Intercos (ICOS) Q2 2025 earnings summary

Executive summary

• Net sales reached €524.9 million in H1 2025, up 5.0% year-over-year (6.1% at constant FX), driven by strong Make-up segment growth, which exceeded 60% of total sales and posted double-digit growth across all regions.

• Adjusted EBITDA rose 16.5% to €74.5 million (14.2% margin), with margin expansion driven by favorable business mix, operational efficiencies, and productivity gains; record quarterly EBITDA of €45.3 million in Q2.

• Net profit declined 7% to €16.6 million, mainly due to higher financial expenses and adverse currency effects; adjusted net profit was €20.7 million.

• Net debt stood at €134.5 million, with a leverage ratio of 0.87x Adjusted EBITDA, reflecting a sound financial structure after dividend distribution.

• Profitability gains stemmed from improved sales mix and a return to historic business unit contributions.

Financial highlights

• Revenues for H1 2025 were €524.9 million, up 5% year-over-year (6.1% at constant FX); value-added sales up 5.2%.

• Adjusted EBITDA margin improved to 14.2% on net sales and 18.2% on value-added sales (+140bps and +176bps YoY, respectively).

• EBIT rose 25.1% to €43.9 million (8.4% margin).

• Industrial gross profit increased 12% to €111.8 million (21.3% margin).

• Operating cash flow was €7.7 million, down €15.5 million year-over-year due to higher capex and working capital needs.

Outlook and guidance

• Full-year sales growth at constant rates now expected in the low single digits (3%-4%), below previous guidance, due to Hair and Body segment weakness.

• Management expects continued moderate revenue growth and significant profitability improvement for 2025, with adjusted EBITDA in line with consensus.

• Order intake remains robust, especially in Make-up and prestige segments, but macroeconomic and tariff uncertainties may affect delivery timing.

• No project delays; focus remains on core business and innovation in Make-up.

• US market remains challenging but is expected to recover, while Asia shows early signs of growth.