Puig Brands (PUIG) H1 2025 earnings summary

Executive summary

• Net revenues for H1 2025 reached €2,299 million, up 5.9% year-over-year and 7.6% like-for-like, outperforming the premium beauty market.

• Adjusted EBITDA rose 8.6% to €445 million (19.4% margin), and adjusted net profit was €247 million, up 3.9% from 2024.

• Reported net profit surged 78.8% to €275 million, reflecting lower non-recurring and IPO-related costs.

• Growth was broad-based across all regions and segments, with double-digit like-for-like growth in the Americas and Asia-Pacific.

• Maintained leadership in global fragrance rankings and continued strong ESG performance, including improved Sustainalytics and EcoVadis scores.

Financial highlights

• Gross margin stood at 75.8%, among the highest in the industry.

• Adjusted EBITDA margin improved to 19.4%, with distribution costs and SG&A expenses leveraged.

• Operating profit reached €332 million (14.5% margin), stable year-over-year.

• Free cash flow from operations improved to -€116 million from -€173 million in H1 2024, reflecting better working capital management.

• Net financial leverage at 1.4x net debt/adjusted EBITDA, below the 2x threshold.

Outlook and guidance

• Reaffirmed full-year 2025 outlook for 6–8% like-for-like net revenue growth, expecting to land at the lower end of the range.

• Anticipates further moderation in fragrance growth in H2, with outperformance expected in makeup and skincare.

• Adjusted EBITDA margin improvement targeted for 2025, in line with 2024.

• AMP as a percentage of sales expected to normalize in H2, similar to last year.

• Management expects higher revenues and operating profit in H2 2025 due to seasonality, with Christmas sales driving demand.