Management raises full-year guidance
13 Apr 17
Preliminary Q1 17 numbers show an 18% revenue increase to just above €1bn and a 70% EBIT increase to €70m. The revenue growth rate is substantially higher than what we expect for H1 (+5.5%), while the EBIT growth rate is moderately higher (+42%). As Puma is no longer releasing full Q1 and Q3 accounts (i.e. no cash flow statement), we no longer project numbers for these quarters. As a result of the above, management has raised its full-year guidance. Instead of a currency-adjusted sales increase of a ‘high single-digit’ it now expects a ‘low double-digit’ increase. EBIT is now projected to come inbetween €185m and €200m instead of between €170m and €190m. Our current EBIT number for 2017 is €163m.
Sizeable share of net earnings go to minority shareholders
09 Feb 17
Puma’s P&L shows numbers down to the pre-tax level which were very much in line with our expectations. Turnover increased by 7% to €3.63bn and EBIT was up by 3% to €128m. Our forecasts were €3.59bn and €123m. While pre-tax earnings were exactly in line (€119m), net profit after minorities of €62m was clearly lower than our €66m. Instead of a dividend increase from €0.50 to €1.00 as we had anticipated, it is only increased to €0.75.
Reasonable Q3 numbers
11 Nov 16
Revenue and profit growth has accelerated in Q3 compared to H1 16. Puma’s sales were up by 8.3% to €991m in the last quarter which brought the 9M number to €2.67bn (+6.4%). The respective EBIT numbers were +47% to €60m and +33% to €114m and the net profit numbers were +98% to almost €40m and +61% to €67m.
Profitability has finally stabilised
27 Jul 16
Puma’s revenue growth accelerated from Q1 16 (+3.8% to €852m) to Q2 (+6.9% to €826m) and so did profits. EBIT was up by 10% in Q1 (to €41m) and by 75% (to €12m) in Q2 and the bottom line showed an increase of 4% to €26m in the first quarter and a turnaround from a loss of €3.3m in Q2 15 to a profit of €1.6m in the last quarter. While the revenue number is just short of our expectation, the profit numbers are slightly higher.
Q1 16 could have been slightly better
29 Apr 16
Puma shows revenue growth of 3.8% to €852m for the last quarter and the profit numbers are also slightly up (EBIT: +10% to €41.3m, net profit: +4.0% to €25.8m). While the sales number is very much in line with what we had expected, the profit numbers are slightly short.
First negative cash flow from operations in the current century
18 Feb 16
Based on management’s definition, cash from operations was a negative €37m in 2015. This is the first negative number in the current century with the previous low of a positive €44m generated in 2001. As a result, net cash fell from €382m at the end of 2014 to €325m. Puma’s revenue was up by 14% to slightly less than €3.4bn in the last year, while EBIT fell by 25% to €96m. Net profit after minorities was down by 42% to €37m. Management proposes an unchanged dividend of €0.50. While sales were slightly higher than our expected €3.33bn, EBIT (€100m was expected) and net earnings (€41m) fell short. The dividend is in line with our forecast.
Profits continue to fall and cash generation was highly negative
06 Nov 15
Puma’s revenue growth moderated somewhat in Q3 (to +8.5% to €915m) which has brought the ytd number to €2.5bn (+13%). All of the group’s profit numbers continued falling in Q3. As a result, 9M EBIT came in at €85m (-27%) and net earnings at €42m (-40%). Even worse, cash from operations (based on management’s definition) was a negative €202m compared to -€44m a year ago. In fact, 9M positive cash from operations was generated through to 2010, but, ever since, it has been negative after nine months. The latest number is clearly the worst presented up to now. All of Puma’s numbers are short of our expectations.
Puma generated a net loss in Q2 15
24 Jul 15
The company generated revenue of almost €1.6bn (+16%) in H1 15 whereas EBIT fell by 38% to €44m and net profit by 46% to €22m. In fact, revenue growth accelerated in Q2 to 19%, but the profit development deteriorated. Consequently, Puma suffered albeit a small net loss of €3m in Q2, the first loss ever in a second quarter since the beginning of this century. While revenue is just ahead of our expected number of €1.57bn, the two profit numbers are clearly worse.