Puig Brands (PUIG) Q3 2024 TU earnings summary

Executive summary

• Achieved record Q3 2024 net revenue of €1,257 million, up 11.6% like-for-like and 11.1% reported, outpacing the premium beauty market.

• Net revenue for the first nine months of 2024 reached €3,428 million, up 9.6% like-for-like and 10.1% reported, with all segments and geographies contributing.

• Growth driven by strong performance in fragrance and fashion, improved makeup segment, and incremental skincare growth.

• Management expressed confidence in outperforming the premium beauty market and achieving medium-term guidance.

Financial highlights

• Q3 2024 net revenue: €1,257 million (+11.1% reported, +11.6% LFL); 9M 2024: €3,428 million (+10.1% reported, +9.6% LFL).

• Exchange rates negatively impacted 9M 2024 by -0.8%; Q3 FX impact was -1.7%.

• Acquisition of Dr. Barbara Sturm contributed 1.4% to nine-month growth; change of perimeter added +1.3% to Q3 growth.

• Price increases contributed about 5% to growth.

• All business segments and geographies contributed to growth in both Q3 and 9M 2024.

Outlook and guidance

• Confident in delivering FY2024 results in line with midterm IPO guidance and outperforming the premium beauty market.

• Medium-term guidance targets high single-digit like-for-like revenue growth and stable adjusted EBITDA margin.

• Net Debt/Adjusted EBITDA ratio targeted not to exceed 2.0x, maintaining strategic flexibility.

• Dividend payout ratio to remain around 40% of reported net profit, with first post-IPO dividend in 2025 for FY 2024.

• Christmas season is critical for annual performance; retailer sentiment is optimistic for fragrances.