Shares in Puma SE declined by €4.49 to €38.49 yesterday, to their lowest level in more than five years, after the group issued a FY24 outlook below the consensus estimate and revealed preliminary FY23 results that were negatively impacted by the “extraordinary devaluation” of Argentine’s Peso in December.
Nonetheless, the company said its full-year currency-adjusted growth of 6.6 percent (1.6 percent on a reported basis) to €8,602 million and corresponding ebit of €622 million were in line with its FY23 outlook that called for high-single-digit currency-adjusted revenue growth and an ebit range of €590 to €670 million. In Q4, Puma’s adjusted basis sales slipped by approximately 9.8 percent on a reported basis to €1,982 million from €2,197 million in Q4/22, but year-over-year Ebit rose by 129 percent to €94 million. Preliminary Q4 net income was down 43 percent year-over-year to €0.8 million.
Puma is forecasting mid-single-digit, currency-adjusted sales growth in FY24 and a corresponding Ebit range of €620 to €700 million, some 3.6 percent to 14.6 percent below the consensus market estimate of €726 million. The group intends to take market price increases in Argentina to compensate for the devaluation of the country’s currency.
The group is slated to formally release Q4 and FY23 results on Feb. 27.
