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Peso devaluation wreaks havoc on Puma’s results

Peso devaluation wreaks havoc on Puma’s results
The economic situation in Argentina has consequences for the sporting goods company.
Image: Apa/dpa/Karmann

Net profit fell by 14 percent to 305 (2022: 353.5) million euros in 2023, as the world’s number three behind Nike and Adidas announced on Wednesday.

Earnings before taxes and interest (EBIT) fell to 622 (640.6) million euros and were therefore in the lower half of the expected range of 590 to 670 million euros. Group sales rose by 6.6 percent after adjusting for currency effects to 8.6 billion euros.

According to Puma, without the massive 54 percent devaluation of the peso shortly before the turn of the year, sales would have increased by eight percent and EBIT would have been above the previous year’s level. Special accounting rules apply to countries with high inflation. In the fourth quarter, sales and profits were therefore below analysts’ estimates, Puma said. The share fell by six percent to 40.36 euros.

Puma forecast sales growth of around five percent for the current year. Political and economic uncertainties played a role. At 620 to 700 million euros, EBIT is expected to be higher than in 2023. Puma expects that possible further devaluations of the peso can be offset by higher prices in Argentina.

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