19.Sales
The following table shows the Group's sales broken down by distribution channel and division:
2023 | 2022 | |
Wholesale | 6,468.6 | 6,513.7 |
Direct-to-consumer (DTC) | 2,133.0 | 1,951.4 |
Total | 8,601.7 | 8,465.1 |
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2023 | 2022 | |
Footwear | 4,583.4 | 4,317.9 |
Apparel | 2,763.0 | 2,896.3 |
Accessories | 1,255.3 | 1,251.0 |
Total | 8,601.7 | 8,465.1 |
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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. Rental and lease expenses associated with the Group's own retail stores include revenue-based rental components.
Other operating income and expenses are allocated based on functional areas as follows:
2023 | 2022 | |
Sales and distribution expenses | 2,799.0 | 2,677.2 |
Product management/merchandising | 82.5 | 70.9 |
Research and development | 89.0 | 82.2 |
Administrative and general expenses | 450.9 | 465.8 |
Other operating expenses | 3,421.3 | 3,296.0 |
Other operating income | -17.8 | -0.1 |
Total | 3,403.5 | 3,295.9 |
Thereof personnel expenses | 894.4 | 836.3 |
Thereof scheduled depreciation | 351.7 | 332.8 |
Thereof impairment losses | 5.7 | 26.0 |
Thereof reversal of impairment losses | -11.9 | 0.0 |
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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 logistics expenses and other variable sales and distribution expenses.
Impairment expenses in the reporting year amounted to € 5.7 million and related exclusively to right-of-use assets (previous year: € 25.4 million). There were no impairment expenses for property, plant and equipment (previous year: € 0.6 million). In contrast, there were reversals of impairment losses on
right-of-use assets amounting to € 11.9 million (previous year: € 0.0 million).
In the consolidated financial statements of PUMA SE, fees of € 2.0 million (previous year: € 1.9 million) are recorded as operating expenses for the auditor of the consolidated financial statements, KPMG AG Wirtschaftsprüfungsgesellschaft, Nuremberg, Germany. The audit fee is divided into fees for audit services for the annual and consolidated financial statements as well as the audit review of the half-year financial report in the amount of € 1.8 million (previous year: € 1.8 million) and other assurance services amounting to € 0.2 million (previous year: € 0.1 million) mainly for the audit of information in the sustainability report and other minor services in the amount of € 0.0 million (previous year: none). In addition to expenses for PUMA SE, the fees also include the fees of the domestic and foreign subsidiaries audited directly by the Group auditor.
In financial year 2023, government grants amounted to a mid single-digit (previous year: low double-digit) million euro amount. Government grants are deducted from the corresponding expenses.
Other operating income comprises income from the sale of fixed assets in the amount of € 8.5 million (previous year: € 0.1 million), selling profit from finance leases totalling € 8.0 million (previous year:
€ 0.0 million), and rental income totalling € 1.4 million (previous year: € 0.0 million).
Overall, other operating expenses include personnel costs, which consist of:
2023 | 2022 | |
Wages and salaries | 688.7 | 649.8 |
Social security contributions | 101.2 | 91.9 |
Expenses from share-based payments with cash compensation | 5.2 | 5.1 |
Expenses for retirement pension and other personnel expenses | 99.3 | 89.5 |
Total | 894.4 | 836.3 |
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In addition, cost of sales includes personnel costs in the amount of € 6.2 million (previous year:
€ 10.2 million).
The average number of employees for the year was as follows:
2023 | 2022 | |
Marketing/retail/sales | 13,092 | 12,229 |
Research & development/product management | 1,360 | 1,228 |
Administrative and general units | 3,570 | 3,213 |
Total annual average | 18,023 | 16,669 |
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As of the end of the year, a total of 18,681 individuals were employed (previous year: 18,071).
21.Financial result
The financial result consists of:
2023 | 2022 | |
Interest income | 36.6 | 32.3 |
Interest income - lease receivables | 1.2 | 0.0 |
Other | 74.9 | 47.1 |
Financial income | 112.7 | 79.4 |
Interest expense | -53.1 | -15.2 |
Interest expense - lease liabilities | -46.8 | -38.6 |
Interest expense of valuation of pension plans | -0.9 | -0.6 |
Expenses from currency-conversion differences, net | -69.4 | -2.2 |
Other | -85.9 | -111.7 |
Financial expenses | -256.0 | -168.3 |
Financial result | -143.3 | -88.9 |
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The "Other" item in the financial income of € 74.9 million (previous year: € 47.1 million) includes interest components in connection with currency derivatives as well as hedging gains from freestanding derivatives.
The item "Other" in financial expenses includes, among other things, interest components in connection with currency derivatives in the amount of € 58.1 million (previous year: € 69.9 million) and the loss on the net monetary position associated with hyperinflation in the amount of € 23.7 million (previous year:
€ 27.8 million).
22.Income taxes
2023 | 2022 | |
Current income taxes | 140.6 | 152.5 |
Deferred taxes | -22.8 | -25.1 |
Total | 117.8 | 127.4 |
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Current income taxes include € 0.8 million in out-of-period income. Deferred taxes include tax income of
€ 0.3 million (tax income in previous year: € 39.2 million), which is attributable to the occurrence or resolution of temporary differences.
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:
2023 | 2022 | |
Earnings before income tax | 478.3 | 551.7 |
Theoretical tax expense | ||
Tax rate of the SE = 27.22% (previous year: 27.22%) | 130.2 | 150.2 |
Tax rate difference with respect to other countries | -21.0 | -6.9 |
Other tax effects: | ||
Income tax for previous years | 3.7 | -9.7 |
Losses and temporary differences for which no tax claims were recognized | 6.4 | 4.8 |
Changes in tax rates | -0.4 | -0.6 |
Non-deductible expenses for tax purposes and non-taxable income and other effects | -1.1 | -10.4 |
Effective tax expense | 117.8 | 127.4 |
Effective tax rate | 24.6% | 23.1% |
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For the financial year 2023, the total tax advantage from previously uncapitalised tax losses, tax credits or temporary differences from previous years which led to a reduction in deferred tax expenses, amounted to
€ 7.5 million (previous year: € 7.0 million). Deferred tax expenses due to an impairment of deferred tax assets amounted to € 11.3 million in the financial year (previous year: € 5.0 million).
The tax effect resulting from items that were directly included in other comprehensive income can be found in chapter 8.
Information on the effects of global minimum taxation (Pillar II)
On 23 May 2023, the IASB published amendments to IAS 12, which require companies subject to global minimum taxation regulations to provide additional information on the impact of the global minimum taxation in their annual financial statements for financial years beginning on or after 1 January 2023.
The PUMA Group falls within the scope of application of the global minimum taxation. The relevant legislation entered into force on 28 December 2023 in Germany, the country in which the parent company of the PUMA Group is based, and applies to financial years beginning after 31 December 2023. As the Minimum Tax Act ("MinStG") applies to the financial year of the PUMA Group beginning on 1 January 2024, but was not yet applicable to the financial year beginning on 1 January 2023, the PUMA Group has no associated ongoing tax risk in financial year 2023. Taking into account the fact that the PUMA Group will be affected by the minimum tax legislation, a preliminary valuation of the potential risk was carried out.
The valuation of the potential risk of Pillar II taxes is based on the most recent country-related reports and financial statements available to the Group's business units. The Group has identified a potential risk of the suspension of Pillar II taxes on profits made in Hong Kong and the United Arab Emirates. The potential risk arises from the business units (mainly operating subsidiaries) in these countries, where the effective tax rate is likely to be less than 15%.
If the MinStG had been applied for this financial year ending on 31 December 2023, the amount of the tax increase determined according to the MinStG would have totalled approx. € 12 million. However, the actual amounts of tax increases in the countries concerned in 2024 will depend on various factors.
The PUMA Group makes use of the exemption under IAS 12.88A for the recognition of deferred taxes that result from the introduction of global minimum taxation.
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 weighted average number of outstanding shares.
The calculation is shown in the table below:
2023 | 2022 | |
Net income attributable to the shareholders of PUMA SE (€ million) | 304.9 | 353.5 |
Weighted average number of outstanding shares (shares) | 149,852,251 | 149,649,158 |
Earnings per share (€) | 2.03 | 2.36 |
Net income for calculating the diluted earnings per share (€ million) | 304.9 | 353.5 |
Weighted average number of outstanding shares (shares) | 149,852,251 | 149,649,158 |
Dilutive effect of conditionally issuable shares in connection with service agreements | 0 | 12,107 |
Dilutive effect from share-based payments | 19,651 | 2,573 |
Weighted average number of outstanding shares, diluted (shares) | 149,871,901 | 149,663,837 |
Earnings per share (€) - diluted | 2.03 | 2.36 |
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