The Spanish fashion and cosmetics group Puig was able to increase both its operational result and profit in the second half of the 2024 financial year. Thanks to a “convincing growth” of the brands of Penhaligon, L’ArtiSan Parfumeur and Dries van Notes as well as a continued strong performance in the fragrance segment, the company also achieved record sales for the entire financial year. The biggest growth was recorded by the beauty segment.
The sales of the parent company of brands such as Carolina Herrera, Nina Ricci, Paco Rabanne, Jean Paul Gaultier and Dries van notes amounts to 4.8 billion euros. Combined with a designated growth of 11.3 percent, this represents a record value. The fragrance and fashion division contributes 73 percent to total sales and grows by 13.6 percent to 3.5 billion euros. While sales in the make-up area go back by 1.6 percent, the beauty segment is growing of 19.8 percent.
From a geographical point of view, the owner of Dries van Noten achieves the strongest growth in the EMEA region (Europe, the Middle East and Africa) with 12.8 percent. This region accounts for 55 percent of PUIG’s total sales. In America and in the Asian-Pacific area, sales increase by 11.1 and 3.7 percent.
Operative result and profit increase after decline in the first half of the year
The operational result is also in the upswing. Puig has an operational result of EUR 758.7 million compared to 692.97 million euros in 2023. The bottom line is Puig to achieve a net profit of 531 million euros, which corresponds to growth of 14.1 percent.
This double-digit growth attributes the fashion and cosmetics company to “strong sales growth, an operational leverage effect and a re-evaluation of future commitments in connection with the acquisitions of Charlotte Tilbury and BYDO”. The lower than expected tax rate made it possible to compensate for the extraordinary costs, including the costs in connection with the IPO.
With a view to 2025, Puig expects sales growth between six and eight percent. The company expects a declining demand for make-up and skin care products. In the medium term, Puig sees an upward potential for the adjusted result margin before interest, taxes, depreciation and depreciation, which could enable the company “positive reinvestations” in its brands.
This article previously appeared on Fashionunited.nl and was used with digital tools translated.
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