EANS-News: PUMA SE PUMA posts Best Second Quarter Sales Performance in Company
History
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Earnings
Herzogenaurach (euro adhoc) - PRESS RELEASE
PUMA posts Best Second Quarter Sales Performance in Company History
27th July, 2011
Highlights Second Quarter 2011
Consolidated sales increased by 14.1% currency adjusted to a record second
quarter high of EUR 674 million
Gross profit margin holding up well at 49.1% despite pressure from
external factors
EBIT 3.2% above last year at EUR 55.4 million
Net earnings up 10.6% to EUR 37.6 million
EPS up to EUR 2.51 from EUR 2.26 last year
Highlights First Half 2011
Consolidated sales up by 11.5% currency adjusted to a record EUR
1.45
billion
Gross profit margin still a strong 50.9%
EBIT 2.5% above last year at EUR 166.4 million
Net earnings improved by 8.2% to EUR 115.3 million
EPS increased to EUR 7.69 from EUR 7.07 last year
Outlook for the Financial Year 2011
PUMA´s continued business success over the past six months confirmed the
Management view that the 3 billion milestone in sales for the full year of
2011 is attainable.
Sourcing cost increases caused by rising prices for commodities and higher
wages in Asia will continue to impact gross margins. PUMA will continue to
support business growth and the "Back on the Attack" growth strategy; thus
investments in marketing, sales, product development as well as process
optimization will continue to affect overall expenses.
Although increases in sourcing costs and continued investments in brand
and product will impact overall operational results, management foresees
continuous improvement of net earnings by mid single-digits for the full
year.
"I could not have asked for a better start to my new position as PUMA´s CEO
than to announce the best second quarter in PUMA´s history in terms of sales, a
performance that underlines our ambition to achieve our sales target of 3
billion Euros for this year," said Franz Koch, CEO of PUMA SE. "The investments
into our core markets, in line with our Back on the Attack company growth
strategy, have started to pay off and we will continue to strengthen our brand
and product in order to become the most desirable and sustainable
sportlifestyle company in the world."
PUMA´s Q2 Sales Record underpinned by Running Category and strong Growth in
Latin America and Asia
With the global economic recovery having gained strength, the Sportlifestyle
company PUMA posted a strong second quarter growth in consolidated sales of
14.1% currency-adjusted and 9.4% in Euro terms to EUR 673.5 million compared
to
last year, representing PUMA´s best ever second quarter sales performance.
PUMA Faas is building up momentum
With all product categories contributing to this increase, Footwear rose 16.2%
currency adjusted to EUR 352.6 million, Apparel went up 10.7% to EUR 224.3
million
and Accessories again posted an eye catching 15.0% increase to EUR 96.7
million.
In particular, PUMA´s Running category grew significantly, boosted by the
ongoing top seller PUMA Faas, a lightweight neutral racer for tempo runs and
racing. The shoe is constructed with BioRide Technology, an integrated system
that provides more natural running rhythm and enhanced speed. Another
Performance category that performed well in the second quarter was Cobra-PUMA-
GOLF as a result of synergies arising from the Cobra Golf integration.
In the Teamsport category, PUMA claimed another champion title with Uruguay
winning the Copa America for the 15th time, building on their fourth place at
the 2010 FIFA World Cup. The team also achieved their second-ever qualification
for the FIFA Confederations Cup to be held in Brazil in 2013. Uruguay beat
Paraguay 3-0 in Sunday´s final, becoming the most successful team in the
tournament´s history.
The FIFA Women´s World Cup in Germany provided another great opportunity, where
PUMA further strengthened its brand awareness in Women´s Football. PUMA
sponsored eight PUMA players on the German team as well as international stars
from England, Canada, Norway, Sweden, France and the USA as well as brand
ambassador Marta of Brazil, who all sported the PUMA Speed v1.11 football boot.
In fact, the v1.11 scored most goals in the tournament, 16 in total.
Over the first half of this year sales across all categories increased in pace.
Footwear sales were up 9.9% (10.9% currency adjusted), Apparel sales were up
7.0% (6.1% currency adjusted) and Accessories were up 29.4% (28.3% currency
adjusted) partly due to the full year effect of Cobra golf.
Latin America and Asia remain the main growth areas
In regional terms, PUMA continued its excellent performance in the Americas
with sales growing by 16.9% currency-adjusted to EUR 226 million. Latin
America
and Asia excelled with a strong double-digit rise with Lifestyle and PUMA´s
Motorsport categories being the main growth drivers.
Sales in EMEA grew by 9.2% currency-adjusted to EUR 290 million with
satisfying
performances in both Western and Eastern Europe. Spain advanced significantly
after a PUMA subsidiary was opened in the second quarter of last year. Women´s
Fitness (Bodytrain) increased by double-digit rates.
Asia/Pacific posted a gain of 20.1% currency adjusted to EUR 158 million,
as
sales in Japan have recovered much faster than anticipated in the aftermath of
the earthquake disaster, posting double-digit growth. PUMA´s Lifestyle (PUMA
Social), Running (Faas and light-weight gear) and Fitness (Bodytrain)
categories drove the overall growth.
Half-year EMEA sales are up 7.3% (6.5% currency adjusted), the Americas are up
a satisfying 14.3% (18.4% currency adjusted) and Asia/Pacific is up an
impressive 16.5% (13.0% currency adjusted).
Gross Profit Margin at industry-leading levels
The gross profit margin remained at an industry leading 49.1%, which is
testament to PUMA´s continuing efforts to maximize returns and efficiencies.
The Footwear segment had a gross profit margin of 48.1%, down from 50.7%.
Apparel stood at 48.9%, down from 52.1%. Both segments were impacted by
slightly higher sourcing costs as well as negative currency impacts from
hedging. Accessories were at 53.3%, a sharp jump from 46.3% which is based on
last year´s impact of the Cobra takeover.
Overall the half year gross profit margin is down slightly to 50.9% after 51.5%
last year. The Footwear margin is currently at 49.8%, Apparel at 51.4% and
Accessories at 53.7%.
Operating Expenses
Operating expenses rose by 10.3% to EUR 279.9 million during the second
quarter
of 2011. As a percentage of sales, this represents a slight increase from 41.2%
to 41.6% compared to last year. For the full year to the end of June 2011, OPEX
rose by 15.9% to EUR 578.5 million. Increases in expenditure arose from
our
continued investments outlined in our 5-year growth plan and the full year
effects caused by the extension of the scope of consolidation with Cobra and
PUMA Spain now fully included.
EBIT
Operating profit came in as expected, improving to EUR 55.4 million from EUR
53.6
million. This represents 8.2% of consolidated sales, down slightly from a rate
of 8.7% at this time last year. On a half year basis EBIT is up slightly to
EUR
166.4 million.
Financial Result / Income from associated companies
The financial result declined from EUR -1.3 million to EUR -1.6 million,
however,
the half year number improved from EUR -2.7 million last year to EUR -1.8
million.
Earnings before Taxes
PUMA´s second quarter EBT rose from EUR 52.3 million to EUR 53.8 million. They
also
rose from EUR 159.6 million to EUR 164.6 million on a half yearly basis.
Quarterly
tax expenses declined from EUR 18.2 million to EUR 16.2 million and the tax
rate
dropped from 34.9% to a normalized tax rate of 30.0%.
Net Earnings
Consolidated net earnings increased by 10.6% to EUR 37.6 million from EUR
34.0
million in 2010. Earnings per share rose from EUR 2.26 to EUR 2.51, and
diluted
earnings per share were up from EUR 2.25 to EUR 2.51.
For the first half of 2011, net earnings rose by 8.2% to EUR 115.3 million.
EPS
increased by 8.8% to EUR 7.69.
Net Assets and Financial Position
Equity
Total assets (as of 30th June 2011) grew by 2.6% from EUR 2,284.8 million to
EUR
2,343.4 million. This rise is primarily attributable to an increase in non-
current assets in the form of deferred taxes and non-current assets as a result
of our ongoing capital investment program. The equity ratio rose from 58.6% to
59.4%. In absolute figures, shareholders' equity increased by 4.1% to EUR
1,392.5
million from EUR 1,338.3 million. PUMA´s balance sheet remains strong.
Working Capital
PUMA´s overall Working Capital went up by 13.0% to EUR 509 million. On the
asset
side, inventories went up by 12.1% from EUR 453.1 million to EUR 508.0
million,
supporting our continued and expected sales growth. Trade receivables also
increased, up 5.0% from EUR 497.1 million to EUR 522.0 million. This again is
an
effect of our growth in sales compared to this point in time last year. On the
liabilities side, trade payables rose 7.6% from EUR 395.4 million to EUR
425.3
million.
Cashflow/ Capex
The Free Cashflow (before acquisitions) came in at EUR -9.2 million versus EUR
57.2
million last year. The additional outflow resulted from tax payments and higher
working capital needed as well as higher CAPEX. The payments for acquisitions
are related to the purchase of the outstanding shares in our Chinese venture.
For Capex, the company spent EUR 29.1 million versus EUR 18.5 million in 2010.
The
increase derives mainly from investments in the improvement of organizational
processes and IT as well as in the expansion of our Retail store portfolio,
which are necessary components of our growth strategy.
Cash Position
Total cash (as of 30th June, 2011) dropped by 21.6% to EUR 351.6 million from
EUR
448.3 million last year. Bank debts were reduced by 41.2% from EUR 51.5
million
to EUR 30.3 million. As a result, the net cash position decreased 19.0%, from
EUR
396.8 million to EUR 321.3 million.
Share buyback
PUMA continued with its share buy-back program and purchased 72.853 shares for
EUR 15.7 million during the second quarter. The company now holds 173.377
shares
in total as treasury stock which equals 1.15% of the subscribed capital.
Other Events
PUMA AG converts to a Societas Europaea (SE)
With the completion of the transformation on July 25th,, 2011, Franz Koch has
become Chief Executive Officer, with Jochen Zeitz taking over as Chairman of
the Administrative Board of PUMA SE. At the same time, he will lead PPR's Sport
& Lifestyle Division. In this role, he will ensure PUMA SE´s continuous and
strategic growth within the framework of the next phase of development and
support the drive to sustainability as PPR´s Chief Sustainability Officer.
SPANISH Court Ruling
As already announced in an ad hoc release on 17th of June, 2011 the arbitration
ruling of 2nd June, 2010 by a Spanish arbitration panel regarding the one-time
payment of 98 million Euros has been repealed by the District Court of Madrid.
PUMA is therefore no longer obliged to pay the amount of 98 million Euros.
Outlook for the Financial Year 2011
PUMA continues to target the EUR 3 billion sales mark for the full year
which
reflects a continuation of our first-half sales. There will, however, continue
to be pressure on gross profit margins in the shape of higher raw material
prices and Asian wage increases, although PUMA has thus far shown an ability to
keep its gross profit margins at the highest level within the industry. Despite
higher operating expenditures which are in line with the overall strategy, PUMA
expects absolute net earnings to improve in the mid single digit range.
Notes to the editors:
This press release and financial reports are posted on www.about.puma.com.
PUMA SE stock symbol:
Reuters: PUMG.DE, Bloomberg: PUM GY,
Börse Frankfurt: ISIN: DE0006969603- WKN: 6969603
Notes relating to forward-looking statements:
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 |
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, Mihara
Yasuhiro and Sergio Rossi. The PUMA Group owns the brands PUMA, Cobra Golf 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 http://www.puma.com
Further inquiry note:
Kerstin Neuber
Telefon: +49 (0)9132 81-2984
E-Mail: Kerstin.Neuber@puma.com
end of announcement euro adhoc
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company: PUMA AG Rudolf Dassler Sport
Würzburger Strasse 13
D-91074 Herzogenaurach
phone: +49 (0)9132 81 0
mail: investor-relations@puma.com
WWW: http://about.puma.com/?lang=de
sector: Consumer Goods
ISIN: DE0006969603
indexes: Midcap Market Index, MDAX, CDAX, Classic All Share, HDAX, Prime All
Share
stockmarkets: regulated dealing/prime standard: Frankfurt, free trade: Berlin,
Hamburg, Stuttgart, Düsseldorf, Hannover, regulated dealing:
München
language: English