Puma Puma Released Mid 2022 Target EBIT Profit Margin Will Reach 10%

Bj CEO RN Gulden, Puma CEO, attended the annual report of mid 2.

March 21, 2018: Germany's second sports giant Puma SE (PUM.DE)

The new medium-term target was announced on Tuesday, which is expected to meet sales in 2018-2022 years.

The rate (fixed exchange rate) is 10%, while the EBIT profit margin will eventually reach 10%, which is nearly 80% higher than that of 5.6% in the 2017 fiscal year.

In addition, the company said it would resume regular dividend payments in 2018, with a dividend payout ratio of 25-35%, which is to be approved by the shareholders' meeting.

In fiscal year 2017, the group had a one-time interest rate of only 12.5 euros without regular interest.

In 2017, the three Puma SE (PUMG.DE), Puma, which was expected to raise its expected performance in 2017, is expected to slow down this year's sales and earnings growth as the base increases. The German sporting goods group's stock price fell by 3.1% at the end of the week, and the stock's 2018 decline has expanded to 12.5%.

In 2017, German companies recorded a record sales of 4 billion 135 million 900 thousand euros, but the expected slowdown in sales and profit growth in the current fiscal year led to a sharp fall in share prices on the earnings day.

Puma expects sales this year to rise by 10% after the write off rate, and the operating profit is 3.05-3.25 billion euros, which represents an increase of 24.7%-32.9% compared with 244 million 600 thousand euros last year, reaching 31% of analysts' expectations, while revenue and operating profit in 2017 rose by 15.9% and 91.7% respectively.

For German companies, another major change is the largest shareholder, the French luxury giant Kering SA (KER.PA), and the Group intends to distribute the shares held in the form of dividends, so as to devote itself to the high Maori core luxury business including Gucci Gucci, Saint Laurent Saint Laurent and Balenciaga Balenciaga.

Kai Yun group holds 86.3% of Puma's shares and will retain only about 16% of its shares after distributing 70% of its shareholdings to shareholders.

As part of the share allocation, Pinault Art MIS SA, holding 40.9% stake in Kai Yun group, will directly hold about 29% of the shares as a long-term strategic investor. After the paction, the Puma shares of Puma SE will rise sharply from 55% to 55%.

The above changes will also give external investors the opportunity to buy Puma through a gradual increase of opportunities, and may surpass the Pinault Pino family and become a major shareholder of German companies.

Analysts said that German companies may come from China and develop rapidly.

Sporting Goods Co., Ltd. (2020.HK)'s potential takeover target.