These are its first results since its IPO on the Spanish stock exchange 4 months ago and the market is not digesting them well. This Friday, Puig presented its accounts for the first quarter of the year and the figures show that its price has suffered a drop of almost 10%. With this collapse, Puig’s value is at its lowest level since it began trading on May 3 (the day it went public).
The net profit of the Catalan company high end beauty contracted by up to 26% over a year going from the 209 million euros recorded in the first half of 2023 to the 154 million it achieved during this first half of 2024. All this, even though sales increased by almost 10% to 2,171 million euros.
Despite the revenue growth and a virtually flat EBITDA, investors decided to cancel their positions on the company’s price after seeing this data. At the start of the session, Puig collapses on the stock market by almost 10%. Although in August it was already trading below the introductory price (at 24.5 euros), its price has now reached a minimum. At present Its action evolves around 22.20 euroswhich also means losing just over 9% of its value since the beginning of its commercial career (compared to the 12.7% gained with the maximum price reached, of 27.60 euros per share). This drop alone implies that the beauty company loses 1.3 billion euros of its stock market value in the session and places its capitalization at 12.647 million.
Bankinter considers these figures to be “weak” and already anticipates a possible negative reaction from the market. “Puig is meeting the guidance announced at the time of its IPO. Comparable sales growth is in the high single digits and is above the average for the premium perfumery sector, which allows it to gain market share. The EBITDA margin remains stable. Net debt also remains within the group’s targets, with a leverage ratio below 2 times. However, the sharp declines in net income will penalize the stock in the direction of today’s session. The quality of the figures for the first quarters of 2025 will be decisivewhen the comparison is no longer distorted by the extraordinary expenses linked to the IPO,” the bank emphasizes. orange.
At the moment, the analysts covering the stock have not made any changes to their valuations and the majority recommendation continues to be to buy its shares. The consensus of analysts who gather Bloomberg fixed The average price target for its shares is 29.14 euros that, with the falls of this Friday, leave Puig an upward trend of just over 32% for the coming months.
