Puma, the German sportswear brand, has shared the devaluation of the Argentine Peso as a factor affecting its sales growth in the fiscal year 2023 (FY ’23).
Despite facing challenges, Puma reported a currency-adjusted sales growth of approximately 6.6 per cent, reaching € 8.6 billion (US $ 9.36 billion). Earnings before interest and tax amounted to about € 622 million, exceeding the projected outlook of € 590-670 million for the year. The net income for the year was around € 305 million.
CEO Arne Freundt stated “Our underlying operating performance was strong in 2023 and showed that we were on track to meet all expectations. The accounting treatment of the hyperinflationary economy of Argentina and its significant devaluation of the Argentine peso mid-December resulted in an extraordinary impact on fourth quarter and financial year results for 2023.”
While the currency effect couldn’t be fully offset by year-end, Puma’s strong fourth-quarter operating result contributed to meeting expectations and achieving a noteworthy improvement in free cash flow. The CEO attributed this success to the exceptional efforts of the entire Puma team.
