PUMA launches Phase IV for long-term business plan
27 Jul '05
6 min read
Phase IV will also be the first time that the company looks to selectively expand with brands other than PUMA. Towards the end of Phase IV, Non-PUMA brands could contribute up to 10 percent of overall business.
From today's point of view, management now defines the long term Company Potential at €3.5 billion, of which the company is planning to capture a significant part in the coming five years.
The company will finance the expansion plan through its strong cash position and future cashflow generation, with an estimated total additional investment of up to €500 million over the next 5 years.
The company also intends to distribute a significant amount to its shareholders. PUMA is planning to gradually increase its dividend payout ratio from currently 6 percent to between 20 percent and 25 percent.
In addition, PUMA intends to increase its share buy back activities. PUMA now intends to fully utilize the total authorized repurchase program of up to 10 percent of share capital. Therefore, the current resolution of up to 800,000 shares will be extended to up to 1.6 million shares.
The management considers an investment in PUMA's shares to be in the company's best interest while also ensuring flexible management of the company's capital requirements. Hence, a total of up to an additional €500 million is now scheduled to be distributed to shareholders through a gradual increase in the dividend payout ratio as well as share buy-backs.
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