Puma, the German sportswear giant, has unveiled plans for a significant buyback programme totaling €100 million, set to kick off in March and extend for a year until May 2025.
Enhanced Shareholder Returns
In a bid to bolster shareholder returns, Puma aims to allocate up to 50% of its net income through dividends and share buybacks. This marks a departure from its previous dividend policy, with a payout ratio now set between 25-40% of the group’s net income.
Implementation Details
The buyback scheme will commence with the purchase of own shares amounting to €100 million, in line with the authorization granted by the Annual General Meeting in 2020. Following the repurchase, the acquired shares will be subsequently cancelled.
Financial Strength and Outlook
Leveraging its robust balance sheet and growth strategy, Puma anticipates solid free cash flow generation in the coming years. This, coupled with a focus on shareholder value, underpins the company’s commitment to bolstering payouts.
Market Challenges and Strategic Response
Amid a challenging sportswear market, Puma foresees a sluggish start to the year. With consumers grappling with economic uncertainties, the company, along with its peers like Adidas and Nike, is devising strategies to navigate through these turbulent times and sustain its competitive edge.
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