Puig Sees 4.4% Revenue Growth in H1 Post-Estee Lauder Talks, Confirms Outlook
First-Half 2024 Performance and Strategic Outlook
July 30 (Reuters) - Spanish beauty company Puig reported first-half revenue growth on Thursday as investors looked for signs the maker of Carolina Herrera perfumes and Charlotte Tilbury makeup can sustain growth as the post-pandemic fragrance boom moderates.
Background: End of Estée Lauder Merger Talks
The results are the first since Puig and U.S. cosmetics company Estée Lauder ended talks in May on a potential combination that would have created a luxury beauty group worth about $40 billion.
Investor Focus Shifts to Standalone Growth
The collapse of the talks has shifted investor focus back to Puig's standalone growth prospects just as fragrance demand normalises and conflict in the Middle East continues to weigh on travel retail, an important channel for premium beauty brands.
Key Financial Highlights
Revenue and Profit Figures
- H1 net revenue €2.35 billion ($2.71 billion), up 4.4% like-for-like, up 2.4% reported.
- H1 net profit €262.8 million ($302.56 million), down 4.4% from last year.
Impact of Middle East Conflict
- Middle East conflict hit H1 total sales by 0.6% or by about €14.0 million, slightly lower than expected.
- Q2 Middle East impact on travel retail, where it generates a tenth of its sales, estimated at €6 million.
Segment Performance
Fragrances, Makeup, and Skincare
- Fragrances and fashion, the bulk of its revenue, rose 1.9%, makeup up 5.8% and skincare up 1.2%, on reported basis.
Outlook and Guidance
The company confirmed full-year guidance, with adjusted EBITDA margins to remain stable, expecting to outperform the premium beauty market on a like-for-like basis.
($1 = 0.8686 euros)
(Reporting by Mireia Merino and Marta Serafinko in Gdansk,)
