Intercos (ICOS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 net sales of €285.1 million, up 4.9% at constant FX and 4.0% at reported FX, nearly matching the prior year’s first half and offsetting a weak Q1.

• Q2 Adjusted EBITDA reached an all-time high of €47.5 million (16.7% margin), up 5% year-over-year; H1 Adjusted EBITDA was €72.6 million (14.2% margin), down 2.6% year-over-year.

• Net income for H1 rose 33% to €27.6 million, driven by strong Q2 EBITDA, lower financial costs, and a reduced tax rate.

• Net debt decreased by €11.8 million to €122.7 million, with leverage ratio reduced to 0.80x, despite €16.9 million in share buybacks and €18.5 million in dividends.

• Launched a new Sustainability Plan with 24 ESG goals through 2035, reinforcing commitment to sustainable practices.

Financial highlights

• H1 net sales were €512.5 million, down 0.5% at constant FX and 2.4% at reported FX year-over-year; Q2 sales up 4.9% at constant FX.

• Value Added Sales (VAS) for H1 were €404.6 million, nearly flat year-over-year, but up low-single-digit at constant rates.

• Gross margin for H1 improved by 36 basis points to 21.7%, aided by operational efficiencies and a lower packaging rate.

• H1 operating cash flow reached €26.2 million, up €18.6 million year-over-year, with a 75% conversion rate after CapEx.

• EBIT margin for H1 was 8.1%, down 24bps year-over-year.

Outlook and guidance

• Full-year 2026 guidance confirmed, with expectations for global beauty market growth of 4%-5% and strong acceleration in H2 sales, especially in Makeup and Hair & Body.

• Robust order book, up mid-teens year-over-year, provides visibility for continued top-line growth in H2.

• Consensus for full-year EBITDA of €164 million and stable margins is considered accurate.

• Effective tax rate expected to normalize at 30%-31%; finance costs projected at €12-12.5 million.