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:
T.75Other operating income and expenses(in € Mio.)*
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.
The expenses for product management/merchandising consist of personnel and material costs for the preparation of product range plans, provision of product guidelines and market research.
Research and development expenses include all costs incurred in connection with global or local development activities.
Administrative and general expenses mainly include personnel and material costs from the human resources, IT, finance, law and general administration/management functional areas.
Impairment losses in the reporting year amounted to €7.3 million for right-of-use assets (previous year: €5.7 million) and €0.6 for property, plant and equipment (previous year: €0.0 million). In contrast, there were reversals of impairment losses on right-of-use assets amounting to €29.4 million (previous year: € 11.9 million).
In the consolidated financial statements of PUMA SE, fees of €2.7 million) (previous year: €2.0 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 €2.1 million (previous year: €1.8 million) and other assurance services amounting to €0.4 million (previous year: €0.2 million) mainly for the audit of non-financial (consolidated) reporting (with full application of the first sentence of ESRS as a framework) and other services in the amount of €0.2 million (previous year: €0.0 million), which related to services rendered in connection with CSRD/ESG sustainability readiness in anticipation of a future audit of sustainability reporting and, to a lesser extent, to quality assurance in the implementation of regulatory requirements. 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 2024, government grants amounted to a mid-single-digit million amount. Government grants are deducted from the corresponding expenses.
Other operating income comprises income from the sale of fixed assets in the amount of €2.3 million (previous year: €8.5 million), capital gains from finance leases totalling €2.5 million (previous year: €8.0 million), and rental income totalling €3.4 million (previous year: €1.4 million).
Overall, other operating expenses include personnel costs, which consist of:
T.76Personnel costs(in € million)
2024
2023
Wages and salaries
740.6
688.7
Social security contributions
107.7
101.2
Expenses from share-based payments with cash compensation
4.4
5.2
Expenses for retirement pension and other personnel expenses
114.9
99.3
Total
967.6
894.4
In addition, cost of sales includes personnel costs in the amount of €17.7 million (previous year: €6.2 million).
The average number of employees for the year was as follows:
T.77Employees
2024
2023
Marketing/retail/sales
13,564
13,092
Research & development/product management
1,435
1,360
Administrative and general units
3,669
3,570
Total annual average
18,668
18,023
As of the end of the year, a total of 19,599individuals were employed (previous year: 18,681).
21.Financial result
The financial result consists of:
T.78Financial result(in € million)
2024
2023
Interest income
28.9
36.6
Interest income - lease receivables
2.5
1.2
Other financial income
105.9
74.9
Financial income
137.3
112.7
Interest expense
-76.3
-53.1
Interest expense - lease liabilities
-51.1
-46.8
Interest expense of valuation of pension plans
-1.0
-0.9
Loss from foreign currency-conversion, net
-88.5
-69.4
Other financial expenses
-80.1
-85.9
Financial expenses
-297.0
-256.0
Financial result
-159.7
-143.3
Interest income comprises interest income from bank balances in the amount of €24.5 million (previous year: €34.7 million) and other interest income in the amount of €4.5 million (previous year: €1.9 million).
The item ‘Other financial income’ of €105.9 million (previous year: €74.9 million) includes, income from forward components and the time value in connection with currency derivatives recognised in profit or loss in the amount of €65.8 million (previous year: €65.4 million), but also hedging gains from free standing derivatives totalling €39.8 million (previous year: €9.6 million), as well as dividend income of €0.4 million (previous year: €0.0 million) from the investment in Borussia Dortmund GmbH & Co. KGaA (BVB).
The item ‘interest expense’ includes €40.0 million (previous year: €28.2 million) in interest expense in connection with borrowings and €36.3 million (previous year: €24.8 million) in interest expense for factoring and other items.
The item ‘Other financial expenses’ includes expenses from the forward component and the time value in connection with currency derivatives of €51.7 million (previous year: €58.1 million), hedging losses from free standing derivatives of €2.2 million (previous year: €4.1 million), the loss on net monetary position in connection with hyperinflation of €17.4 million (previous year: €23.7 million), and the impairment of investment property of €8.8 million (previous year: €0.0 million).
22.Income taxes
T.79Income taxes(in € million)
2024
2023
Current income taxes
105.0
140.6
Deferred taxes
15.0
-22.8
Total
120.0
117.8
Current income taxes include €4.6 million in out-of-period income (previous year's income: €0.8 million). Deferred taxes include tax income of €5.0 million (tax income in previous year: €0.3 million), which is attributable to the occurrence or reversal 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:
T.80Tax rate reconciliation(in € million)
2024
2023
Earnings before income tax
462.3
478.3
Theoretical tax expense
Tax rate of the SE = 27.22% (previous year: 27.22%)
125.8
130.2
Tax rate difference with respect to other countries
-1.7
-21.0
Other tax effects:
Income tax for previous years
-7.3
3.7
Losses and temporary differences for which no tax claims were recognized
11.0
6.4
Changes in tax rates
3.0
-0.4
Current tax expense related to global minimum top-up tax
5.4
0.0
Non-deductible expenses for tax purposes and non-taxable income and other effects
-16.2
-1.1
Effective tax expense
120.0
117.8
Effective tax rate
25.9%
24.6%
For financial year 2024, 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 € 0.0 million (previous year: €7.5 million). Deferred tax expenses due to an impairment of deferred tax assets amounted to €10.7 million in the financial year (previous year: €11.3 million).
The PUMA Group falls within the scope of application of the global minimum taxation under the Pillar 2 tax legislation. The PUMA Group makes use of the exemption for the recognition of deferred taxes that result from the introduction of global minimum taxation and recognises it as a current tax as soon as it is incurred.
Hong Kong and the United Arab Emirates have adopted new tax legislation that provides for the introduction of local minimum taxation from 1 January 2025. As a result, from 2025, the PUMA Hong Kong Ltd. and PUMA Middle East FZ-LLC subsidiaries will be responsible for the minimum tax on their business activities rather than the parent company, PUMA SE.
The tax effect resulting from items that were directly included in other comprehensive income can be found in Chapter 8.
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:
T.81Earnings per share
2024
2023
Net income (€ million)
281.6
304.9
Weighted average number of outstanding shares (shares)
149,320,990
149,852,251
Earnings per share (€)
1.89
2.03
Net income for calculating the diluted earnings per share (€ million)
281.6
304.9
Weighted average number of outstanding shares (shares)
149,320,990
149,852,251
Dilutive effect from share-based payments
54,858
19,651
Weighted average number of outstanding shares, diluted (shares)
This site uses tracking technologies from various providers
This site uses third party website tracking technologies to provide and continuously improve its services and display advertisements according to users' interests. Our cookie banner allows users to choose between three options. Until he confirms the banner, the scripts for statistics and marketing cookies will not be executed. I agree and can withdraw or change my consent at any time with effect for the future.
Functional – Basic website functions require this cookie, it is needed and cannot be deselected.
Statistics – Tracking services for the collection of user statistics.
Marketing – Cookies from third-party services that collect data on the website and merge it with your own data.
