Research that is free to access for all investors. Companies commission these providers to write research about them.
Brokers who write research on their corporate clients and make it available through our main bundle offering.
Research that is paid for directly by asset managers. Only accessible to institutional investors permissioned for access.
Event in Progress:
Discover the latest content that has just been published on Research Tree
PUMA ended the year with both the top line and profitability in line with consensus expectations. The beginning of FY22 continues to be impacted by the disrupted supply chain, inflationary pressure and geopolitical uncertainties, which led the group to release a cautious outlook for FY22. In particular, the “boycott” situation and resurgence of COVID-19 in China continue to weigh on the group’s activity in the country.
Companies: PUMA SE
AlphaValue
PUMA experienced a better-than-expected Q3 21. The strong demand in the Americas, favourable channel mix and less promotional activity have limited the impact of supply-chain challenges and ongoing COVID-19-related restrictions in Asia. The ongoing industry-wide supply-chain disruptions and the continued challenging trading environment in China have led the group to upgrade conservatively its FY 21 outlook. The current market expectations were already broadly in line with the updated guidance.
PUMA has published its Q2 21 results, in line with the preliminary release. The robust growth in North America and gradual recovery in EMEA have led the top line to exceed the 2019 level. The trading performance in China has been affected by the “boycott over Xinjiang cotton”, sales slid 5% yoy. The gross margin has significantly improved from last year, despite supply chain constraints. However, on the back of the strong quarter, the conservative guidance for FY21 leaves some shadow.
Puma recorded a strong start to the year. Encouraging sales growth across all régions and all segments confirmed the pandemic-led surge in the consciousness for healthy living and a rekindled trend in athleisure. However, the group’s very cautious view on the trading environment for the rest of the year, highlighting the “boycott on Xinjiang cotton issue” in China has started to weigh visibly on the group’s business since the end of March.
Despite the second wave of lockdowns and re-imposed anti-pandemic measures keeping some stores shut, the group achieved top-line and profitability growth in Q4 20. The group expects the ongoing lockdowns in Europe and uncertainty related to the pandemic to continue to weigh on the group’s business until the end of Q2 21, followed by a strong recovery in H2 21.
The Q2 figures were a little disappointing. Both sales and profitability were hit heavier than expected by the pandemic. In particular, the higher than expected discounts and piling up of seasonal inventory will continue to put pressure on the margin. However, the trading trend since June is very encouraging, which confirms our confidence that the group is in a good position to benefit from the business recovery after the pandemic crisis is over.
The Q1 20 results have been unsurprisingly impacted by the COVID-19 crisis. With over 50% of the group’s stores closed around the world at present, the group’s business will be even more affected in Q2 20. However, the group’s sales contraction was less than peers which shows its business has the greater resilience. The pandemic is increasing people’s focus on sports, especially in Asia. The outlook post-COVID-19 remains encouraging.
Puma delivered formidable numbers for 2019. Some of this is supported by the stronger currency tailwind, but the currency-adjusted revenue growth rate also accelerated from +16.7% in 9M19 to +17.0%. On a reported basis, the growth rate accelerated from 17.6% to 20.6%. However, as purchase prices are typically denominated in US dollars, the gross profit margin was up by ‘only’ 0.2pp in Q4 compared to 0.6pp through to September last year.
Puma’s revenue growth continued at full speed in Q3 but the profit margin improvement moderated considerably. The group’s full-year profit outlook suggests that our current projections are too optimistic. The reasons for the moderate outlook are, among other things, new tariffs imposed by the USA on imports from China.
Although sourcing costs are typically denominated in US dollars and as the dollar has appreciated against the euro, Puma has been able to increase the gross margin by 0.7pp to 49.3% in the last quarter and by 0.8pp to 49.2% in H1 19. According to management, a higher share of in-house retail sales, a better product mix, less discounts, and a positive currency impact have all contributed to this very favourable development.
Revenue growth of 16.6% (currency-adjusted +15.3%) and much stronger profit growth has not allowed management to increase its full-year guidance. It continues to see revenue increasing by about 10% (currency-adjusted) and EBIT coming somewhere between €395m and €415m.
Puma replaces Nike and is believed to pay some €750m over a period of ten years. Assuming this speculation is correct, the annual payments represent approximately 1.5% of Puma’s annual turnover of the next years. Adidas had signed a similar contract with Manchester United in 2014 and that contract was believed to be worth €1bn over a ten-year period. However, this annual amount represents ‘only’ 0.4% of the peer’s annual revenue number. Puma’s strategy over the last years has been to strengthe
2018 consolidated revenue was up by 12% to €4.65bn (+18% currency-adjusted). Simultaneously, EBIT and net earnings both increased by 38% to €337m and €187m, respectively. Management proposes a dividend of €3.50 for the last fiscal year, whereas we had expected €3.00. Our sales and profit projections had been €4.55bn, €349m, and €203m, respectively.
Puma’s revenue growth was about unchanged in Q3 vs. H1, i.e. turnover was up by 10.7% to €1.24bn in the last quarter which brought the ytd number to 3.42bn, an increase of 10.5%. However, EBIT growth fell to 29% to €130m in Q3 which brought the 9M number to €300m, an increase of 40%. The respective net profit numbers were +25% to €78m and +32% to €176m.
Management’s strategy continued paying off in H1. At a glance, the group’s net cash has fallen considerably in H1 18, but this is exclusively the result of the exceptionally high and farewell dividend paid to all shareholders including Kering.
Research Tree provides access to ongoing research coverage, media content and regulatory news on PUMA SE. We currently have 0 research reports from 3 professional analysts.
Surface Transforms (SCE) has announced the raising of £6.5m new equity and is launching an Open Offer to shareholders. It is raising capacity and quarterly revenue but has needed to address the two sets of production constraints it faced: scrappage and process-line pinch points. Pinch points have been much reduced through capital expenditure and expert maintenance teams. Major capital expenditure is ongoing and unaffected by the fund raise. The scrappage from the fast ramping up of volumes is re
Companies: Surface Transforms PLC
Hardman & Co
Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.
Companies: CSFS MBT PPS MIRI
Allenby Capital
Companies: 88E MTC TIA DEC ULTP
Cavendish
16th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for
Companies: IP BILN SAR GATC ASTO PHE SHOE CCS IP CUSN
Hybridan
Ceres Power Holdings’ innovative technology uses electrolysis to produce green hydrogen and solid oxide fuel cells to generate power. In a year where it moved to the Main Market of the London Stock Exchange, it recorded revenue growth of 13% and gross margin expansion to 61% (the highest in the sector, according to management), but is yet to record an operating profit (FY23 operating loss of £59.4m versus £54.0m in FY22). Ceres continued its strategy to drive innovation and technology across sol
Companies: Ceres Power Holdings plc
Edison
13th May 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: Shanta Gold (SHG.L) has left AIM. What’s baking in the oven? ** Potential**** Initial Public Offerings: 7th May: Time To ACT plc, an engineering business focused on technology for the energy transition sector, has announced its intention to seek Admission to t
Companies: MDZ CREO JADE KIST
We have completed another periodic refresh of our value screen, first established in our inaugural quant/screening note of 26 May 2015. As usual the screen selected the 25 stocks exhibiting the most extreme value characteristics (based on 2016 consensus P/E and latest price to tangible book ratio) from our universe, and we have chosen 10 stocks to focus on. Since inception last year the screen has outperformed the main small-cap and micro-cap indices (by about 8pp and 3pp respectively) and has p
Companies: BILN BOOT CGS LVD GOAL VTU CARR
Singer Capital Markets
Character Group traded satisfactorily in the first half, even though pressure on consumer expenditure continued to create challenging trading conditions. The Group was able to deliver a robust performance while enjoying a solid balance sheet and strong cash generation. Given the encouraging first half performance and the Group’s continued resilience, the Board expects that adjusted PBT will exceed market expectations. Consequently, we have increased our PBT forecast by 10% and continue to view t
Companies: Character Group plc
This morning's announcement from SPSY highlights the company's innovative technology in the interest of “meet[ing] clients' needs”. A global first from SPSY, today's news heralds the first polymer banknote substrate which will be certified as sourced and manufactured through an accredited circular supply chain, commencing with Toray Plastics America, SPSY's partner. This new development follows on from SPSY's invention of the Fusion substrate, a transformative technology which we expect to mak
Companies: Spectra Systems Corporation
WHIreland
Companies: ITV RR/ KWS JD/ SENX
Shore Capital
Companies: UTL ASC DNLM BWNG MONY DFS BOO
SCE is raising £16m through a placing (and up to a further £3m through open offer) to fund substantial expansion and additional working capital. This will enable the Group to grow to £75m revenue capacity in the near term, commence the build and equipping of a new factory and then (with internally generated free cash flow) scale to £150m revenue capacity and beyond. With a contracted order book of £190m and a prospective pipeline of £400m, this is clearly the time to seize the opportunity. The e
Backblaze has reported Q1 results at the top end of the guidance range with revenue of $30.0m versus a guidance range of $29.6-30.0m, and adjusted EBITDA margin of 6.4% versus a guidance range of 4-6%. The company has maintained its guidance for FY24, with revenue guidance $126-128m and EBITDA margin of 8-10%. The company ended Q1 with cash and liquid assets of $32.8m and reiterated its expectation to have at least $20m at the end of FY24. We are maintaining our financial forecasts for FY24E and
Companies: Backblaze, Inc. Class A
Revolution Beauty Group’s (REVB’s) capital markets day (CMD) provided an opportunity for the new management team to present its refocused strategy: to become a top five global beauty brand by 2030. Management aims to drive product innovation at affordable prices, tailored to the demands of its target Generation Z consumer. REVB will continue to develop its online and offline routes to market with new and existing direct-to-consumer (D2C) and business-to-business (B2B) partners, using data to gro
Companies: Revolution Beauty Group plc
LVMH published mixed results for H1 23. The stronger-than-expected recovery of Chinese demand for leather goods have offset the decline in the cognac business mainly in the US. However, the normalised promotional actions for Cognac in the US and higher A&P spending for the leather goods business have weighed on profitability during the first half. Although the weakening consumer environment in the US is likely to continue, LVMH confirms that the margins for FY23 will be at least the same as i
Companies: LVMH Moet Hennessy Louis Vuitton (MC:EPA)LVMH Moet Hennessy Louis Vuitton SE (MC:PAR)
Share: