Puma, the German apparel group, has decided to keep its dividend unchanged despite facing challenges due to the devaluation of the Argentine peso in the fourth quarter.
Dividend Proposal
The company announced that it will be proposing a dividend of 82 European cents per share ($0.89) for 2023 at its annual general meeting on May 22, the same amount paid out in the previous year. This represents 40.3% of the annual net profit, up from 34.7% in the previous year, thanks to strong free cash flow and positive underlying business development.
Impact of Devaluation
Puma’s Chief Executive, Arne Freundt, highlighted that the devaluation of the Argentine peso had a significant one-off accounting impact, affecting the company’s results. Despite this challenge, Puma’s performance remained strong.
Financial Performance
While net profit in the fourth quarter saw a decrease due to the currency devaluation, earnings before interest and taxes increased significantly. However, overall sales experienced a decline in reported terms as well as on a currency-adjusted basis.
Outlook for 2024
Puma anticipates ongoing geopolitical tensions and macroeconomic challenges to impact consumer sentiment and demand in the first half of the year. The company expects a softer start to the year but remains optimistic about mid-single-digit sales growth and EBIT projections for the year.
In conclusion, Puma remains resilient in the face of external challenges and continues to adapt its strategies to navigate uncertainties in the global market.