Puig reports first-half revenue growth after Estee Lauder talks end

By Mireia Merino and Marta Serafinko

July 30 (Reuters) - Spanish beauty company Puig's first-half revenue grew 4.4% like-for-like basis, it said on Thursday as it posted its first results since talks ended in May on a possible merger with U.S. cosmetics company Estée Lauder.

The collapse of the talks has shifted investor focus back to Puig's standalone growth prospects as fragrance demand normalises following a post-pandemic boom in feel-good products, and as conflict in the Middle East weighs on travel retail, an important channel for premium beauty brands. 

• First-half net revenue was €2.35 billion ($2.71 billion).

• The Middle East conflict reduced first-half total sales by 0.6% or by about €14.0 million, a slightly smaller impact than the company had expected.

• The second-quarter impact on travel retail in the Middle East, where Puig generates a tenth of its sales, was estimated at €6 million.

• Fragrances and fashion, the bulk of its revenue, rose by 1.9%, makeup by 5.8% and skincare by 1.2%, on reported basis.

• The company confirmed full-year guidance, with adjusted EBITDA margins would remain stable.

• It expects to outperform the premium beauty market on a like-for-like basis.

• It will launch La Favorite for Jean Paul Gaultier, the brand's first women's fragrance debut in a decade, as well as 1 Million Black, the latest extension of Rabanne's 1 Million fragrance line, the company said on conference call.

• Puig is in the process of recovering U.S. tariffs paid in late 2025 and early 2026, Chief Financial Officer Miquel Angel Serra said.

($1 = 0.8686 euros)

(Reporting by Mireia Merino and Marta Serafinko in Gdansk, editing by Barbara Lewis)