Puig Reports H1 Results as a Publicly Traded Company
Puig, the Catalan fragrance and cosmetics group, disclosed a 27% drop in net profit for the first half of the year, totaling €154 million. The decline traces to exceptional costs tied to its market debut, and the company’s results were presented as its first half-year report since becoming a listed company. The firm floated on the stock market on May 3 at €24.50 per share and joined the Ibex index on July 22. By 12:41 p.m. on Friday, Puig’s shares had fallen 12.5% to €21.50 in light of these results.
Marc Puig, the group’s president, attributed the net profit decrease to one-off costs related to the initial public offering as well as to expenses from acquisitions, mergers, and other adjustments, totalling €84 million after tax.
The main adjustment was a cash bonus of €94 million granted to all employees in recognition of the company’s transition to the stock market. “We had an exceptional first half, driven largely by the milestone of going public, a feat that required a major effort from all teams, and we chose to acknowledge this with a premium”, stated the president.
Marc Puig explained that the business operates on an annual basis and the results align with expectations for this period, noting seasonality and the phasing of costs across the year’s two halves, as well as the timing of new product launches concentrated in the second half. Finance Director Joan Albiol added that the six-month results, together with sustained momentum into the second half, provide confidence to reaffirm medium-term guidance.
Excluding the IPO-related expenses, Puig’s adjusted net income rose by 4.8% to €238 million by June. The group maintains a dividend payout ratio of 40% of reported net profit.
In the first half of the year, Puig reported revenue of €2,171 million, up 9.6% from the prior year period. EBITDA reached €275 million, down 27.4% from €378.6 million in the same period a year earlier. The president remarked that the first half was solid, with growth outperforming the premium beauty sector’s average.
Net debt stood at €1,520 million, up slightly by 0.7% from the 2023 year-end, and the debt level remained at 1.7 times EBITDA over the last twelve months, below the target of two times, as highlighted by Puig in the report.
Makeup, Fragrance, and Skin Care Segments
Sales by segment show a 1.8% decline in Makeup to €334 million, while Fragrances and Fashion rose by 10.7% to €1,599 million and Skin Care grew 25.2% to €256 million. The largest and most profitable sector remains Fragrances and Fashion, which contributed around 73% of total revenue. Puig’s leadership highlighted Jean Paul Gaultier’s entry into the top 10 fragrance brands worldwide for the first time, along with Carolina Herrera and Rabanne, as a sign of continued brand strength and market share expansion through ongoing product innovation.
Skin Care accounted for 12% of total revenue, with a notable double-digit gain in Uriage products and foray into Dr Barbara Sturm’s acquisition in the first half of 2024 contributing to the segment’s solid momentum.
Makeup contributed 15% of group revenue, with a 1.8% sales decline year-over-year, attributed to weaker results in Asia. Christian Louboutin Beauty faced a regional downturn in Asia, while Charlotte Tilbury reported more moderate sell-in results.
Regionally, Europe, the Middle East, and Africa (EMEA) remained Puig’s core market, representing 53% of sales and growing 12.1% to €1,154 million. In the Americas, Puig generated €814 million, an 8.6% increase, with Latin America showing more volatility due to currency fluctuations, especially in Argentina. In Asia-Pacific, revenue rose by 0.7% to €204 million, a region Puig expects to remain weak for the rest of the year as consumer spending in China lags expectations.
Marc Puig emphasized that the brand portfolio’s appeal and premium positioning have helped the group sustain market share in value terms across key markets in Europe, the Middle East, Africa, and the Americas. He also noted ongoing diversification in Skin Care, supported by organic growth.
Notes: The figures reflect the company’s ongoing assessment of performance and market dynamics as reported in the first half results and investor communications. Markers cited include the IPO-related premium, continued product innovation, and strategic acquisitions that shape the current mix of products and geographic exposure. See Puig investor disclosures for detailed line items and guidance. [Attribution: Puig interim results communications]