Sales (including license and commission income) increased by 24.1 % to € 540.3 million in the 2016 financial year. The increase was due to higher sales in the DACH region and higher licensing and commission income. Product sales in the DACH region increased by 15.8 % to € 150.6 million. Total PUMA SE product sales rose by 20.0 % to € 224.1 million. Licensing and commission income included in sales rose by 14.6 % to € 281.5 million. Other operating income amounted to € 57.4 million in 2016 (previous year: € 139.7 million). The decrease compared to the previous year was mainly related to lower currency exchange gains and the aforementioned BilRUG reclassification.
Total expenses, comprising material expenses, personnel expenses, depreciation/amortization and other operating expenses, was virtually unchanged compared to the previous year (2016: total € 660.8 million; previous year: € 663.8 million). While other operating expenses fell, material expenses rose due to higher sales and personnel expenses rose due to the larger number of employees.
The financial result declined by 25.9 % compared to the previous year to € 145.3 million since the previous year included income from profit transfer agreements totaling € 107.6 million related to a one-time capital increase at PUMA Sprint GmbH. Excluding this effect in the previous year, the financial result improved in 2016, due mainly to the higher profit transfer of PUMA International Trading GmbH.
Profit before tax fell by 23.6 % from € 107.6 million to € 82.2 million. The decline in taxes on income resulted partly from the adjustment of tax provisions after the end of the tax audit for the years 2007 to 2011. Net income amounted to € 78.7 million compared to €81.1 million in the previous year.
While the construction of our administration building and the acquisition of our shareholding in Genesis Group International mainly increased our total non-current assets, valuation allowances on and disposals of investments in subsidiaries led to a slight overall decline.
In total current assets, inventories rose by 15.9 % to € 50.2 million as a result of the increase in business volume. In contrast, there was a decline in receivables from affiliated companies.