Puig Brands SA Reports Increased Q3 Revenue

Investing.com — Jean Paul Gaultier owner Puig Brands SA (BME:PUIGb) witnessed a surge in third-quarter revenue, driven by strong fragrance demand amidst challenging conditions in the beauty industry.

The Spanish company reported revenue of €1.26 billion ($1.36 billion) for the quarter, reflecting an approximate 11% increase year-over-year in reported terms. This result exceeded analysts' forecasts of €1.17 billion, as compiled by Visible Alpha.

Shares of Puig rose by more than 10% in European trading on Wednesday.

CEO and Chairman Marc Puig mentioned that fragrances continued to excel in the premium beauty market, experiencing accelerated growth despite sector complexities.

On a like-for-like basis, revenue increased by nearly 12% from the previous year.

Puig, which also owns brands like Paco Rabanne and Carolina Herrera, indicated that its fragrance and fashion segment, which represents the majority of its revenue, grew by about 11% year-over-year.

The skincare division saw significant gains, with sales up around 19%, while makeup returned to positive growth.

Sales in Puig's primary region covering Europe, the Middle East, and Africa rose by 14%, with growth in the Americas bolstered by high demand for fragrance and makeup in the U.S.

In Asia-Pacific, Puig experienced a 1% increase in revenue for the quarter, despite ongoing market challenges.

The company reaffirmed its outlook for stable adjusted EBITDA margins this year, with potential improvements in the medium term. It also maintained its long-term guidance of high-single-digit like-for-like revenue growth, outpacing trends in the premium beauty sector.