Puma’s 2011 Results Beat Estimates
Puma SE, (PUM) Europe’s second-largest sporting-goods maker, reported profit that beat analysts’ estimates and its own projection, and forecast that earnings will grow this year and next.
Net income in 2011 climbed 14 percent to 230.1 million euros ($302.8 million), the Herzogenaurach, Germany-based company said today, beating its target of “mid single-digit growth.” The average of eight analysts’ estimates compiled by Bloomberg was 223.3 million euros.
Puma said it expects sales to rise by a “high single- digit” percentage in 2012 and 2013, and net income to increase at a “mid single-digit” pace in each of those years, assuming moderate input-cost inflation. The company and larger competitors Nike Inc. (NKE) and Adidas AG (ADS) stand to benefit from major events taking place this year such as the European soccer championships in Poland and Ukraine, and the London Olympics.
“With the support of a strong sports marketing portfolio, we are well on track to explore the opportunities of the sports year 2012 as well as achieve our 2015 goal of 4 billion euros in sales,” Chief Executive Officer Franz Koch said in a statement.
The shares climbed as much as 3.6 percent to 248.45 euros in Frankfurt trading and were up 2.7 percent as of 11:55 a.m.
Wider Margin
While cost pressures remain “intense,” according to the company’s general finance manager Michael Laemmermann, the gross profit margin widened to 46.7 percent in the fourth quarter from 45.4 percent a year earlier as Puma raised some prices and sold more accessories. The maker of Future Cat Ferrari-branded sneakers said in October it may face some “headwinds” in the final quarter of 2011 as raw-material prices rise and the company increases investment.
Fourth-quarter revenue rose 16 percent, led by a 28 percent surge in the Americas. Sales in Europe, the Middle East and Africa advanced 8.3 percent, overcoming consumers’ reluctance to spend amid the euro zone debt crisis, Puma said. Sales in the Asia-Pacific region climbed 11 percent, while U.S. sales growth accelerated.
Full-year revenue climbed 11 percent to 3.01 billion euros, compared with the company’s October target of 3 billion euros.
Puma said it will increase the 2011 dividend to 2 euros a share from 1.8 euros a year earlier.
To contact the reporter on this story: Andrew Roberts in Paris at aroberts36@bloomberg.net
To contact the editor responsible for this story: Sara Marley at smarley1@bloomberg.net
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