Comments on the financial statements of PUMA SE in accordance with the German Commercial Code (HGB)

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, as such, is responsible for international product development, merchandising, international marketing, the global areas of finance, operations and PUMA's strategic direction.

Results of operations

Sales increased by 2.1% to € 1,270.2 million in financial year 2024. The increase was mainly due to higher product sales, which increased by 5.6% to € 622.7 million in 2024 compared to € 589.4 million in the previous year. The increase in sales was mainly related to the UEFA Euro 2024 men's football championship in Germany, the conclusion of new sponsoring agreements and the sales growth resulting from the intensification of cooperation with individual key accounts. Royalty and commission income included in sales reduced by 3.3% to € 579.6 million (previous year: € 599.3 million). In contrast, other sales, which mainly consisted of recharges of costs to affiliated companies, increased by 12.9% to € 67.9 million (previous year: € 55.0 million).

Other operating income amounted to € 216.8 million in 2024 (previous year: € 83.7 million) and includes, in particular, realised and unrealised 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 14.5% to € 1,665.6 million compared to the previous year (previous year: € 1,455.2 million). The increase in material expenses compared to the previous year was due to the increase in sales. The higher personnel costs reflect a higher number of employees. Other operating expenses increased compared with the previous year, mainly due to increased administrative, marketing and sales expenses. Currency losses contributed significantly to the increase in administrative expenses.

Year-on-year, the financial result rose by 35.7% to € 351.3 million. The increase resulted from higher income from the transfer of income from affiliated companies and a slight increase in income from dividends from investments in affiliated companies. The interest result decreased compared to the previous year, largely due to lower interest income from affiliated companies and higher interest expenses in connection with Group financing. Furthermore, the investment in Borussia Dortmund GmbH & Co. KGaA (BVB), Dortmund, Germany, was written down in the financial year due to an impairment of € 2.8 million, which is expected to be permanent.

Income before taxes increased by 31.8% from € 131.0 million in the previous year to € 172.6 million in 2024, mainly due to increases in other operating income and the improved financial result. Taxes on income amounted to € 25.8 million (previous year: € 21.2 million). PUMA SE's net income under commercial law (German GAAP, HGB) increased by 33.7% in the financial year 2024 to € 146.8 million (previous year: € 109.8 million).