PUMA AG Rudolf Dassler Sport reported preliminary results for FY 2003 indicating that Puma's global branded sales
(consolidated sales plus sales of licensees) rose by almost 23%, from 1.4 bn ($1.32 bn) to 1.7 bn ($1.92), or up over 30% in currency-adjusted terms. Consolidated sales improved for the ninth consecutive year, increasing 40.0% to 1.27 bn ($1.44 bn) from 910 million ($861 mm), or up 48% in currency-neutral terms. All regions and product segments contributed to the increase.
PUMAs gross profit margin reached a record level of 48.7%. Despite continued high investments in brand-building initiatives and concepts, total SG&A expenses were further reduced from 33.4% to 29.6% of sales. Pre-tax profit increased by 112.3% to 264 million $299 mm) versus 124 million ($117 mm) in the previous year, and the gross yield improved from 13.7% to 20.7%.
Based on a tax rate of 31.9% (32.0%), consolidated net
earnings rose from 85 million ($80 mm) in 2002 to 179 million ($203 mm) in 2003, corresponding to a net return of 14.1% versus 9.3% in 2002. Earnings per share more than doubled from 5.44 ($5.15) to 11.26 ($12.75).
Despite the increase in balance sheet totals, the equity ratio improved substantially from 48.0% to 54.7%. The net cash position rose from 94 million to 174 million.
Order backlog at the end of 2003 was up 36.0% to 722 million. Excluding the first time consolidation of Japan, orders were up by 26.6%.
Jochen Zeitz, PUMAs Chairman and CEO said: “The results we have achieved impressively demonstrate the success of our brand and company strategy. In view of PUMAs positioning as a desirable sportlifestyle brand and the strong order backlog increase for 2004, we are expecting sales growth of over 10% for the sixth consecutive
year.”
During 2003 PUMAs share price rose 115%, standing at 140.00 at the years end.
Preliminary results 2003 2002 Deviation
EUR EUR
Mio. Mio.
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Global brand sales 1.692 1.380 22,6%
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Consolidated net sales 1.274 100,0% 910 100,0% 40,0%
Gross Profit 620 48,7% 397 43,6% 56,2%
EBIT 263 20,7% 125 13,7% 110,5%
EBT 264 20,7% 124 13,7% 112,3%
Net earnings 179 14,1% 85 9,3% 111,3%
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Outstanding shares, basic 15.932 15.611
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Earnings per share, basic (EUR) 11,26 5,44 107,0%
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Future orders as of Dec. 31 722 531 36,0%
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