SMCP (SMCP) H1 2025 earnings summary

Executive summary

• H1 2025 sales reached €601.1m, up 3.0% organically, with growth in all regions except APAC, which was impacted by network optimization in China.

• Adjusted EBIT margin more than doubled to 7.1% from 3.2% in H1 2024, supported by strict cost control and a successful full-price strategy.

• Net income turned positive at €11.0m, compared to a loss of €27.7m in H1 2024.

• Record free cash flow of €33.1m and net debt reduced to €205.6m (Net debt/EBITDA at 1.9x), with leverage ratio down from above 3.

• Strategic expansion included entry into new countries, brand elevation, and sustainability initiatives such as B Corp certification for Claudie Pierlot.

Financial highlights

• H1 2025 sales: €601.1m, up 2.7% reported and 3.0% organic year-over-year.

• Adjusted EBIT: €42.6m (7.1% margin), up from €18.8m (3.2%) in H1 2024.

• Net income: €11.0m, a €38.7m improvement from H1 2024.

• Free cash flow: €33.1m, up from -€8.8m in H1 2024.

• Gross margin stable at 74.3% of sales.

Outlook and guidance

• On track to achieve a 10% adjusted EBIT margin by H2 2026.

• Focus remains on executing the action plan for top-line growth and cost management.

• H2 expected to face tougher comps, especially in France due to the Olympic Games.

• Confident in continued recovery in China, especially in brick-and-mortar, with digital expected to improve later in H2.

• Management aims to sustain positive momentum in H2 2025 despite external uncertainties.