Puig Brands (PUIG) H2 2024 earnings summary

Executive summary

• Achieved record net revenues of €4.8 billion in 2024, up 11.3% reported and 10.9% like-for-like, outpacing the premium beauty market and IPO guidance.

• Adjusted EBITDA reached €969 million (20.2% margin), up 12.3% year-over-year and slightly above guidance; adjusted net profit was €551 million (11.5% of sales), up 15.5% year-over-year.

• Reported net profit hit €531 million, up 41.1% from 2023, with exceptional free cash flow generation and significant leverage reduction.

• Free cash flow conversion improved to 65% of adjusted EBITDA, and net debt reduced to 1.1x adjusted EBITDA, reflecting strong financial discipline.

• Major strategic moves included the IPO, full buyout of Byredo, increased ownership in Charlotte Tilbury to 78.5%, and acquisition of Dr. Barbara Sturm.

Financial highlights

• Net revenue: €4.8 billion (+11.3% year-over-year, +10.9% like-for-like).

• Gross margin: 74.9%, up 20bps year-over-year, among the highest in the industry.

• Adjusted EBITDA: €969 million (20.2% margin), up 20bps.

• Adjusted net profit: €551 million (+15.5% year-over-year); reported net profit: €531 million (+41.1%).

• Free cash flow from operations: €634 million, with 65% conversion over adjusted EBITDA.

Outlook and guidance

• Maintains medium-term guidance of high single-digit like-for-like revenue growth.

• 2025 net revenue like-for-like growth expected in the 6%-8% range, with upside potential in fragrances and risks in makeup due to dupes.

• Adjusted EBITDA margin improvement targeted in line with 2024; A&P investment to remain at 31%-32.5% of sales.

• Dividend payout ratio to remain at ~40%, with €212 million dividend proposed for 2024.

• Net debt/EBITDA to remain below 2.0x, supporting strategic flexibility.