Puig reports first-half revenue growth after Estee Lauder talks end
By Mireia Merino and Marta Serafinko
Puig's First-Half Financial Performance and Strategic Outlook
July 30 (Reuters) - Spanish beauty company Puig's first-half revenue grew 4.4% like-for-like basis, it said on Thursday as it posted its first results since talks ended in May on a possible merger with U.S. cosmetics company Estée Lauder.
Impact of Estee Lauder Merger Talks Collapse
The collapse of the talks has shifted investor focus back to Puig's standalone growth prospects as fragrance demand normalises following a post-pandemic boom in feel-good products, and as conflict in the Middle East weighs on travel retail, an important channel for premium beauty brands.
Key Financial Highlights
- First-half net revenue was €2.35 billion ($2.71 billion).
- The Middle East conflict reduced first-half total sales by 0.6% or by about €14.0 million, a slightly smaller impact than the company had expected.
- The second-quarter impact on travel retail in the Middle East, where Puig generates a tenth of its sales, was estimated at €6 million.
Performance by Segment
- Fragrances and fashion, the bulk of its revenue, rose by 1.9%, makeup by 5.8% and skincare by 1.2%, on reported basis.
Outlook and Strategic Initiatives
- The company confirmed full-year guidance, with adjusted EBITDA margins would remain stable.
- It expects to outperform the premium beauty market on a like-for-like basis.
- It will launch La Favorite for Jean Paul Gaultier, the brand's first women's fragrance debut in a decade, as well as 1 Million Black, the latest extension of Rabanne's 1 Million fragrance line, the company said on conference call.
- Puig is in the process of recovering U.S. tariffs paid in late 2025 and early 2026, Chief Financial Officer Miquel Angel Serra said.
Additional Information
($1 = 0.8686 euros)
(Reporting by Mireia Merino and Marta Serafinko in Gdansk, editing by Barbara Lewis)
