08.05.2009 - euroadhoc / Börse / stock market / balance
EANS-News: PUMA AG Rudolf Dassler Sport / PUMA AG announces its consolidated financial results for the First Quarter of 2009
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Herzogenaurach, Germany, May 8, 2009 - PUMA AG announces its consolidated
financial results for the First Quarter of 2009
Highlights First Quarter:
. Consolidated sales up slightly by almost 1% currency neutral
. Gross profit margin at 52%
. Operational result before special items at EUR 114 million representing 16%
of sales, a decline of 9%
. First quarter result impacted by restructuring cost of EUR 110 million
. EPS before restructuring at EUR 5.36 compared to EUR 5.76
Outlook 2009:
. Market environment expected to remain difficult in 2009
. Management takes further actions to act accordingly within the currently
difficult market environment, in order to protect profitability and ensure
profitable growth in the future
Sales and Earnings Development
Global branded sales
PUMA's worldwide branded sales, which include consolidated and license sales,
decreased currency neutral 3.1%. In Euro terms, sales are only slightly down
0.5% reaching EUR 737.7 million in a challenging environment versus EUR
741.2
million in last year's quarter.
On a currency neutral basis, Footwear sales were down by 0.8% to EUR
407.1
million and Apparel 8.1% to EUR 237.4 million. Accessories increased by 0.6% to
EUR
93.2 million.
Licensed business
Due to the take-over of a former licensee, the licensed business was down 41.6%
on a currency neutral basis. Based on the licensed business, the company
realized a royalty and commission income of EUR 5.0 million in the first
quarter
versus EUR 7.1 million in the prior year.
Consolidated sales up
In the first quarter, consolidated sales were up 0.8% on a currency neutral
basis and 3.6% in Euro terms to EUR 697.4 million. Americas increased by
double-
digit rates whereas EMEA and Asia/Pacific were below last year. Currency
adjusted, sales in Footwear were slightly down 0.8% representing EUR
397.1
million. Apparel sales decreased 8.1% to EUR 222.4 million due to
high
comparables which resulted from replica sales relating to the Football Euro Cup
last year. Accessories were up a strong 56.7% to EUR 77.9 million which
stems
mainly from first time consolidation effects.
Gross profit above 52%
In the first quarter, gross profit margin reached 52.1% compared to 53.4% last
year. The decline was mainly due to the regional mix. Footwear reported 50.4%
versus 53.4%, Apparel 53.7% compared to 53.4% and Accessories 55.6% versus
53.7% last year.
Other operating expenses
Other operating expenses increased by 5.4%, rising from EUR 241.0 million to
EUR
254.1 million, or from 35.8% to 36.4% as a percentage of sales.
Marketing/Retail expenses remained unchanged to last year's level and totaled
EUR
127.2 million whereas Marketing was below last year and Retail increased due to
full year effects. The cost ratio decreased from 19.0% to 18.2% of sales. Other
selling expenses increased 20.0% to EUR 84.5 million, or from 10.5% to 12.1%
of
sales, mainly due to first time consolidations and currency impacts. Expenses
for product development and design were up 23.9% to EUR 14.6 million, or as
a
percentage of sales from 1.8% to 2.1% as major development costs occurred in US-
Dollars with the US $ strengthening on a like-for-like basis. Other general and
administration expenses were down 10.5% and totaled 27.8 million, representing
4.0% of sales versus 4.6%.
Operating Expenses include depreciations of EUR 15.8 million, up 19.9%
compared
to last year.
Operational result
Operational result before special items amounts to EUR 114.0 million versus
EUR
125.8 million last year, a decline of 9.4%. As a percentage of sales this
relates to a margin of 16.3% versus 18.7%.
Special Items - Restructuring charge
PUMA has taken further actions to ensure long-term profitable growth in the
future given the currently challenging economic environment and an
unpredictable outlook. Management has implemented a cost reduction program
which will reduce originally planned costs annually and lead to cost savings of
up to EUR 150 million in FY2011.
With the resulting one-time expenses of EUR 110 million (net of taxes EUR
75.2
million) in the first quarter, PUMA will optimize its retail portfolio, the
global organizational structure and the operating processes. The number of
employees in PUMA's global workforce is expected to remain at previous year's
level while ensuring an even better alignment of resources with key business
opportunities. The program was initiated as a proactive step in order to ensure
an even leaner and more efficient platform that will help PUMA to focus even
stronger on the numerous opportunities that arise in the sportlifestyle market
in a challenging market environment accordingly.
After adjustment for special items, EBIT amounted to EUR 4.0 million compared
to
EUR 125.8 million last year.
Earnings
Before restructuring costs, the company's pre tax profit (EBT) accounts for
EUR
112.4 million versus EUR 126.8 million and net earnings to EUR 80.8 million
versus
EUR 90.1 million, a decline of 10.3%. This results in earnings per share of
EUR
5.36 compared to EUR 5.76. The operational tax ratio came in at 28.5%
versus
28.9% last year.
Taking into account the restructuring costs, earnings before taxes declined
from last year's EUR 126.8 million to EUR 2.4 million this year. Net
earnings
amounted to EUR 5.6 million versus EUR 90.1 and earnings per share as well
as
diluted earnings per share were at EUR 0.37 versus EUR 5.76 in last year's
quarter.
Regional Development
Sales in the EMEA-region decreased currency adjusted by 3.0% reaching EUR
366.1
million versus EUR 391.1 million last year. Sales in last year's quarter
were
impacted positively by major sport events. The region now represents 52.5% of
consolidated sales. Gross profit margin increased to 55.1% compared to 54.7%
last year.
Sales in the Americas were up currency neutral by 11.5% to EUR 178.1 million.
The
region now accounts for 25.5% of consolidated sales. Gross profit margin stood
at 46.7% compared to 50.4% last year. In the US market, sales increased by 3.4%
to $ 138.7 million in the first quarter.
Asia/Pacific sales decreased by 1.2% currency neutral but increased by 14.8% in
Euro terms to EUR 153.3 million. The total region accounts for 22.0% of
sales.
Gross profit margin reached 51.0% versus 53.0% last year.
Net Assets and Financial Position
Equity
As of March 31, 2009, total assets climbed by 16.4% to EUR 2,108.0 million
and
the equity ratio reached 56.6% after 60.4% in the previous year.
Working capital
Inventories grew 22.6% to EUR 446.7 million and accounts receivable 5.3%
reaching
EUR 533.1 million. Adjusted by acquisitions and currencies, inventories were
up
16.6% and accounts receivables by 1.3%. Due to lower liabilities at the end of
March, working capital totaled EUR 596.9 million (ex acquisition EUR 581.2
million)
compared to EUR 521.1 million last year.
Capex/Cashflow
For Capex, the company spent EUR 11.6 million in the first quarter versus EUR
24.3
million in last year's quarter. In addition, an outflow of EUR 54.7 million
(last
year: EUR 16.6 million) related to acquisition cost.
Due to the aforementioned investments and the higher working capital, free
cashflow amounted to EUR -118.0 million compared to EUR -49.7 million last
year.
Excluding investment for acquisitions, free cashflow was EUR -63.3 million
versus
EUR -33.0 million. The decline compared to last year is mainly due to
the
aforementioned lower liabilities.
Cash position
Total cash end of March stood at EUR 267.6 versus EUR 357.2 million last year.
Bank
debts were down from EUR 67.1 million to EUR 63.2 million. As a result, the
net
cash position decreased from EUR 290.0 million to EUR 204.5 million year over
year,
mainly due to the aforementioned acquisitions and a lower free cashflow in the
first quarter.
Share Buyback
PUMA did not purchase own shares during the first three months. At quarter-end,
950,000 shares were held as treasury stock in the balance sheet, accounting for
5.9% of total share capital.
Effective April 29, 2009 all own shares were cancelled and share capital was
reduced accordingly. As of today, subscribed capital consists of 15,082,464
shares or EUR 38.6 million.
Outlook 2009 - Market environment remains challenging
During the first quarter, sales came in better than the order books at the end
of the fourth quarter 2008 had indicated. Due to seasonability, the current
shift in future orders to at-once business in the current market environment,
as well as the own retail business which is not included in the order books,
quarterly orders are losing significance as an indicator of future sales. As a
result, PUMA will not release future orders as of the first quarter 2009.
After 14 years of consecutive growth, the year 2009 will be taken as a year of
consolidation with a clear focus on adjusting the cost basis in alignment to
the current business environment. First positive signs are not expected before
2010, the year that is highlighted by the upcoming Football World Cup in South
Africa, where PUMA will once again be one of the most dominant brands. It
currently outfits eleven African Football Federations including Egypt, the
African Cup of Nations winner 2008, as well as the reigning World Champion,
Italy.
Furthermore, additional focus for 2009 is on working capital improvements to
strengthen the cash position and therefore the return on capital employed by
year-end.
With all the implemented measures, PUMA plans to protect its industry-leading
key financial parameters.
Jochen Zeitz, CEO: "Despite an ongoing slowdown in the global consumer's
environment, PUMA managed to post a solid sales and earnings performance before
one time expenses in the first quarter. Due to the worldwide recession, we plan
for business to remain challenging in 2009 and have therefore decided to
implement further measures to align our cost structure with the current market
environment, ensuring a platform for profitable growth in the future. The
measures are expected to accelerate our operational processes, make the
organization even more efficient and to further reduce time-to-market for our
products. In addition to the opportunities that arise in the different
sportlifestyle segments, PUMA will be particularly focused on the Football
segment, in which we plan to further grow our market share with the first World
Cup ever played on African soil, tapping into the significant growth
opportunities offered by the market."
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 values 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. The Black label features collaborations with renowned designers such
as Alexander McQueen, Yasuhiro Mihara and Sergio Rossi. The PUMA Group owns the
brands PUMA, Tretorn and Hussein Chalayan. 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.
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Further inquiry note:
Kerstin Neuber
Telefon: +49 (0)9132 81-2984
E-Mail: Kerstin.Neuber@puma.com
emitter: PUMA AG Rudolf Dassler Sport
Würzburger Strasse 13
D-91074 Herzogenaurach
phone: +49 (0)9132 81 0
FAX: +49 (0)9132 81 2246
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: Börse Frankfurt, free trade:
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Börse Hannover, regulated dealing: Börse München
language: English
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