The German sporting goods supplier Puma SE was able to draw a positive balance of the 2021 financial year on Wednesday. After all, the people of Herzogenaurach managed to emerge stronger from the Corona crisis and to achieve significant growth in sales and profits.
CEO Bjørn Gulden was correspondingly satisfied: “2021 was a very successful year for us. Despite all the issues and obstacles related to Covid-19 and political tensions around the world, we have had the best year in Puma’s history,” he said in a statement.
Net income more than tripled over the previous year
Sales reached EUR 6.81 billion, exceeding the 2020 level by 30.0 percent (+31.7 percent at constant currency). Compared to the pre-crisis year of 2019, revenue increased by 29.8 percent after currency adjustments. Business in America developed particularly dynamically, where sales increased by 48.5 percent (currency-adjusted +53.9 percent) to EUR 2.64 billion compared to the previous year. In the EMEA region, which includes Europe, the Middle East and Africa, Puma achieved growth of 27.7 percent (currency-adjusted +28.2 percent) to 2.53 billion euros.
The rate of increase in the Asia-Pacific region was lower: At EUR 1.64 billion, sales there were only 10.9 percent (currency-adjusted +10.6 percent) above the previous year’s level because demand in China was weakening. The “strong growth in markets such as India, Japan and Oceania” has “more than offset the current development in Greater China,” the company said.
Puma was also able to improve earnings significantly thanks to a higher gross margin and a lower operating cost ratio: Operating profit (EBIT) reached a record high of 557.1 million euros, more than doubling compared to 2020 (+166.3 percent). The net profit even jumped from 78.9 to 309.6 million euros.
Despite numerous adversities: Puma wants to continue growing in 2022
Despite some adversities, the management expects strong growth in the current financial year: Currency-adjusted sales should increase by “at least ten percent” compared to 2021. The forecast range for EBIT is between 600 and 700 million euros.
The company acknowledged that it “continues to face a high level of uncertainty” in its global business environment. “The year 2022 has started with an all-time high of Covid-19 cases and as a result, several governments have imposed regional or national restrictions affecting our entire value chain from production to retail store operations,” Puma said. “Unfortunately, political tensions in important markets and restrictions in the supply chain due to container shortages and port congestion will continue into the new year.”
However, the sports goods retailer is confident that it can also overcome the current problems: “As in previous years, Puma will master these challenges by building on its brand dynamics, strong partnerships with suppliers and retailers and operational flexibility,” the company said.