Puig Brands, S.A.

Good evening, and thank you for joining us this evening as we discuss our sales update for the full year and fourth quarter that ended on December 31st, 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 this recording shortly, also on our website. As a reminder, this is a sales update only and Putsch will report the full year 2024 financial update and outlook on February 27th after the market closes.

Good evening, everyone. Before we dive into the sales update, 2024 was a historic year for Putsch in which we celebrated our 110th anniversary and became a publicly listed company. Once again, we delivered record sales, driven by the exceptional performance of our Cork fragrance business and our Cork geographies, EMEA and the Americas. We also continued developing our makeup and skincare segments, achieving meaningful milestones, such as the acquisition of Dr. Barber's term and the extension of our partnership agreement with Charlotte Tilbury till 2031. The desirability of our brands and the strength of our geographic footprint have enabled us to outperform the premium beauty market as well as our mid-term revenue growth guidance. With that, let's turn to the details of the update. We have delivered a strong performance for the full year 24, driven by exceptional growth in our fragrance and fashion business, which has resulted in record net revenue of 4.8 billion euros. This represents double-digit growth, plus 10.9% like-for-like growth, and 11.3% increase on a reported basis, ahead of our high single-digit like-for-like growth, medium-term revenue guidance provided at IPO, and well ahead of the premium beauty market. This was due to a further acceleration in Q4 versus the prior nine months with 14.1% like-for-like growth in net revenue and 14.3% on a reported basis. In our fourth quarter, putsch delivered record sales of 1.36 billion euros. In light of this strong performance, we are confident that our results for the full year 24 will be in line with our overall midterm guidance. We will share details of the full year results on the 27th of February and address our mid-term guidance then. Turning to the drivers of this performance. The 4.8 billion euro of net revenues were a result of 10.9% like-for-like growth, 1.2% from the acquisition of Dr. Barbara Stern, and a negative 0.8% impact from foreign exchange. The key driver was the exceptional performance from our core business, frequency and fashion, in both EMEA and the Americas. With our digit growth in this segment, we continued gaining market share in our core business. Our like-for-like growth benefited from a positive impact of 1.1% due to the hyperinflation adjustment of the Argentine peso as anticipated. In 2023 we had a negative impact, whereas in 2024 we had a positive impact, which has therefore resulted in a favorable comparison. The strong growth in fragrance was partially offset by the low single-digit percentage negative performance for the year in the make-up category. This was a result of specific sell-in-sell-out dynamics, which slowed the segment over the course of the year, and the voluntary withdrawal of the airbrush, flawless setting spray, as we have previously disclosed. Further, we saw incremental organic growth from our skincare segment, in addition to the contribution from Dr. Barberstone. If we have a look at the evolution of growth of this year, we saw a clear acceleration in Q4 versus the first three quarters of 2024. This last quarter, we delivered 14.1% like-for-like growth. The change of perimeter contributed an additional 1% increase, partially offset by a negative foreign exchange impact of minus 0.9%, resulted in reported growth of 14.3%. The hyperinflation adjustment due to Argentina resulted in 4% favorable uplift to the like-for-like growth for the quarter. Let me share some more color on the performance of each of our business segments. The fragrance and fashion segment continued its strong momentum in the fourth quarter with revenues up plus 21%, driven by EMEA and the Americas. Excluding the impact of the hyperinflation adjustment due to Argentina, growth for this segment was 15.3%. Prestige continued to drive double-digit growth. This was complemented by double-digit growth across all of the niche fragrance brands as well. We're pleased to see the successful acceleration of Vairedo, which further led growth within niche. For the full year 2024, fragrance and fashion, which remains our largest business segment, generated net revenue of 3,538,000,000, representing 73% of putsch net revenue. This is an increase of plus 13.6% on a reported and constant perimeter basis versus 2023. Among the 24 highlights, Jean-Paul Gaultier, Puig's fastest growing brand, completed an outstanding year. In 2024, it entered the top 10 fragrance line rankings for the first time in its history, while it is estimated that Le Male has become the number three masculine fragrance line worldwide. Good Girl Carolina Herrera had a consistently strong performance throughout the year, and we see that it has maintained its status as the second feminine fragrance line worldwide. And we are delighted to see that Good Girl, for the first time, has achieved the significant milestone of becoming the number one feminine fragrance line in the US. Niche brands continue to show compelling growth, with particularly strong performances from Penhaligon's L'Artisan Parfumeur and Dries Van Noten, which showed double-digit growth over the course of the year. Our fashion business, which remains a lighthouse of creativity for our brands, continues to perform well, while still representing less than 5% of net revenues for 2024. For the fourth year, 2024, the make-up segment represented 16% of putsch net revenue in the period and recorded net revenue of 763 million euros. This is a decrease of minus 1.3% on a reported and constant perimeter basis against 2023. Our largest contributor to make-up, Charlo Tilbury, posted a flat performance in the segment versus 23. This was the result of several factors, including a tougher comparison with a strong performance, further impacted by specific selling and sell-out dynamics, But in spite of softer net revenue growth, Charo Tilbury maintained its number one ranking in the UK and achieved a number three ranking among makeup brands for the full year in the US, having gained two positions versus 2023. The brand continued to drive innovation in the category with successful launches such as the Unreal Skin Foundation Stick. The segment was also impacted in 2024 by a quicker performance across some of our smaller makeup offerings. In Q4, makeup revenues fell by 7.2%, affected by the voluntary withdrawal of select batches of Child Delivery Airbrush Flawless Sighting Spray in December. This had a mid-single-digit percentage negative impact. Importantly, the situation has been managed and Charlotte Tilbury have begun reshipping the product to retailers. As anticipated, the segment was also affected by the selling pipeline related to the entry of Charlotte Tilbury into Ulta at the end of 2023. In December, Butch also announced the extension of his partnership with Charlotte Tilbury. While makeup performance this year has been muted, we remain excited by the prospects for the Charlotte & Louis brand for the long term. Together with Charlotte, we are committed to continue growing this beauty brand. It has been nearly five years since the beginning of our partnership, and we have created significant progress together, including growing the brand to over three times its size at the beginning of our partnership. We have now extended our strategic agreement until the end of 2030, She will continue playing an active role in driving the brand's long-term success and will retain a minority stake. Putsch will progressively assume full ownership until the beginning of 2031. For the full year 24, the skincare segment delivered 516 million euros in net revenue, representing 11% of Putsch's net revenue. This represents an increase of plus 19.8% on a reported basis and plus 7.4% at constant perimeter against the same period of 2023. In particular, dermocosmetics continue to perform strongly, with URIASH delivering double-digit organic growth supplemented by successful launches and hero franchise accelerations. Putsch continued its expansion and diversification in the segment with the incorporation of Dr. Barbara's term, which reinforces Putsch's ultra-premium skincare offerings. In Q4, skincare showed plus 11.7% sales growth on a reported basis and plus 2.1% at constant perimeter compared to the same period in 2023. As anticipated, the skincare segment faced a tougher comparative base primarily due to the impact of the pipelining of Charlotte Tilbury into Ulta and meaningful launches in H2 2023 such as Charlotte Tilbury Magic Water Cream. In 2024, the EMEA region achieved net revenue of 2.2 billion 620 million, up 12.8% reported, and plus 11.6% at constant perimeter compared to 23. This remains Puig's largest region, representing 55% of our net revenue in the full year. This performance was driven by strength across all business segments. EMEA also represented putsch largest region in the fourth quarter, up 13.1% on a reported basis and plus 12.4% at constant perimeter. The Americas achieved 1,750,000,000 in net revenue for the full year 2024, up 11.1% reported and up plus 9.5% at constant perimeter compared to the same period in 2023. The region represented 36% of which net revenue in the period. The Americas also delivered a standout performance in Q4 with plus 18.1% reported growth and plus 16.1% growth at constant perimeter, fueled by a continued strong momentum in fragrances. As anticipated, we saw two impacts in this region with opposite effects. Reported growth in Q4 benefited significantly from a positive impact of 13.3% due to the hyperinflation adjustment of the Argentine peso, As anticipated, this provided a favorable comparison versus 2023, wherein the impact was negative. This was offset by the tougher comparable due to the pipelining of child delivery into ALTA in Q4 2023. In APAC, put smallest region in terms of revenue contribution, representing 10% of net revenue in 2024, sales increased by plus 3%, plus 3.7% for the year amid continued market challenges. In Q4, APAC posted strong overall performance with plus 10.2% reported and constant perimeter growth versus 2023. While China remains subdued, Pudge benefited from the newly created subsidiaries in Korea, Japan, and India. Closing remarks. We manage a diversified and curated portfolio of brands, and our first priority is to continue maintaining their desirability for their long-term success. We continue to feel encouraged by our consolidated performance across our complementary brands and segments, which balance different and evolving market dynamics. Overall, our business has delivered an excellent performance in 2024, led by our performance in our core business with good momentum through the holiday period. Based on our preliminary estimations, the Christmas campaigns allowed for the overall market was healthy, although it represents some moderation in growth versus the rest of 2024. Our brands showed strength through this period with their outperformance. While this year we have had some challenges in makeup, We have also had an outstanding performance in fragrance and we have seen good growth in skincare. This has allowed us to deliver on our promises and we remain very confident in our ability to deliver for fiscal year 2024 in line with our midterm guidance.

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