Puig inventory market plunges by greater than 10% after earnings drop by 26% till June | Companies | EUROtoday

Puig has printed its first outcomes as a listed firm this Friday. The cosmetics firm, which accomplished its IPO final May, has reported its outcomes for the primary half of 2024, which present a internet revenue of 153.8 million euros, 26% lower than in the identical interval of the earlier yr, regardless of an enchancment in revenues of just about 10%. These closed the semester at 2,171.2 million, a document for the corporate. The share worth suffered a major mid-session drop of 13%.

Growth was offset by the numerous prices incurred by the household group on account of its IPO. Specifically, and as mirrored in its half-yearly report, 119.7 million euros are bills linked to the operation. “The costs of the IPO[initial public offering]refer to extraordinary employee bonuses and other costs incurred during the process, as well as extraordinary pre-IPO incentive plans.” [ofertapúblicainicialeninglés)serefierenalospremiosextraordinariosalosempleadosyotroscostesincurridosdurantedichoprocesoasícomoplanesdeincentivosextraordinariospre-IPO”

These bills embrace the supply of 79.9 million euros to all the workers, together with the president, senior administration and different key workers, which was accepted by the board of administrators on March 19. Also included are the bonuses obtained by the highest executives, aside from this one, for finishing the operation, which the corporate describes as an “extraordinary bonus of the IPO”. The president of the group, Marc Puig, obtained his bonus of 9.3 million for each ideas, whereas senior administration shared 4.3 million. Other workers not categorised as senior administration obtained 3.1 million.

Awards that offset the expansion in gross sales, with the skincare section having the best progress. This consists of the manufacturers Uriage, Apivita, Barbara Sturm, Kama Ayurveda, Loto del Sur and Charlotte Tilbury, most of which have been acquired in recent times, and generated revenues of 256 million euros, 25% extra, producing 11.8% of the group's complete turnover. Specifically, the half-yearly monetary report reveals how, through the previous month of July, Puig purchased an extra proportion of Charlotte Tilbury for 215 million euros, reaching a stake of 78.5%. At the start of the yr, the Catalan group acquired 65% of Barbara Sturm for 272.2 million euros paid in money, plus an extra quantity to be paid to the founder in accordance with the efficiency of her gross sales.

The majority of this income continues to be generated by the perfume and style enterprise, wherein the previous are the bulk, with manufacturers similar to Carolina Herrera, Jean Paul Gaultier, Nina Ricci, Rabanne, Byredo and Christian Louboutin. This section grew by 10.7% in comparison with the earlier yr, with gross sales of 1,598.6 million.

“We have had a very solid first half of the year, with growth above the growth of the premium beauty sector,” Puig’s CEO, Marc Puig, defined in a press launch. “Thanks to our focus on the premium beauty sector, the strength and attractiveness of our brands, and the discipline of financial execution, we continue to achieve outstanding profitability,” he added. He additionally expressed his pleasure within the IPO, “which has been a milestone in the history of our company and is a reflection of the trust placed in Puig.”

Market disappointment

Puig leads the declines within the Ibex 35 with a drop of 12%. The market doesn’t appear to be punishing the outcomes of the interval, marked by extraordinary bills linked to the IPO, as a lot as by the decline in different profitability indicators.

Although the corporate, in its press launch, highlights a 7% improve in its adjusted EBITDA, of 410 million, the unadjusted EBITDA, which incorporates restructuring prices amongst different points, fell by 27% within the first half to 275 million, in comparison with a fall of just about 40% in working revenue.

As a end result, the EBITDA margin goes from representing 19.1% of revenues as of June 30, 2023, to 12.7% on the finish of the primary six months of 2024. Despite the rise in adjusted EBITDA, it additionally loses proportion weight in complete revenues: from 19.3% to 18.9%.

What did evolve extra favourably was internet monetary debt, at 1,183.4 million on the finish of the semester, 1% lower than a yr earlier, with a powerful discount in long-term financial institution debt, diminished by 32% after early amortising two loans for 200 million euros and repaying one other for 184 million.

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