Companies

Puma announces preliminary results for 2023

Jan 29, 2024 Germany

The sportswear company highlighted the impact of the devaluation of the Argentine peso on its results, with currency-adjusted sales growth of 6.6% in 2023, as compared to the prior year

Puma reached sales of 8.60 billion euros last year, up by 6.6% on a currency-adjusted basis and by 1.6% on a reported basis, on a comparable basis to 2022, and its operating result (EBIT) totalled 622 million euros (outlook: in the range of 590 to 670 million euros).

Both figures were in line with previous estimates, but the “extraordinary devaluation of the Argentine peso by 54% in December 2023” had an impact on its overall financial result. As a result, the company’s net income was about 305 million euros in 2023 (outlook: change in line EBIT).

Nevertheless, excluding the Peso devaluation Puma’s sales would have increased by 8% on a currency-adjusted basis and the EBIT would have exceeded last year’s figure (2022: 641 million euros).

The German-based company added that despite an “underlying operating sales growth, the application of hyperinflationary accounting led to a sales decline in the fourth quarter”.

Therefore, Puma’s sales in the last three months of 2023 declined by around 4.0% on a currency-adjusted basis and by 9.8% on a reported basis, as compared to the same period of the previous year, to 1.98 billion euros. The company’s fourth quarter EBIT was approximately 94 million euros, as compared to 41 million euros in the same quarter last year, but its net income was approximately 0.8 million euros, as compared to 1.4 million euros in the same period of 2022.

Fiscal 2024 Outlook

Despite “continued global geopolitical and macroeconomic headwinds”, Puma expects to achieve a mid-single-digit currency-adjusted sales growth and an EBIT in the range of 620 million to 700 million euros in fiscal 2024. This guidance “assumes that the future devaluation of the Argentine peso will be fully compensated by corresponding price increases in Argentina”.

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