Notes to the consolidated statement of financial position
3.Cash and cash equivalents
As of 31 December 2024, the Group has €368.2 million (previous year: €552.9 million) in cash and cash equivalents. This includes bank balances, including short-term financial investments with an original term of up to three months. The average effective interest rate of financial investments was 1.8% (previous year: 1.1%) for countries without hyperinflation. In countries with hyperinflation, the average effective interest rate of financial investments was 62.4% (previous year: 40.9%). There are no cash and cash equivalents subject to transfer restrictions in the current year (previous year: €45.6 million).
4.Inventories
Inventories are allocated to the following main groups:
T.11Inventories(In € million)
2024
2023
Goods/inventory and finished goods
Footwear
672.4
625.9
Apparel
473.2
420.8
Accessories/Others
211.2
216.0
Raw materials, consumables and supplies
34.5
34.9
Prepayments made
0.3
2.9
Goods in transit
576.0
458.7
Inventory adjustments related to returns
46.1
45.2
Total
2,013.7
1,804.4
The raw materials, consumables and supplies mainly relate to raw materials for the production of golf clubs and footwear.
The table shows the carrying amounts of the inventories net of value adjustments. Of the value adjustments in the amount of €111.4 million (previous year: €157.1 million) approx. 67.2% in financial year 2024 (previous year: approx. 64.3%) were recognised in profit or loss in cost of sales.
The volume of inventories recorded as an expense during the period mainly includes the cost of sales shown in the consolidated income statement.
The inventory adjustments related to returns represents the historical acquisition or production costs of the inventories for which a return is expected.
5.Trade receivables
The trade receivables are broken down as follows:
T.12Trade receivables(In € million)
2024
2023
Trade receivables, gross
1,308.5
1,183.4
Less provision for risks
-61.9
-65.0
Trade receivables, net
1,246.5
1,118.4
The change in the provision for risks for financial assets in the "trade receivables" class measured at amortised cost relates to receivables in connection with revenues from contracts with customers and has developed as follows:
T.13Change of risk provisions for trade receivables(In € million)
2024
2023
Status of provision for risks as of 1 January
65.0
57.9
Exchange rate differences
-0.6
-1.6
Additions
15.0
26.7
Utilisation
-4.3
-3.8
Reversals of unused provision for risks
-13.1
-14.3
Status of provision for risks as of 31 December
61.9
65.0
The age structure of the trade receivables is as follows:
T.14Age structure 2024(In € million)
Overdue
2024
Total
Not due
0-30 days
31-90 days
90-180 days
Over 180 days
Trade receivables, gross
1,308.5
1,053.2
84.5
79.6
28.6
62.6
Provision for risks
-61.9
-16.2
-2.3
-3.8
-3.5
-36.2
Trade receivables, net
1,246.5
1,037.0
82.2
75.9
25.0
26.4
Expected loss rate
1.5%
2.7%
4.7%
12.4%
57.8%
T.15Age structure 2023(In € million)
Overdue
2023
Total
Not due
0-30 days
31-90 days
90-180 days
Over 180 days
Trade receivables, gross
1,183.4
952.3
92.4
83.4
14.1
41.4
Provision for risks
-65.0
-16.4
-4.0
-8.2
-4.5
-31.9
Trade receivables, net
1,118.4
935.8
88.4
75.2
9.6
9.5
Expected loss rate
1.7%
4.3%
9.8%
32.0%
77.1%
With respect to the net carrying amounts of trade receivables, PUMA assumes that the debtors will satisfy their payment obligations or that, in the event of a default, the net carrying amount will be covered by existing credit insurance. There are no significant risk concentrations as the customer base is very broad and there are no correlations.
Trade receivables are derecognised when, in the context of factoring agreements, essentially all risks and opportunities relating to these receivables have been transferred to a third party. As of 31 December 2024, receivables in the amount of €269.7 million (previous year: €141.7 million) were derecognised as a result of factoring agreements. The cash flows are categorised as cash inflow from operating activities in the consolidated statement of cash flows.
6.Other current financial assets
Other current financial assets are broken down as follows:
T.16Other current financial assets(In € million)
2024
2023
Fair value of derivative financial instruments
147.1
34.5
Lease receivables
12.4
14.9
Remaining financial assets
168.8
45.6
Total
328.3
94.9
The amount shown is due within one year. The fair value corresponds to the carrying amount.
7.Other current assets
Other current assets are broken down as follows:
T.17Other current assets(In € million)
2024
2023
Prepaid expense relating to the subsequent period
102.1
98.3
Other receivables
158.7
172.1
Total
260.9
270.4
The amount shown is due within one year. The fair value corresponds to the carrying amount.
Other receivables mainly comprise receivables relating to VAT of €100.0 million (previous year: €98.9 million) and other taxes of €35.3 million (previous year: €25.6 million).
8.Deferred taxes
Deferred taxes relate to the items shown below:
T.18Deferred taxes(in € million)
2024
2023
Tax loss carry-forwards
56.3
76.9
Inventories
62.0
74.5
Remaining current assets
12.8
13.5
Non-current assets
48.4
56.3
Lease liabilities (current and non-current)
286.9
290.8
Provisions and other liabilities
124.4
118.1
Deferred tax assets (before netting)
590.7
630.1
Current assets
47.3
17.4
Intangible assets
41.7
42.1
Right-of-use assets
243.5
258.2
Remaining non-current assets
26.9
24.6
Provisions and other liabilities
1.8
4.1
Deferred tax liabilities (before netting)
361.2
346.4
Deferred tax assets, net
229.5
283.7
As of 31 December 2024, tax losses carried forward amounted to a total of €417.2 million (previous year: € 447.9 million). Deferred tax assets were recognised for these items in the amount at which the associated tax advantages are likely to be realised in the form of future profits for income tax purposes. In financial year 2024, no deferred tax items were recognised for the losses carried forward in the amount of €143.6 million (previous year: €102.9 million), of which €136.4 million (previous year: €94.5 million) are vested. The remaining tax losses carried forward, for which no deferred tax items were recognised, in the amount of €7.2 million (previous year: €8.3 million) will expire within the next six years.
In addition, no deferred tax items were recognised for temporary differences in the amount of €20.7 million (previous year: €27.0 million) because they were not expected to be realised as of the balance sheet date.
For Group companies that achieved a negative tax result in this or the previous financial year, a total of deferred tax assets in the amount of €190.5 million were recognised after deduction of any deferred tax liabilities (previous year: €157.1 million) as sufficiently positive tax results can be expected in the future on the basis of the relevant projections. Of this amount, €56.3 million is attributable to the sales units in the USA. The approach was based on a projection that deviates from the general corporate planning and completely disregards potential future business opportunities and market share gains. A further share of € 15.5 million is attributable to the United Kingdom distribution unit. The assumption of sufficient future positive tax profits is based on the expectation of higher sales volumes (supported by the current order book) and the initiation of a range of measures aimed at optimising costs.
No deferred taxes on retained profits at subsidiaries were recognised where these gains are to be reinvested on an ongoing basis and there is no intention to make a distribution in this respect.
Deferred tax assets and liabilities are netted if they relate to a taxable entity and can in fact be netted. Accordingly, they are shown in the balance sheet as follows:
T.19Deferred tax assets and liabilities(in € million)
2024
2023
Deferred tax assets
243.6
296.1
Deferred tax liabilities
14.2
12.4
Deferred tax assets, net
229.5
283.7
The changes in deferred tax assets (net) were as follows:
T.20Movement of deferred taxes(in € million)
2024
2023
Deferred tax assets, net as of 1 January
283.7
253.1
Recognition in the consolidated income statement
-15.0
22.8
Adjustment related to remeasurements of the net defined benefit liability, recognised in other comprehensive income
0.7
0.2
Adjustment related to the cash flow hedge reserve, recognised in other comprehensive income
-35.0
10.1
Adjustment related to the reserve for hedging costs - options, recognised in other comprehensive income
-0.2
0.0
Adjustment related to the reserve for hedging costs - forward contracts, recognised in other comprehensive income
1.3
0.0
Currency exchange effects
-6.2
-2.5
Deferred tax assets, net as of 31 December
229.5
283.7
9.Property, plant and equipment
The development of property, plant and equipment is shown in the following tables:
T.21Movements of property, plant & equipment2024(in € million)
Real estate
Technical equipment and machines
Other equipment, furniture and fixture
Assets under construction
Total
Purchase costs as of 1 January 2024
189.5
222.5
753.2
94.8
1,260.0
Additions*
2.5
30.4
112.8
40.3
185.9
Disposals
-3.3
-3.9
-64.9
-2.2
-74.3
Transfers
9.4
56.9
23.7
-94.6
-4.7
Currency changes
22.5
10.0
17.8
3.4
53.7
As of 31 December 2024
220.6
315.9
842.6
41.7
1,420.7
Accumulated depreciation as of 1 January 2024
-56.0
-49.7
-468.7
-0.0
-574.4
Depreciation
-6.5
-17.9
-97.8
0.0
-122.3
Disposals
1.9
3.4
61.1
0.0
66.4
Transfers
0.0
-0.3
0.4
0.0
0.1
Impairment losses
-8.8
0.0
-0.6
0.0
-9.4
Currency changes
-0.9
-4.5
-10.0
0.0
-15.3
As of 31 December 2024
-70.4
-69.0
-515.6
0.0
-655.0
Net carrying amount as of 31 December 2024
150.2
246.9
326.9
41.7
765.7
* This information is part of PUMA's 2024 Sustainability Declaration in accordance with ESRS E1-3.
T.22Movements of property, plant & equipment2023(in € million)
Real estate
Technical equipment and machines
Other equipment, furniture and fixture
Assets under construction
Total
Purchase costs as of 1 January 2023
175.2
170.8
706.3
75.1
1,127.4
Additions*
23.9
16.6
118.4
66.5
225.4
Disposals
-4.8
-0.4
-41.0
-2.8
-49.0
Transfers
0.1
39.7
2.2
-42.3
-0.4
Currency changes
-5.0
-4.1
-32.6
-1.8
-43.4
As of 31 December 2023
189.5
222.5
753.2
94.8
1,260.0
Accumulated depreciation as of 1 January 2023
-54.5
-37.3
-443.2
-0.1
-535.2
Depreciation
-6.2
-15.0
-84.4
0.0
-105.7
Disposals
3.5
0.4
38.6
0.0
42.5
Transfers
0.0
-0.3
-0.0
0.0
-0.3
Currency changes
1.2
2.5
20.3
0.1
24.2
As of 31 December 2023
-56.0
-49.7
-468.7
-0.0
-574.4
Net carrying amount as of 31 December 2023
133.5
172.8
284.6
94.8
685.6
* This information is part of PUMA's 2024 Sustainability Declaration in accordance with ESRS E1-3.
Investment properties have a carrying amount of €27.7 million as of 31 December 2024 (previous year: €21.1 million) and are reported as real estate under property, plant and equipment. The fair value of investment properties as of 31 December 2024 is €20.9 million (previous year: €23.3 million). This was determined by external, independent experts who have relevant professional qualifications and current experience with the location and type of properties to be valued. The fair value was determined on the basis of the market-comparative approach, which reflects the most recent transaction prices for similar properties. In the current financial year, impairment losses of 8.8 million (previous year: €0.0 million) were recognised in financial expenses for investment properties. The affected asset is reported in the segment reporting in the Latin America region. The calculation was based on the value in use, taking into account a cost of capital rate of 3.8%.
The rental income generated by the Group from investment properties amounted to €1.4 million in the financial year (previous year: €0.6 million). Direct operating expenses for investment properties, which generated rental income in the financial year, amounted to €0.0 million (previous year: €0.0 million).
10.Leases
PUMA as lessee
The Group rents and leases offices, warehouses, facilities, technical equipment and machinery, motor vehicles and sales rooms for its own retail business. As a rule, the lease agreements have a term of between one and fifteen years. Some agreements include renewal options and price adjustment clauses.
The carrying amounts for right-of-use assets recognised in the balance sheet relate to the following asset classes:
T.23Right-of-use assets 2024(in € million)
Real estate – retail stores
Real estate – warehouses & offices
Others
Total
Depreciation
117.4
87.9
13.5
218.7
Additions*
147.6
67.5
11.9
227.0
Net carrying amount as of 31 December 2024
528.9
522.5
65.4
1,116.8
T.24Right-of-use assets 2023(in € million)
Real estate – retail stores
Real estate – warehouses & offices
Others
Total
Depreciation
107.1
89.7
12.2
209.0
Additions*
174.1
71.9
14.3
260.3
Net carrying amount as of 31 December 2023
464.2
557.7
65.7
1,087.7
* This information is part of PUMA's 2024 Sustainability Declaration in accordance with ESRS E1-3.
The item "Others" includes technical equipment and machinery, as well as motor vehicles.
The following lease liabilities result:
T.25Lease liabilities(In € million)
2024
2023
Current lease liabilities
220.6
212.4
Non-current lease liabilities
1,010.0
1,020.0
Total
1,230.6
1,232.4
The amounts recognised in the consolidated income statement are as follows:
T.26Recognised in income statement(In € million)
2024
2023
Depreciation of right-of-use assets incl. impairment losses and reversal of impairment losses (included in operating expenses)
196.6
202.8
Interest expenses (included in financial expenses)
51.1
46.8
Expenses for short-term leases (included in operating expenses)
10.0
11.3
Expenses for leases of low-value assets (included in operating expenses)
1.0
1.2
Expenses for variable lease payments (included in operating expenses)
36.6
35.4
Total
295.3
297.5
Variable lease payments are incurred in connection with the Group's own retail stores. These are based on the sales amount and are therefore dependent on the overall economic development.
Total cash outflows from lease liabilities in 2024 amounted to €273.6 million (previous year: €254.8 million).
Due to reduced earnings prospects based on updated financial planning and estimates, impairment losses in the total amount of €7.3 million were recorded for the rights of use of assets in connection with PUMA's own retail stores in financial year 2024 (previous year: €5.7 million). To determine the impairment, the recoverable amount was calculated for the individual retail stores. The recoverable amount for the impaired retail stores is €16.7 million (previous year: €65.3 million), of which €15.4 million was determined on the basis of the value in use (previous year: €65.3 million) and €1.3 million on the basis of the fair value (previous year: €0.0 million). In the financial year under review, reversals of impairment losses amounting to a total of €29.4 million (previous year: €11.9 million) were recorded for retail stores. There were no impairment losses or impairment reversals in the other categories of right-of-use assets.
In 2024, PUMA entered into lease agreements that had not yet commenced by year-end. As a result, no lease liabilities and corresponding right-of-use assets had been recognised as of 31 December 2024. Future lease payments in connection with these agreements amount to €16.0 million (previous year: €2.0 million) for the next year, €75.9 million for years two to five (previous year: €28.2 million) and €97.1 million for the subsequent period (previous year: €48.5 million). The lease terms for these are up to 12 years (previous year: 15 years).
The maturity analysis of lease liabilities is as follows:
T.27Maturity analysis of lease liabilities(in € million)
2024
2023
Due within one year
265.0
255.8
Due between one and five years
678.9
679.6
Due after five years
502.5
510.4
Total (undiscounted)
1,446.5
1,445.8
Interest expense (not yet realised)
-215.9
-213.4
Total
1,230.6
1,232.4
PUMA as lessor
PUMA rents out properties owned and leased as a lessor. From the lessor's point of view, these (sub)leases are classified as operating or finance leases.
The net investments from finance leases are shown as receivables in the balance sheet and are reduced by the repayment portion included in the lease payment. The interest portion included in the lease payment is reported as interest income in the financial result.
The maturities of the existing receivables on lease payments against third parties classified as finance leases are as follows:
T.28Maturity analysis of lease receivables(in € million)
2024
2023
Due within one year
13.9
16.8
Due between one and five years
16.5
24.8
Due after five years
2.1
4.5
Total (undiscounted)
32.5
46.1
Interest income (not yet realised)
-4.0
-5.4
Provision for risks
-0.3
-0.5
Total
28.2
40.2
The following income was recognised in the consolidated income statement in connection with leases:
T.29Recognised in income statement(In € million)
2024
2023
Operating leases
Fixed rental income
1.8
1.0
Finance leases
Variable rental income
1.6
0.4
Total rental income (included in other operating income)
3.4
1.4
Selling profit (included in other operating income)
2.5
8.0
Interest income (included in financial income)
2.5
1.2
Future lease payments from operating leases for the coming year amount to €1.8 million (previous year: € 1.6 million) and to €7.4 million for years two to five (previous year: €5.1 million).
11.Intangible assets
Intangible assets mainly include goodwill, intangible assets with indefinite useful lives (e.g. brands), assets associated with the Company's own retail activities and software licenses.
The development of intangible assets is shown in the following table:
T.30Movements of intangible assets2024(in € million)
Goodwill
Intangible assets with an indefinite useful life
Other intangible assets
Total
Purchase costs as of 1 January 2024
285.3
146.3
397.5
829.1
Additions
0.0
0.0
74.2
74.2
Disposals
0.0
0.0
-67.8
-67.8
Transfers
0.0
0.0
4.2
4.2
Currency changes
-1.7
8.2
0.5
6.9
As of 31 December 2024
283.5
154.5
408.4
846.5
Accumulated depreciation as of 1 January 2024
-46.3
-17.6
-234.5
-298.2
Amortisation
0.0
0.0
-29.2
-29.2
Disposals
0.0
0.0
67.0
67.0
Transfers
0.0
0.0
0.3
0.3
Currency changes
-0.1
0.0
-0.5
-0.5
As of 31 December 2024
-46.3
-17.6
-196.7
-260.7
Net carrying amount as of 31 December 2024
237.2
136.9
211.7
585.8
T.31Movements of intangible assets2023(in € million)
Goodwill
Intangible assets with an indefinite useful life
Other intangible assets
Total
Purchase costs as of 1 January 2023
289.3
151.0
341.0
781.2
Additions
0.0
0.0
74.2
74.2
Disposals
0.0
0.0
-16.8
-16.8
Transfers
0.0
0.0
0.6
0.6
Currency changes
-4.0
-4.6
-1.5
-10.1
As of 31 December 2023
285.3
146.3
397.5
829.1
Accumulated depreciation as of 1 January 2023
-46.6
-17.6
-210.5
-274.7
Amortisation
0.0
0.0
-37.0
-37.0
Disposals
0.0
0.0
11.9
11.9
Transfers
0.0
0.0
-0.1
-0.1
Currency changes
0.4
0.0
1.3
1.6
As of 31 December 2023
-46.3
-17.6
-234.5
-298.2
Net carrying amount as of 31 December 2023
239.0
128.7
163.0
530.8
The item Other intangible assets includes advance payments in the amount of €20.7 million (previous year: €21.6 million).
The current amortisation of intangible assets in the amount of €29.2 million (previous year: €37.0 million) is included in the other operating expenses. Of this, €7.7 million relate to sales and distribution expenses (previous year: €11.5 million), €0.0 million to expenses for product management/merchandising (previous year: €0.1 million), and €21.5 million to administrative and general expenses (previous year: €25.3 million).
Information on planning assumptions for impairment tests
Goodwill and intangible assets with indefinite useful lives are not amortised according to schedule. Impairment tests with regard to goodwill were performed in the past financial year using the discounted cash flow method. The data from the three-year plan for the respective cash-generating unit or group of cash-generating units was used as a basis for this. Planning on the level of the cash-generating units was thereby derived from the PUMA Group's three-year plan. The following key assumptions have been made for the PUMA Group plans:
Based on the basic assumptions regarding overall economic development, planning at Group level assumes that geopolitical tensions will not increase any further. Under these conditions, we expect our business to continue to grow profitably.
Planned sales growth is based on the good future growth prospects in the sporting goods industry and on market share gains by PUMA. This is to be achieved, in particular, via the continued consistent implementation of the Forever Faster corporate strategy and the increase in PUMA's brand heat.
The improvement in EBIT margin in the planning period is the result of a slight increase in gross profit margin due to, for example, a higher share of own retail sales as a result of above-average growth of the e-commerce distribution channel. Furthermore, the slightly weaker percentage increase of other operating income and expenses compared to sales growth is also expected to contribute to the improvement of the EBIT margin; for example, the operating requirements for planned sales growth over the coming years have essentially been met, meaning that economies of scale can be realised. In addition, the "nextlevel" efficiency programme is intended to help achieve cost savings and operational leverage.
The planning of investments and working capital is based on historical experience and is carried out in accordance with strategic objectives.
The future tax payments are based on current tax rates in the respective country.
For periods beyond the three-year plan, an annual growth rate is determined and used to forecast future cash flows beyond the three-year period. The assumed growth rate is based on long-term expectations of inflation rates and does not exceed the long-term average growth rates for the business area in which the respective cash-generating unit, or group of cash-generating units, operates.
The recoverable amount for the respective cash-generating unit or group of cash-generating units was determined on the basis of the value-in-use. This did not result in impairment losses for any cash-generating units.
Intangible assets with an indefinite useful life
In connection with the Golf business unit (CPG – Cobra PUMA Golf), the Cobra brand exists as an intangible asset with an indefinite useful life amounting to €136.9 million (previous year: €128.7 million). The carrying amount of the Cobra brand is significant in comparison to the overall carrying amount of the intangible assets with an indefinite useful life. It was assigned to the North America business segment, where the headquarters of Cobra PUMA Golf is located. The recoverable amount of the Cobra brand was determined using the relief-from-royalty method (level 3 – see explanation in Chapter 14). A discount rate of 10.0% p.a. (previous year: 10.6% p.a.), a royalty rate of 6.0% (previous year: 6.0%) and a sustainable 2.0% growth rate (previous year: 2.0%) was used. Cobra or CPG's three-year plan shows average revenue growth in the mid- to-high single-digit percentage range. The management's key assumptions about improvement in the EBIT margin in Cobra's or CPG's three-year plan are essentially in line with the fundamental assumptions in the plans at Group level. The estimated recoverable amount of the Cobra brand exceeds its carrying amount by approximately €19.9 million (previous year: approx. €15.4 million).
A reduction of the royalty rate to approximately 5.2% (previous year: approx. 5.4%) or a reduction of the average planned sales revenues by approximately 13.2% (previous year: approx. 10.3%) would not result in any impairment requirement for the Cobra brand, and the recoverable amount would correspond to the carrying amount.
If there is evidence that the underlying Cobra business is insufficiently profitable, the trademark is not only valued individually using the relief-from-royalty method, but the recoverable amount of the cash-generating units to which the trademark is attributable is determined. In 2024, there were no indications of this.
Goodwill
Goodwill is allocated to the Group's identifiable groups of cash-generating units (CGUs) according to the countries where the activities are carried out. Summarised by regions, goodwill is allocated as follows:
T.32Composition of goodwill(in € million)
2024
2023
PUMA UK
1.7
1.6
Genesis
7.4
7.0
Subtotal Europe
9.1
8.7
PUMA Canada
9.5
9.7
PUMA United NA
2.1
2.0
Subtotal North America
11.6
11.7
PUMA Argentina
16.8
15.8
PUMA Chile
0.5
0.5
PUMA Mexico
10.6
12.2
Subtotal Latin America
27.9
28.5
PUMA China
2.5
2.5
PUMA Taiwan
13.2
13.3
Subtotal Greater China
15.6
15.8
PUMA Japan
33.6
35.0
Subtotal Asia/Pacific (excluding Greater China)
33.6
35.0
stichd
139.4
139.4
Total
237.2
239.0
Assumptions used in conducting the impairment tests in 2024:
T.33Assumptions impairment test2024
Tax rate (range)
WACC before tax (range)
WACC after tax (range)
Europe
25.0%
13.3%-13.4%
10.4%
North America *
26.2%
12.7%
9.8%
Latin America
27.0%-35.0%
15.2%-56.0%
11.7%-50.8%
Greater China
20.0%-25.0%
12.6%-12.7%
9.9%-10.3%
Asia/Pacific (excluding Greater China) *
38.1%
15.6%
10.1%
stichd *
25.0%
12.5%
9.7%
* The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-generating unit (CGU)
The tax rates used for the impairment test correspond to the actual tax rates in the respective countries. The weighted average cost of capital (WACC) was derived on the basis of the weighted average cost of total capital, taking into account a standard market capital structure (ratio of debt to equity) and including the most important listed competitors (peer group).
In addition, a growth rate of 2.0% (previous year: 2.0%) is generally assumed. A growth rate of less than 2.0% (previous year: less than 2.0%) was applied only in justified exceptional cases, where the long-term expectations on inflation rate for the country in which the cash-generating unit operates were lower than the assumed growth rate; this applies, in particular, to the UK, China, Japan and Taiwan.
The cash-generating unit stichd includes goodwill of €139.4 million (previous year: €139.4 million), which is significant in comparison to the overall carrying amount of goodwill. The recoverable amount was determined by a value-in-use calculation with a discount rate of 9.7% p.a. (previous year: 10.2% p.a.) and a growth rate of 2.0% (previous year: 2.0%). The three-year plan of stichd shows sales growth in the mid-to-high single-digit percentage range. The three-year plan of stichd illustrates that the company expects a stronger improvement in the EBIT margin compared to the Group, something that stichd has already achieved in the past, as well as a return to its historical profitability.
The cash-generating unit PUMA Japan includes goodwill of €33.6 million (previous year: €35.0 million), which is significant in comparison to the overall carrying amount of goodwill. The recoverable amount was determined by a value-in-use calculation with a discount rate of 10.1% p.a. (previous year: 10.5% p.a.) and a growth rate of 1.5% (previous year: 1.2%). PUMA Japan's three-year plan provides for sales growth in the mid-to-high single-digit percentage range. PUMA Japan's three-year plan shows that the company expects a strong improvement in the EBIT margin and a return to the historical profitability level of PUMA Japan. The estimated recoverable amount of the cash-generating unit PUMA Japan exceeds its carrying amount by approximately €19.4 million (previous year: approx. €20.0 million).
An increase in the discount rate to around 11.4% or a reduction in the average planned operating result (EBIT) over the three-year period of around 12.5% would not result in an impairment of the goodwill of PUMA Japan and the recoverable amount would correspond to the carrying amount.
The following table contains the assumptions for the performance of the impairment tests in the previous year:
T.34Assumptions impairment test2023
Tax rate (range)
WACC before tax (range)
WACC after tax (range)
Europe
19.0%
13.3%
11.1%
North America *
26.2%
12.7%
10.3%
Latin America
27.0%-35.0%
16.5%-64.1%
12.1%-51.7%
Greater China
20.0%-25.0%
12.9%-14.0%
10.5%-11.2%
Asia/Pacific (excluding Greater China) *
38.1%
16.4%
10.5%
stichd *
25.0%
13.1%
10.2%
* The information for North America, Asia/Pacific (excluding Greater China) and stichd relates in each case to only one cash-generating unit (CGU)
12.Other non-current assets
Other non-current financial and non-financial assets consist of:
T.35Other non-current assets(In € million)
2024
2023
Investments
18.5
21.2
Fair value of derivative financial instruments
28.0
1.4
Lease receivables
15.8
25.3
Remaining financial assets
33.1
35.7
Total of other non-current financial assets
95.4
83.6
Other non-current non-financial assets
28.1
25.6
Other non-current assets, total
123.5
109.1
The investments relate to the 5.32% shareholding in Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien (BVB) with registered office in Dortmund, Germany. According to the audited IFRS consolidated financial statements 2023/2024 of Borussia Dortmund GmbH & Co. Kommanditgesellschaft auf Aktien, equity as of 30 June 2024 amounted to €327.0 million (30 June 2023: € 282.7 million) and the result of the last financial year was €44.3 million (previous year: €9.6 million).
Other financial assets mainly include rental deposits in the amount of €29.8 million (previous year: €31.9 million). The other non-current non-financial assets mainly include accruals and deferrals in connection with promotional and advertising agreements.
13.Liabilities
The residual terms of liabilities are as follows:
T.36Liabilities(In € million)
2024
2023
Residual term of
Residual term of
Total
up to 1 year
1 to 5 years
over 5 years
Total
up to 1 year
1 to 5 years
over 5 years
Borrowings
488.0
131.6
356.4
0.0
572.0
145.9
426.1
0.0
Trade payables
1,893.5
1,893.5
0.0
0.0
1,499.8
1,499.8
0.0
0.0
Other liabilities *
Liabilities from other taxes
111.2
111.2
0.0
0.0
110.0
110.0
0.0
0.0
Liabilities relating to social security
12.0
12.0
0.0
0.0
10.6
10.6
0.0
0.0
Payables to employees
121.8
121.8
0.0
0.0
123.6
123.6
0.0
0.0
Liabilities from refund obligations
213.5
213.5
0.0
0.0
236.9
236.9
0.0
0.0
Liabilities from derivative financial instruments
21.8
19.9
1.9
0.0
58.2
47.7
10.5
0.0
Remaining other liabilities
40.9
38.8
2.1
0.1
45.4
43.2
2.0
0.2
Total
2,902.5
2,542.2
360.3
0.1
2,656.5
2,217.7
438.5
0.2
* The maturity analysis on lease liabilities is presented in Chapter 10.
The liabilities from refund obligations result from contracts with customers and essentially comprise obligations from customer return rights.
Information regarding supplier financing agreements
PUMA offers its suppliers a programme to finance supplier invoices. The largest programme, the PUMA Vendor Financing Programme (PVFP), enables suppliers to pre-finance their invoices to PUMA from one of the partner banks significantly before the agreed payment date in return for an interest discount. The financing terms are linked to the achievement of sustainability targets by the suppliers. Participation in this programme is voluntary. This supplier financing programme has no impact on PUMA; the payment date, payment methods and the original contractual conditions remain unchanged. In the balance sheet, liabilities are accordingly still shown as trade payables and cash outflows are included in the cash flow statement under cash flow from operating activities.
There are also some individual programmes with local suppliers. These too are intended to give suppliers the opportunity to pre-finance their invoices prior to the agreed payment dates, and in return, PUMA is granted partially extended payment periods; however, this is at the sole discretion of the financing partners. As PUMA does not incur any additional interest for the payment of supplier liabilities to the partner banks and, from the Group's point of view, the extended payment periods do not differ significantly from normal payment periods in the countries concerned, the liabilities are still reported as trade payables in the balance sheet and cash outflows are included in the cash flow statement under cash flow from operating activities in this case.
T.37Information on supplier financing agreements
2024
2023
PVFP
Other programmes
PVFP
Other programmes
Carrying amount of trade payables subject to supplier finance arrangements (in € million)
Presented as trade payables
352.3
42.9
362.0
35.0
Of which suppliers have received payment from the bank
139.1
17.7
-
-
Range of payment due dates (in days) *
Trade payables that are part of supplier finance arrangements
90
90-120
-
-
Trade payables that are not part of supplier finance arrangements
90
60-120
-
-
* The above-mentioned ranges of payment dates for the other programmes include ranges from multiple different countries. Under a supplier financing agreement, payment periods are extended by a maximum of 30 days, with the extended payment periods still not differing significantly from normal payment periods in the countries concerned.
14.Financial instruments
Carrying amounts of financial instruments and allocation to valuation categories
T.38Carrying amounts of financial instruments and their fair value(in € million)
Measurement categories under IFRS 9
Carrying amount
Fair value
Level 1
Level 2
Level 3
Carrying amount
Fair value
Level 1
Level 2
Level 3
2024
2024
2023
2023
Financial assets
Cash and cash equivalents
1)AC
368.2
552.9
Trade receivables
AC
1,246.5
1,118.4
Other current financial assets
Derivatives - hedge accounting
n/a
102.9
102.9
102.9
22.8
22.8
22.8
Derivatives - no hedge accounting
2)FVPL
44.1
44.1
44.1
11.6
11.6
11.6
Lease receivables
n/a
12.4
14.9
Remaining current financial assets
AC
168.8
45.6
Other non-current financial assets
Derivatives - hedge accounting
n/a
28.0
28.0
28.0
1.4
1.4
1.4
Investments
3)FVOCI
18.5
18.5
18.5
21.2
21.2
21.2
Lease receivables
n/a
15.8
25.3
Remaining non-current financial assets
AC
33.1
35.7
Financial liabilities
Current borrowings
Bank liabilities
AC
61.6
15.2
Promissory note loans (PNL)
AC
70.0
69.9
69.9
130.8
124.9
124.9
Trade payables
AC
1,893.5
1,499.8
Current lease liabilities
n/a
220.6
212.4
Other current financial liabilities
Derivatives - hedge accounting
n/a
13.7
13.7
13.7
22.6
22.6
22.6
Derivatives - no hedge accounting
FVPL
6.2
6.2
6.2
25.1
25.1
25.1
Remaining current financial liabilities
AC
27.2
30.9
Non-current borrowings (PNL)
AC
356.4
361.0
361.0
426.1
427.4
427.4
Non-current lease liabilities
n/a
1,010.0
1,020.0
Other non-current financial liabilities
Derivatives - hedge accounting
n/a
1.9
1.9
1.9
10.5
10.5
10.5
Remaining non-current financial liabilities
AC
1.0
0.9
Total financial assets at amortised cost
1,816.6
1,752.6
Total financial liabilities at amortised cost
2,409.6
2,103.6
Total financial assets at fair value through profit or loss
44.1
11.6
Total financial liabilities at fair value through profit or loss
6.2
25.1
Total financial assets at FVOCI
18.5
21.2
1) AC = at amortised cost
2) FVPL = fair value through PL
3) FVOCI (fair value through OCI) = equity instruments at fair value through other comprehensive income
Financial instruments that are measured at fair value in the balance sheet were determined using the following hierarchy:
Level 1: Use of prices quoted on active markets for identical assets or liabilities.
Level 2: Use of input factors that do not involve the quoted prices stated under level 1, but can be observed for the asset or liability either directly (i.e. as the price) or indirectly (i.e. derived from the price).
Level 3: Use of factors for the valuation of the asset or liability that are based on non-observable market data.
Reclassification between different levels of the fair value hierarchy are recorded at the end of the reporting period in which the change occurred.
The fair value of the investments held for strategic reasons only refers to equity instruments of the category "fair value through OCI" (FVOCI) and is determined on the basis of level 1. The market values of the derivative assets and liabilities as well as the fair value of the promissory note loans were determined in accordance with level 2.
The following table shows the measurement techniques used for determining Level 2 fair values for financial instruments.
T.39Financial Instruments measured at fair value - Level 2
Type
Measurement technique
Material, non-observable input factors
Connection between material, non-observable input factors and fair value measurement
Forward exchange contracts
The fair values are determined on the basis of current market parameters, i.e., reference prices observable on the market, taking into account forward premiums and discounts. The discounted result of the comparison of the forward price on the reporting date with the forward price of the valuation date is included in the measurement. The fair values are also checked for the counterparty's non-performance risk. In doing this, PUMA calculates credit value adjustments (CVA) or debt value adjustments (DVA) on the basis of an up/down method, taking current market information into account, in particular the creditworthiness of the company's business partners. No material deviations were found, so that no adjustments were made to the fair value determined.
Not applicable
Not applicable
Currency options
The valuation is based on Garman Kohlhagen model, an extended version of the Black Scholes model.
Not applicable
Not applicable
Promissory note loans
The valuation takes into account the cash value of expected payments, discounted using a risk-adjusted discount rate.
Not applicable
Not applicable
Interest options
The valuation is based on the Black Scholes model.
Not applicable
Not applicable
Of the fair value of the derivatives with a hedge relationship with positive market values of €131.0 million (previous year: €24.2 million), €125.4 million (previous year: €24.5 million) related to the valuation of the spot component. Of the fair value of the derivatives with a hedge relationship with negative market values of €15.5 million (previous year: €33.1 million), €13.0 million (previous year: €40.7 million) related to the valuation of the spot component.
Cash and cash equivalents, trade receivables and other receivables have short maturities. Accordingly, as of the reporting date, the carrying amount approximates fair value. Receivables are stated at nominal value, taking into account deductions for default risk.
The fair values of other financial assets correspond to their carrying amount, as the interest calculation occurs at the prevailing market interest rates on the balance sheet date. Other (current and non-current) financial assets include € 38.9 million (previous year: €40.3 million) that were pledged as rental or other deposits at usual market rates.
Trade payables have short residual maturities; their carrying amounts therefore approximate fair value.
The remaining financial liabilities have short residual maturities; the recognised amounts therefore approximate fair value.
Net result by valuation category
The following table shows the net result by valuation category:
T.40Net gains/losses from financial instruments(in € million)
2024
2023
Financial assets at amortised cost (AC)
2.9
5.8
Financial liabilities at amortised cost (AC)
-148.6
-89.3
Derivatives without hedging relationship measured at fair value through profit or loss (FVPL)
63.4
7.7
Financial assets measured at fair value through other comprehensive income (FVOCI)
-2.4
-0.5
The net result was determined by taking into account interest income and expense, dividends, currency exchange effects, changes in provisions for risks as well as gains and losses from disposals. It also includes effects from the fair value measurement of derivatives without a hedging relationship.
The net result includes interest income of €29.4 million (previous year: €36.6 million) and interest expenses of € 75.2 million (previous year: €47.7 million) according to the effective interest method.
General administrative expenses include changes in risk provisions for receivables.
Disclosures relating to financial risks
The PUMA Group is exposed to the following risks from the use of financial instruments:
Default risk
Liquidity risk
Market risk
These risks and the principles of risk management are explained below.
Principles of risk management
The Management Board of PUMA SE is responsible for developing and monitoring risk management in the PUMA Group. To this end, the Management Board has set up a Risk Management Committee that is responsible for designing, reviewing and adapting the risk management system. The Risk Management Committee regularly reports to the Management Board on its work.
The guidelines for the risk management system define the responsibilities, tasks and processes of the risk management system. The guidelines for the risk management system and the risk management system itself are reviewed regularly in order to be able to pick up on any changes in market conditions and PUMA's activities and incorporate them accordingly.
The Audit Committee, on the one hand, monitors the Management Board's compliance with the guidelines and the Group risk management processes. On the other hand, the Audit Committee monitors the effectiveness of the risk management system with regard to the risks to which the PUMA Group is exposed. The Internal Audit department supports the Audit Committee in its monitoring tasks. To this end, regular audits and ad hoc audits are also carried out by the Internal Audit department. Their results are reported directly to the Audit Committee.
Default risk
Default risk is the risk of financial losses if a customer or party to a financial instrument fails to meet its contractual obligations. Default risk arises in principle from trade receivables and from other contractual financial obligations of the counterparty, such as bank deposits and derivative financial instruments.
Without taking into account any existing credit insurance policies or other guarantees received, the maximum default risk is equal to the carrying amount of the financial assets.
At the end of financial year 2024, there was no relevant concentration of default risk by customer type or region. Default risk is mainly influenced by individual customer characteristics. In accordance with our credit guidelines, new customers are checked for creditworthiness before we offer them our regular payment and delivery terms. In addition, we set specific receivables limits for each customer. In particular, the international credit insurance programme that PUMA has concluded for all major subsidiaries contributes to risk mitigation. The creditworthiness of our customers and the limits on receivables are monitored on an ongoing basis, which also includes requests for individual credit limits from credit insurance providers for all customers who have external accounts that exceed a certain value limit. The credit insurer's response to such credit limit requests always includes information on the creditworthiness. Customers with a credit rating that does not meet the minimum requirements set may, as a rule, only acquire products against advance payment.
Further activities to reduce default risk include retention of title clauses, and also in individual cases the selective sale of trade receivables (without recourse) and the obtaining of bank guarantees or parent company guarantees for our customers.
At the end of the financial year 2024, no individual customers accounted for more than 10% of trade receivables.
The central Treasury department has a comprehensive overview of the banks involved in currency hedging instruments and the management of cash and cash equivalents. Business with banks is focused on core banks with the appropriate credit rating (currently a minimum rating of BBB+ or better), while maximum risk amounts are specified for banks that have also been engaged in addition to this. The counterparty risks resulting from this are reviewed at least once every six months.
PUMA held derivative financial instruments with a positive market value of €175.1 million in 2024 (previous year: € 35.8 million). The maximum default risk for an individual bank from such assets amounted to €34.6 million (previous year: €7.5 million).
In accordance with IFRS 7, the following table contains further information on the offsetting options for derivative financial assets and liabilities. Most agreements between financial institutions and PUMA include a mutual right to offsetting; the right to offsetting is only enforceable in the event of the default of a business partner. Therefore, the criteria for offsetting in the balance sheet are not met.
The carrying amounts of the derivative financial instruments affected by the aforementioned offsetting agreements are shown in the following table:
T.41Offsetting possibilities of derivative financial instruments(in € million)
2024
2023
Assets
Gross amounts of financial assets recognised in the balance sheet
175.1
35.8
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial assets
175.1
35.8
Offsettable on the basis of framework agreements
-21.7
-34.5
Total net value of financial assets
153.5
1.3
2024
2023
Liabilities
Gross amounts of financial liabilities recognised in the balance sheet
21.8
58.2
Financial instruments that qualify for offsetting
0.0
0.0
= Net book value of financial liabilities
21.8
58.2
Offsettable on the basis of framework agreements
-21.7
-34.5
Total net value of financial liabilities
0.1
23.7
Liquidity risk
Liquidity risk is the risk that the Group may not be able to meet its financial liabilities by delivering cash or other financial assets in accordance with the agreement. The objective of the Group in managing liquidity is to ensure that, as far as possible, sufficient cash and cash equivalents are always available in order to meet the payment obligations upon maturity, under both normal and strained conditions.
PUMA aims to maintain the amount of cash, cash equivalents and fixed loan commitments at a level that covers the effects of an assumed worst-case scenario. This scenario is based on the events and financial impact of the COVID-19 crisis in Q2 2020, which must be covered accordingly.
PUMA has confirmed credit lines totalling €1,842.9 million (previous year: €1,552.8 million), of which € 1,360.2 million (previous year: €986.1 million) had not been utilised as of 31 December 2024. The increase of €290.1 million in confirmed credit lines compared to the previous year resulted in particular from the early repayment of the syndicated revolving credit facility of €800.0 million with an original term until December 2025. This credit facility was replaced in December 2024 by a new syndicated revolving credit facility of €1,200.0 million with a term until December 2029 and two extension options of one year each. The financing partners are again nine of PUMA's international core banks.
No financial liabilities were utilised from credit lines granted only until further notice.
The effective interest rate of the current and non-current financial liabilities was 4.7% (previous year: 3.9%).
PUMA also participates in supplier financing agreements (for further explanations see Chapter 13), the main purpose of which is to allow suppliers to pre-pay their invoices via a bank on a voluntary basis. Programmes are offered by PUMA's central sourcing company (PUMA International Trading GmbH) for suppliers exporting goods to PUMA subsidiaries worldwide and by individual local PUMA subsidiaries for local deliveries from local suppliers. The financing partners involved in all of these programmes are international banks from among the PUMA’s international core banks with an appropriate credit rating. From the Group's point of view, the supplier financing agreements do not extend the payment terms or do not extend them significantly. Any extension of payment periods is at the sole discretion of the financing partners. For this reason, and in view of the balanced distribution of the programmes across five of the Group's core banks, PUMA faces no additional liquidity risk.
The following table shows the future cash outflows from the financial liabilities existing as at the reporting date, as well as the contractual cash flows in connection with derivatives with a negative market value. These are non-discounted gross amounts including expected interest payments, but exclude presentation of the effects of offsetting:
T.42Contractual cash flows from financial liabilities2024(in € million)
Total
2025
2026
2027 et seq.
Non-derivative financial liabilities
Borrowings
-523.7
-144.7
-217.9
-161.1
Trade payables
-1,893.5
-1,893.5
Other liabilities
-28.2
-27.2
-0.9
-0.1
Derivative financial liabilities
-29.8
-25.6
-3.9
-0.3
Cash inflow derivative financial liabilities
798.0
726.9
71.1
Cash outflow derivative financial liabilities
-827.8
-752.5
-75.0
-0.3
The following values were determined for the previous year:
T.43Contractual cash flows from financial liabilities2023(in € million)
Total
2024
2025
2026 et seq.
Non-derivative financial liabilities
Borrowings
-634.0
-166.9
-85.1
-382.0
Trade payables
-1,499.8
-1,499.8
Other liabilities
-31.8
-30.9
-0.5
-0.4
Derivative financial liabilities
-47.0
-43.8
-2.2
-1.0
Cash inflow derivative financial liabilities
2,876.6
2,397.1
479.5
Cash outflow derivative financial liabilities
-2,923.6
-2,440.8
-481.8
-1.0
Market risk
Market risk is the risk that market prices, such as exchange rates, share prices or interest rates, may change, thereby affecting the income of the Group or the value of the financial instruments held.
The aim of market risk management is to manage and control market risk within acceptable margins while optimising returns.
To manage market risks, PUMA acquires and sells derivatives and also enters into financial liabilities. All transactions are carried out within the framework of the Group's risk management regulations.
Currency risk
PUMA is exposed to transactional foreign currency risks such that the quoted currencies used for acquisition, disposal and credit transactions and for receivables do not match the functional currency of the Group companies.
In financial year 2024, PUMA designated currency hedges in the cash flow hedge accounting in order to hedge the amount payable of purchases denominated in USD, and converted to EUR, as well as for other currency risks resulting from internal resale to PUMA subsidiaries.
Furthermore, currency swaps and forward exchange contracts are used to hedge foreign exchange risks when measuring intra-group loans denominated in foreign currencies.
The estimated foreign currency risks are initially subjected to a quantitative materiality test, while simultaneously taking hedging costs into account. Material risks are then hedged, in accordance with the Group directive, up to a hedging ratio of up to 95% of the estimated foreign currency risks from expected acquisition and disposal transactions over the next 12 to 15 months. Forward exchange contracts and currency options, usually with a term of around 12 months from the reporting date, are used to hedge the foreign currency risk. For significant risks that are subject to large hedging costs, high hedging ratios can only be achieved over shorter terms.
The summarised quantitative information about the Group's currency risk is as follows:
T.44Exposure to foreign currency risk2024(in € million)
As of 31 December 2024
USD
MXN
JPY
Risk from forecast transactions
-1,698.5
248.4
185.7
Balance sheet risk
-753.9
87.4
8.1
Gross risk
-2,452.4
335.7
193.8
Hedged with currency options
221.4
0.0
-39.9
Hedged with forward exchange contracts
2,318.2
-155.2
-112.2
Net risk
87.2
180.5
41.7
T.45Exposure to foreign currency risk2023(in € million)
As of 31 December 2023
USD
MXN
JPY
Risk from forecast transactions
-1,716.4
269.1
190.0
Balance sheet risk
-628.3
78.8
13.4
Gross risk
-2,344.7
347.9
203.4
Hedged with currency options
18.1
0.0
-51.5
Hedged with forward exchange contracts
1,933.1
-211.1
-110.3
Net risk
-393.5
136.7
41.6
Forward exchange contracts and the risk from forecast transactions were calculated on a one-year basis.
The nominal amounts of open exchange rate-hedging transactions refer primarily to forward exchange contracts in a total amount of €4,135.4 million (previous year: €3,745.0 million).
The market values of open exchange rate-hedging transactions on the balance sheet date consist of:
T.46Market value of exchange rate hedging contracts(in € million)
2024
2023
Forward exchange contracts
161.0
35.5
Currency options
14.1
0.3
Currency hedging contracts, assets
175.1
35.8
Forward exchange contracts
21.0
56.0
Currency options
0.0
1.2
Currency hedging contracts, liabilities
21.0
57.2
Net
154.1
-21.4
The net risk position and the average hedging rates are broken down as follows:
T.47Average hedging rates
2024
2023
Current
Non-current
Current
Non-current
Currency risk
Net risk position (€ million)
1,403.8
496.1
1,076.5
504.2
Forward exchange contracts
Average EUR/USD exchange rate
1.113
1.117
1.108
1.110
Average EUR/MXN exchange rate
21.969
-
19.978
-
Average EUR/JPY exchange rate
157.814
155.475
138.560
148.736
Currency options
Average EUR/USD exchange rate (Put/Call)
1.060/1.126
1.110/1.162
1.050/1.144
1.039/1.131
Average EUR/MXN exchange rate (Put/Call)
-
-
-
-
Average EUR/JPY exchange rate (Put/Call)
145.990/159.979
-
140.198/157.850
143.733/161.366
Currency sensitivity analysis
In order to disclose market risks, IFRS 7 requires sensitivity analyses that show the effects of hypothetical changes in relevant risk variables on earnings and equity. The periodic effects are determined by relating the hypothetical changes caused by the risk variables to the balance of the financial instruments held as of the balance sheet date. The underlying assumption is that the balance as of the balance sheet date is representative for the entire year.
Currency risks as defined by IFRS 7 arise on account of financial instruments that are denominated in a currency which differs from the functional currency and are monetary in nature. Differences resulting from the conversion of the individual financial statements to the group currency are not taken into account. All non-functional currencies in which PUMA employs financial instruments are generally considered to be relevant risk variables.
The currency sensitivity analysis is based on the net balance sheet risk denominated in foreign currencies. This also includes intra-company monetary assets and liabilities. Outstanding currency derivatives are also reassessed as part of the sensitivity analysis.
The following table shows the increase or decrease of profit or loss or cash flow hedging reserve in equity in the event of a 10% appreciation or depreciation against the euro spot price. It is assumed that all other influencing factors, including interest rates and commodity prices, remain constant. The effects of the forecasted operating cash flows are also ignored.
T.48Sensitivity analysis for foreign exchange rate changes2024(in € million)
As of 31 December 2024
USD
MXN
JPY
Nominal amounts of outstanding hedge contracts
2,710.0
-155.2
-161.9
EUR +10%
EUR +10%
EUR +10%
Equity
-286.1
10.1
10.7
Profit or loss
2.5
-1.0
-0.1
EUR -10%
EUR -10%
EUR -10%
Equity
99.6
-16.8
-23.8
Profit or loss
-3.1
1.2
0.1
T.49Sensitivity analysis for foreign exchange rate changes2023(in € million)
As of 31 December 2023
USD
MXN
JPY
Nominal amounts of outstanding hedge contracts
2,413.7
-211.1
-123.7
EUR +10%
EUR +10%
EUR +10%
Equity
-151.3
17.9
-1.0
Profit or loss
2.0
-0.6
-0.1
EUR -10%
EUR -10%
EUR -10%
Equity
218.9
-11.0
-23.7
Profit or loss
-2.4
0.8
0.1
Currency risks and other risk and opportunity categories are discussed in greater detail in the Combined Management Report in the Risk and Opportunity Report.
Interest rate risk
The interest rate risk in the PUMA Group is primarily attributable to variable-interest borrowings. Interest rate management is carried out centrally by the Treasury division on the basis of specified limits. Within this framework, the division manages and monitors interest rate risk through the use of interest rate derivatives. Transactions are only concluded with counterparties that are creditworthy. Derivative financial instruments must not be used for speculative purposes, but only to hedge risks related to underlying transactions.
As of 31 December 2024, €153.0 million (previous year: €207.5 million) of the financial liabilities were subject to variable interest.
Interest rate collars were also concluded at the same amount and with the same maturity to hedge the risk of interest rate changes for the variable interest rate promissory note tranches in the amount of €150.0 million in May 2023.
There is an economic relationship between the underlying and hedging transactions, since the terms of the interest rate collars correspond to those of the floating rate loans. This applies to the nominal amount, maturity, payment and interest adjustment dates. The underlying risk of interest rate collars is identical to that of the hedged risk components. A hedge ratio of 1:1 has therefore been established for the hedging relationship.
The net risk position and the average hedged interest rate are as follows:
T.50Average hedged interest rate
2024
2023
Current
Non-current
Current
Non-current
Interest rate risk
Net risk position (€ million)
3.0
54.5
3.0
Average hedged interest rate in % based on current fixing (Cap/Floor)
4.7%/1.5%
4.7%/1.5%
Interest sensitivity analysis
The result in the Group depends on the development of the market interest rate level. A change in the interest rate level would have an impact on the Group's income and equity. The analysis carried out includes all interest-bearing financial instruments that are subject to interest rate risk.
A change in the interest rate level of 100 basis points would have the following effects on profit or loss and the cash flow hedging reserve in equity:
T.51Sensitivity analysis for interest rate risk(in € million)
2024
2023
+1.0%
-1.0%
+1.0%
-1.0%
Equity
0.0
0.0
0.8
0.0
Profit or loss
0.4
-1.5
0.4
-1.9
Information on hedging instruments that are in a hedging relationship
On the balance sheet date, the amounts relating to items designated as hedged underlying transactions were as follows:
T.52Designated hedge items(in € million)
Change in value used for calculating hedge ineffectiveness
Cash flow hedge reserve
Reserve for hedging costs
Balance remaining in the cash flow hedge reserve from hedging relationships for which hedge accounting is no longer applied
As of 31 December 2024
Currency risk – sales transactions
-13.1
5.3
-4.3
0.0
Currency risk – sourcing transactions
175.3
81.1
4.4
0.0
Interest rate risk
0.0
0.0
-0.3
0.0
As of 31 December 2023
Currency risk – sales transactions
-8.2
19.6
0.0
0.0
Currency risk – sourcing transactions
-5.4
-23.5
0.0
0.0
Interest rate risk
0.0
0.0
0.0
0.0
The amounts relating to items designated as hedging instruments have the following effects on the consolidated statement of financial position and consolidated income statement:
T.53Designated hedge instruments(in € million)
Nominal value
Carrying amount
Assets
Liabilities
Line item in the balance sheet where the hedging instrument is included
Changes in the value of the hedging instrument, recognised in other comprehensive income
Amount from hedging reserve transferred to cost of inventory
Amount reclassified from the cash flow hedge reserve to the income statement
Line item in the income statement affected by the reclassification
As of 31 December 2024
in the financial year 2024
Currency risk – sales transactions
1,139.7
14.3
-13.0
other current/ non-current financial assets/ liabilities
13.1
-
29.3
Sales
Currency risk – sourcing transactions
2,374.3
111.0
0.0
-175.3
-5.9
-
Cost of sales
Interest rate risk
150.0
0.0
0.0
0.0
-
0.0
Financial expenses
As of 31 December 2023
in the financial year 2023
Currency risk – sales transactions
1,082.2
22.3
-6.2
other current/ non-current financial assets/ liabilities
8.2
-
29.8
Sales
Currency risk – sourcing transactions
1,996.4
2.3
-34.5
5.4
-12.9
-5.1
Cost of sales
Interest rate risk
150.0
0.0
0.0
0.0
-
0.0
Financial expenses
The following table shows the reconciliation of the changes in equity in relation to hedging reserves:
T.54Changes in the hedging reserves(in € million)
2024
2023
Cash flow hedging reserve
Reserve for hedging costs
Cash flow hedging reserve
Reserve as of 31 December
-3.9
0.0
14.2
Transition effect IFRS 9
4.9
Reserve as of 1 January
-3.9
4.9
14.2
Change in fair value
Thereof currency risk*
162.2
12.3
-13.6
Thereof interest rate risk
0.0
0.6
0.0
Amount included in the acquisition cost of non-financial assets
-5.9
0.0
12.9
Amount reclassified to the income statement
Thereof currency risk**
-29.3
-20.3
-27.5
Thereof interest rate risk
0.0
0.0
0.0
Tax effect
-36.8
2.4
10.1
Reserve as of 31 December
86.4
-0.2
-3.9
* The change in the fair value of the hedging reserve of €12.3 million relates to sales transactions in the amount of € -22.4 million and sourcing transactions in the amount of €34.7 million.
** Of the amounts reclassified from the hedging reserve to the income statement, €25.8 million were incurred in connection with sales transactions and € -46.1 million in connection with sourcing transactions.
The change in the fair values of options or the change in the forward components and the currency basis spreads of the forward exchange contracts are recorded as cost of a transaction-related hedging separately under equity in the reserve for hedging costs and are recognised in the financial result through profit or loss when the underlying transaction occurs.
A small portion of the originally planned sourcing and sales volume in foreign currencies did not transpire, leading to an excess of hedging transactions. Hedge accounting was terminated for those sourcing and sales transactions that were no longer expected to transpire, and the fair value was transferred as a profit or loss from the cash flow hedging reserve to the consolidated income statement. As soon as any highly likely sourcing or sales transaction is no longer expected to transpire, an offsetting transaction is concluded. Across all currency pairs, an amount of €0.1 million (previous year: €5.5 million) was recorded in the financial result through profit or loss (see also Chapter 21).
15.Pension provisions
Pension provisions result from employees' claims and, if applicable, their survivors, for benefits which are based on the statutory or contractual regulations applicable in the respective country in the event of invalidity, death or when a certain retirement age has been reached. Pension commitments in the PUMA Group include both benefit- and contribution-based pension commitments and include both obligations from current pensions and rights to pensions payable in the future. The pension commitments are partially financed by external plan assets.
The risks associated with the pension commitments mainly concern the usual risks of benefit-based pension plans in relation to possible changes in the discount rate and inflation trends, and recipient longevity. In order to limit the risks of changed capital market conditions and demographic developments, plans with the maximum obligations were agreed or insured for new hires a few years ago in Germany and Great Britain. The specific risk of obligations based on salary is low within the PUMA Group. The introduction of an annual cap for pensionable salary in the Great Britain plan in 2016 covers this risk for the highest obligations. The Great Britain plan is therefore classified as a non-salary obligation.
T.55Present value of pension obligation2024(in € million)
Germany
Great Britain
Other companies
PUMA Group
Present value of pension obligation as of 31 December 2024
Salary-based obligations
Annuity
0.0
0.0
11.5
11.5
One-off payment
0.0
0.0
10.9
10.9
Non-salary based obligations
Annuity
50.4
31.4
0.0
81.8
One-off payment
8.3
0.0
0.0
8.3
Total
58.7
31.4
22.4
112.5
The following values were determined in the previous year:
T.56Present value of pension obligation2023(in € million)
Germany
Great Britain
Other companies
PUMA Group
Present value of pension obligation as of 31 December 2023
Salary-based obligations
Annuity
0.0
0.0
8.8
8.8
One-off payment
0.0
0.0
9.1
9.1
Non-salary based obligations
Annuity
49.3
31.9
0.0
81.2
One-off payment
8.2
0.0
0.0
8.2
Total
57.5
31.9
17.9
107.3
The main pension arrangements are described below:
The general pension scheme of PUMA SE essentially provides for pension payments to a maximum amount of € 127.82 per month and per eligible employee. It was closed for new members beginning in 1996. In addition, PUMA SE provides individual commitments (fixed sums in different amounts) as well as contribution-based individual benefits (in part from salary conversion). The contribution-based individual benefits are insured plans. There are no statutory minimum funding requirements. The volume of domestic benefit obligations amounts to €58.7 million as of the end of 2024 (previous year: €57.5 million) and thus accounts for 52.2% (previous year: 53.6%) of the total obligation. The fair value of the plan assets for the domestic obligations is €51.0 million (previous year: €50.4 million), while the corresponding pension provision amounts to €7.7 million (previous year: €7.1 million).
The defined benefit plan in Great Britain has been closed to new entrants since 2006. These are salary- and service-dependent commitments for retirement, disability and surviving dependents' pensions. In 2016, a growth cap of 1% p.a. on the pensionable salary was introduced. Partial capitalisation of the retirement pension is permitted. Statutory minimum funding requirements apply. The liability for the benefit entitlements under the defined benefit plan in the Great Britain amounted to €31.4 million at the end of 2024 (previous year: €31.9 million) and represents 27.9% (previous year: 29.7%) of the total liability. The liability is covered by assets of €28.9 million (previous year: €29.7 million). The provision amounts to €2.5 million (previous year: €2.2 million).
The present value of the pension obligation has developed as follows:
T.57Development of present value of pension obligation(in € million)
2024
2023
Present value of pension obligation as of 1 January
107.3
104.3
Cost of the pension obligation earned in the reporting year
2.1
2.0
Interest expense on pension obligation
4.8
4.4
Employee contributions
0.8
0.6
Benefits paid
-4.3
-4.5
Effects from transfers
0.1
0.0
Actuarial gains (-) and losses
0.5
0.1
Currency exchange effects
1.2
0.5
Present value of pension obligation as of 31 December
112.5
107.3
The changes in the plan assets are as follows:
T.58Development of plan assets(in € million)
2024
2023
Plan assets as of 1 January
85.2
82.4
Interest income on plan assets
3.8
3.5
Actuarial gains and losses (-)
-3.0
-0.9
Employer contributions
0.8
1.2
Employee contributions
0.8
0.6
Benefits paid
-3.2
-2.2
Currency exchange effects
1.2
0.6
Plan assets as of 31 December
85.6
85.2
The pension provision for the Group is derived as follows:
T.59Pension provision(in € million)
2024
2023
Present value of pension obligation from benefit plans
112.5
107.3
Fair value of plan assets
-85.6
-85.2
Financing status
26.9
22.1
Pension provision as of 31 December
26.9
22.1
Thereof assets
0.4
0.4
Thereof liabilities
27.3
22.5
In 2024, the benefits paid amounted to €4.3 million (previous year: €4.5 million). Payments of €3.1 million are expected for 2025. Of this, €1.0 million is expected to be paid directly by the employer. The employer contributions to external plan assets in 2024 amounted to €0.8 million (previous year: €1.2 million). Employer contributions of €2.2 million are expected in 2025.
The changes in pension provisions are as follows:
T.60Development of the pension provision(in € million)
2024
2023
Pension provision as of 1 January
22.1
21.9
Pension expense
3.1
2.8
Actuarial gains (-) and losses recorded in other comprehensive income
3.5
1.0
Employer contributions
-0.8
-1.2
Direct pension payments made by the employer
-1.1
-2.3
Transfer values
0.1
0.0
Currency exchange differences
0.0
-0.2
Pension provision as of 31 December
26.9
22.1
Thereof assets
0.4
0.4
Thereof liabilities
27.3
22.5
The expenses in financial year 2024 are structured as follows:
T.61Expenses for defined benefit plans(in € million)
2024
2023
Cost of the pension obligation earned in the reporting year
2.1
2.0
Interest expense on pension obligation
4.8
4.4
Interest income on plan assets
-3.8
-3.5
Administration costs
0.0
0.0
Expenses for defined benefit plans
3.1
2.8
Thereof personnel costs
2.1
1.9
Thereof financial costs
1.0
0.9
In addition to the defined benefit pension plans, PUMA also makes contributions to contribution plans. Payments for financial year 2024 amounted to €21.3 million (previous year: €19.8 million).
Actuarial gains and losses recorded in Other comprehensive income:
T.62Gains and losses recorded in other comprehensive income(in € million)
2024
2023
Revaluation of pension commitments
0.5
0.1
Actuarial gains (-) and losses resulting from changes in demographic assumptions
-0.1
-0.7
Actuarial gains (-) and losses resulting from changes in financial assumptions
-0.5
0.0
Actuarial gains (-) and losses due to adjustments based on experience
1.1
0.8
Revaluation of plan assets
3.0
0.9
Amounts not recorded due to the maximum limit applicable to assets
0.0
0.0
Adjustment of administration costs
0.0
0.0
Total revaluation amounts recorded directly in other comprehensive income
3.5
1.0
Plan assets investment classes:
T.63Plan assets investment classes(in € million)
2024
2023
Cash and cash equivalents
1.2
0.3
Equity instruments
6.1
6.0
Bonds
7.0
7.4
Investment funds
3.5
3.2
Derivatives
7.8
10.0
Real estate
3.2
2.9
Insurance
51.3
50.6
Other
5.5
4.9
Total plan assets
85.6
85.2
Of which, investment classes with a quoted market price:
T.64Plan assets with a quoted market price(in € million)
2024
2023
Cash and cash equivalents
1.2
0.3
Equity instruments
6.1
6.0
Bonds
7.0
7.4
Investment funds
3.5
3.2
Derivatives
7.8
10.0
Real estate
2.4
2.1
Insurance
0.0
0.0
Other
5.4
4.7
Plan assets with a quoted market price
33.4
33.7
Plan assets still do not include the Group's own financial instruments or real estate used by Group companies.
The plan assets are used solely to fulfil the defined benefit obligations. In some countries, there are legal requirements for the type and amount of funds to be selected, while in others (e.g. Germany), the financing of pension obligations is on a voluntary basis. In Great Britain, a trustee board comprising representatives of the company and employees is responsible for asset management. The investment strategy aims for long-term gains with tolerable volatility. It was last revised in 2022 to reduce the risk profile. In 2023 and 2024, the trustees continued to monitor the investment strategy.
The following assumptions were used to determine pension obligations and pension expenses:
T.65Assumptions used to determine the pension obligations
2024
2023
Discount rate
4.17%
4.55%
Future pension increases
2.00%
1.93%
Future salary increases
2.24%
2.05%
The indicated values are weighted average values. A standard interest rate of 3.50% was applied for the eurozone (previous year: 4.45%).
The 2018 G Heubeck guideline tables were used as mortality tables for Germany. For Great Britain, the mortality was assumed based on basic table series S4 taking into account life expectancy projections in accordance with CMI2023 with a long-term trend of 1%.
The following overview shows how the present value of pension obligations from benefit plans would have been affected by changes to significant actuarial assumptions.
T.66Sensitivity analysis for pension obligation(in € million)
2024
2023
Effect on present value of pension obligations if
the discount rate were 50 basis points higher
-3.9
-3.7
the discount rate were 50 basis points lower
4.3
4.2
Salary and pension trends have only a negligible effect on the present value of pension obligations due to the structure of the benefit plans.
The weighted average duration of pension obligations is around 12 years (previous year: around 12 years).
This disclosure is part of PUMA's 2024 sustainability statement in accordance with ESRS S1-4.
16.Other provisions
T.67Other provisions(In € million)
2023
2024
2023
Currency changes, transfers
Additions
Utilisation
Reversals
Thereof non-current
Thereof non-current
Provisions for:
Warranties
2.1
0.0
0.7
-0.3
-0.5
2.1
0.0
0.0
Purchasing risks
7.4
0.0
0.8
-1.7
-2.6
3.9
0.0
0.0
Litigation risks
13.9
-0.2
4.5
-3.4
-0.9
14.0
6.0
7.5
Dismantling obligations
16.9
0.2
3.2
-2.1
-1.9
16.4
13.4
13.9
Personnel provisions
5.9
8.4
5.5
-0.4
-0.2
19.2
9.9
5.9
Other
8.7
0.2
7.3
-3.3
-0.1
12.8
0.0
0.0
Total
55.0
8.6
22.1
-11.1
-6.3
68.2
29.3
27.3
The warranty provision is determined on the basis of the historical value of sales generated during the past six months. It is expected that the majority of these expenses will fall due within the first six months of the next financial year. Purchasing risks relate primarily to materials and moulds that are required for the manufacturing of shoes and result in cash outflows in the subsequent period.
The provisions relating to dismantling obligations are predominantly long-term and are incurred in connection with the retail stores, warehousing areas and office space rented by the Group. They are established on the basis of the expected settlement values and the agreed rental periods. Estimates are made in relation to costs and the actual amount of time that such properties are in use.
Personnel provisions mainly relate to non-current variable compensation components. The litigation risks relate to any form of legal dispute, including those relating to trademark and patent rights. The other provisions relate to other risks, in particular those associated with sourcing.
Current provisions are expected to be paid out in the following year, non-current provisions are expected to be paid out in a period of up to ten years. There are no significant compounding effects. The recognition and valuation of provisions is based on past experience of similar transactions. All events until the preparation of the consolidated financial statements are taken into account here.
17.Equity
Subscribed capital
The subscribed capital corresponds to the subscribed capital of PUMA SE.
The subscribed capital as at the balance sheet date pursuant to the Articles of Association amounted to € 149,698,196.00 (previous year: €150,824,640.00) and is divided into 149,698,196 (previous year: 150,824,640) no-par value shares with voting rights. This corresponds to a proportional amount of €1.00 per share.
In financial year 2024, the registered share capital was reduced by €1,126,444.
All shares grant the same rights. The shareholders are entitled to receive the agreed dividends and have one voting right per share at the Annual General Meeting. This does not apply to treasury shares held by the Company, which do not grant the Company any rights.
Changes in the outstanding shares:
T.68Change in outstanding shares
2024
2023
Outstanding shares as of 1 January, share
149,844,544
149,758,644
Repurchase of treasury stock, share
-1,128,961
0
Issue of treasury stock, share*
108,830
85,900
Outstanding shares as of 31 December, share
148,824,413
149,844,544
* The issue of treasury stock relates to compensation in connection with promotional and advertising agreements.
Authorised capital
As of 31 December 2024, the Company's Articles of Association provide for authorised capital totalling € 30,000,000.00:
Pursuant to Section 4.2. of the Articles of Association, the Management Board is authorised, with the consent of the Supervisory Board, to increase the Company's share capital until 4 May 2026 by up to € 30,000,000.00 (Authorised Capital 2021) by issuing up to 30,000,000 new no-par value bearer shares against cash and/or non-cash contributions on one or more occasions. In the case of capital increases against contributions in cash, the new shares may be acquired by one or several banks, designated by the Management Board, subject to the obligation to offer them to the shareholders for subscription (indirect subscription right). The shareholders shall generally be entitled to subscription rights. However, the Management Board is authorised, with the consent of the Supervisory Board, to exclude shareholders' subscription rights in whole or in part in the cases specified in Section 4.2. of the Articles of Association.
The Management Board of PUMA SE did not make use of the existing authorised capital in the current reporting period.
Conditional capital
By resolution of the Annual General Meeting of 11 May 2022, the Management Board was authorised until 10 May 2027, with the consent of the Supervisory Board, through one or more issues, altogether or in parts and in various tranches at the same time, to issue bearer or registered convertible and/or option bonds, profit-sharing rights or participation bonds or a combination of these instruments with or without a term limitation in a total nominal amount of up to €1,500,000,000.00.
The share capital was conditionally increased by up to €15,082,464.00 by issuing up to 15,082,464 new no-par value bearer shares (Conditional Capital 2022). The conditional capital increase shall only be implemented to the extent that conversion/option rights are exercised, or the option/conversion obligations are met or tenders are carried out and to the extent that other forms of performance are not applied.
No use has been made of this authorisation to date.
Treasury stock
The resolution adopted by the Annual General Meeting on 7 May 2020 authorised the Company to purchase treasury shares up to a value of 10% of the share capital until 6 May 2025. By resolution of the Annual General Meeting of 5 May 2021, the Supervisory Board was authorised to issue the acquired shares to the members of the Management Board of the Company, excluding the shareholders' subscription rights. By resolution of the Annual General Meeting of 11 May 2022, the Management Board was, moreover, authorised to issue the acquired shares, excluding the shareholders' subscription rights, as part of the Company's or its affiliated companies' share-based payments or employee share programmes to individuals currently or formerly in an employment relationship with the Company or one of its affiliated companies or to members of the management of one of the Company's affiliated companies. If purchased through the stock exchange, the purchase price per share must not exceed 10% or fall below 20% of the average closing price for the Company's shares with the same attributes in the XETRA trading system (or a comparable successor system) during the last three trading days prior to the date of purchase.
Based on the aforementioned authorisation dated 7 May 2020/5 May 2021, the Management Board of PUMA SE approved a share buyback programme on 29 February 2024. The first tranche provides for the buyback of treasury shares with a total purchase price of up to €100 million and began on 6 March 2024 for the period until 6 May 2025. The repurchased shares will be redeemed in accordance with the authorisation granted by the 2020 Annual General Meeting.
By resolution of the Annual General Meeting on 22 May 2024, the aforementioned authorisation to acquire and utilise treasury shares was revoked and the Company was again authorised to acquire treasury shares of up to ten percent of the share capital until 21 May 2029. Furthermore, the Supervisory Board was authorised to issue the acquired shares to the members of the Management Board of the Company, excluding the shareholders' subscription rights. In addition, the Management Board was authorised to issue the acquired shares, excluding the shareholders' subscription rights, as part of the Company's or its affiliated companies' share-based payments or employee share programmes to individuals currently or formerly in an employment relationship with the Company or one of its affiliated companies or to members of the management of one of the Company's affiliated companies. If purchased through the stock exchange, the purchase price per share must not exceed 10% or fall below 20% of the average closing price for the Company's shares with the same attributes in the XETRA trading system (or a comparable successor system) during the last three trading days prior to the date of purchase.
As of the balance sheet date, the Company holds a total of 873,783 PUMA shares in its own portfolio, which corresponds to 0.58% of the subscribed capital.
Repurchase of treasury shares
On 29 February 2024, the Management Board of PUMA SE approved a share buyback programme on the basis of the authorisation granted by the Annual General Meeting on 7 May 2020/5 May 2021. The first tranche provides for the buyback of treasury shares with a total purchase price of up to €100 million and begins in March 2024 for the period until 6 May 2025.
In the period from March 2024 up to and including 31 December 2024, PUMA SE acquired 1,128,961 shares in the first tranche at a total price of €49,999,986.41 (excluding acquisition costs) and an average purchase price of €44.29 per share. This corresponded to 0.75% of the subscribed capital.
The repurchased shares serve the purposes stated in the aforementioned authorisation, in particular redemption. PUMA SE has withdrawn 1,126,444 units of the repurchased shares by resolution of the Board of Management dated 26 November 2024.
Further information on the repurchase of treasury shares can be found in the following table.
T.69Repurchase of treasury shares in the financial year
Month
Number of shares
Total price in €
Average purchase price per share in €
Amount in the nominal capital in €
Amount in the nominal capital in %
January
-
-
-
-
-
February
-
-
-
-
-
March
105,713
4,310,868.52
40.78
105,713
0.07%
April
88,714
3,706,587.20
41.78
88,714
0.06%
May
85,933
4,120,879.78
47.95
85,933
0.06%
June
420,053
19,152,694.86
45.60
420,053
0.28%
July
417,373
18,253,518.89
43.73
417,373
0.28%
August
3,386
133,635.38
39.47
3,386
0.00%
September
2,096
79,852.16
38.10
2,096
0.00%
October
2,198
85,187.58
38.76
2,198
0.00%
November
1,378
61,630.85
44.72
1,378
0.00%
December
2,117
95,131.19
44.94
2,117
0.00%
Total
1,128,961
49,999,986.41
44.29
1,128,961
0.75%
Dividends
The amounts eligible for distribution relate to the retained earnings of PUMA SE, which is determined in accordance with German commercial law.
The Management Board and the Supervisory Board will propose to the Annual General Meeting that, from the retained earnings of PUMA SE for financial year 2024, a dividend of €0.61 (previous year: €0.82) per circulating share, or a total of €90.8 million (with respect to the circulating shares as of 31 December 2024), be distributed to the shareholders.
Proposed appropriation of the retained earnings of PUMA SE:
T.70Proposed appropriation of the retained earnings of PUMA SE
2024
2023
Retained earnings of PUMA SE as of 31 December, € million
510.5
486.4
Retained earnings available for distribution, € million
510.5
486.4
Dividend per share, €
0.61
0.82
Number of outstanding shares*, share
148,824,413
149,719,682
Total dividend*, € million
90.8
122.8
Carried forward to the new accounting period*, € million
419.8
363.7
* Previous year's values adjusted to the outcome of the Annual General Meeting
Reserves
The equity reserves are broken down as follows:
Capital reserve
The capital reserve includes the premium from issuing shares, as well as amounts from the grant, conversion and expiry of share options.
Revenue reserves incl. retained earnings
The revenue reserves incl. retained earnings include the net earnings of the financial year as well as the earnings achieved in the past by the companies included in the consolidated financial statements to the extent that it was not distributed. In addition, the valuation effects from the pension provision recognised in other comprehensive income are recognised in retained earnings, together with fees paid for the repurchase of treasury shares that exceed the nominal amount.
Difference from currency conversion
The equity item for currency conversion serves to record the foreign exchange differences from the conversion of the financial statements of subsidiaries with non-euro accounting.
Cash flow hedging reserve
The position of “cash flow hedging reserve” comprises the fair value of cash flow hedges (intrinsic value for options and the spot component for forward contracts) in relation to hedged transactions that have not yet occurred.
Reserve for hedging costs – options
The position includes the fair value of costs of hedging for cash flow hedges according to the “cost of hedging” approach (time value component).
Reserve for hedging costs – forward contracts
The item includes the fair value of costs of hedging for cash flow hedges according to the ‘cost of hedging approach for forward transactions (forward component).
Non-controlling interests
This item comprises non-controlling interests. The composition is shown in Chapter 28.
Capital management
The Group's objective is to retain a strong equity base in order to maintain both investor and market confidence, and to strengthen future business performance.
Capital management relates to the consolidated equity of PUMA. This is presented in the consolidated statement of financial position and in the consolidated statement of changes in equity.
18.Management incentive programmes
Virtual shares with cash settlement and other global long-term incentive programmes are used at PUMA to tie the management to the Company with a long-term incentive effect.
The current programmes are described below:
Explanation of "virtual shares", termed "monetary units" (full term: Monetary Units Plan – MUP)
Monetary units were granted on an annual basis to members of the Management Board beginning in 2013 as part of a management incentive programme. Monetary units are based on the PUMA share performance. Each of these monetary units entitles the holder to a cash payment at the end of the term. The entitled cash payment compares the performance using the average virtual appreciation rights of the last thirty trading days before the start of the year of issue with the virtual appreciation rights of the last thirty trading days before the exercise date. The maximum increase in value (cap) is limited to 300% of the amount allocated. Monetary units are subject to a vesting period of three years. After that, there is an exercise period beginning 30 days after each quarterly publication date for a period of two years which can be freely used by participants for the purposes of execution. Virtual shares are reduced on a pro rata basis in the event of withdrawal during the vesting period. This programme will expire and be replaced by the Performance Share Plan. As a result, no more shares were issued from this programme in financial year 2024.
Explanation of "virtual shares" (full term: Performance Share Plan – PSP)
Virtual shares were granted on an annual basis to members of the Management Board beginning in 2021 as part of a management incentive programme. The virtual shares are based on the PUMA share performance. Each of these virtual shares entitles the holder to a cash payment at the end of the term. However, the Supervisory Board reserves the right to make the payment in PUMA shares instead of cash. This cash payout is based on the PUMA closing prices for the last thirty trading days before the exercise date. The final number of virtual shares is between 50% and 150%, depending on the relative Total Shareholder Returns (TSR) compared to the MDAX index. The PUMA and MDAX index TSRs are calculated using the arithmetic means of each of the TSR values on the 30 trading days before the start and end of the performance period. The averages calculated in this way for PUMA and the MDAX index are then compared with each other. The difference in percentage points between the PUMA TSR and the MDAX index TSR is then calculated (= TSR outperformance in percentage points). The maximum increase in value (cap) is limited to 300% of the amount allocated. Virtual shares are subject to a vesting period of four years. They are generally paid out within the first quarter of the fifth year after their issue. Virtual shares are reduced on a pro rata basis in the event of withdrawal during the vesting period. For the programmes issued in financial years 2021 and 2022, the DAX acts as the basis for calculating virtual shares, while the MDAX index is used starting financial year 2023.
In financial year 2024, expenses of €1.3 million were recorded for this purpose on the basis of the employment contract commitments to the Management Board members (previous year: expenses of €2.4 million).
T.71Virtual shares, members of the management board
Plan
MUP
PSP
MUP
PSP
PSP
PSP
Issue date
1/1/2021
1/1/2021
1/1/2022
1/1/2022
1/1/2023
1/1/2024
Term
5
4.25
5
4.25
4.25
4.25
Years
Vesting period
3
4
3
4
4
4
Years
Base price PUMA share at issue
86.23
86.23
106.95
106.95
51.86
54.92
EUR/share
Reference value PUMA share at the end of the financial year
45.21
45.21
45.21
44.80
46.76
45.58
EUR/share
Weighted share price at the time of exercise
40.84
0.00
0.00
0.00
0.00
0.00
EUR/share
Participants in the year of issue
3
2
1
3
4
5
Persons
Participants at the end of the financial year
3
2
1
3
4
5
Persons
Number of monetary units/virtual shares as of 1 January 2024
34,548
7,070
10,323
16,458
81,279
81,382
Shares
Number of monetary units/virtual shares exercised in the financial year
-8,942
0
0
0
0
0
Shares
Number of monetary units/virtual shares expired in the financial year
0
0
0
-2,829
-12,197
-9,014
Shares
Final number of monetary units/virtual shares as of 31 December 2024
25,606
7,070
10,323
13,629
69,082
72,368
Shares
This commitment consisting of share-based remuneration transactions with cash compensation is recorded as personnel provisions and remeasured at fair value on every balance sheet date, provided it has not been exercised yet. The expenses are recorded pro rata over the vesting period. Based on the valuation of external experts at fair value and taking into account exercises during the year in 2024, the provision for these programmes amounts to €5.3 million at the end of the fiscal year (previous year: €4.4 million).
Explanation of the "Game Changer 2.0" programme
In 2018, the Long-Term Incentive Programme (LTIP) "Game Changer 2.0" was launched. Participants in this programme consist mainly of top executives reporting to the Management Board and individual key positions in the PUMA Group. The objective of this programme is to retain these employees in the Company on a long-term basis and to allow them to share in the medium-term success of the Company.
The LTIP "Game Changer 2.0" consists of two plan parts, a Performance Cash Plan and a Performance Share Plan, each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's financial performance, while the Performance Share Plan gives a reward for the performance of the PUMA SE share in the capital market.
The performance period of the Performance Cash Plan is three years and is based on the average medium-term targets of the PUMA Group in terms of EBIT, sales and cash flow or working capital as a percentage of sales. Payment is made in cash and is limited to a maximum of 200% of the granted proportionate target amount (cap).
The Performance Share Plan uses virtual shares to manage the incentive. The term is up to five years. This is divided into a three-year performance period and a two-year exercise period in which the virtual shares are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24 months after the end of the performance period). The average share price of the last 30 trading days before the exercise date determines the value of a virtual share. The payout is limited to a maximum of 300% of the pro-rata Target Amount granted and will only be paid out if the defined exercise hurdle (if applicable) has been reached at least once during the Performance Period.
The payment is subject to the condition that the individual participants are in an active, unterminated employment relationship with a PUMA Group company on the specified date.
Explanation of the "Game Changer 2.0 – 2023" programme
In 2020, the global "Game Changer 2.0 – 2023" programme, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As part of the Performance Share component, payment is limited to a maximum of 300% of the granted proportionate target amount (cap). In the reporting year, an amount of €0.3 million (of which, €0.3 million from the Performance Share Plan) was paid out to the participants. €0.0 million was released for this programme in the year under review (previous year: release of €0.1 million). This resulted in a provision for this programme at the end of the financial year of €0.1 million (previous year: €0.5 million). The Performance Share Plan portion accounted for €0.1 million (previous year: €0.5 million).
Explanation of the "Game Changer 2.0 – 2024" programme
In 2021, the global "Game Changer 2.0 – 2024" programme, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (45%), working capital as a percentage of sales (15%), and sales (40%). As part of the Performance Share component, payment is limited to a maximum of 300% of the granted proportionate target amount (cap). An employment relationship until 31 December 2023 is required. In the reporting year, an amount of €2.2 million (of which, €0.8 million from the Performance Share Plan) was paid out to the participants. In addition, € 0.8 million was released as a provision for this programme (previous year: €0.2 million) and a prorated amount of € 0.0 million (previous year: €1.1 million) was set aside for this programme. This resulted in a provision for this programme at the end of the financial year of €0.3 million (previous year: €3.4 million). The Performance Share Plan portion accounted for €0.3 million (previous year: € 1.2 million).
Explanation of the "Game Changer 2.0 – 2026" programme
In 2023, the global "Game Changer 2.0 – 2026" programme, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As part of the Performance Share component, payment is limited to a maximum of 300% of the granted proportionate target amount (cap). An employment relationship until 31 December 2025 is required. In the reporting year, a prorated amount of €1.5 million (previous year: €1.8 million) was set aside and €0.1 million was released as a provision for this programme (previous year: €0.0 million). This resulted in a provision for this programme at the end of the financial year of €3.1 million (previous year: €1.8 million). The Performance Share Plan portion accounted for €1.5 million (previous year: €1.0 million).
Explanation of the "Game Changer 2.0 – 2027" programme
In 2024, the global "Game Changer 2.0 – 2027" programme, as outlined above, was launched. The Performance Cash Plan is based on the following targets: EBIT (70%), cash flow (15%) and sales (15%). As part of the Performance Share component, payment is limited to a maximum of 300% of the granted proportionate target amount (cap). An employment relationship until 31 December 2026 is required. In the reporting year, a prorated amount of €1.0 million (previous year: €0.0million) was set aside for this programme. This resulted in a provision for this programme at the end of the financial year of €1.0 million (previous year: €0.0 million). The Performance Share Plan portion accounted for €0.4 million (previous year: €0.0 million).
Explanation of the "Road 2 10B" programme
In 2022, the “Game Changer 2.0” programme was replaced by the one-time “Road 2 10B” long-term incentive programme (LTIP). The participants in this programme consist of key specialists and managers of the PUMA Group. The aim of this programme is to retain these employees in the long term and to allow them to participate in the medium-term success of the company.
The LTIP "Road 2 10B" consists of two plan parts, a Performance Cash Plan and a Performance Share Plan, each with a 50% share. The Performance Cash Plan gives a reward for the PUMA Group's financial performance, while the Performance Share Plan gives a reward for the performance of the PUMA SE share in the capital market.
The Performance Cash Plan is focused on the following targets: EBIT, sales and working capital as a percentage of sales based on the three-year plan set by the Management Board of PUMA SE. For participants in the programme with an employment relationship at Group level, the target achievement is based on the following Group targets: EBIT (45%), sales (40%), and working capital as a percentage of sales (15%). For participants in the programme with an employment relationship at the national or regional level, 50% of the target achievement is based on achieving the Group targets. The remaining 50% is based on achieving the following targets at the national or regional level: EBIT (22.5%), sales (20%) and working capital as a percentage of sales (7.5%). Payment is limited to a maximum of 200% of the granted proportionate target amount (cap).
The Performance Share Plan is based on the performance of the PUMA share price. The term is up to five years, divided into a three-year performance period and a subsequent two-year exercise period, in which the virtual shares are paid out in cash. A payout is only possible at the four exercise times (6, 12, 18 or 24 months after the end of the performance period). The average share price of the last 30 trading days before the exercise date determines the payout value of a virtual share. The payout is limited to a maximum of 300% of the granted prorated target amount (cap) and is only made if an exercise hurdle of +10% share-price appreciation is exceeded once during the performance period.
In the reporting year, €0.5 million was released for this programme (previous year: €0.6 million) and €2.0 million was added on a pro-rata basis (previous year: €0.8 million). This results in a provision for this programme of €7.6 million at the end of the financial year (previous year: €6.0 million). The performance share plan accounts for €0.0 million (previous year: €0.4 million).
T.72Virtual shares, non-management board members
Plan
Game Changer 2023
Game Changer 2024
Road 2 10b
Game Changer 2026
Game Changer 2027
Issue date
1/1/2020
1/1/2021
1/1/2022
1/1/2023
1/1/2024
Term
5
5
5
5
5
Years
Vesting period
3
3
3
3
3
Years
Basis price at program start
67.69
86.23
106.95
51.86
54.92
EUR/share
Reference value at the end of the financial year
45.21
45.21
0.00
45.21
29.03
EUR/share
Weighted share price at the time of exercise
53.45
54.37
0.00
0.00
0.00
EUR/share
Participants in the year of issue
60
76
486
84
59
Persons
Participants at the end of the financial year
8
24
428
77
59
Persons
Number of virtual shares as of 1 January 2024
8,991
21,440
95,559
55,167
44,838
Shares
Number of virtual shares expired in the financial year
0
0
-7,532
-4,624
0
Shares
Number of virtual shares added in the financial year (new participants)
0
0
0
241
0
Shares
Number of virtual shares exercised in the financial year
-5,675
-14,061
0
0
0
Shares
Final number of virtual shares as of 31 December 2024
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