Puig Brands SA Ordinary Shares - Class B

PUIG: XMAD (ESP)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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Puig: Top-Line Expansion Benefits From Fragrance Strength, Low Exposure to Weak Demand in Asia

Dan Su

Oct 30, 2024

No-moat beauty product maker Puig delivered a strong third-quarter sales update, posting 11% revenue growth led by strength in fragrances, which make up 74% of total sales. With sales up 10% in the first nine months and retailers still keen to raise fragrance inventories heading into the holiday season, we think our 2024 projections for sales and adjusted EBITDA to grow 10% and 12%, respectively, remain achievable. We plan no changes to our 10-year forecasts for 8% annual sales growth and adjusted EBITDA margins averaging 20%. The shares appear undervalued relative to our EUR 23 fair value estimate.

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Puig Brands SA Ordinary Shares - Class B

Puig: Top-Line Expansion Benefits From Fragrance Strength, Low Exposure to Weak Demand in Asia

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