Puig Reports First-Half Profit Drop Following IPO business, fashion, fashion news

Barcelona-based fashion and fragrance conglomerate Puig has announced a 26% decrease in net profit during the first half of its fiscal year, primarily attributed to expenses related to its recent initial public offering (IPO) and several acquisitions. Despite this decline, the company recorded a 10% increase in sales, highlighting continued growth momentum.

Puig, renowned for its portfolio of prestigious perfume brands such as Paco Rabanne, Carolina Herrera, and Jean Paul Gaultier, revealed that net profit reached €153.8 million (approximately $171 million) for the period ending June 2023. This marks the company’s first earnings report since its listing on the Madrid stock exchange in May.

Revenue for the first half of the year totaled €2.17 billion (approximately $2.41 billion), a significant increase from the previous year. Adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) stood at €410 million, representing a 7.4% year-on-year growth.

In addition to its prominent fragrance brands, Puig also owns a collection of makeup and skincare brands including Charlotte Tilbury and Dr. Barbara Sturm. The acquisition of the latter, announced in January 2024, aims to further strengthen Puig’s foothold in the luxury skincare market.

Looking ahead, Puig anticipates higher net revenue and operating profit for the second half of the year, driven by an expected surge in demand leading up to the holiday season.

While the IPO-related expenses have impacted short-term profitability, Puig’s continued sales growth and strategic acquisitions demonstrate its commitment to long-term expansion and market dominance within the beauty industry. The company remains optimistic about future performance, particularly during the traditionally strong holiday period.