Puig Brands Recall

Shares of Puig Brands, S.A. tumbled more than 4% on Friday after announcing a voluntary recall of certain batches of its flagship makeup brand, Charlotte Tilbury's Airbrush Flawless Setting Spray.

Recall Details

The recall was disclosed in a company statement on Thursday, triggered by a quality issue identified during routine analysis in a limited number of batches. The company emphasized that this flaw does not pose a safety risk to consumers, and no other Charlotte Tilbury products are affected.

Financial Impact

Puig stated that the recall is unlikely to materially impact the company's annual financial results. While acknowledging that this recall would affect the performance of the makeup division, Puig remains confident in its overall medium-term targets, including stable EBITDA margins in 2024.

Headquartered in L'Hospitalet de Llobregat near Barcelona, Puig reiterated that its medium-term guidance, previously outlined during its public offering, remains unchanged.

Analysts at Citi Research noted, "Although the company is confident in achieving its 2024 and mid-term guidance, we anticipate a consensus EPS downgrade due to this withdrawal, with an estimated 40bps headwind to group 2024 OSG and 30bps headwind to 2025 OSG."