Exchange rates drag on Puig's sales, as firm agreement with The Estée Lauder remains elusive

Madrid – Without having previously announced the exact timing for the release of its new fiscal year results, Puig finally reported its performance for the first quarter of 2026 on Tuesday, after the markets closed. For the three-month period ending March 31, the company's results were significantly impacted by exchange rates.

According to information submitted by the company to the National Securities Market Commission (CNMV), Puig closed the first quarter of 2026 with net sales totalling 1.22 billion euros (1.43 billion dollars). This figure represents a growth of just +0.78 percent compared to the 1.21 billion euros reported in the same period last year. In the first quarter of 2025, the company had recorded year-over-year growth of +7.8 percent.

To provide more context on the company's stagnant revenue, Puig's management estimates that exchange rates had a 4 percent impact on its accounts during the period. They explained that without this effect, like-for-like sales and at constant exchange rates would have grown by +4.7 percent. This is significantly higher than the reported +0.78 percent, although still below the +7.5 percent LFL growth at constant exchange rates recorded in the first quarter of 2025.

“Once again, Puig has delivered a solid first quarter, outperforming the premium beauty market, as we have done in each of the last five years, including the last eight quarters as a publicly traded company,” stated Jose Manuel Albesa, following the release of the company's first results since he became CEO of Puig last March. “Our results are particularly significant, considering the challenging comparative basis we faced in our largest business segment by volume, Fragrances and Fashion,” he continued. Albesa also emphasised that “all regions contributed to like-for-like growth at constant exchange rates, with particularly strong momentum in Asia-Pacific.” He added, “leading Puig in this new chapter is an opportunity I embrace with great pride and a sense of responsibility.”

Generalised growth by segment, and a decline in turnover in Americas

Breaking down the company's performance during the first quarter in reported terms, all business areas achieved positive results despite the impact of currency fluctuations. This particularly affected the 'Fragrances and Fashion' division, where revenue remained almost flat at 897.2 million euros (+0.08 percent). Following this segment, in descending order of turnover, were 'Make-up' with sales of 170.8 million euros (+3.32 percent), and 'Skincare' with 147.3 million euros (+2.15 percent).

Meanwhile, by region, EMEA remains the company's main source of revenue, with quarterly sales reaching 655.9 million euros (+1.88 percent). The Americas followed, where sales contracted to 428.3 million euros (-5 percent) due to exchange rates. Lastly, sales in Asia-Pacific increased to 131 million euros (+17.91 percent).

Regarding this, “all regions contributed to like-for-like growth at constant exchange rates, with particularly strong momentum in Asia-Pacific,” noted Albesa. “The region represents more than one-third of the global beauty market, yet it currently accounts for only 11 percent of Puig's sales.” He added, “we have been investing for several years to close this gap and, supported by strong double-digit growth in recent quarters, we believe now is the right time to accelerate.”

Outlook for 2026 (and update on negotiations with Estée Lauder)

For the remainder of the year, Puig confirms its forecast of maintaining solid sales growth on a like-for-like basis and at constant exchange rates. The company also expects an adjusted EBITDA margin in line with the 20.7 percent recorded in 2025, despite rising costs. These projections aim to demonstrate the strength of its business model while negotiations for a potential integration, sale, or merger with The Estée Lauder Companies continue. As a final update, it was clarified that no agreement has yet been reached.

“On March 23, 2026, Puig confirmed it is in discussions regarding a potential business combination with The Estée Lauder Companies Inc., which would involve a possible merger of the two companies' businesses,” the Spanish company explained. However, they cautioned that as of “April 28, 2026, no definitive decision has been made,” reiterating that “until an agreement is reached, there can be no guarantee that a transaction will occur or on what terms.”

This article was translated to English using an AI tool.

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