EANS-News: PUMA AG Rudolf Dassler Sport
PUMA AG announces its consolidated
financial results for the 1st Quarter of 2010
Herzogenaurach (euro adhoc) -
Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement.
quarterly report/Results First Quarter 2010
Herzogenaurach, Germany, April 28, 2010 - PUMA AG announces its consolidated financial results for the 1st Quarter of 2010
Highlights January-March:
Consolidated sales down by 2.1%
Gross profit margin at a strong, sector-leading 52.2%, slightly above last
year´s level
Strong improvements in cost structure as a result of the cost reduction
program
Operating result before special items jumps EUR 115 million versus last year
EPS increase to EUR 5.51 after EUR 0.37
Further improvement in equity ratio to 64%Outlook 2010:
Management expects sales growth in the low to mid single-digits Cost reduction program shall provide cost savings as planned Pre-tax profit is expected to improve by at least 70%
Jochen Zeitz, CEO: "We had a good start into the new year from a bottom line perspective which highlights the effectiveness of our comprehensive restructuring & reengineering efforts. Assuming a continuous improvement of the economic outlook and a planned increase of supplier orders, we anticipate low to mid single digit growth for the full year, while net earnings should jump significantly to complete the expected earnings rebound. We are now looking forward to the upcoming World Cup and to a successful integration of our newly acquired Cobra Golf business."
Sales and Earnings Development January-March 2010
Global Brand Sales Worldwide PUMA brand sales, which include consolidated and license sales, decreased by 2.3% to EUR 720.6 million. Footwear sales were down by 6.0% to EUR 382.8 million and Accessories by 3.1% to EUR 90.3 million. Apparel sales increased by 4.3% to EUR 247.5 million.
Consolidated Sales PUMA´s consolidated sales in the first quarter were down by 2.7% currency- neutral and 2.1% in Euro terms to EUR 683.1 million. This development should be seen in the context of last year´s sales increase of 3.6%, which was mainly driven by closeout sales in order to reduce inventories. In addition, supplier orders for the first half of 2010 were placed with caution. Excluding the previous year´s inventory clearance, sales were slightly above last year. Sales in Footwear declined currency-neutral by 5.1% to EUR 378.8 million and Accessories decreased by 1.6% to EUR 77.5 million. Apparel sales rose by 1.2% to EUR 226.8 million due to a positive development in PUMA´s teamsport business. In regional terms, sales in EMEA were down currency-neutral by 6.2% to EUR 351.8 million (share: 51.5%) and Asia/Pacific declined by 8.4% to EUR 141.0 million (share: 20.6%). Sales in the Americas region significantly improved by 9.8% to EUR 190.4 million (share: 27.9%) with both regions - North America and Latin America - positively contributing to this strong performance.
Gross Profit Margin In the first quarter, PUMA´s gross profit margin reached a strong, sector- leading 52.2% compared to 52.1% last year. The Footwear segment reported 50.7% versus 50.4%, Apparel was at 53.5% compared to 53.7% and Accessories remained unchanged to last year at 55.6%. In terms of region, the gross profit margin in EMEA softened to 54.3% after 55.1%, Americas rose to 47.4% from 46.7% - driven by Latin America - and Asia/Pacific improved to 53.4% from 51.0% last year.
Operating Expenses
Operating expenses decreased by 4.6% from EUR 254.1 million to EUR 242.3 million. As a percentage of sales, the cost ratio improved from 36.4% last year to 35.5% because of the cost reduction program introduced last year. Expenses in marketing/retail and depreciation decreased due to the improvement to the overall retail store portfolio.
EBIT
PUMA´s EBIT before special items increased by 4.4% to EUR 119.0 million versus EUR 114.0 million last year. As a percentage of sales the EBIT margin improved from 16.3% last year to an excellent 17.4%. Taking last year´s special items into account, EBIT increased from EUR 4.0 million to EUR 119.0 million.
Financial Result
The financial result was at EUR -1.2 million after EUR -1.6 million last year, as the net cash position improved significantly and led to lower interest expenses due to reduced bank debts.
Net Earnings The pre-tax profit (EBT) jumped from EUR 2.4 million to EUR 117.8 million. Net earnings increased to EUR 83.1 million from EUR 5.6 million based on a tax rate of 29.5% versus an operational tax rate of 28.5% last year. Earnings per share rose to EUR 5.51 from EUR 0.37 and diluted earnings per share were at EUR 5.50 compared to EUR 0.37 last year.
Net Assets and Financial Position
Equity
As of March 31, 2010, total assets increased by 2.4% to EUR 2,159.3 million while PUMA´s equity ratio improved significantly from 56.6% to 64.0% this year.
Working Capital
Inventories declined by 15.9% to EUR 375.7 million and accounts receivable went up by 6.7% to EUR 568.6 million. Accounts payables increased by 7.2% to EUR 265.5 million. Working capital remained stable at EUR 595.6 million compared to EUR 596.9 million last year.
Capex/Cashflow
Capital investment amounted to EUR 7.7 million in the first quarter after EUR 11.6 million in the previous year. The free cashflow came in at EUR -73.4 million compared to EUR -118.0 million last year.
Cash Position
Total cash by the end of March jumped 59.5% to EUR 426.8 million after EUR 267.6 million last year. Bank debts were reduced by 41.8% from EUR 63.2 million to EUR 36.8 million. As a result, the net cash position improved significantly by 90.7% from EUR 204.5 million to EUR 390.0 million.
Outlook 2010
Assuming a further improvement in the overall economic outlook, sales for the full year 2010 should strengthen accordingly throughout the year. The company´s pre-tax profit is expected to improve by at least 70% in 2010 while sales should post an increase in the low to mid single digits.
This document contains forward-looking information about the Company´s financial status and strategic initiatives. Such information is subject to a certain level of risk and uncertainty that could cause the Company's actual results to differ significantly from the information discussed in this document. The forward-looking information is based on the current expectations and prognosis of the management team. Therefore, this document is further subject to the risk that such expectations or prognosis, or the premise of such underlying expectations or prognosis, become erroneous. Circumstances that could alter the Company's actual results and procure such results to differ significantly from those contained in forward-looking statements made by or on behalf of the Company include, but are not limited to those discussed be above.
PUMA is one of the world´s leading sportlifestyle companies that designs and develops footwear, apparel and accessories. It is committed to working in ways that contribute to the world by supporting Creativity, SAFE Sustainability and Peace, and by staying true to the principles of being Fair, Honest, Positive and Creative in decisions made and actions taken. PUMA starts in Sport and ends in Fashion. Its Sport Performance and Lifestyle labels include categories such as Football, Running, Motorsports, Golf and Sailing. Sport Fashion features collaborations with renowned designer labels such as Alexander McQueen, Yasuhiro Mihara and Sergio Rossi. The PUMA Group owns the brands PUMA, Cobra and Tretorn. The company, which was founded in 1948, distributes its products in more than 120 countries, employs more than 9,000 people worldwide and has headquarters in Herzogenaurach/Germany, Boston, London and Hong Kong. For more information, please visit www.puma.com
Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.
Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.
Rounding differences may be observed in the percentage and numerical values expressed in millions of Euro since the underlying calculations are always based on thousands of Euro.
end of announcement euro adhoc
Further inquiry note:
Kerstin Neuber
Telefon: +49 (0)9132 81-2984
E-Mail: Kerstin.Neuber@puma.com
Branche: Consumer Goods
ISIN: DE0006969603
WKN: 696960
Index: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX,
Prime All Share
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / free trade
Hamburg / free trade
Stuttgart / free trade
Düsseldorf / free trade
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München / regulated dealing