|
|
2021 |
2020 |
|
||
|
|
€ million |
% |
€ million |
% |
+/- % |
|
Net Sales |
6,805.4 |
100.0% |
5,234.4 |
100.0% |
30.0% |
|
Cost of sales |
-3,547.6 |
-52.1% |
-2,776.4 |
-53.0% |
27.8% |
|
Gross profit |
3,257.8 |
47.9% |
2,458.0 |
47.0% |
32.5% |
|
Royalty and commission income |
23.9 |
0.4% |
16.1 |
0.3% |
48.2% |
|
Other operating income and expenses |
-2,724.6 |
-40.0% |
-2,264.9 |
-43.3% |
20.3% |
|
Operating result (EBIT) |
557.1 |
8.2% |
209.2 |
4.0% |
166.3% |
|
Financial result |
-51.8 |
-0.8% |
-46.8 |
-0.9% |
10.5% |
|
Earnings before taxes (EBT) |
505.3 |
7.4% |
162.3 |
3.1% |
211.2% |
|
Income taxes |
-128.5 |
-1.9% |
-39.2 |
-0.7% |
227.8% |
|
Tax rate |
25.4% |
|
24.2% |
|
|
|
Net earnings attributable to non-controlling interests |
-67.2 |
-1.0% |
-44.2 |
-0.8% |
51.9% |
|
Net earnings |
309.6 |
4.5% |
78.9 |
1.5% |
292.4% |
|
Weighted average shares outstanding (million) |
149.59 |
|
149.56 |
|
0.0% |
|
Weighted average shares outstanding, diluted (million) |
149.59 |
|
149.56 |
|
0.0% |
|
Earnings per share in € |
2.07 |
|
0.53 |
|
292.3% |
|
Earnings per share, diluted in € |
2.07 |
|
0.53 |
|
292.3% |
|
|
|
|
|
|
|
In the outlook of the 2020 Combined Management Report, PUMA forecasted a significant improvement in operating result (EBIT) and consolidated net earnings for the 2021 financial year. The outlook for the operating result (EBIT) had already been raised several times during the year and, at the end of the third quarter, an operating result (EBIT) in the range of € 450 million to € 500 million was anticipated. Thanks to continued brand momentum, successful product launches and a strong focus on flexibility in business operations, PUMA was able to outperform the adjusted earnings outlook for the full-year 2021, significantly exceeding the original profitability target.
More details on earnings development in the financial year under review are provided below.
PUMA's gross profit in the financial year 2021 increased by 32.5% from € 2,458.0 million to € 3,257.8 million. The gross profit margin rose by 90 basis points from 47.0% to 47.9%. This was in particular due to better sell-through and less promotional activity. By contrast, exchange rate effects, regional and distribution channel mix effects, and cost increases for inbound freight had a negative impact on the gross profit margin development.
The gross profit margin in the Footwear division increased from 45.7% in the previous year to 47.3% in 2021. The Apparel gross profit margin increased from 48.5% to 48.9%, and in Accessories it increased from 47.0% to 47.1%.
Other operating income and expenses (OPEX) increased by 20.3% to € 2,724.6 million in the financial year 2021 from a total of € 2,264.9 million in the previous year. Higher expenses for marketing, a higher number of PUMA-owned retail stores, higher sales-related distribution and warehousing costs as well as operational inefficiencies due to the ongoing negative impact of the COVID-19 pandemic contributed to this development. Meanwhile, continued cost control resulted in a significantly weaker increase in other operating income and expenses compared to sales growth. The operating leverage achieved is also reflected in the decrease in the expense ratio from 43.3% in the previous year to 40.0% in 2021, which contributed significantly to the improvement in profitability in the financial year 2021.
Within sales expenses, marketing/retail expenses increased by 24.7% to € 1,309.1 million, while the cost ratio was 19.2% of sales in 2021, compared with a cost ratio of 20.1% in the previous year. Other sales expenses, which mainly include sales-related costs and costs for warehousing and logistics, increased by 20.8% to € 898.2 million. The cost ratio of other sales expenses decreased to 13.2% of sales in 2021 compared to a cost ratio of 14.2% in the previous year.
Research and development/product management expenses increased by 11.6% to € 114.5 million compared to the previous year and the cost ratio fell slightly to 1.7%. Other operating income in the past financial year amounted to € 2.6 million and consisted primarily of income arising from the sale of fixed assets. General and administrative expenses increased by 9.9% to € 405.2 million in 2021. The cost ratio of general and administrative expenses fell to 6.0% of sales in 2021. Depreciation and amortization is included in the relevant costs and total € 287.3 million (previous year: € 275.7 million). In addition, the respective costs include impairment losses relating to right-of-use assets totaling € 18.5 million (previous year: impairment losses relating to goodwill and right-of-use assets totaling € 18.0 million).
The result before interest (= financial result), taxes, depreciation and amortization (EBITDA) increased by 71.6%, from € 502.9 million to € 862.8 million, in the financial year 2021. The EBITDA margin improved accordingly from 9.6% in the previous year to 12.7% in 2021.
In the financial year 2021, the operating result increased by 166.3% from € 209.2 million in the previous year to € 557.1 million. The significant improvement in profitability in the financial year 2021 is attributable to the strong sales growth combined with the improvement in the gross profit margin and the significantly smaller increase in other operating income and expenses compared to sales growth. Accordingly, the EBIT margin increased from 4.0% in the previous year to 8.2%.
The financial result decreased in 2021 from a total of € -46.8 million in the previous year to € -51.8 million. This development is due, among other things, to higher expenses from foreign currency exchange differences totaling € -9.0 million in 2021 compared to € -3.9 million in the previous year. An increase in expenses from interest components in connection with forward exchange transactions ("swap points") to a total of € -9.0 million in 2021 compared to € -3.9 million in the previous year also contributed to this development. By contrast, the interest result (the net balance of interest income and interest expenses) increased to a total of € -1.0 million in 2021 compared with € -5.7 million in the previous year.
In the financial year 2021, PUMA generated earnings before taxes of € 505.3 million. This represents a significant increase of 211.2% compared to the previous year (€ 162.3 million). Tax expenses increased to € 128.5 million compared to € 39.2 million in the previous year. The tax rate increased slightly from 24.2% to 25.4% in 2021.
Net earnings attributable to non-controlling interests relate to companies in the North American market, in each of which the same shareholder holds a minority stake. The earnings attributable to these interests increased by 51.9% to € 67.2 million in the 2021 financial year (previous year: € 44.2 million). These companies concern PUMA United North America and PUMA United Canada. The business purpose of these companies is the sale of socks, bodywear, accessories and children's apparel in the North American market.
Net earnings improved by 292.4% from € 78.9 million to € 309.6 million in the 2021 financial year, representing the highest consolidated net earnings in PUMA's corporate history to date. The significant increase in consolidated net earnings was mainly the result of strong growth in sales combined with the improvement in gross profit margin and the operating leverage achieved. By contrast, the slight increase in the tax rate in 2021 resulted in a negative effect on the development of consolidated net earnings.
Earnings per share and diluted earnings per share increased from € 0.53 in the previous year to € 2.07 in the financial year 2021, in line with the development of the consolidated net earnings.
