PUMA has announced its intention to allocate up to 50% of the Group's net income to shareholders through a combination of dividends and share buybacks. Bolstered by a strong balance sheet as of 2023 year-end and a strategy geared towards sustainable and profitable growth, the company anticipates robust cumulative free cash flow generation in the coming years, forming the organic basis for increased shareholder payouts.
Effective immediately, PUMA's Management Board has revised the dividend policy to encompass a payout ratio ranging from 25% to 40% of the Group's net income, compared to the previous range of 25% to 35%. Additionally, the Management Board has initiated a share buyback program, supplementing the dividend policy by an additional 10% to 25%, thus allowing for a total payout of up to 50% of the Group's net income.
The first tranche of the buyback program entails the repurchase of own shares valued at up to €100 million, commencing in March 2024 and concluding on May 6, 2025. Subject to the authorization granted by the Annual General Meeting 2020, the repurchased shares will subsequently be cancelled.
The share buyback will be conducted via the stock exchange and in compliance with the authorization granted by the Company's Annual General Meeting on May 7, 2020, as well as in accordance with the safe harbour provisions outlined by Regulation (EU) No. 596/2014 (Market Abuse Regulation) and Commission Delegated Regulation (EU) No. 2016/1052 of March 8, 2016.
An independent financial service provider will oversee the execution of the share buyback, making trading decisions independently and without influence from the Company. The financial service provider is mandated to adhere to the trading conditions outlined in Art. 3 of the Delegated Regulation and the provisions stipulated in the share buyback program.
PUMA retains the prerogative to suspend or terminate the share buyback program at any point in time.
