section 315d HGB
  • Risk and Opportunity Report
  • Outlook Report
➔
Consolidated Financial Statements
  • Consolidated Statement of Financial Position
  • Consolidated Income Statement
  • Consolidated Statement of Comprehensive Income
  • Consolidated Statement of Cash Flows
  • Statement of Changes in Equity
  • Notes to the Consolidated Financial Statements
  • General
  • Significant Consolidation, Accounting and Valuation Principles
  • Notes to the Consolidated Balance Sheet
  • Notes to the Consolidated Income Statement
  • Further Notes
  • Changes in Fixed Assets
  • Members of the Management Board and Supervisory Board and their Mandates
  • Declaration by the Legal Representatives
  • Independent Auditor’s Report
➔
Additional Information
  • The PUMA Share
  • PUMA Year-on-Year Comparison
  • PUMA Group Development
  • de
  • en

NOTES TO THE CONSOLIDATED INCOME STATEMENT

19. sales

The net sales of the Group are broken down by product divisions and distribution channels as follows:

T.52 Breakdown by Distribution Channels (€ million)

 

2020

2019

Wholesale

3,809.9

4,106.9

Retail

1,424.5

1,395.3

Total

5,234.4

5,502.2

T.53 Breakdown by Product Divisions (€ million)

 

2020

2019

Footwear

2,367.6

2,552.5

Apparel

1,974.1

2,068.7

Accessories

892.7

881.1

Total

5,234.4

5,502.2

20. Other Operating Income and Expenses

According to the respective functions, other operating income and expenses include personnel, advertising, sales and distribution expenses as well as rental and leasing expenditure, travel costs, legal and consulting expenses and other general expenses. Typical operating income that is associated with operating expenses was offset. Rental and lease expenses associated with the Group’s own retail stores include turnover-based rental components.

Other operating income and expenses are allocated based on functional areas as follows:

T.54 (€ million)

 

2020

2019

Sales and distribution expenses

1,794.0

1,821.2

Product management / merchandising

46.0

52.6

Research and development

56.6

61.7

Administrative and general expenses

368.7

340.0

Other operating expenses

2,265.3

2,275.5

Other operating income

0.4

4.2

Total

2,264.9

2,271.3

Of which personnel expenses

578.5

633.7

Of which scheduled depreciation

275.7

246.4

Of which impairment expenses

18.0

0.0

Within the sales and distribution expenses, marketing/ retail expenses account for a large proportion of the operating expenses. In addition to advertising and promotional expenses, they also include expenses associated with the Group’s own retail activities. Other sales and distribution expenses include logistic expenses and other variable sales and distribution expenses. The impairment expenses of €18.0 million concern the impairment of goodwill (€1.9 million) and the impairment of right-of-use assets (€16.1 million).

In the consolidated financial statements of PUMA SE, fees of €0.8 million (previous year: €0.9 million) are recorded as operating expenses for the auditor of the consolidated financial statements. The fees break down into costs for audit services of €0.7 million (previous year: € 0.8 million) and other assurance services amounting to €0.1 million (previous year: €0.1 million), in particular for EMIR audits and the review of the combined non-financial report as well as for tax consultancy services of less than €0.0 million (previous year: less than €0.0 million).

Other operating income, which in the previous year mainly included income from the reduction of liabilities from acquisitions in the amount of €2.1 million, comprises income from the sale of fixed assets in the amount of €0.4 million (previous year: €2.0 million).

Overall, other operating expenses include personnel costs, which consist of:

T.55 (€ million)

 

2020

2019

Wages and salaries

441.9

490.2

Social security contributions

63.2

66.8

Expenses from share-based remuneration with cash compensation

14.1

12.6

Expenses for retirement pension and other personnel expenses

59.3

64.2

Total

578.5

633.7

In the financial year 2020, the personnel costs presented above include government grants amounting to a figure in the low double-digit millions granted in connection with the global COVID-19 pandemic; this amount was deducted from the corresponding expenses.

In addition, cost of sales includes personnel costs in the amount of €5.2 million (previous year: €6.8 million).

The average number of employees for the year was as follows:

T.56 Employees

 

2020

2019

Marketing/ retail/ sales

9,654

9,883

Research & development/ product management

1,002

986

Administrative and general units

2,361

2,479

Total annual average

13,016

13,348

As of the end of the year, a total of 14,374 individuals were employed (previous year: 14,332).

21. Financial result

The financial result consists of:

T.57 (€ million)

 

2020

2019

Interest income

8.4

7.2

Income from currency-conversion differences, net

0.0

10.2

Others

27.0

8.5

Financial income

35.4

25.8

Interest expense

-14.1

-13.9

Interest expense – Leasing liability

-29.3

-29.7

Interest accrued on liabilities from acquisitions

0.0

-0.1

Valuation of pension plans

-0.5

-0.7

Expenses from currency-conversion differences, net

-3.9

0.0

Others

-34.5

-4.1

Financial expenses

-82.3

-48.4

Financial result

-46.8

-22.6

The item Others in financial income includes interest components (SWAP points) of €27.0 million (previous year: €8.2 million) from financial instruments in connection with currency derivatives, and dividend income of €0.0 million (previous year: €0.3 million) from the investment in Borussia Dortmund GmbH & Co. KGaA (BVB).

The item Others in financial expenses includes interest components (SWAP points) of €34.5 million (previous year: €4.1 million) from financial instruments in connection with currency derivatives.

In addition, expenses from currency translation differences of more than €3.9 million (previous year: income of €10.2 million) are included, which are to be assigned to the financing area.

22. Income taxes

T.58 (€ million)

 

2020

2019

Current income taxes

 

 

Germany

11.0

12.8

Other countries

84.9

124.6

Total current income taxes

95.9

137.5

Deferred taxes

-56.7

-28.8

Total

39.2

108.6

In general, PUMA SE and its German subsidiaries are subject to corporate income tax, plus a solidarity surcharge and trade tax. Thus, a weighted mixed tax rate of 27.22% continued to apply for the financial year.

Reconciliation of the theoretical tax expense with the effective tax expense:

T.59 (€ million)

 

2020

2019

Earnings before income tax

162.3

417.6

Theoretical tax expense

 

 

Tax rate of the SE = 27.22% (previous year: 27.22%)

44.2

113.7

Tax rate difference with respect to other countries

-7.1

-12.8

Other tax effects:

 

 

Income tax for previous years

-4.7

-4.5

Losses and temporary differences for which no tax claims were recognized

6.8

1.0

Changes in tax rates

-0.4

2.0

Non-deductible expenses for tax purposes and non-taxable income and other effects

0.4

9.3

Effective tax expense

39.2

108.6

Effective tax rate

24.2%

26.0%

The tax effect resulting from items that are directly credited or debited to equity is shown in chapter 8.

23. Earnings per share

The earnings per share are determined in accordance with IAS 33 by dividing the consolidated annual surplus (consolidated net earnings) attributable to the shareholders of the parent company by the average number of circulating shares.

The calculation is shown in the table below:

T.60

 

2020

2019

Consolidated net earnings € million

78.9

262.4

Average number of circulating shares

149,561,440

149,521,683

Average number of circulating shares, diluted

149,561,440

149,521,683

Earnings per share in €

0.53

1.76

Earnings per share, diluted in €

0.53

1.76

24. Management of the Currency Risk

In the financial year 2020, PUMA designated currency hedges as cash flow hedges in order to hedge the amount payable of purchases denominated in USD, which is converted to euros, as well as for other currency risks resulting from internal resale to PUMA subsidiaries.

Furthermore, currency swaps and currency forward transactions are used to hedge foreign exchange risks when measuring intra-group loans denominated in foreign currencies.

The nominal amounts of open exchange rate-hedging transactions, which relate mainly to cash flow hedges, refer primarily to currency forward transactions in a total amount of €3,026.5 million (previous year: €2,842.6 million). These underlying transactions are expected to generate cash flows in 2021 and 2022. For further information, please refer to the explanations in chapter 13.

The market values of open exchange rate-hedging transactions on the balance sheet date consist of:

T.61 (€ million)

 

2020

2019

Currency hedging contracts, assets (see chapters 6 and 12)

26.1

46.5

Currency hedging contracts, liabilities (see chapters 13 and 14)

-135.2

-38.2

Net

-109.1

8.3

The changes in effective cash flow hedges are shown in the schedule of changes in shareholders’ equity and the statement of comprehensive income.

In order to disclose market risks, IFRS 7 requires sensitivity analyses that show the effects of hypothetical changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is representative for the entire year.

Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a currency that is not the functional currency and are monetary in nature. Differences resulting from the conversion of the individual financial statements to the group currency are not taken into account. All non-functional currencies in which PUMA employs financial instruments are generally considered to be relevant risk variables.

Currency sensitivity analyses are based on the following assumptions:

Material non-derivative monetary financial instruments (cash and cash equivalents, receivables, interest-bearing debt, lease liabilities, non-interest-bearing liabilities) are either denominated directly in the functional currency or transferred into the functional currency through the use of currency hedging contracts.

Currency hedging contracts used to hedge against payment fluctuations caused by exchange rates are part of an effective cash-flow hedging relationship pursuant to IAS 39. Changes in the exchange rate of the currencies underlying these contracts have an effect on the hedge reserve in equity and the fair value of these hedging contracts.

If, as of December 31, 2020, the USD had appreciated (devalued) against all other currencies by 10%, the hedge reserve in equity and the fair value of the hedging contracts would have been €151.9 million higher (lower) (December 31, 2019: €150.6 million higher (lower)).

Currency risks and other risk and opportunity categories are discussed in greater detail in the Combined Management Report in the Risk and Opportunity Management section as well as in chapters 2 and 13 of the Notes to the consolidated financial statements.

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