Puma keeps dividend unchanged despite currency devaluation and geopolitical tensions
- Puma to propose EUR0.82 per share dividend for 2023
- Dividend unchanged despite devaluation of Argentine peso
- Geopolitical tensions and inflation expected to dampen consumer sentiment
- Net profit in Q4 2023 slumped to EUR800,000
- Earnings before interest and taxes climbed to EUR94.4 million in Q4 2023
- Sales slumped 9.8% in reported terms and 4% on a currency-adjusted basis
- Puma forecasts mid-single-digit sales growth for the current year
- EBIT expected to be between EUR620 million and EUR700 million
Puma has announced that it will propose a dividend of EUR0.82 per share for 2023, unchanged from the previous year. This decision comes despite the challenges faced by the company, including the devaluation of the Argentine peso and geopolitical tensions. Puma expects these factors, along with inflation, to continue dampening consumer sentiment in the first half of 2024. In the fourth quarter of 2023, Puma’s net profit slumped to EUR800,000, while earnings before interest and taxes increased to EUR94.4 million. Sales, however, declined by 9.8% in reported terms and 4% on a currency-adjusted basis. Looking ahead, Puma forecasts mid-single-digit sales growth for the current year and expects EBIT to be between EUR620 million and EUR700 million.
Factuality Level: 8
Factuality Justification: The article provides specific details about Puma’s financial performance, including changes in dividend, net profit, earnings before interest and taxes, and sales. It also explains the impact of the devaluation of the Argentine peso on the company’s profitability. The information is presented in a straightforward manner without digressions or sensationalism. Overall, the article appears to be factually accurate and objective.
Noise Level: 3
Noise Justification: The article provides relevant information about Puma’s financial performance, the impact of the devaluation of the Argentine peso, and the company’s outlook for the future. It stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability, and actionable insights, which prevents it from scoring higher.
Financial Relevance: Yes
Financial Markets Impacted: The devaluation of the Argentine peso and its impact on Puma’s profitability may affect investor sentiment towards the company and potentially impact its stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the financial impact of the devaluation of the Argentine peso on Puma’s profitability, which is relevant to financial markets and investors.
Public Companies: Puma (PUM.DE)
Key People: Javier Milei (President)
Reported publicly:
www.marketwatch.com 
