Stock Story: Puig

Stock story: Puig Brands SA

In this series, we highlight a company with an interesting stock market backstory. Happy reading…

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After a successful Initial Public Offering (IPO) on the Spanish Stock Exchange in May 2024, we catch up with what happened next at Puig Brands SA. The IPO valued Puig Brands SA at €13.9 billion and helped raise €2.6 billion in new capital. Puig Brands SA, a global leader in the premium beauty industry, operates through three segments: fragrance and fashion, makeup, and skincare. Their brands – 17 thus far include prestige brands like Chalotte Tilbury and Carolina Herrera to niche brands like Byredo, Dr Barbara Sturm and lifestyle ones such as Banderas or Adolpho Dominguez.

According to a 2024 McKinsey Report, The beauty boom and beyond, the global beauty market is expected to grow by 6% annually through 2028. Puig Brands SA believes it is well-positioned to capitalise on this growing market due to the versatility of its portfolio, ability to anticipate trends and adapt them through creativity and innovation.

Following the IPO, Puig ended 2024 with a decent financial performance and a strong market positioning for the majority of their brands. Revenues rose by 11.3% and like-for-like sales by 10.9% compared with 2023. Net income came in at €531 million, representing a 11.1% increase and the net margin remained flat at 11.3%, compared to the previous year. Fragrance and Fashion contributed 73% to revenues, with the EMEA region accounting for the majority of those sales. Fragrance and Fashion revenues grew by 13.6%, skincare by 19.8%, while makeup declined by 1.3% compared to the previous year.

Puig also gained market share in EMEA for the fourth consecutive year. The largest brand in their makeup business segment, Charlotte Tilbury, unsurprisingly maintained its #1 ranking in the UK prestige makeup market and #3 among prestige makeup brands in the US, according to the company.

In the first half of 2025, net revenues increased by 7.6% to €2,299 million, with reported like-for-like sales up 5.9% compared to the same period in 2024. The good news is that the makeup segment, which struggled in 2024, returned to growth with a 10.5% like-for-like sales increase in Q2 2025, led by new launches from Charlotte Tilbury. Commenting on the results, Marc Puig, Chairman and CEO said, “We showed robust performance across our segments and regions, reflecting the health and resilience of our portfolio in an evolving global beauty market.”

Here’s how the stock market has reacted thus far:

So, what’s next for Puig Brands SA? Management is targeting 6% – 8% like-for-like revenue growth for 2025 along with continued expansion of its EBITDA margin. Our question is: Can Puig navigate the current geopolitical uncertainty, to keep growth robust and profitable enough in fragrance while continuing with the recovery in the makeup segment?

Here is some more information on Puig’s financials to further your understanding…

Highlights from end of Financial Year @31 Dec 2024 in Euro

Earnings per share = €0.98
Return on Equity = 15.6%
Dividends per share =€0.31

Revenues =€4,790m vs. €4,304m in prior year. Operating margin = 15.8%
Net income margin = 11.5%

Cash = €883m
Debt = €1,657m
Debt/Equity = 0.5x
Return on Assets = 6.4%

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