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.
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2021 |
2020 |
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|
|
€ million |
% |
€ million |
% |
+/- % |
|
Net Sales |
948.7 |
100.0% |
709.7 |
100.0% |
33.7% |
|
Other operating income |
31.4 |
3.3% |
40.4 |
5.7% |
-22.3% |
|
Material expenses |
-270.8 |
-28.5% |
-237.2 |
-33.4% |
14.2% |
|
Personnel expenses |
-120.4 |
-12.7% |
-94.2 |
-13.3% |
27.8% |
|
Depreciation |
-29.4 |
-3.1% |
-25.4 |
-3.6% |
15.4% |
|
Other operating expenses |
-630.8 |
-66.5% |
-512.1 |
-72.2% |
23.2% |
|
Total expenses |
-1,051.4 |
-110.8% |
-868.9 |
-122.4% |
21.0% |
|
Financial result |
208.6 |
22.0% |
359.5 |
50.7% |
-42.0% |
|
Income before taxes |
137.3 |
14.5% |
240.7 |
33.9% |
-43.0% |
|
Taxes on income |
-13.7 |
-1.4% |
-11.0 |
-1.6% |
23.7% |
|
Net income |
123.6 |
13.0% |
229.7 |
32.4% |
-46.2% |
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|
|
|
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|
In the financial year 2021, net sales increased by a total of 33.7% to € 948.7 million. The increase resulted both from higher revenues from product sales and from higher commission income in the context of license management. Revenue from PUMA SE product sales increased by 17.7% to € 412.5 million. The royalty and commission income included in net sales increased by 50.4% to € 495.1 million. Other revenue, which mainly consisted of recharges of costs to affiliated companies, totaled € 41.2 million in 2021 (previous year: € 30.0 million).
Other operating income amounted to € 31.4 million in 2021 (previous year: € 40.4 million) and includes, in particular, realized and unrealized gains from currency conversion related to the measurement of receivables and liabilities in foreign currencies at the balance sheet date.
The total expenditure from material expenses, personnel expenses, depreciation and other operating expenses increased by 21.0% to € 1,051.4 million compared to the previous year (previous year: total of € 868.9 million). The increase in material expenses compared to the previous year was mainly due to the increase in sales. The increase in personnel expenses is related in particular to the higher number of employees and increased provisions for bonuses. Other operating expenses were up compared to the previous year due, among other things, to increased marketing and sales expenses.
As forecasted in our financial planning for 2021, the financial result fell by 42.0% year-on-year to € 208.6 million. The decline was mainly due to significantly lower dividends from shareholdings in affiliated companies. In addition, there were higher expenses from loss transfers from affiliated companies. By contrast, income from profit transfers from affiliated companies increased and improved net interest income, the balance of interest expense and interest income, had a positive impact on the financial result.
Despite a significant increase in sales, the rise in expenses and the decline in the financial result led to a 43.0% decrease of earnings before taxes, from € 240.7 million in the previous year to € 137.3 million in 2021. Taxes on income amounted to € 13.7 million (previous year: € 11.0 million). Accordingly, PUMA SE's net income under German Commercial Code (German GAAP, HGB) decreased by 46.2% to € 123.6 million in the financial year 2021 (previous year: € 229.7 million).
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12/31/2021 |
12/31/2020 |
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|
|
€ million |
% |
€ million |
% |
+/- % |
|
1,087.0 |
50.3% |
1,072.0 |
58.5% |
1.4% |
|
|
53.9 |
2.5% |
65.5 |
3.6% |
-17.7% |
|
|
607.2 |
28.1% |
424.3 |
23.1% |
43.1% |
|
|
398.8 |
18.4% |
260.2 |
14.2% |
53.3% |
|
|
1,059.9 |
49.0% |
750.0 |
40.9% |
41.3% |
|
|
15.1 |
0.7% |
11.5 |
0.6% |
31.2% |
|
|
Total assets |
2,162.0 |
100.0% |
1,833.5 |
100.0% |
17.9% |
|
916.9 |
42.2% |
815.1 |
44.5% |
12.5% |
|
|
117.6 |
5.4% |
89.0 |
4.9% |
32.0% |
|
|
1,127.0 |
52.1% |
929.4 |
50.7% |
21.3% |
|
|
0.5 |
0.0% |
0.0 |
0.0% |
- |
|
|
Total liabilities and shareholders’ equity |
2,162.0 |
100.0% |
1,833.5 |
100.0% |
17.9% |
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|
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Fixed assets increased by a total of 1.4% to € 1,087.0 million in 2021. The increase is due to further investments in the IT infrastructure and the acquisition of additional shares in the amount of € 6.0 million as part of the capital increase of Borussia Dortmund GmbH & Co. KGaA (BVB).
In terms of current assets, inventories fell by 17.7% to € 53.9 million as a result of the strong growth in sales. By contrast, receivables and other assets rose by a total of 43.1% to € 607.2 million compared with the previous year. Both increased receivables from affiliated companies and higher trade receivables contributed to this development. Cash and cash equivalents increased by 53.3% to € 398.8 million compared to the previous year.
On the liabilities side, equity rose by 12.5% to € 916.9 million, as a result of the net income in 2021. Despite this, an increase in total assets due to higher provisions and liabilities led to a reduction in the equity ratio at the balance sheet date from 44.5% in the previous year to 42.4% as of December 31, 2021.
Provisions increased by 32.0% year-on-year to € 117.6 million. This development resulted from higher provisions for personnel, customer bonuses and for outstanding invoices. Liabilities increased from € 929.4 million in the previous year to € 1,127.0 million as of December 31, 2021. This increase was primarily due to higher liabilities to banks, as further promissory note loans were taken out, and to increased liabilities to affiliated companies.
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|
2021 |
2020 |
|
|
|
€ million |
€ million |
+/- % |
|
Net cash from operating activities |
124.0 |
24.9 |
>100% |
|
Net cash used in investing activities |
-206.7 |
-194.7 |
6.2% |
|
Free cash flow |
-82.7 |
-169.9 |
-51.3% |
|
Net cash from financing activities |
221.4 |
382.8 |
-42.2% |
|
Change in cash and cash equivalents |
138.6 |
213.0 |
-34.9% |
|
Cash and cash equivalents at the beginning of the financial year |
260.2 |
47.2 |
>100% |
|
Cash and cash equivalents at the end of the financial year |
398.8 |
260.2 |
53.3% |
|
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|
The cash inflow from operating activities increased from € 24.9 million to € 124.0 million in the 2021 financial year. This development resulted primarily from the improvement in the operating result (= net sales minus operating expenses and income). Furthermore, the slight decrease in the working capital of PUMA SE also had a positive effect on the cash inflow from operating activities.
The net cash used in investing activities in 2021 includes investments in fixed assets and cash outflows from the granting of receivables to affiliated companies. In addition, the cash outflow from investment activities in 2021 includes the cash outflow for the acquisition of additional BVB shares as part of the capital increase.
Net cash from financing activities showed a total cash inflow of € 221.4 million in 2021 (previous year: € 382.8 million). The cash inflow was mainly attributable to the increase in liabilities to banks resulting from the issue of new promissory note loans and to an increase in liabilities to affiliated companies. In contrast, the dividend payment to the shareholders of PUMA SE for the financial year 2020 in the amount of € 23.9 million, after the dividend payment was suspended in the previous year due to the COVID-19 pandemic to limit the cash outflow, resulted in a cash outflow.
In PUMA SE's financial statements under German Commercial Code (German GAAP, HGB), we expect an increase in net sales in the low double-digit percentage range for the financial year 2022. Assuming increasing dividends from investments in affiliated companies, we expect a slight increase of income before taxes for the 2022 fiscal year.
