sporting goods
Puma expects further growth in sales and earnings
The Dax newcomer Puma has announced its figures for the past financial year. Photo: Daniel Karmann/dpa
© dpa-infocom GmbH
Container shortages, high freight and raw material costs and political tensions are likely to continue to cause problems for the sporting goods manufacturer. But: Puma is going into the new financial year with confidence.
The sporting goods manufacturer Puma is entering the new financial year with confidence and expects further growth in sales and earnings.
However, the Adidas rival estimates that the ongoing problems in the supply chains and political tensions between Western countries and China, for example, are likely to continue in 2022. Consolidated earnings increased last year from EUR 78.9 million to EUR 309.6 million.
Despite the ongoing uncertainties, sales are expected to increase by at least ten percent this year, adjusted for currency effects, Puma announced in Herzogenaurach. The Adidas rival also sees the operating result increasing further: from 557 million in 2021 to 600 million to 700 million euros. According to the company, which is known for its rather conservative forecasts at the beginning of the year, the group result should also improve accordingly.
problems remain
Puma assumes that the restrictions in the supply chain due to container shortages and port congestion are likely to continue. Higher freight and raw material costs are likely to impact profitability. Political tensions are also likely to continue.
Despite the existing problems, Puma achieved new sales and EBIT records last year. Sales grew by 30 percent to 6.8 billion euros, currency-adjusted it was almost 32 percent plus. The growth driver was the Americas region with a currency-adjusted increase of almost 54 percent. Puma cracked the sales mark of two billion euros there for the first time. The European region (EMEA) contributed a currency-adjusted increase in sales of a good 28 percent.
In contrast, Asia-Pacific lagged behind with a currency-adjusted sales increase of almost eleven percent – triggered by weaker development in China. There, political tensions between the western governments and the communist leadership weighed on business. The discussions and criticism of the human rights situation in China led, among other things, to a call for a boycott against Western brands last spring. The restrictive corona policy also weighed on development. This was offset by robust business in countries such as India, Japan and the Oceanic States. In the final quarter, however, currency-adjusted sales in the region fell by 5.4 percent due to the problems in China.