Puig Brands, S.A.

Good evening and thank you for joining us this evening as we discuss our sales update for the first quarter of the fiscal year that ended on March 31st, 2025. 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 also be able to access a replay of this recording also on our website after the event.

Good evening, everyone. It is good to speak to you all at the first call for the fiscal year 2025. We are pleased to report that we have delivered record Q1 sales and a strong start to the year. Let's turn to the details of the update. We have delivered a strong performance for the first quarter of 2025, which has resulted in record net revenue of €1.2 billion. This represents 7.5% like-for-like growth and a 7.5% increase on a reported basis, in line with our 2025 outlook and well ahead of the premium beauty market. This was due to outperformance in our largest segment, fragrance and fashion, supported by a strong and consistent performance in skincare. From a geographical standpoint, the business grew in all regions. We had a mildly positive impact of 0.3% due to foreign exchange, largely due to the US dollar at the beginning of 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 performance in the first quarter. with revenues of up plus 10.4%, both on a like-for-like and reported basis, reaching 896 million euros in sales. This is our largest segment, representing 74% of our total sales. This growth was led by a very strong performance in the Americas, with the US growing double-digit. We continue to drive growth at scale with particularly strong performances across our three largest prestige fragrance brands, Rabanne, Carolina Herrera, and Jean Paul Gaultier. This was complemented by strong growth across our niche fragrances brands as well, where it is worth highlighting the performance of Vairedo in particular. Our brands continue to build upon their success through existing lines as well as newness. In fashion, Dries Van Noten started a new chapter with the widely acclaimed first collection of Julian Klausner as creative director, which was presented in March. In Q1 2025, the make-up segment represented 14% of putsch net revenues in the period and recorded net revenue of €165 million. This is a decrease of 4.2% on a reported basis, 6% on a like-for-like basis versus Q1 2024. We continue to see softness in premium makeup, which is impacting overall sales. During Q2, our largest brand in the segment, Jalo Tilbury, is entering Mexico, marking the entry of the brand into the large Latam market. We are excited by the prospects of the brand with our consumers in this region. In Q1 2025, the skincare segment delivered 144 million euros in net revenue. This represents 12% of putsch total net revenue, an increase of plus 7.8% on a reported basis, and plus 7.2% like for like growth. DERBO COSMETICS continued its steady performance with URIASH, the largest brand in this segment, continuing to lead growth through its core franchises and newer lodges. From a geographical standpoint, in Q1 2025, the EMEA region achieved net revenue of €644 million, up 4.3% reported and 3.8% on a like-for-like basis. This remains our largest region, representing 53% of net revenue during this quarter. Fragrance and skincare were the main drivers for this performance. This region saw slower growth in Q1 when compared to Q4 of 2024 following a healthy holiday period. We still see strength in some of our core European markets, however, we saw not worth the slowdown in markets such as France. We continue to invest in this region and recently opened a new subsidiary in Sweden on the 1st of April 2025. The Americas achieved €451 million in net revenue for Q1 2025, representing 37% of putsch net revenue in the period. This implies double-digit growth of 11.5% in reported terms and 11.8% like-for-like, performance driven by the strength of our prestige frequencies across both North America and Latin America. We will be building upon our presence in the Latin region further with the introduction of Charles Tilbury. In Q1, APAC, which represented 9% of net revenues with €111 million in sales, posted strong overall performance with plus 14.5% reported and 13.2% like-for-like growth versus Q1 of 2024. This was fueled by strong performances in South Korea and Japan, where we continue to see the benefits of the subsidiaries that were opened over 2023 and 2024. We also continue to build upon our strategic initiative with our niche brands in the region, particularly Baerido. A noteworthy example was the opening of a Baerido flagship store in Japan in March. Putsch is the home of creativity and Q1 saw some exciting innovation from our brands. Across our prestige portfolio, we launched range extensions such as the Elixir version of Very Good Girl, Le Male Absolue, and Phantom. We continued with our collections-based approach in niche with the launch of Blanche Absolue, offering consumers even greater sophistication aligned with a well-loved line. We recently opened the Charlotte Tilbury Beauty Wonderland in Covent Garden, which offers two immersive floors to discover the full experience of the brand, including the first-ever skin spa. In skincare, we continue our steady innovation with the launch of the Uriage Rosaline Anti-Redness and Anti-Aging Serum, which is suitable for sensitive skin. We continue to innovate and create across our brands, and there is much more to come over the rest of the year, particularly in the second half. We are encouraged by the early positive feedback from the trade for our upcoming launches. We continue to feel encouraged by our consolidated performance across our complementary brands and segments, which balance different and evolving market dynamics. In spite of the uncertainties, we maintain our 2025 outlook of like-for-like revenue growth in the 6% to 8% range. Further, we maintain our expectation for adjusted EBITDA margin improvement in line with that of 2024. This outlook factors in the impact of US tariffs at currently expected levels. In uncertain times like the one we are living in, we benefit from participating in a resilient industry with a large and diversified brand portfolio. Our P&L has the flexibility and our highly experienced teams have the tools that allow us to be agile and responsive in such situations. With another very strong quarter behind us, we remain proud of the strength of our brands and our ability to execute and win with consumers in this environment.

Thanks, Marc. With that, we come to the end of our prepared remarks and we will begin Q&A. As you know, there has been power outage today in Spain that can affect communications. With that, we thank you for your understanding and patience today.