MAM
Pepsi pens $50mn deal with Beyoncé
MUMBAI: Global beverage giant Pepsi has announced creative and wide-ranging global collaboration with worldwide music icon Beyoncé. The company made the announcement on its website in a statement titled ‘Pepsi and Beyonce Fact Sheet’.
Pepsi and the music icon will collaborate to develop new content and come up with out of the box ways to engage fans, consumers and retailers in a way that benefits both brands.
This is not Beyoncé’s first association with Pepsi. Before becoming the brand ambassador, she has served as a Pepsi spokesperson in 2002. According to media reports, the collaboration deal is worth $50 million.
The collaboration between Pepsi and Beyoncé includes establishing the Creative Development Fund, a resource devoted to the co-creation of innovative and relevant consumer content. The two will also work together on the apects of design. In addition to having her image on a can or bottle, Beyoncé is working with Pepsi on the design of all materials related to the partnership. Apart from this, the musician will be starring in a new ‘Live for Now’ global TV commercial planned for release in early 2013.
Apart from the TVC, Beyoncé will also be appearing in print and out of home advertisements for Pepsi. She will also be visible in-store and on-premise through materials such as shelf promotions, in-store displays and in-store advertising.
The company said in the fact sheet, “The Beyoncé partnership is the lead example of how Pepsi is pioneering a new way for brands to engage with musical artists, moving from sponsor to partner. This creates a creative and commercial collaboration that serves both artist and brand. Beyond the partnership with Beyoncé, we are using our global scale and scope to create a platform to support multiple country-specific Pepsi musical artists. With our music program, we can excite our existing fans and attract new consumers to Pepsi, connecting their love of music with the refreshing experience of drinking Pepsi, driving sales of Pepsi globally. Our retail partners love music partnerships and are ready to embrace this relationship because Pepsi has a proven record of promotions that drive store traffic and sales.”
Brands
PUMA Q1 profit jumps 19.6 per cent to €51.9m despite 6.3 per cent sales decline
Inventory clean-up and cost controls lift earnings as brand navigates transition year
HERZOGENAURACH: PUMA has kicked off 2026 on a steady note, reporting improved profitability in the first quarter even as sales slipped, signalling early progress in what it calls a transition year.
The German sportswear major posted sales of €1,863.8 million in Q1 2026, down 6.3 per cent on a reported basis. On a currency-adjusted basis, the decline was milder at 1.0 per cent, helped by ongoing inventory clearance efforts.
Profitability, however, told a more upbeat story. Gross profit margin rose 60 basis points to 47.7 per cent, driven by the reversal of inventory reserves, lower freight costs and a favourable channel mix. EBIT climbed 19.6 per cent to €51.9 million, despite €-12.6 million in one-time costs linked to a cost efficiency programme. Adjusted EBIT stood at €64.4 million, up from €61.3 million a year earlier.
Net profit from continuing operations surged to €26.5 million, a sharp jump from €1.1 million in Q1 2025, with earnings per share improving to €0.18. The financial result also improved significantly to €-15.6 million from €-38.5 million, aided by currency tailwinds.
Speaking on the performance, PUMA chief executive officer Arthur Hoeld said, “In the first quarter our athletes won 21 medals at the World Athletics Indoor Championships and set national records at the Berlin Half Marathon. Operationally, we were off to a solid start to our transition year in 2026. We have managed to reduce our inventory levels faster than planned, streamlined our product portfolio and addressed operational inefficiencies.”
Inventory reduction remained a central theme. Inventories fell 8.6 per cent to €1,898.0 million, while working capital dropped 9.7 per cent to €1,879.2 million. Trade receivables declined 20.3 per cent and trade payables were down 26.2 per cent, reflecting lower sales and purchasing volumes.
Regionally, performance was mixed. EMEA sales fell 10.4 per cent on a currency-adjusted basis to €774.5 million, impacted by weak demand and geopolitical tensions in the Middle East. The Americas grew 6.1 per cent (currency-adjusted) to €655.6 million, led by a strong 10.5 per cent rise in Latin America, though reported growth was hit by currency fluctuations. Asia Pacific emerged as a bright spot, growing 7.9 per cent to €433.8 million, supported by strong demand in Greater China and Southeast Asia.
By channel, wholesale revenue declined 2.8 per cent (currency-adjusted), while direct-to-consumer sales rose 3.8 per cent to €528.1 million. The DTC share increased to 28.3 per cent from 27.5 per cent last year, reflecting a sharper focus on owned retail and digital channels.
Product-wise, footwear sales dipped 2.3 per cent (currency-adjusted) to €1,089.6 million, though running and training categories showed strong growth. Apparel inched up 0.9 per cent to €546.3 million, aided by football and golf, while accessories remained broadly stable at €227.9 million.
Free cash flow, though still negative at €-201.4 million due to seasonality, improved significantly from €-737.6 million a year ago. Net debt rose to €1,357.6 million, but the company maintained financial flexibility with €1,104.7 million in cash and available credit lines.
Looking ahead, PUMA reaffirmed its full-year outlook. It expects currency-adjusted sales to decline in the low to mid single-digit range, with EBIT projected between €-50 million and €-150 million. Capital expenditure for 2026 is pegged at around €200 million, focused on digital infrastructure and DTC expansion.
PUMA chief executive officer Arthur Hoeld added, “For the remainder of the year, we will continue to focus on improving the quality of our distribution, cost base and cash management. In doing so, we are laying the foundations for future growth.”
With inventory clean-up ahead of schedule and operational efficiencies beginning to show, PUMA appears to be tightening its laces for a stronger run, even as macroeconomic and geopolitical uncertainties continue to test the track ahead.
