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. In addition, the management of earnings before taxes (EBT) is affected by changes in the financial result.
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.
|€ million||%||€ million||%||+/- %|
|Other operating income||84.0||7.3%||31.4||3.3%||167.5%|
|Depreciation and amortization||-36.8||-3.2%||-29.4||-3.1%||25.3%|
|Other operating expenses||-816.3||-70.9%||-630.8||-66.5%||29.4%|
|Income before taxes||135.8||11.8%||137.3||14.5%||-1.0%|
|Taxes on income||-18.8||-1.6%||-13.7||-1.4%||37.4%|
In the financial year 2022, sales increased by a total of 21.4% to € 1,151.9 million. The increase resulted both from higher revenues from product sales and from higher commission income in the context of license management. Revenues from PUMA SE product sales rose by 23.4% to € 508.9 million (previous year: € 412.5 million). Royalty and commission income included in sales increased by 19.0% to € 589.0 million (previous year: € 495.1 million). Other sales, which mainly consisted of recharges of costs to affiliated companies, totaled € 53.9 million in 2022 (previous year: € 41.2 million).
Other operating income amounted to € 84.0 million in 2022 (previous year: € 31.4 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 22.7% to € 1,289.7 million compared to the previous year (previous year: a total of € 1051.4 million). The increase in material expenses compared to the previous year was mainly due to the increase of sales. Personnel expenses are at the previous year's level due to a higher number of employees and, in contrast, lower additions to personnel provisions. Other operating expenses increased compared with the previous year, mainly due to increased administrative, marketing and sales expenses.
The financial result declined year-on-year by 9.1% to € 189.5 million. The decline was mainly due to higher expenses and lower income from the transfer of income from affiliated companies. In addition, the investment in Borussia Dortmund GmbH & Co. KGaA (BVB), Dortmund, was written down in the financial year due to an impairment of € 5.7 million, which is expected to be permanent. In contrast, significant higher income from dividends from investments in affiliated companies and improved net interest income had a positive effect on the development of the financial result.
The significant increase in sales was offset by the increase of expenses and the decline of the financial result, which is why earnings before income taxes declined by 1.0% from € 137.3 million in the previous year to € 135.8 million in 2022. Taxes on income amounted to € 18.8 million (previous year: € 13.7 million). Accordingly, PUMA SE's net income under the German Commercial Code (German GAAP, HGB) decreased by 5.4% to € 117.0 million in the financial year 2022 (previous year: € 123.6 million).
|€ million||%||€ million||%||+/- %|
|Total fixed assets||1,100.3||43.7%||1,087.0||50.3%||1.2%|
|Receivables and other current assets||1,177.8||46.8%||607.2||28.1%||94.0%|
|Cash and cash equivalents||96.5||3.8%||398.8||18.4%||-75.8%|
|Total current assets||1,389.5||55.2%||1,059.9||49.0%||31.1%|
|Total liabilities and equity||2,515.1||100.0%||2,162.0||100.0%||16.3%|
Fixed assets increased by a total of 1.2% to € 1,100.3 million in 2022. The increase is associated with further investments in IT. In addition, the unscheduled depreciation of the shares in Borussia Dortmund GmbH & Co. KGaA (BVB) had an opposite effect.
The increase in inventories in current assets by 113.6% to € 115.2 million was mainly due to the improved availability of goods, as inventories were at a lower level at the balance sheet date in the previous year due to COVID-19-related factory closures in Vietnam. In addition, general growth contributed to the increase in inventories. Receivables and other assets increased by a total of 94.0% compared with the previous year to € 1,177.8 million. In particular, increased receivables from affiliated companies contributed to this development. Cash and cash equivalents decreased by 75.8% to € 96.5 million compared to the previous year.
On the liabilities side, equity rose by 1.8% to € 933.8 million, as a result of the net income in 2022. 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 42.4% in the previous year to 37.1% as of December 31, 2022.
Provisions increased by 20.7% year-on-year to € 141.9 million. This development resulted from higher provisions for taxes and for outstanding invoices. Liabilities increased from € 1,127.0 million in the previous year to € 1,438.9 million as of December 31, 2022. This increase was mainly the result of increased liabilities to affiliated companies due to goods deliveries. In contrast, liabilities to banks declined due to the partial repayment of promissory note loans.
|€ million||€ million||+/- %|
|Net cash from operating activities||4.9||124.0||-96.0%|
|Net cash used in investing activities||-441.2||-206.7||113.4%|
|Free cash flow||-436.3||-82.7||>100%|
|Net cash from financing activities||134.0||221.4||-39.5%|
|Change in cash and cash equivalents||-302.3||138.6||>-100%|
|Cash and cash equivalents at the beginning of the financial year||398.8||260.2||53.3%|
|Cash and cash equivalents at the end of the financial year||96.5||398.8||-75.8%|
Cash inflow from operating activities decreased in the 2022 financial year from € 124.0 million to € 4.9 million. This development was mainly due to the increase of inventories.
The net cash used in investing activities in 2022 includes investments in fixed assets and cash outflows from the granting of receivables to affiliated companies.
Net cash from financing activities showed a total cash inflow of € 134.0 million in 2022 (previous year: € 221.4 million). The cash inflow was mainly attributable to the increase in liabilities to affiliated companies. In contrast, the partial repayment of promissory note loans in the amount of € 68.5 million and the dividend payment to the shareholders of PUMA SE for the financial year 2021 of € 107.7 million resulted in a cash outflow.
In PUMA SE's financial statements under German Commercial Code (German GAAP, HGB), we expect an increase in sales in the high single-digit percentage range for the financial year 2023. Assuming dividends from investments in affiliated companies at the previous year's level, we expect earnings before tax for the financial year 2023 to be at the previous year's level.