Puig Brands (PUIG) H1 2024 earnings summary

Executive summary

• Net revenues reached €2.2 billion in H1 2024, up 9.6% year-over-year, with 8.5% like-for-like growth, outpacing the premium beauty market and driven by organic growth and acquisitions.

• Adjusted EBITDA was €410 million (18.9% margin), and adjusted net profit was €238 million (11% margin); reported net profit declined to €154 million due to non-recurring IPO and M&A costs.

• IPO completed in May 2024, raising over €1.4 billion and strengthening the capital structure.

• Strengthened market share in core categories and geographies, reinforcing competitive positioning.

• Extraordinary €94 million IPO bonus and incentive plans granted to all employees.

Financial highlights

• Net revenue growth driven by 8.5% like-for-like, acquisitions (notably Dr. Barbara Sturm), and minor FX impact.

• Gross margin improved to 75.8% (+0.7ppt), reflecting premiumization and operational efficiency.

• Adjusted EBITDA of €410 million (18.9% margin); adjusted net profit of €238 million (11% margin).

• Free cash flow from operations was negative in H1 due to typical working capital outflows.

• Net financial leverage at 1.7x net debt/adjusted EBITDA, below 2x target.

Outlook and guidance

• High single-digit like-for-like net revenue growth target reiterated, well ahead of the premium beauty market.

• Adjusted EBITDA margin expected to remain stable in 2024, with upside potential medium-term.

• 40% dividend payout ratio to be maintained; first post-IPO dividend to be paid in 2025 for FY2024.

• Confident in strong H2 performance, supported by robust July and August trends and a heavy launch calendar.

• Net debt/Adjusted EBITDA target maintained below 2.0x.