Notes to the consolidated income statement

19.Sales

Sales result from contracts with customers. The following tables show the breakdown by distribution channel and product division:

¹ This information is part of PUMA's 2025 Sustainability Statement in accordance with ESRS 2 SBM-1.

20.Other operating income and expenses

According to the respective functions, other operating income and expenses include personnel, advertising, sales and distribution expenses as well as rental and leasing expenditure, travel costs, legal and consulting expenses and other general expenses. Rental and lease expenses associated with the Group's own retail stores include revenue-based rental components.

Other operating income and expenses are allocated based on functional areas as follows:

Within the sales and distribution expenses, marketing/retail expenses account for a large proportion of the operating expenses. In addition to advertising and promotional expenses, they also include expenses associated with the Group's own retail activities. Other sales and distribution expenses include logistics expenses and other variable sales and distribution expenses.

The expenses for product management/merchandising consist of personnel and material costs for the preparation of product range plans, provision of product guidelines and market research.

Research and development expenses include all costs incurred in connection with global or local development activities.

Administrative and general expenses mainly include personnel and material costs from the human resources, IT, finance, law and general administration/management functional areas.

Impairment losses in the reporting year amounted to € 31.2 million for right-of-use assets (previous year: € 7.3 million), € 1.9 million for property, plant and equipment (previous year: € 0.6 million) and € 42.2 million (previous year: € 0.0 million) for intangible assets. In contrast, there were reversals of impairment losses on right-of-use assets amounting to € 1.3 million (previous year: € 29.4 million).

In the consolidated financial statements of PUMA SE, fees of € 2.8 million (previous year: € 2.7 million) are recognised as operating expenses for the auditor of the consolidated financial statements, i.e. KPMG AG Wirtschaftsprüfungsgesellschaft, Nuremberg, Germany. The audit fee consists of fees for audit services related to the annual and consolidated financial statements as well as to the review of the half-year report in the amount of € 2.5 million (previous year: € 2.1 million), other assurance services in the amount of € 0.3 million (previous year: € 0.4 million), in particular for the assurance of the non-financial (group) report (by fully applying the first set of the ESRS as a framework) as well as other services in the amount of € 0.0 million (previous year: € 0.2 million), which services related to the CSRD/ESG sustainability readiness in anticipation of a future audit of sustainability reporting as well as, to a minor extent, quality assurance in the implementation of regulatory requirements. In addition to the expenses for PUMA SE, the fees also include the fees for the domestic and foreign subsidiaries directly audited by the auditor of the consolidated financial statements.

In financial year 2025, government grants amounted to a mid-single-digit million amount. Government grants are deducted from the corresponding expenses.

Other operating income comprises income from the sale of fixed assets in the amount of € 3.1 million (previous year: € 2.3 million), capital gains from finance leases totalling € 0.0 million (previous year: € 2.5 million) and rental income in the amount of € 2.4 million (previous year: € 3.4 million).

In total, other operating expenses include personnel costs composed as follows:

In addition, cost of sales includes personnel costs in the amount of € 14.4 million (previous year: € 17.7 million).

As of the end of the year, a total of 18,488 individuals were employed (previous year: 19,599).

21.Financial result

The financial result is composed as follows:

Interest income comprises interest income from bank balances in the amount of € 9.3 million (previous year: € 24.5 million) and other interest income in the amount of € 2.0 million (previous year: € 4.5 million).

The item "Other financial income" amounting to € 62.0 million (previous year: € 105.9 million) includes forward and time components recognised in profit or loss in connection with currency derivatives in the amount of € 55.8 million (previous year: € 65.8 million) as well as hedging gains from stand-alone derivatives amounting to € 5.9 million (previous year: € 39.8 million), and dividend income amounting to € 0.4 million (previous year: € 0.4 million) from the investment in Borussia Dortmund GmbH & Co. KGaA (BVB).

In addition to € 44.7 million (previous year: € 40.0 million) in interest expense in connection with borrowings, the item "Interest expense" also includes € 11.5 million (previous year: € 25.5 million) in interest expense for factoring and other matters.

The item “Other financial expenses” includes expenses from the forward component and the time value in connection with currency derivatives of € 36.5 million (previous year: € 51.7 million), hedging losses from free standing derivatives of € 58.5 million (previous year: € 2.2 million), the loss on net monetary position in connection with hyperinflation of € 7.8 million (previous year: € 17.4 million), and the impairment of investment property of € 8.6 million (previous year: € 8.8 million).

22.Income taxes

Current income taxes include € 4.4 million in out-of-period income (previous year's income: € 4.6 million). Deferred taxes include tax expense of € 43.8 million (tax income in previous year: € 5.0 million), which is attributable to the occurrence or reversal of temporary differences.

In general, PUMA SE and its German subsidiaries are subject to corporate income tax, plus a solidarity surcharge and trade tax. Thus, a weighted mixed tax rate of 27.22% continued to apply for the financial year. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is realised, the tax loss carryforward or interest carryforward utilised or the liability is settled. Here, the gradual reduction of the corporate income tax rate in Germany from 15% to 10% has been taken into account, which begins from the 2028 assessment period. The amount of € 11.7 million from changes in tax rates shown in the tax reconciliation is mainly attributable to the reduction of corporate income tax in Germany planned from 2028.

Reconciliation of theoretical tax expense to effective tax expense:

For the financial year 2025, the total tax benefit from previously unrecognised tax losses, tax credits or temporary differences from prior years that led to a reduction in deferred tax expense amounts to € 0.1 million (previous year: € 0.0 million). The deferred tax expense resulting from a write-down of deferred tax assets amounts to € 216.2 million in the financial year (previous year: € 10.7 million).

The PUMA Group falls within the scope of application of the global minimum taxation under the Pillar 2 tax legislation. The PUMA Group makes use of the exemption for the recognition of deferred taxes that result from the introduction of global minimum taxation and recognises it as a current tax as soon as it is incurred. Hong Kong, the United Arab Emirates and Singapore have adopted new tax legislation that provides for the introduction of local minimum taxation from 1 January 2025. As a result, from 2025, the relevant local subsidiaries will be responsible for the minimum tax on their business activities rather than the parent company, PUMA SE.

The tax effect resulting from items that were directly included in other comprehensive income can be found in Chapter 8.

23.Earnings per share

The earnings per share are determined in accordance with IAS 33 by dividing the consolidated annual surplus (consolidated net earnings) attributable to the shareholders of the parent company by the weighted average number of outstanding shares.

The calculation is shown in the following table: