Puig sales rise thanks to fragrance and skincare

Puig has reported a 9.6% increase in sales to £1.8 billion (€2.2 billion) for the first half of 2024, with growth across fragrance and skincare partially offset by declines in makeup. 

The EMEA region remained the company's largest market, generating 53% of net revenues and growing 12.1%. The Americas reported growth of 8.6% and Asia-Pacific of 0.7%.

Fragrance

Fragrance and fashion remained the company's largest and most profitable business segment, growing by 10.7% to £1.3 billion (€1.6 billion) and representing 73% of total sales.

Growth was driven by consistent performances across its prestige portfolio, complemented by new product launches and range extensions. In particular, Jean Paul Gaultier delivered an "exceptional" performance, thanks to its established market position and commitment to product innovation.

Puig also developed its niche fragrance offer, with a series of new launches at Penhaligon's, Byredo and Dries Van Noten.

Skincare

Skincare continued to be Puig's fastest growing business segment, with revenues up 25.2% to £216 million (€256 million), representing 12% of total sales in the first half of 2024.

As part of this, dermo-cosmetics brand Uriage experienced "strong" double-digit growth, while Charlotte Tilbury benefitted from new product launches within its growing skincare range.

The acquisition of Dr. Barbara Sturm during the first quarter of the year also had a positive impact of 1.4% on net revenues.

Makeup

Despite growth across fragrance and skincare, Puig's makeup business saw revenues decline 1.8% to £282 million (€334 million), reflecting a more "challenging" environment.

While the company's brands have limited exposure to the Asian market, it said Christian Louboutin Beauty was impacted by a lower performance in the region.

Meanwhile, Charlotte Tilbury had a "softer" sell-in performance, but maintained a "strong" sell-out growth that helped it gain marker share in the US. It also maintained its leadership position in the UK.

Aside from sales, the Spanish company achieved an adjusted EBITDA of £346 million (€410 million), representing an increase of 7.4% and reaching an adjusted EBITDA margin of 18.9%.

Adjusted net income lifted 4.8% in the first half to £200 million (€238 million), equivalent to 11% of revenues.

Marc Puig, Chairman and CEO of Puig, said: "We are particularly pleased with our performance across our core geographies despite a challenging economic environment marked by geopolitical tensions.

"Our continued focus on the premium beauty sector, as well as the strength and desirability of our brands alongside disciplined financial execution have ensured that our profitability remains compelling.

"While our fragrances and fashion business remains our largest segment, we further diversified into skincare with a strong organic growth component and a strategic brand acquisition.

"The strength of these results continues to demonstrate the success of our strategic choices and gives us the confidence to maintain the medium-term guidance we provided alongside our IPO in May. We are proud of the success of our IPO, which marked a significant milestone for our company and reflects the trust and confidence in Puig. We want to continue to build of this momentum."

Puig began trading on the Barcelona, Madrid, Bilbao and Valencia Stock Exchanges on 3 May 2024, marking "a transformational moment in the firm's 110-year-old history as a business guided by three generations of its founding family".