Puig Brands, S.A.

Good evening, and thank you for joining us this evening as we discuss our sales update for the ninth month and third quarter that ended on September 30th, 2024. Today, we have with us our chairman and CEO, Mark Butch, and our CFO, Joan Albiol. Mark will share some brief remarks, and then we will open up the line for Q&A. You will find this presentation and the press release on our website, and you will be able to access a replay of these comments shortly on our website. Thank you.

Good evening everyone. Before we dive into the latest results, let me quickly run through the strength of our portfolio of love brands. We are driven by a focus on premium beauty. We have 3 brands in the top 10 fragrance rankings worldwide, and we are building a niche portfolio and striving to diversify further into makeup and skincare. We are brand owners and curators. Today, our own brand represents 96% of the net revenues from our love brands. With that, let's turn to the update. We are pleased to report an acceleration in Q3 versus first half with 11.6% like-for-like growth in net revenue and 11.1% on a reported basis. In this third quarter, Puts delivered record sales of 1.3 billion euros and we continued to outperform the premium beauty market. This resulted in a robust performance in the first nine months of 2024, with net revenue of 3.4 billion, which represents 9.6% like-for-like growth and a 10.1% increase on a reported basis. well in line with our medium-term guidance provided at IPO and well ahead of the premium beauty market. In addition to the strong performance that we have seen this quarter, we are further encouraged by the performance of Butch in recent weeks. Turning to the drivers of this performance, the 3.4 billion of net revenues were a result of 9.6% like-for-like growth 1.4% from the acquisition of Dr. Barber's term and a negative 0.8% impact from foreign exchange. The key driver was the very strong performance from our core business, fragrance and fashion in both EMEA and the Americas. With a double digit growth in this segment, we continue to reinforce our competitive position and capture incremental value market share. This was further complemented by a much improved performance in makeup this quarter as a gap between sell-in and sell-out, which we spoke about in the first half, continues to narrow. Further, we saw incremental organic growth from our skincare segment in addition to the contribution from Dr. Barbastor. As a reminder, given the categories we are most exposed to, We tend to generate more sales in the second half of the year due to the importance of the holiday season. If we have a look at the evolution of growth of this year, we saw a clear acceleration in Q3 versus the first half of 2024. This last quarter we delivered 11.6% like-for-like growth. The change of perimeter contributed an additional 1.3% increase, partially offset by a negative foreign exchange impact of minus 1.7%, resulting in reported growth of 11.1%. Let me share some more color on the performance of each of our business segments. We are a leader in the thriving fragrance market, which benefits from very strong underlying trends and robust customer demand. Fragrance and fashion continued its strong momentum in the third quarter, with revenues up 11.1%, driven by EMEA and the Americas. In the first nine months of 2024, this segment generated net revenues of $2.5 billion, an increase of 10.9% on both the reported and constant perimeter basis compared to 2023. This segment contributed 73% of putsch net revenue in the period. During Q3 we delivered the noteworthy launch of Million Gold by Rabanne, and we also launched Venus by Ninarici, the first new fragrance from the esteemed brand in 10 years. We saw continued strength in our prestige brands in this quarter. According to our estimates, Good Girl by Carolina Herrera maintained its number two position among female fragrances and Le Mal by Jean-Paul Gaultier secured the number three position among masculine lines, further solidifying their market leading positions within the top 10 brands globally. We now have three brands on the top 10 prestige fragrance ranking worldwide. We also saw increasing momentum in niche which delivered double digit growth. Makeup grew plus 7.3% in Q3 as the gap between sell-in and sell-out narrowed as anticipated. The segment saw strong growth in EMEA and improving performance in the Americas while APAC continued to show softness. For the nine-month period of 2024, this segment recorded a net revenue of $535 million, an increase of 1.4% on a reverted and constant perimeter basis against 2023. This segment contributed 16% of put-net revenue in the period. Q3 2024 marked the return of the make-up segment into positive growth territory. The sell-out for the largest brand within makeup, Charlotte Tilbury, remains strong with double-digit growth in its largest markets, EMEA and Americas. The recently launched Exager Ice Mascara is off to a good start. Further to the comment that we made on dupes during the first half, we are responding to this situation with creativity and innovation in a way that is very authentic to the brand. As a reminder for Q4, growth in the segment will face a tougher comparison due to the pipeline selling related to the entry of Charlotilurine to Ulta at the end of 2023. Skincare showed double digit sales growth of 18.6% on a reported basis and 5.2% at constant perimeter in Q3. The dermocosmetics brands in this segment continued to perform strongly with double-digit growth, while this segment faced a tougher comparative phase primarily due to the impact of meaningful launches, including Magic Water Cream in the second half of 2023. For the nine-month period of 2024, skincare delivered $381 million in revenue. This is an increase of 22.9% on a reported basis and 9.4% at constant perimeter against the same period of 2023. This segment represented 11% of putsch net revenues in the period. The integration of Dr. Barber's term is on track and the brand continues to perform in line with expectations having contributed 1.4% for nine months 2024. EMEA remained putsch's largest and fastest growing region, with an acceleration of sales in Q3 up 12.6% at constant perimeter, reinforcing putsch's leading position across categories. For the nine-month period of 2024, EMEA achieved net revenue of $1.8 billion, up 11.3% at constant perimeter, compared to the first nine months of 2023. The Americas also delivered a standout performance in Q3, with robust growth of 8.3% at constant perimeter, fueled by the continued strong momentum in fragrance and the performance of make-up. For the nine-month period of 2024, the region achieved 1.3 billion in net revenue, up 7.5% at constant perimeter compared to the same period in 2023. Without the negative impact of LATAM currencies, our constant perimeter growth for the Americas would have been well into the double digits. We wanted to know that in Q4 2023, putsch accounted for a negative hyperinflation adjustment for Argentina, which will allow for an easier comparison for Q4 2024. This impact primarily affected our fragrance and fashion segment. In APAC, a region where putsch is underexposed, sales increased by 1% in Q3 amid continued market challenges. This region contributed 8% of our sales for the quarter. This translated to $308 million in net revenue for the first nine months of 2024, up 0.8% year-on-year basis, both on a reported and constant perimeter basis. The company continues to invest at a measured pace in the region for the long term, including China, where we have a limited presence, and in India, Japan, and South Korea, where we have recently established subsidiaries. Our business has delivered a strong performance in the first nine months of 2024, and we are encouraged by the business performance in the last few weeks. we remain very confident in our ability to deliver for fiscal year 2024 in line with our midterm guidance. We manage a diversified and curated portfolio of brands and continue to feel encouraged by our consolidated performance across our complimentary brands and segments which balance different and evolving market dynamics.

Thanks, Marc. With that, we come to the end of our prepared remarks and we will begin Q&A.