Puig Brands Stock

Good evening, and thank you for joining us as we discuss our results for the first half of 2026 that ended on the 30th of June. Today, we have with us our Chief Executive Officer, Jose Manuel Muniesa; and our Chief Financial Officer, Miquel Angel Serra. They will share some brief remarks on the performance, financial results and outlook. We will then open up the line for Q&A.

You will find this presentation, the press release and other supporting regulatory documents on our website, where you will also be able to access a replay of this recording shortly after the call concludes.

Jose Manuel, the floor is yours.

Thank you, Varenya, and good evening, everyone. It is a pleasure to be with you today and to discuss our latest results. We are pleased to report a strong first half of 2026. Once again, we outperformed the premium beauty market, gaining market share across categories and geographies and further strengthened the foundation of our business.

Particularly after the recent dynamic months, we have greater confidence than ever in our stand-alone story. We remain laser focused on delivering our strategic priorities. And we look forward to sharing more about our strategy at our Capital Markets Day on October 28.

In the first half of 2026, Puig delivered record of net revenues of EUR 2.35 billion, representing a strong like-for-like growth of 4.4%, continuing our track record and consistent with our ambition of outperforming the premium beauty market on a like-for-like basis. We are pleased to share that the last 6 months also represented a period of market share gains across categories.

Gross profit margin remained resilient at 75.5%, declining by 30 basis points year-on-year. The positive impact of our mix evolution was offset by foreign exchange headwinds during the period. Adjusted EBITDA reached EUR 460 million with a margin of 19.5%. This reflects an improvement of 15 basis points and puts us on track to deliver our guidance for this year. Adjusted profit of EUR 260 million represents a margin of 11.1% or EUR 0.46 per share. Net debt to adjusted EBITDA stood at 1.5x, comfortably below our threshold of 2x.

Looking ahead, we remain confident in the strength of our business. And we are reaffirming our full year 2026 outlook, continuing to expect Puig to outperform the premium beauty market on a like-for-like basis, while maintaining stable adjusted EBITDA margins in line with 2025.

In the first half of 2026, growth remained attractive across business segments. All business segments and geographies delivered growth in H1 2026, led by Fragrance & Fashion and Makeup. Currency movements had a minus 2.1% impact on reported net revenue during the period, primarily due to the U.S. dollar. The impact of the ongoing situation in the Middle East is estimated to be approximately EUR 14 million in the first half of 2026 or 0.6% of total revenues for the period, slightly better than we had initially expected. The local markets have showed healthy recovery, while it was the travel retail channel where we saw continued impact.

Turning to the second quarter. Growth trends remain broadly unchanged for those seen in the first quarter. With net revenues of EUR 1.14 billion, increasing by 4.1% on a like-for-like basis, driven by the continued strength of Fragrance & Fashion and excellent momentum in Makeup and Derma brands. In this quarter, like-for-like growth was aligned with our reported growth as we saw the foreign exchange headwinds disappear.

Let's take a closer look at the business segments. Let me start with Fragrance & Fashion, which accounts for 73% of total sales. In the first half, the segment generated EUR 1.7 billion in net revenue. This represents like-for-like growth of 3.8%. This above-market performance supported Puig value market share growth to 11.1%, representing a gain of 0.3 percentage points over H1 2025. Asia Pacific, Travel Retail and North America were the strongest contribution during this period. Growth was driven by the continued strength of our Fragrance portfolio across both Prestige and Niche.

In Prestige, Carolina Herrera delivered double-digit growth, supported by the growing success of La Bomba and the continued strength of Good Girl. In Niche, we continue to outperform the market with double-digit growth, led by a strong performance from Byredo and Dries Van Noten. In 2Q, net revenues reached EUR 819 million with like-for-like growth of 3.7%. Trends across regions remained broadly consistent with what we saw in the first quarter.

Innovation during the period was weighted towards Niche, including new body mists launches from Byredo and Penhaligon's, extending our brands into formats that enhanced discovery and broader consumer reach. This was complemented by Prestige innovation in the form of range extension, including La Bomba Intensa from Carolina Herrera and Gaultier Divine Belle. It's also worth noting the launch of Gaultier Divine, which is a Niche extension from our Prestige brand, building towards continued brand elevation and expanding the consumer base.

Moving to Makeup, which represented 15% of total net revenue in the first half. The segment delivered EUR 359 million in net revenue, representing like-for-like growth of 9.1%. This once again reflects the outstanding performance of Charlotte Tilbury, which continues to build on its market leadership position in premium makeup worldwide, where we have increased market share by 0.4 percentage points. The brand maintains impressive rankings in its key markets, including #1 in the U.K. with healthy sell-out growth. In addition, the brand delivered double-digit sell-out growth in the U.S. Latest market data also suggests that the brand continued to strengthen its market position in core European markets, maintaining ranking of the top 3 position and is continuing to build its presence in newer markets.

In Q2, Makeup generated net revenues of EUR 188 million, growing also at 9.1% like-for-like, supported by strong sell-out growth trends in Charlotte Tilbury and ongoing expansion of the brand's distribution footprint at Boots U.K. at the end of the quarter. This expansion in Tilbury selected Boots location, around 30 of them should start reflecting in sellout trends Q3 onwards. Globally, but even in the U.K., which is Charlotte Tilbury most mature market, it still remains relatively under-distributed compared to our closest peers. Product innovation continued to support brand performance during the quarter with new launches in the highly successful Pillow Talk and on real franchises.

Turning to Skincare, our smallest segment, which represented 12% of Puig's net revenues in the first half. The segment generated EUR 279 million in net revenues, growing 2.3% on a like-for-like basis. Uriage, the largest brand in the segment, was the largest contributor to segment growth in the first half and continued to outperform the dermo-cosmetics market, thanks to a double-digit growth across key markets.

Latest market data suggests that Uriage continue to be one of the fastest-growing dermo-cosmetics brands in 2026, with the brand gaining 0.2% in points of value market share to reach 2.6% in 6 core European markets. We continue to see the opportunity for growth. In Q2, the Skincare generated net revenue of EUR 132 million and represented a moderate like-for-like decline of 0.3%.

While dermo-cosmetics led by Uriage continued to deliver double-digit growth and local skincare wellness brand continued to gain share. The performance this quarter was offset by softer trends in premium skincare. We have been seeing more moderate growth in the premium skincare market as consumers have been exploring efficacy and value-focused proposition. And specific to our portfolio this quarter, we also saw the impact of product line adjustment at Charlotte Tilbury skincare. In terms of what is new, we continue innovating across core franchises. And Q2 saw the expansion of Xemose from Uriage and [ newborn ] sun drops from Barbara Sturm.

Moving to our performance by the region. We continue to see healthy growth across our geographical footprint with Asia Pacific once again delivering an outstanding performance. Starting with EMEA, our largest region at 52% of group revenues, EUR 1.2 billion were generated in the first half, growing at 2.6% like-for-like.

Performance reflected positive dynamics across Europe, supported by continued strength of our fragrance portfolio and broad-based growth across key markets despite some impact on the ongoing situation in the Middle East, as we have discussed. Fragrance market share in Europe reached 11.2%.

In Q2, EMEA generated net revenues of EUR 565 million, growing at 2.1% like-for-like, reflecting underlying dynamics consistent with Q1. The Americas represented 37% of group revenues, delivering net revenue of EUR 859 million in the first half with like-for-like growth of 2.6%. Performance reflected the strength of our North America, where we continue to outperform the market, gaining 0.3 points to reach 8.3 percentage in fragrance value market share and supported by a strong makeup sellout where we also gained 0.3 points.

Latin America remained resilient, maintaining the top 1 ranking in the fragrance market with market share above 20% in a competitive and highly promotional environment. In Q2, the Americas generated net revenue of EUR 431 million, growing at 3.2% like-for-like.

Finally, Asia Pacific, which represented 12% of group revenues, once again delivered the strongest regional performance. The region generated EUR 273 million in net revenues during the first half, representing like-for-like growth of 20.9%. This outstanding performance was driven by exceptional momentum in Niche fragrance and continued strong consumer demand across the region. Fragrance value market share continued to grow in the region as we see plenty of white space before we can convert towards our global levels.

In Makeup, Charlotte Tilbury also maintained its excellent trajectory, further strengthening its position across key markets. In the second quarter, Asia Pacific generated net revenues of EUR 142 million, growing at 16.1% on a like-for-like basis and maintaining positive momentum across all categories.

Miquel Angel will now walk you through the financial highlights.

Thank you, Jose Manuel. We would now like to spend more time on Puig's financial performance during the first 6 months of the fiscal year 2026. Now let's get into the details. I would like to start by providing you with an overview of our income statement for the first half of 2026, highlighting the key following points.

We already discussed the net revenue evolution. Our top line like-for-like growth of 4.4% was accompanied by a gross margin of 75.5%, maintaining a best-in-class levels in the industry. We delivered adjusted EBITDA of EUR 460 million, which at a 19.5% margin represents an improvement of 15 basis points compared to last year and puts us on track to deliver our full year 2026 outlook of stable margins versus last year.

While operating profit margin remained stable year-on-year, adjusted net profit is up 5.2%. The improvement is a result of improved financial results and income from associates despite a higher effective tax rate during the first half of 2026. Our key indicator for operational profitability, the adjusted EBITDA margin has increased to 19.5%, improving 15 basis points year-on-year.

To give you some more color on the building blocks of this result. First, gross margin maintained at best-in-class levels in Premium Beauty at 75.5%. Despite a 30 basis point decrease year-on-year, the positive contribution from portfolio mix evolution and lower inventory losses were offset by adverse foreign exchange impacts, an effect that will ease in the second half.

Our distribution costs increased by 26 basis points as a percentage of sales, impacted by increased transportation costs as a consequence of the disruption in the Middle East. SG&A expenses on sales increased by 22 basis points year-on-year, affected by the FX impact on growth. Current level still represents an improvement of 120 basis points over 2 years as we continue to balance consistent efficiency with supporting the growth of the business and strengthening our organizational capabilities.

As we have continued to invest in CapEx over the recent years and our own store count has increased, our D&A as a percentage of sales increased by 16 basis points. These effects were more than offset by lower A&P investments during the first half of the year, which declined by 77 basis points as a percentage of sales. This reflects the phasing of A&P with investments weighted towards the second half of the year, in particular, in the Fragrance & Fashion segment. For full year 2026, we expect A&P investments to be relatively in line with those of last year as a percentage of sales.

Turning to operating profit. Our total operating profit reached EUR 340 million, an increase from EUR 332 million in the prior year, with profit margin stable year-on-year at 14.5%. Profitability trends varied across business segments during the first half, reflecting differences in category mix, investment levels and operational leverage.

Our core Fragrance & Fashion business showed an increase in operating profit to EUR 329 million in the first half of 2026 compared to EUR 299 million during the prior year. Operating profit margin improved by 143 basis points, driven by operational leverage, disciplined cost management and the phasing of investments behind Puig's brand portfolio weighted towards the second half of the year.

The Makeup segment generated operating profit of EUR 7 million during the first half compared to EUR 12 million last year. This resulted in an operating profit margin of 1.8%. This reflects a planned increase in A&P investments behind Charlotte Tilbury during the first half of this year.

Skincare operating profit was at EUR 4 million during the first half compared to profit of EUR 21 million last year. This decrease primarily reflects the flow-through from moderate revenue growth in the premium skincare, combined with sustained investments across brands as part of their long-term growth strategies.

Building on Jose Manuel's comments, in addition to the reformulation of the Magic Cream, the product line adjustments at Charlotte Tilbury skincare reflected the discontinuation of specific SKUs in skincare, which impacted growth and near-term profitability in the segment.

Focusing on the bottom line. We delivered a solid performance in our adjusted net profit, which increased by 5.2%. Margin expanded by 30 basis points to reach 11.1%. This improvement was driven by stronger financial results and higher income from associates, partially offset by higher tax expenses incurred during the first half of the year.

Reported net profit for Puig during the first half reached EUR 263 million, reflecting the impact of one-off transactions-related costs incurred during the first half of 2026 and an unfavorable comparison with extraordinary incomes during the first half of last year.

Moving on to cash flow. As we previously outlined, in our business, in order to serve the heavier demand during the holiday season in the second half of the year, the business typically requires an increase in working capital during the first half.

During this first half of this year, our free cash flow from operations outflow increased from EUR 116 million negative in the first half to EUR 196 million negative -- million during the first half of this year. This was a result of unfavorable movements in working capital during the first half of 2026. This movement was caused due to a temporary increase in inventory levels, which were conservatively maintained at higher levels against the macro backdrop. We expect this to partially improve over the second half of the year.

With the current dynamics, we expect free cash flow conversion on adjusted EBITDA levels will be around 50% this year. The increase of EUR 72 million in cash flow adjustments was primarily driven by long-term provisions and fair value adjustments.

Our CapEx levels increased slightly to 3.3% of net revenues, but comfortably in line with our expected range, which will be between 4% and 5% for the full year. Net debt was EUR 1,589 million at the end of the first half of 2026. And this reflects, first, the seasonality of our operating cash flow, the payment of EUR 226 million in dividends with another EUR 11 million in tax liabilities, which will be paid at the end of the year.

During the second quarter, we acquired an additional 6.5% stake in Charlotte Tilbury, which amounted to EUR 260 million, where we would now hold 85%. Also with respect to Charlotte Tilbury, we executed the earn-out payments of the original transaction of 2020, which amounted to EUR 112 million.

And finally, we had an impact of EUR 78 million from financial flows and leases. Our net financial leverage currently stands at 1.5x net debt over adjusted EBITDA, 0.1 turns above where we were at this time last year and still comfortably below our 2x threshold, allowing us to maintain both operating and financial flexibility.

Liabilities for business combination decreased to EUR 558 million at the end of the first half, a reduction of EUR 430 million compared to year-end of 2025. This decrease was primarily driven by the already mentioned acquisition of the additional 6.5% stake in Charlotte Tilbury, where we now hold ownership of 85% and the payment of the earn-out obligations, out of which EUR 80 million were liabilities through business combinations. The final EUR 90 million reduction corresponds to foreign exchange movements and the periodic reassessment of future obligations.

I now pass it back to Jose Manuel for a few closing comments.

Thank you, Miquel Angel. Turning now to our outlook. Our first half performance reinforced our conviction in the attractiveness of our brands. The relevance of our innovation pipeline and the attractive long-term fundamentals of our end markets. Our business continues to demonstrate agility, executional flexibility and the diversification required to navigate the current environment.

As a result, we reaffirm our full year 2026 outlook. We continue to expect Puig to outperform the premium beauty market on a like-for-like basis. We remain focused on strengthening our competitive positioning and investing behind the long-term health of our brands.

From a profitability perspective, we continue to expect our adjusted EBITDA margin to remain stable in line with 2025 levels. And our first half performance reinforces our confidence in achieving that objective.

From a capital discipline allocation standpoint, our leverage threshold and dividend policy remain unchanged. Similarly, we continue to evaluate M&A opportunities that align with our long-term strategy. The premium beauty market category continue to offer attractive structural growth. And we believe Puig is uniquely positioned to capture this opportunity.

Looking towards the rest of the year, particularly after a strong Carolina Herrera semester, we wanted to give you a preview of some of the initiatives that we are excited about from our other brands as well. We are building on the side of Jean Paul Gaultier with Le Male, our masculine fragrances where it currently stands at top 3 in masculine fragrances.

And with the playbook we have developed with La Bomba, we see the clear opportunity to build upon these successes to do feminine further with this brand. We will be launching a new feminine fragrance franchise from Jean Paul Gaultier, La Favorite. This is the brand's first major feminine pillar in a decade, translating [indiscernible], 1 of the top 10 fragrance brands worldwide to the feminine side. This fragrance is a powerful example of how operational excellence makes creativity a reality and impossible possible.

Bringing this iconic bottle to life requires a significant manufacturing accomplishment by combining technical expertise with exceptional craftsmanship. Our teams transform an ambitious technical design and dream into a reality that we believe consumers will love. This launch comes at the defining moment also at the Gaultier fashion. The brand codes are also being reinterpreted by Duran Lantink as the first permanent creative director, Jean Paul Gaultier retirement.

A few weeks ago, we saw Duran's Haute-Couture debut collection at Paris Fashion Week in June, which was inspired by Marie Antoinette, a win to the French Royal core that is well aligned with the name of the new fragrance as the press has signaled and that revisit the Gaultier legacy with originality, keeping alive the rigor and the spirit of the brand.

After several years of exponential growth, we saw performance at Rabanne reaching a plateau. In this scenario, we see a great opportunity to reinvigorate the brand through invention. We are excited to present 1 million Black, a launch that we believe will bring renewed momentum to the franchise. Renewing the storytelling with a great advertisement that takes it back to the core narrative, the audacity and luxury that what Million has always stood for.

It's worth reiterating that Rabanne is the top 10 fragrance brand worldwide and that Million launched in 2026 continues to be one of the most covered masculine fragrance franchise worldwide. Reinforcing this Rabanne renaissance recognition, we are pleased to welcome Olivier Rousteing as creative director of the brand. Rousteing combines a strong cultural resonance with a track record of building brand desirability. And under his creative direction, the house will deepen the dialogue between fashion and beauty that makes Rabanne distinctive. We are looking forward to this first show in March 2027.

We will continue with the signature creativity that Charlotte Tilbury has always been known for. The second half of the year, we'll see the introduction of Charlotte next-generation complexion innovation, expanding its iconic Airbrush Flawless franchise with a new launch that marks the next chapter for one of the brand's most iconic beauty categories. In addition, the brand is set to unveil its highly anticipated seasonal holiday launches.

In skincare, we will continue expanding franchises to build upon the incredible momentum with Uriage. In the second half of 2026, we will continue with efficacy focused launches addressing anti-aging and skin repair formulation. Within skincare, we expect innovation to continue across Dr. Barbara Sturm with exciting new launches in the iconic super antigen franchise with an upgraded serum and a new face mask reach.

While we continue with our collection-based launches in Niche, we will also be celebrating 50 years of L'Artisan Parfumeur in the second half of the year with some exciting new products, including the [indiscernible] in September, building upon a more nuanced version of a [indiscernible] fragrance. We will also be building upon our home collection. With Byredo, we will be expanding our night-based collection and making selective launches in makeup. Across our brands, we have delightful holiday season offerings in the pipeline.

Lastly, we look forward to sharing with you all our next vision plan, which will guide our strategic priorities when we convene on October 28 for our Capital Markets Day. We will be holding this event at iconic Museo del Prado, a testament to our commitment to the arts and our identity as a home of creativity. We'll be sharing the entire presentation through a live webcast.

With that, I'll hand it back to Varenya.

Thank you, Jose Manuel. With that, we conclude our prepared remarks and we'll now open the line for questions. We kindly ask that you limit yourself to 1 question initially and we will return for follow-up questions if time permits.

The next question comes from Molly Wylenzek from Jefferies.

Molly Wylenzek from Jefferies. Just on fragrances, I'm sure you'll be aware that L'Oreal was talking about 5% market growth this morning. I'm struggling to sort of reconcile that with your comments about market share gains or market outperformance. Do you think you're measuring market in a different way due to the different geography mix that you have? Or just any comments you have on that would be great.

Thank you for your question. Well, our estimate for the first half of the year is a market growth of close to 4%. In our case, our sell-out is growing faster than our first sell-in and the sellout of the market. We are growing 2 points ahead. We see a reduction -- first 2 things. First, there's a reduction of inventories, less inventories where we think they are now at the right level. And second, a gain of market share in the case of fragrance of 0.3 points.

In the case of Makeup, we see the market growth at middle, at low middle single digit with Charlotte Tilbury growing at 9.1%. And in the case of dermo-cosmetics, we see a middle single-digit growth with [ OES ] growing at double-digit growth.

The next question comes from Celine Pannuti from JPMorgan.

Can you hear me?

Yes, perfectly. Celine, we can hear you.

Yes, great. My question following up on Makeup. So you said that Charlotte Tilbury is growing at 9.1%. So that you think is the sell-out data on H1. I'm asking because I wanted to know what kind of help you've seen in the quarter from the sell-in into boots. And obviously, it's a bit of a very tough comp and very bumpy. But are you -- if you think that the sell-out is growing at high single digits, are we therefore expecting such growth rate to continue despite the tougher comps that we are looking at in the second half of the year?

Yes. Well, Charlotte Tilbury worldwide is gaining market share of 0.4%. The [indiscernible] selling, okay? But in terms of sellout, we are growing 0.4% market share. We are gaining market share in every single country. We just launched in Boots at the end of Q2. So we start to see the first results in terms of sellout. We only focus on 30 stores in Boots and the results are outstanding. We are growing 5, 6 or 7x more than the second one. So we are quite excited with these results on Boots.

Concerning the comparison for the next 2 quarters, it's throughout the next 2 quarters, Q3 and Q4, in the case of Charlotte was strong quarters, Q3 because of the launch of [ Anatone ] and Q4 because of the launch of -- sorry, of the holiday season.

Having said that, with this 9.1% growth, we are quite positive for the remaining of the year. We have also strong holiday campaigns and those for the -- of Boots are quite encouraging. I hope this answers your question.

Yes. So you would expect to see positive growth in both quarter in the second half?

I think a positive growth for the total year. We will see how this Christmas campaign evolves. It was a super successful campaign last year with Celine Dion. But we are very confident with our new celebrity for the Christmas campaign. So we are positive with that.

The next question comes from Jeff Stent from BNP Paribas.

One question and one point of clarification, if I may. As to the question, could you please talk about the impact of U.S. tariff refunds? Has anything been booked in H1? Or will anything be booked later in the year? And could you give any quantification of that?

And the clarification is, did you say that your sellout in fragrances was 200 basis points above what you basically reported, i.e., the 3.8%, i.e., there was a very substantial drag from destocking.

Jeff, this is Miquel Angel here. On the first question on the tariffs, we are in the process of recovering the U.S. tariffs that we paid at the end of last year, beginning of this year. As of the first half results, there is no impact yet on the P&L. For the full year, though, we don't expect the net impact of tariffs to divert significantly from the outlook we provided there.

On the second question you had, I mean, Jose Manuel can answer that. What Jose Manuel was precisely saying is that, indeed, that around 2 points ahead of our selling exercise. That's correct, the statement you made in that sense.

The next question comes from Aron Adamski from Goldman Sachs.

I just wanted to follow up, as you've commented on makeup expectations. On Fragrance and Skincare, maybe particularly on Skincare, what are your expectations for growth in those 2 categories for the second half of the year given the innovation pipeline and then comparison basis? And then the second question I had was on the innovation pipeline in fragrances. I think you have recently been way more active in feminine franchise launches, including La Bomba and now also with La Favorite.

Could you please share some color on your plans for the masculine segment over the coming years? And in that context, why expectations for 1 Million Black? And would you expect it to be more meaningful than the typical flanker launch usually is?

Well, first, let me take the innovation, the last question. Innovation is strong. I mean we'll have a second semester quite a strong innovation with the launch of La Favorite. La Favorite is the first launch in feminine in Jean Paul Gaultier after a decade. And it comes in a moment where the brand is hot.

I mean, Le Male is our top 3 worldwide and the brand has been growing exponentially for the last 3 years. So we have good expectations of this launch. Second semester will be also the launch of Black Million. It's the first time that we give Million, not a range extension, but a flanker with more identity. And we have high expectations for this launch.

In the case of our pipeline of launches, as we said, I mean, we are focused on feminine launches. We launched La Bomba, which are phenomenal results where we plan to reach top 20 by next year. But we are already in the top 20 this year, great results everywhere over passing our expectations. We have the feminine launch of Gaultier this year.

Next year, with masculine, we'll launch a new masculine for Rabanne. And finally, 2028 will be the feminine launch of Charlotte Tilbury. So we have a strong innovation calendar in those 4-year horizon, which is much higher than any other previous years.

Concerning expectation about the evolution of the market, Niche fragrance are growing at double-digit growth. And we foresee a continuity in this sense by the end of the year. Also, our Derma brands are growing at double-digit growth and we foresee a continuity in this growth.

And our sellout that I was saying before in the case of makeup are strong enough, good results despite what we have to anniversary in Q3 and Q4. I hope this answers your question.

If I could just follow up on skincare. Would you expect the performance to improve from the performance that we've seen in Q2? Or should we extrapolate these trends for the rest of the year?

Yes. As Miquel Angel showed in his presentation, I mean, we are having a very good result with our Derma brands at double-digit growth. Our wellness brands, Loto and Kama are also performing well and gaining market share. However, the premium skincare has been tougher this semester.

It's a question of the market of premium skincare. But also in our case, we reformulated the Charlotte Tilbury Magic Cream, which caused some disruption. And we also discontinued some discovery kits that were lower margin items. So we should expect a better performance for the second half.

Question with hand raised. If there's anyone else, we request you to raise your hand now. No questions. So with that, we come to the end of our Q&A. And we look forward to speaking to you all again in October with our Q3 results and also at our Capital Markets Day. Thank you.

We welcome you to this Annual General Shareholders Meeting on behalf of myself and on behalf of the entire Board of Directors. I would like to open this meeting by thanking the shareholders connected to this meeting as well as those shareholders who being unable to attend, have granted their proxy or exercise their voting rights by remote means of communication. As you are all aware, this meeting is being held exclusively through telematic means without the physical presence of shareholders, their representatives or guests.

In accordance with the law, regardless of where the Board of Directors is located, the meeting is deemed to be held at the registered office. This meeting format is made possible by the applicable legal and statutory provisions. Furthermore, it ensures the effective participation of our shareholders whose rights may be exercised in full and with complete equal treatment. In any event, if any of you require assistance during the course of the meeting, you may contact the e-mail address [email protected].

Likewise, in order to facilitate the follow-up of the General Shareholders' Meeting by nonattending shareholders, potential investors and the market in general, I hereby inform you that the meeting is being broadcasted live on the company's corporate website and that the recording of the meeting will remain available to shareholders on the aforementioned website. In accordance with the provisions of Article 15 of the company's bylaws and Article 17.2 of the regulations of the General Shareholders' Meeting, this meeting will be chaired by Mr. Marc Puig, Chairman of the Board of Directors; Mr. Joan Albiol Ramis in his capacity as Secretary and non-member of the Board of Directors and will act as Secretary of the meeting; and Mr. Francisco Blanco Garcia in his capacity as Vice Secretary, non-member of the Board of Directors, who will act as Vice Secretary. They will direct the proceedings of this General Shareholders' Meeting under my supervision.

And I now give the floor to the Secretary.

Thank you very much, Mr. Chairman. Good morning, ladies and gentlemen shareholders. As you are aware, this General Shareholders' Meeting of Puig Brands S.A. has been called by resolution of the Board of Directors at its meeting held on April 27, 2026. The required notice of the meeting was published on April 28, 2026, in the national editions of the newspapers, Expansion and La Vanguardia and on the website of the Spanish Securities Market Commission by means of notification of other relevant information number 40464 and on the company's corporate website, www.puig.com, where the aforementioned announcements have remained accessible without interruption for the period required by the law, together with all the information required under the Spanish Companies Act.

I now give the floor to the Vice Secretary, Mr. Francisco Blanco Garcia, who will inform you about the shareholders' right to information, the attendance and representation figures for this general shareholders' meeting as well as the rules applicable to its valid constitution and proper development.

Thank you very much, Mr. Secretary. Regarding the full text of the proposals for resolutions, I inform you that they have been formulated distinguishing those matters that are substantially independent and that the full text of all of them has been provided to the notary public. An electronic shareholders' forum has also been made available on the company's corporate website, accessible to both shareholders and to voluntary shareholders' associations. It is hereby noted for the record that no alternative proposals for resolutions regarding the matters already included in the agenda have been submitted.

Likewise, it is hereby noted for the record that prior to the holding of this general shareholders' meeting, a request for information was received from the shareholder, BDL Capital Management SAS, the response to which has been published on the company's corporate website prior to the holding of this general meeting. In accordance with the Article [indiscernible] of the Spanish Companies Act, this General Shareholders' Meeting is attended at the request of the Board of Directors by the notary public of [indiscernible].

Mr. Santiago Gotor Sanchez, who will draw up the notarial minutes of the meeting.

The notary public is seated to the left of the Board of Directors and connected to the General Shareholders' Meeting platform through which he will be aware of all the actions taken by the attendees of the general shareholders' meeting, including statements, proposals and votes cast. Now that the list of attendees has been finalized according to the information provided to us at the beginning of the General Shareholders' Meeting, the quorum for attendance is as follows: One shareholder of [ 390,367,348 ] shares representing 91.837% of the share capital and corresponding to [1,966,836,740 ] votes and 107 shareholders of 27,982 actions of Class B that 1.723% of the capital and that corresponds to 37,982,222 votes.

In total, [4,331,349 ],688 shares that support 93.611% of the social capital that correspond to 2,004,818,960 votes are present at the meeting. The following shareholders are represented at the meeting, 107 shareholders of [ 37,982,222 ] Class B shares representing 1.77% of the share capital and corresponding to [indiscernible]. In total, this general meeting is attended by 418 shareholders represented, holders of a total of 494,562,505 shares, which represent 96.562% share capital and corresponding to [ 2,068,061,897 ] votes. For the purposes of the provisions of Article 148 of the Spanish Companies Act, it is hereby stated for the record that the 4,894,911 [indiscernible] treasury shares of the company representing 0.229% of the share capital have been computed within the capital for the purpose of calculating the quotes necessary for the constitution and adoption of resolutions at this meeting. Although the voting rights corresponding to such shares are not accessible because they are suspended.

Therefore, there is a sufficient attendance quorum to deliberate and decide on the matters included in the agenda on first call. The full details of the quorum figures I have just mentioned will be incorporated into the notarial minutes and published on our corporate website.

I now yield the floor to the Chairman.

In view of the attendance and representation figures read by the Vice Secretary and in so far as the legal and statutory requirements established for this purpose are met, I declare this Annual Shareholders' Meeting of Puig Brands S.A. to be validly constituted on first call and hereby declare the session open. Likewise, shareholders are reminded that they may cast their vote on the proposed resolutions included in the agenda from the moment they connected to the online attendance platform and may do so until the moment when the voting period for such proposed resolutions is announced to have ended. In the event that proposals are submitted on matters not included in the agenda, shareholders may cast their vote from the moment the Vice Secretary reads the proposals in order to proceed to the vote and until the Vice Secretary announces the closure of the vote.

I yield the floor to the notary.

Good morning, ladies and gentlemen, shareholders. I must ask whether there are any reservations or objections concerning the statements regarding the number of shareholders in attendance or the share capital represented. And I remind attending shareholders that the attendance platform provides a link through which they may submit any such reservations or objections to this notary so that they may be recorded in the minutes. I yield the floor. I have just checked, no reservations have been submitted.

Therefore, I yield the floor to the Chairman.

I now give the floor to the Vice Secretary to explain the procedure to be followed in connection with the shareholders' statements.

As detailed in the notice of the meeting, attendees have been able to submit their statements in audio or video format from 10:00 a.m. this morning and may continue to do so during the course of the meeting and until the conclusion of the speeches by the Executive Chairman and the CEO. Attendees may also submit statements in written format. All statements must comply with the law, the bylaws and the regulations of the General Shareholders' Meeting and must be submitted through the statements tab on the General Shareholders' Meeting platform.

I remind attendees of the General Shareholders' Meeting that they may view or listen to all statements submitted by audio or video as well as read those submitted in writing during the course of the meeting by accessing the statement tab on the screens to facilitate access to them and to be aware of those being made in real time. I remind you, if any of you wish a statement to be recorded verbally in the minutes of the General Shareholders' Meeting, you must expressly indicate this in your statement. Once the speeches have been concluded and therefore, the time for making statements have ended, a corporate video will be shown, after which a summary of all statements made by attendees entitled to intervene will be presented and answered.

The statements will remain available to attendees on the General Shareholders' meeting platform at all times under the end of the meeting. The Chairman will now deliver his speech.

After 22 years as Chief Executive Officer and 19 of those as Chairman and CEO, I recently began a new chapter as Executive Chairman solely. This transition is deeply meaningful to me, both personally and professionally because it gives me the opportunity not only to reflect on what we have built, but also to look ahead with optimism for all that Puig can still become.

Let me begin with a few words about our now concluded discussions with Estee Lauder regarding a potential business combination. Over the past few months, we have held discussions with 2 companies. The first was Kering, which approached us about a potential long-term licensing agreement for its beauty brands in exchange for a minority stake in Puig and a cash consideration. Those discussions, however, did not result in a transaction. Later on, Estee Lauder approached us regarding the possibility of combining our 2 family-controlled companies. We made it clear that as we are not for sale, the combination that was being explored would have required alignment on 3 key aspects for the potential merger, governance, business leadership and economic terms that would appropriately value the company and be fair to all stakeholders.

We have the utmost respect and admiration for the Lauder family and for the Estée Lauder Companies. Ultimately, however, we were unable to reach an overall solution that satisfied both parties, and we, therefore, agreed that it was best to end the discussions. These 2 conversations clearly demonstrate one thing. The strength of Puig's reputation across the sectors in which we operate, punching well above the weight of our business and reaffirming our position as a highly respected player in the industry. We remain a company with a family at its core, committed to guiding this endeavor with ambition, responsibility and a truly long-term perspective willing to continue setting the direction of this project over the long term.

At the same time, being a public company gives us the discipline, transparency and checks and balances that help ensure this family guidance is matched by rigor and accountability. It also ensures adherence to the best-in-class corporate governance. For us, going public was never about changing who we are. For the last 2 decades, even before we were public, we run this company on the same principles with the family having a leadership role while self-disempowering the family through limiting its role in the government bodies, in the governing bodies. We define Puig as a home of creativity because creativity is the force that moves our company forward.

In our industry, what distinguishes a short-term success from a lasting franchise is the ability to keep brands desirable, relevant and emotionally resonant over time. This requires constant reinvention in the way brands are imagined, expressed and brought to life. It is the power of imagination and the talent of the teams behind these brands that keeps them distinctive and ahead. When the same family has stood behind the company for more than 100 years, certain convictions, behaviors and standards become deeply embedded in the way the company thinks, functions and grows. That culture enables us to attract and retain exceptional talent, preserve creativity as we scale and execute with consistency across markets without losing the entrepreneurial energy that has always defined Puig.

This culture explains why we retain top talent, why we attract strong founders and execute consistently. Culture is not a soft quality in our business. It is a clear competitive advantage. Puig today is stronger, more global and more diversified than at any point in our more than 110 years of history. However, what gives me the greatest confidence is not only how far we have come, but how much opportunity still lies ahead of us. We have built scale without losing creativity. We have built global capabilities without losing agility. We have built a portfolio with resilience and depth while nurturing unique brand identities.

We define ourselves as a home of love brands. And that idea sits at the heart of how we create value by building brands that people do not simply buy, but genuinely connect with, remember and choose again and again. Our brands operate with creative autonomy where innovation, emotion, identity and authenticity generate desirability and give each brand the power to earn lasting affection from consumers. This is essential in premium Beauty, the segment in which we operate. We are not a fast-moving consumer goods company. We do not merely respond to consumer demand. We help shape it. And we do not place our products everywhere our consumers are. We choose carefully where and how they appear, creating distinction and when appropriate, a certain degree of scarcity.

At the same time, no multi-brand company of our size can fulfill its ambition without a certain degree of convergence. Our group platform gives our brands the scale, shared capabilities and operational excellence they need to grow faster and compete more strongly around the world. From product development to go-to-market, retail, supply chain and digital, our brands benefit from world-class resources. This interplay is not a static balance. It is a dynamic tension. Creativity needs freedom while global growth demands discipline. Our ability to honor both is one of the reasons Puig continues to outperform. We have become a partner of choice for founders, developing the capability to work alongside them often through to their retirement and establishing ourselves as a company uniquely flexible in collaborating with entrepreneurial talent.

In addition, we have consistently demonstrated our ability to sustain and accelerate the growth of our brands beyond the founder stage. When founders step back or choose to pursue other paths, we continue to nurture these brands, preserving their essence while driving them forward often at an even faster pace. Founders play an essential role in shaping brands in ways that are truly distinctive and impossible to replicate. However, as brands evolve, their continued presence can at times become a limiting factor in unlocking their full potential. At the end of 2020, even before the pandemic year was over, we presented our 5-year strategic plan, and we made it public in the first quarter of 2021. We chose to be clear, ambitious and bold about our targets because we believed Puig was ready to enter a new phase of growth. We committed to doubling revenues in 3 years and tripling them in 5. We did not simply meet these commitments. We surpassed them.

We have more than doubled revenues in 2 years, not in 3 and nearly tripled them in 4, one year ahead of plan. And by year 5, we had more than tripled revenues. And in doing so, we delivered growth not just more than the market, but higher than any other listed multi-brand premium beauty player every single year for the past 5 years in a row. Then we went public. And when we went public, we committed to high single-digit like-for-like revenue growth. upside potential in our adjusted EBITDA margins in the medium term, a prudent capital structure and consistent dividend payout. We have delivered on all of these commitments. Our revenue growth remains ahead of the market at 10.9% in 2024 and 7.8% in 2025. Our adjusted EBITDA margin has increased by 70 basis points since the IPO, even as we continued investing in our brands.

Our balance sheet is significantly stronger, giving us even greater flexibility. Our dividend track record remains reliable. All of this reinforce our credibility as a public company. Over the past 2 decades, each strategic plan has sharpened Puig's focus and expanded our capabilities. Plan Director strengthened our category focus and growth discipline. Plan Apollo reinforced our shift towards prestige. Plan Centennial accelerated our move towards own brands. Plan Next deepened our prestige portfolio and established our early leadership in niche fragrances. Plan da Vinci broadened our vision and supported our diversification into beauty.

All of this led to Vision 2025, which enabled us to build on these foundations and deliver the strongest growth in our history. Together, these plans took Puig from less than EUR 800 million in revenue in 2004 to more than EUR 5 billion in 2025 and from a net profit of EUR 1 million to more than EUR 500 million in the same period. Standing on this foundation, our next plan will help shape the next decade of Puig with even greater ambition.

Let me now turn to leadership and governance in this new chapter for Puig. A few weeks ago, we announced an important evolution in our leadership structure: the separation of the roles of Chairman and Chief Executive Officer, in line with governance best practice for a public company of our scale and ambition. As Executive Chairman, I will continue to help shape the strategic direction of the company as I have since 2004, overseeing our mergers and acquisitions agenda, supporting the CEO on senior talent decisions, always with the objective of protecting Puig's long-term future.

Jose Manuel Albesa now serves as our CEO. He brings strategic clarity, operational discipline and a deep understanding of our culture and our brands. I have worked closely with him for many years, and I am fully confident in his ability to lead Puig successfully through this new stage of growth. This leadership structure combines the continuity of family stewardship with the strength of a highly experienced executive team. It provides stability and continuity while keeping execution sharp and accountable. With respect to the rest of the Board, here, I recap the members who are present in the room with me today.

Joining us today is our Lead Independent Director, Nicolas Mirzayantz; also present, Daniel Lalonde, who chairs our Audit Committee; and Angeles Garcia-Poveda, Chair of our Appointments and Remuneration Committee, both independent directors. In addition, the Sustainability and Social Responsibility Committee will continue to be chaired by Manuel Puig, reflecting the family's mandate to position the company at the forefront in these areas. In 2026, several changes are being introduced to the Board of Directors, which will be composed of 13 members, 7 of whom are independent.

I will now outline these changes. Following the appointment of Jose Manuel Albesa as CEO in March, shareholders are asked to vote on his appointment as a new member of the Board of Directors in the capacity of Executive Director. [indiscernible] will also vote on the appointment of Julie van Ongevalle as new Director in the capacity of an independent director. Josep Oliu has resigned from the Board of Puig Brands while continuing to remain the Board member of [ Banco Sabadell ]. He has been the longest-serving Board member, and we truly value his contributions all these years. and thank him for his support to our company and to our family.

Today also marks the end of Patrick Chalhoub's term as a member of the Board. We would like to thank him for his wisdom, his continued support and his commitment to remain our partner in the Middle East. As I close, I would like to share one personal reflection. Leaving Puig as a CEO for the last -- for the past 22 years has been the greatest privilege of my professional life. What I see today is a company stronger than ever. But above all, I see a company with the confidence, the ambition and the values to build for generations to come. Most importantly, we have a long-term vision rooted in family values and designed for enduring global ambition.

As Executive Chairman, my commitment is to help protect that vision and guide Puig through its next chapter so that future generations inherit the company even stronger, more admired and more relevant than the one we lead today.

In conclusion, I would like to reiterate that we are not for sale. The family has always been and will remain a long-term shareholder and this would have been the case even in the context of the proposed business combination. We have a highly compelling project, well-positioned brands, a winning team, a very strong balance sheet and a track record of more than 110 years that stands behind us. Thank you for your trust, your partnership and your belief in Puig. We evaluate deeply, and we look to the future with confidence and ambition.

I will now hand over to Jose Manuel, and I would like to remind you that following the CEO's presentation, the period for submitting interventions will close and a corporate video will be shown.

Thank you, Marc. Good morning, and thank you all for being here today. It is a real privilege to address my first AGM as the Chief Executive Officer of Puig. I would like to begin by acknowledging the leadership of the Puig family and in particular, Marc whose vision and long-term commitment have shaped the company we are today. I am grateful for the trust that has been placed in me, and I am fully committed to building on that legacy as we continue to move the company forward as a strong stand-alone company confident in our own path. Today, I would like to take you through our recent organizational update and 2025 performance.

Let me start with our broader context. As the environment continues to evolve, we are doubling down on what has made us strong. And that is the combination of disruptive innovation and agility at scale. To achieve this, we are moving from a more divisional structure with some silos , duplication, and limited scale to a more integrated organization built around 3 core pillars: Global Brands, Global Markets and Global Functions. Let me walk you through each of them.

First, Global Brands. Our brands will benefit from greater cross-functional collaboration while preserving full creative autonomy. This allows us to both protect and amplify would have made each brand unique while strengthening our focus on innovation and product and store retailing.

Second, Global Market. Here, we will leverage our scale as one company while continuing to respect the distinctiveness of each local business model. Across EMEA, the Americas and Asia, we will maintain [ distinct, local] front lines while using the strength of Puig as one group in our commercial relationships and partnerships. And categories such as derma and brands like [indiscernible] will continue to accelerate by leveraging our global footprint of 33 subsidiaries. Third, Global Functions. We are building an integrated one back office across headquarters and markets across [ functions, departments ] such as finance, HR, legal, technology, operations and procurement. This will allow us to [indiscernible] how we operate, increase agility and decision-making and reinvest efficiencies back into our brands, supporting both growth and profitability.

Overall, by reducing complexity and application, we gained speed. And with this, we allow our teams to focus on what matters most, developing our brands and strengthening our competitiveness. At the heart of this evolution is our people. We are building high-performance teams that are collaborative, diversed, engaged and entrepreneurial, teams that combine creativity discipline, challenge conventions and deliver results. And these are the leaders who are at the forefront of this organization. In global brands, Ana Trias, President of Prestige and Fashion brands; Thomas James, President of Niche & Wellness; Charlotte Tibury, Founder and Chief Creative Officer of Charlotte Tribury brand ; and Marc Toulemonde, President of Derma. In Global Markets, Javier Bach, our President of Global Markets and Chief Operating Officer; supported by regional leaders across EMEA, the Americas, Asia and Travel Retail, as well as our key global capabilities in supply technology, digital and growth. And in global functions, Miquel Angel as, as Chief Financial Officer; Marine De Boucaud, as the Chief Human Resources Officer; and Eugenia de la Torriente, as Chief Communications Officer.

Together, this leadership team gives us the confidence that we can move both farther and faster building Puig with greater scale and a greater speed. I will now turn to a recap of our performance.

Let me start with something that is deeply rooted in Puig DNA, our passion for growth and our commitment to delivering growth with consistency and discipline. Over the last 5 years, Put has been the fastest-growing multi-brand premium company in the industry. significantly outperforming the premium beauty market. We have delivered sustained high growth doubling, tripling and at times even quadrupling market growth year after year. Overall, this translates into a compound annual growth rate of 18% since 2021. Our strongest growth engines have been the U.S. market, Fragrance, our core category and Makeup. And importantly, this momentum has continued since our IPO in May 2024. Since then, we have not only remained among the fastest-growing players, but we have consistently outperformed our peer set quarter after quarter delivering between 1.5 to 3x the growth.

The performance is not by chance. It reflects the strength and desirability of brand portfolio. The discipline with which we execute and our ability to scale while preserving what makes each of our brands distinctive. What is equally important is the quality of that growth. In 2025, We delivered solid results that are increasingly diversified across business segments, geographies and channels. From a category perspective, Fragrance and fashion remain our largest and most important contributor, while Makeup and Skincare continue to grow and play an increasing role in the overall performance of the group. At the same time, our geographic footprint continues to evolve.

We have transformed from a business that has historically more concentrated in Spain to a truly global company with a well-balanced presence across EMEA, the Americas and Asia. And from a channel perspective, we continue to combine a strong physical retail presence with our growing and increasingly important digital channel. So overall, we are not only growing fast, but we are also becoming more balanced, more global and more resilient as a business.

Let me now take you through the key financial highlights for the year, starting with net revenues. In 2025, we achieved record sales surpassing the EUR 5 billion milestone in net revenue, representing 7.8% like-for-like growth and 5.3% reported growth at the top end of our 6% to 8% like-for-like growth outlook for the year. This performance is particularly impressive given the challenging backdrop in which we operate, characterized by fragile consumer sentiment as well as tariff uncertainty, geopolitical tensions in the Middle East and foreign exchange volatility driven by the U.S. dollar and Latin American currencies.

Turning to revenue performance by segment, fragrance and fashion continued its robust performance in 2025, with 6.4% like-for-like growth. We continue to innovate including the launch of Carolina Herrera's La Bomba. Makeup was one of our strongest performance with double-digit growth of 13.7% like-for-like confirming the strength of our positioning in this category reinforced by Charlotte Tilbury's expansion into new geographies with openings in Mexico and channels such as Amazon in the United States. Skincare also delivered a strong and consistent growth at 8.9% like-for-like, demonstrating consistent execution and contributing to our more balanced portfolio across categories.

Looking at our financial evolution over time, we see a clear and consistent improvement in the quality of our earnings. Since 2025, we have significantly expanded our efficiency with gross margins improving to 120 basis points to 75.1%. Adjusted EBITDA has increased 300 basis points over the same period, reaching EUR 1.045 billion in 2025 with a margin of 20.7%. At the same time, net profit margin have also improved to 11.6%, reflecting our ability to scale the business with discipline. This demonstrates that our growth is not only strong but efficient and value accretive over time. This strong performance also translates into a continued strengthening of our balance sheet. In 2025, we reduced leverage by EUR 352 million, equivalent to an improvement of 0.4x. This reflects both strong cash generation and disciplined capital allocation.

As a result, our leverage decreased 1.1x to 0.7x by the end of 2025. This movement has been driven primarily by strong operating cash flow generation while continuing to fund selective investments and maintaining our dividend policy. With these, we remain well below our medium-term threshold of 2x, providing us with significant flexibility going forward. Turning to liabilities from business combinations, they stood at EUR 988 million at the end of 2025 compared to EUR 1.088 million at the end of 2024. This reflects a reduction over the year, primarily driven by foreign exchange movements and the periodic assessment of our future obligations.

Importantly, there were no significant new transactions in 2025. Regarding shareholder returns, we proposed a dividend of EUR 237 million, corresponding to 40% of net profit to be paid in June 2026. This is fully consistent with our established capital allocation framework over time and reflects a commitment to delivering an attractive growing and predictable return to our shareholders while continuing to invest in the business. Sustainability is embedded in our values and in our long-term vision for Puig. Our commitment goes beyond compliance. It is about contributing meaningfully to the challenges we face as a society.

We have set clear ambitions including supporting the goal of limiting global warming to 1.5 degrees by 2030 and becoming a net 0 organization by 2050. These commitments are supported by concrete actions and are reflected in the external recognition we continue to receive. None of this would be possible without our people Puig today is that diverse an increasingly global organization with a strong presence across all regions. Our talent pool grew in recent years as we have multiplied our business and incorporated new brands while maintaining a strong focus on inclusion, balance and development. The diversity is a strength, the strength for Puig and the key enabler of our creativity, our innovation and long-term success.

I will now reiterate our outlook for 2026. As shared in our annual results presentation, we have updated our guidance framework to reflect the evolution of the beauty market while remaining firmly anchored in the strength and appeal of our brands. We remain confident in our ability to continue outperforming the premium beauty market. In terms of profitability, we continue to see potential to improve our adjusted EBITDA margin over the medium term, supported by mix evolution and operational discipline. For 2026, we expect margins to remain stable, maintaining our level of investment in our brands while anticipating impacts from tariffs and foreign exchange.

Our Capital Structure policy remains unchanged. We will continue to preserve the strategic flexibility required to finance the future growth with the objective of maintaining a net debt to adjusted EBITDA ratio of normal than 2x. We also confirm our intention to maintain a payout ratio of approximately 40% of reported net profit in line with our track record. Finally, we will continue to apply a highly selective approach to M&A focused on opportunities with a clear strategic fit within our portfolio while maintaining strict financial discipline.

Overall, our outlook reflects our confidence in the resilience of our business model, the continued strength of our brands and our commitment to sustainable value accretive growth. As Marc has elaborated, in 2025, we concluded our previous 5-year strategic plan. Our teams have worked hard to define our new plan which we were looking forward to presenting at our Capital Markets Day. Let me take this opportunity to thank everyone for their patience and understanding shown when we had to postpone the event. I am pleased to confirm today that our Capital Markets Day will take place on October 28 in Madrid.

Without giving away too many details, which we will save for the Capital Markets Day, what I can tell you is that the future lies in scaling what works, consolidating our 3 Axis brands, reinforcing our leadership in the niche segment and continuing to revolutionize prestige perfumery. And beyond our core position in Derma as a fourth pillar of growth.

The defining element of our business and the truly defines who we are is creativity. Creativity is at the heart of Puig. Creativity is embedded in our everyday work and deeply connected to our past, present and future performance. A Puig, creativities is both across and the consequence of growth. It is a strategic capability, a source of resilience, nonconformity, vitality and long-term competitiveness. We often say with pride Puig journey has always been a David versus Goliath story within the premium beauty industry. In this context, creativity that breaks norms and challenges establish systems is not simply an option. It is our engine for renewal. This is how we address challenges, refine strengths, and transform conventional ways of solving them.

And we see this clearly reflected in our brands and in our achievements, 1 million now at top 5 Fragrance worldwide was our bold response to the 2008 financial crisis, embracing maximalism, and the show of attitude to disrupt one of the most minimalistic fashion areas. Le Male, a top 2 Fragrance worldwide recently became viral by celebrating diversity and inclusivity at the height of the me-too movement turning cultural tension into cultural relevance. La Bomba launched in 2025 celebrate Latin power and pride, broadly engaging with the complexity of the Latin the [ Aspera ]. The seemingly antagonistic idea of putting a fragrance in a shoe, they find category logic and became the #1 women's fragrance worldwide.

Our reinvention of the Niche Fragrance segment is disrupting a market historically focused on tradition, ingredients and purity through emotionally rich story telling [indiscernible] for example, with Ben Halligan. These are not isolated successes. They are proof points of a consistent mindset. Through creative audacity, boldness and healthy sense of rebellion, Puig continues to challenge the market, redefine desirability and create brands that resonate culturally and perform commercially.

In closing, Puig remains a company defined by creativity, disciplined execution and long-term ambition. We are confident in our ability to continue creating value while staying true to what has always made us unique. Thank you very much for your trust.

[Presentation]

We inform you that we have received a statement from the shareholder BDL ramp-up regarding Item 10 on the agenda. They are requesting clarification on the proposed resolution given that its title refers to the approval of the grant of Class B shares to executive directors as payment for the variable component of their compensation. Specifically, the question is whether a payment is being approved or whether purely informational proposal is being read, specifically whether the incentive plan is being modified to allow for a possible acceleration of the plan.

In the event that the delivery of shares as accelerated payment to executive directors is being approved, the shareholders through its representative asks on what basis the payment would be made. If this is being included for informational purposes.

The question is raised as to whether this agenda item should be withdrawn or reworded for being put to a vote. The full text of the statement is available to our shareholders on the general meetings online platform.

I now give the floor to the Chairman, so that he may answer the question or delegate to the member of the meetings Presiding Committee as it is appropriate.

Regarding the question received, I give the floor to Ms. Angeles Garcia-Poveda, Chair of the Appointments and Remuneration Committee.

Thank you, Mr. President. Firstly, I understand the question, and I thank you for raising the question because it is true that in the way this has been written. It may lead to confusion and your intervention gives us the opportunity to clarify this point. We will make sure this is totally clear in next year's resolutions. Regarding the content and following the published response on the website of the company, I wanted to stress that in no way are we approving accelerated payment or approval of compensation.

We are just submitting the maximum number of shares that could be delivered to executive directors at the end of this plan that is 2028. And perhaps it is now worth going over the way in which this long-term incentive plan works, which was approved in the Board of Directors in 2025 for the period 2025, 2029, with 2 cycles of 3 years, '25-'27, '27-'29. And each cycle has a number of quantitative objectives, which have been approved by the Board, which are annually published in the remuneration report with a range of compliance. This range of compliance at the end of each cycle determines the number of shares that will be attributed. In 2028, having closed the accounts the degree of compliance will be verified. This will be supervised by the auditing commission and the number of shares to be delivered will be calculated. I hope this intervention clarifies the questions. Thank you very much.

We now inform you that there is a second intervention statement from shareholder, Mr. [indiscernible] regarding the latest communications published by the CNMG concerning the discussions with the [indiscernible] companies. In particularly, he asked whether we believe that Estee Lauder may have undertaken the failed negotiation to promote itself in the market and positively impact its stock. I will now give the floor to the Chairman, so that he may answer the question or delegate to the member of the Board, he deems appropriate.

Thank you for the question, Mr. [indiscernible] I cannot have an opinion on the intentions of third parties. I can't -- what I can do is explain the way in which things have developed. We have the utmost respect and admiration for the Estee Lauder's company and for the Lauder family, we have known each other for decades. The previous generation had a very close relationship with our leadership team. And so that's our generation. And the approaches, and they tell us you are very strong in terms of fragrances in the category of Fragrances, you're present in Makeup and Skincare and us referring to Estee Lauder, we're strong in Skincare and Makeup, but not so strong in Fragrance. And so the combination of our companies would be a very good complement.

The same regarding geographical aspect, we are strong in Europe and Latin America, referring to Puig, and in their case, they are strong in North America and Asia. If these 2 companies that are complementary in categories and geographically would combine, this could make sense, and we would become world leaders in this sector of premium beauty. Our reply was, as I have explained in my intervention that we are not for sale. And therefore, we would have to agree on many aspects relating to governance, leadership and also economic terms. So many checks that we would have to complete with solutions. Eventually, the circumstances were not there. And with the utmost respect again and with all the consideration in the world for the Estee Lauder family, our final decision was that at this point, the necessary conditions were not being met, and we decided to end the conversations, and that is what has been published.

Whether they had other intentions, I do not know. I have shared with you what I do know. Thank you.

We will now inform you of the voting procedure. Hereby inform the shareholders that this general meeting, the company has provided the necessary met for the shareholders to delegate their proxy or exercise their voting rights through remote means of communication, which have been duly counted for the purposes of the aforementioned quorum of attendance. Likewise, as detailed in the notice of call, and as previously indicated, shareholders present on the platform have been able to cast their vote from the moment the shareholder or their representative connected to the online attendance platform and may continue to do so until the end of the voting period for the proposed resolutions relating to the matters included in the agenda is announced.

In the event that shareholders or representatives connected to the platform have not cast their vote before the end of the voting period, it shall be understood that they are voting in favor of the proposed resolutions formulated by the Board of Directors. We will, therefore, now proceed to vote on the various proposed resolutions that the Board of Directors submit for the approval of the General Shareholders' Meeting with regards to each of the items on the agenda to avoid excessively prolonging the General Shareholders' Meeting. And given that the full text of the resolutions to be voted on has been continuously available to shareholders since the notice of call. Set text will be deemed to have been read and only a brief summary of the resolutions will be read out.

Shareholders may vote until the reading of the summaries of the proposed resolutions has been completed, at which point the vote on the proposed resolutions included in the agenda will be closed.

I will now read the summaries of the resolutions proposed by the Board of Directors. The first item on the agenda is the approval of the individual annual accounts and management report of Puig Brands SA for the year ended December 31, 2025. The second item on the agenda is the approval of the consolidated annual accounts and the management report of the company and its group for the year ended December 31, 2025. The third item on the agenda is the approval of the consolidated statement of nonfinancial information and sustainability information of the company and its subsidiaries for the year ended December 31, 2025.

The fourth item on the agenda is the approval of the proposed application of the results corresponding to the fiscal year ended December 31, 2025. It is also submitted for approval under this agenda item, the distribution of a dividend charged to the profit for fiscal year 2025 in the amount of EUR 237,478,322.76. That is a gross dividend of EUR 0.42159 per share.

The fifth item on the agenda is the approval of the management of the Board of Directors during the fiscal year 2025. The sixth item on the agenda is the approval of the reelection of the auditor of the company and its consolidated group for the fiscal year 2026. The seventh item on the agenda is the approval of the appointment of the verifier of sustainable information for fiscal year 2026. This appointment will be conditioned upon it being necessary or possible in accordance with the regulation transposing EU directive 2022 [indiscernible] of December 13, 2022 into Spanish law with regard to the disclosure of sustainability information.

The item on the agenda is the approval of the reelection and appointment of members of the Board of Directors and the setting of the number of Board members. In particular, the following are proposed the reelection of Mr. Marc Puig as Executive Director under Item 8.1, the reelection of Mr. Nicolas Mirzayantz, Mr. Daniel Lalonde, Ms. Angeles Garcia-Poveda Morera and Ms. Christine Ann Mei as independent directors under items 8.2, 8.3, 8.4 and 8.8 respectively. The reelection of Mr. Jordi Constans, Mr. loannis Petrides, Mr. Rafael, as other external directors under items 8.5, 8.6 and 8.7, respectively. The appointment of Mr. Jose Manuel Albesa as Executive Director under Item 8.9, the appointment of Ms. Julie Van Ongevalle as Independent Director under Item 8.10.

The acknowledgment of the voluntary resignation of Mr. Josep Oliu under Item 8.11 and the setting of the number of Board members at 13 members under item 8. 12. The ninth item of the agenda is the approval of the remuneration policy of Directors. The 10th item on the agenda is the approval of the delivery of Class B shares to the Executive Directors as payment of the variable components of their remuneration. The 11th item of the agenda is the vote for advisory purposes on the annual Directors' Remuneration report corresponding to the fiscal year ended December 31, 2025. The 12th item on the agenda is the approval of the authorization for the sale of the Aromas de Castilla trademark in accordance with the provisions of Article 17 piece of the company bylaws. Finally, the 13th item on the agenda is submitted for approval to delegate powers to formalize, interpret, rectify and execute the resolutions adopted by the General Shareholders Meeting.

Having read a summary of the content of the proposed resolutions included on the agenda. The voting shall now be closed the votes cast on each of the proposed resolutions included on the agenda shall be counted and the results of the voting shall be announced shareholders representatives are reminded that as of this moment, it is no longer possible to cast votes through the platform yield the floor to the Chairman.

I hereby inform you that according to the information received by the Board, all the proposals for resolutions put forward by the Board of Directors are declared, approved the minutes of the meeting, I shall deal record the votes of those shareholders who have voted against cast a blank vote or abstained as well as those who have left the meeting prior to the voting and have informed the notary public.

These include the review and approval of the proposals made by the Board of Directors, and I'll now give the floor to the Vice Secretary.

As required, the result of the votes shall be recorded in the minutes of the meeting and shall be published on the company's corporate website in the manner and within the time frame established by law. Finally, we inform you that the notarial minutes will be considered as the minutes of the meeting and it will not be necessary to proceed to their approval in accordance with the provisions of the Spanish Companies Act and the commercial register regulations, I now give the floor who will report on the company's compliance with the recommendations of the good governance code.

To conclude, I wish to highlight the firm commitment to compliance and observant of the recommendations of the good governance code for listed companies published by the Spanish Securities Market Commission as well as to best market practices in this area. The company is committed to transparency and responsibility in matters of corporate governance. In this exercise of transparency, we will now detail the 4 recommendations that we partially comply with and the 2 recommendations that we explained as well as the reasons explaining which position. Recommendation one provides that the bylaws should not contain restrictions at [ Hinda ], the taking of control through the acquisition of shares.

The company's bylaws provide for 2 classes of shares, A and B, with different voting rights. Only Class B shares are listed. This multi-class structure was established by the controlling shareholder prior to the IPO and disclosed in the prospectus. Recommendation 15 recommends a minimum female representation quarter on the Board of Directors of at least 40%. At the end of 2025, female Board members represented 30.7% of the Board of Directors. Currently, following the changes approved by this general shareholders meeting, there are 5 female members representing 38.5% of the Board, complying with the organic law on equal representation according to the Spanish Securities Market Commission interpretation for Board of Directors with team members.

Of the total independent Board members, 71% are women. The company will continue to consider changes to the composition of the Board of Directors in accordance with the selection policy of the Board of Directors. Recommendation 25 provides the Board of Directors should establish a maximum number of boards on which its Board members may serve. The company partially complies with this recommendation as the regulations require sufficient dedication and the appointment and remuneration committee verifies availability, although no specific limit on the number of boards established.

Recommendation 48 establishes that highly capitalized companies should have separate appointments and remuneration committees. The company maintains a single appointment and remuneration committee as dividing it would not be efficient and would not affect the legal powers of the committee. Recommendation 52 and 53 are partially complied with the sustainability and social responsibility committee does not have a majority of independent Board members includes the Executive Chairman, and each Chairman is not an independent Board member. The main shareholder promotes compliance with best sustainability and ESG practices. Mr. Manuel Puig, Propriety Director, nominated by set shareholder, promoted the creation of this committee, reflecting the commitment to ESG objectives. Having concluded with the report on the company's compliance with the good covenant of recommendations, I will now proceed to end this General Shareholders Meeting.

I wish to thank all those present for attending this general shareholders' meeting and for their support of the resolutions proposed by the Board of Directors. I also wish to thank the Board of Directors, which I chair, the management team, the people who are part of Puig and all the shareholders for their trust and support. Thank you very much. The meeting is adjourned.

[Statements in English on this transcript were

spoken by an interpreter present on the live call.]

Good evening, and thank you for joining us as we discuss our sales update for Q1 2026 that ended on the 31st of March 2026. Today, we have with us our Chief Executive Officer, Jose Manuel Muniesa; and our Chief Financial Officer, Miquel Angel Serra. Jose Manuel will share some brief remarks, and then we will open up the line for Q&A. The presentation and the press release are available on our website, where you will also be able to access a recording of the call after the event. Jose Manuel, the floor is yours.

Thank you, Varenya, and good evening. It's my pleasure to be delivering my first earnings call today as the CEO of Puig. Before we get into our comments about Q1, I wanted to address what is likely front of mind for most of you. On the 23rd of March, Puig confirmed ongoing discussion regarding a potential business combination with The Estée Lauder, in which the 2 companies will potentially merge their business.

As of today, we can confirm that conversations are ongoing, but no final decision has been made yet. We acknowledge that there is a lot of curiosity about the progress of these discussions. However, unless an agreement is reached, there can be no assurance regarding the transaction or the terms. And therefore, at this stage, we cannot comment further on this evolving situation.

With that being said, I will turn to our Q1 update. We are pleased to report that we have delivered record Q1 sales and a solid start to the year, continuing our tradition of outperforming the premium beauty market as we have done consistently for each of the last 5 years, including each of the last 8 quarters as a public company.

Let's turn to the details. We have delivered a solid performance for the first quarter of 2026, which has resulted in a record net revenue of EUR 1.215 billion. This represents a 4.7% like-for-like growth and a 0.8% increase on a reported basis, delivering ahead of the premium beauty market. This performance was broad-based where we saw all our segments and geographies contributing towards growth on a like-for-like basis.

Our largest segment, Fragrance and Fashion showed outperformance within the context of more moderate underlying growth when compared to Q1 of 2025. This was supported by a strong performance in makeup and a steady delivery in skin care.

We had a notably negative impact of minus 4% due to foreign exchange, largely due to the comparison with the U.S. dollar rate versus Q1 of last year. Let me share now some more color by the business segments.

I will start with Fragrance and Fashion, which accounts for 74% of total sales. In the first quarter, the segment delivered another solid result with EUR 897 million in net revenue. This represents like-for-like growth of 3.9% and a reported growth of 0.1%, achieved against a demanding comparison base from Q1 of last year and with an environment of market moderation today.

Importantly, we see no gap in the sell-in and the sell-out in this category. As expected, performance during the quarter reflected a softer trend in prestige fragrances, while at the same time, Niche continued to show very strong momentum, delivering double-digit growth, once again outperforming the market.

We also continue to energize our brand through innovation with several important launches across our Prestige portfolio. Carolina Herrera launched Good Girl Jasmine and Bad Boy Cobalt Absolute, Rabanne launched Phantom in Red and Jean Paul Gaultier introduced Divine Couture and Le Male In Blue. We also continue with our collection-based approach in Niche with the launch of L'Amant by L'Artisan Parfumeur among other strong launches.

Overall, this performance once again demonstrates our ability to navigate on a more normalized market environment, combining disciplined execution, a balanced portfolio and a consistent flow of innovation. And this is only the beginning of the year. We have a strong pipeline of innovation. And over the quarters that follow, you will hear a lot more from us on Rabanne and on Jean Paul Gaultier. We also plan to share more with respect to our digital strategy in fragrance as we roll out it further.

Moving now to Makeup, which represents 14% of the total net revenue in the quarter. In Q1, the segment delivered EUR 171 million in net revenue, translating into like-for-like growth of 9.2% and reported growth of 3.3%. This reflects continued standout delivery. Growth during the quarter was driven by Charlotte Tilbury with strong momentum across both the Asia Pacific and EMEA regions. We saw continued innovation in Makeup at Charlotte Tilbury, including the Airbrush Flawless Blur concealer, Pillow Talk Balm Lip and Beauty Soulmates Palette.

Overall, the performance of Makeup this quarter highlights the continued delivery, supported by innovation and strong execution across key regions. We continue to see immense potential with Charlotte Tilbury for the long term. For a brand so attractive for consumers is distributed only in about 1/5 of the footprint that it could be in.

Turning now to Skincare, which represents 12% of the total net revenue in the quarter. In Q1, the segment delivered EUR 147 million in net revenue, reflecting solid like-for-like growth of 4.7% and a reported growth of 2.1%. Overall, performance was resilient, supported by a balanced contribution across the portfolio.

During the quarter, we continued to support growth through targeted innovation. Our Dermo-Cosmetics brands, Uriage and Apivita maintained positive momentum driven by the strength of their core range and relevance with consumers. We saw continued momentum of Uriage's hero franchise, Xémose C8+. Thanks to its new advanced formula with 8 biomimetic ceramides.

We also relaunched our sun care range Bariésun, which includes 2 new hero products and launched the reformulated version of Charlotte Tilbury Iconic Magic Cream. In terms of geographic expansion, this quarter includes the rollout of Loto del Sur in Mexico and Chile, extending the brand beyond its own market of Colombia for the first time. Overall, Skincare delivered consistent growth, underpinned by innovation and the continued strength of our [indiscernible] platform.

We also continue to be excited with the prospect of growing these brands for the long term and distribution potential for them across geographies and channels remains large. By geography, in Q1 2026, EMEA delivered net revenue of EUR 656 million, representing 54% of total net revenue. This translates into like-for-like growth of plus 3% and reported growth of plus 1.9%, reflecting continued solid performance in a more moderate consumer environment. Growth in the region was led by Fragrance and Fashion as well as Makeup, which continued to resonate well with the consumers.

Compared to the prior year, growth moderated as expected, following a stronger comparative and a more cautious demand environment. I will also note that the ongoing situation in the Middle East had an estimated minus 1.2% impact on Q1 revenues, largely concentrated in March. We are closely monitoring developments and currently expect some ongoing effects while continuing to operate prudently across the region.

The Americas generated EUR 428 million in net revenue in Q1, representing 35% of total revenues. On a like-for-like basis, the region delivered growth of plus 2%, while reported revenue declined by 5%, reflecting adverse foreign exchange effects, mainly driven by the U.S. dollar during the quarter. Underlying performance remained healthy with growth led by Carolina Herrera within Prestige as well as Byredo in Niche, confirming the continued strength of our brand portfolio across the region despite currency headwinds.

In APAC, which represents 11% of total net revenue, sales reached EUR 131 million, delivering a very strong like-for-like increase of plus 26.1% and a reported growth of plus 17.9%. This performance reflected continued momentum across the region, driven by Niche fragrances and Charlotte Tilbury and demonstrates the effectiveness of our ongoing investment, brand opportunity and traction in APAC market.

APAC represents over 1/3 of the global beauty market, yet accounts for just 11% of group sales. We have been investing behind reducing this gap for several years, and we believe now is the right moment to accelerate.

Turning to our outlook. We continue to expect to outperform the premium beauty market on a like-for-like basis, reflecting the strength of our brand portfolio, the relevance of our innovation pipeline and the disciplined execution across regions and categories.

At the same time, we expect that adjusted EBITDA margins will remain stable, broadly in line with full year 2025 levels despite operating in a more challenging cost environment. This reflects our focus on cost discipline, prioritization of our investment and the inherent resilience of our business model.

Before I wrap up these remarks, I want to reiterate that due to the confidential nature on the ongoing conversations between Puig and Estée Lauder, there is very little that can be said on the topic, and we have shared those comments already. We also want to take this opportunity to thank you for your patience and understanding as we postpone the Capital Markets Day, which we were also truly looking forward to on account of these ongoing discussions. In due course, we will look forward to sharing more. In the interim, we remain focused on executing our strategy with agility, supporting our brands and driving profitable growth. To conclude, Q1 reflects disciplined execution and a strong foundation for the year ahead.

Our strong pipeline of innovation and initiative for the year reinforces our confidence in the outlook and our ability to deliver it. With that, I'll hand it over to Varenya. Thank you.

Thank you, Jose Manuel. With that, we come to the end of our prepared remarks, and we'll begin Q&A. [Operator Instructions] The next question comes from Joffrey Bellicha Meller from BofA Securities.

I guess I will stay away from the potential deal and discuss the guidance. You reiterated the guidance, which remains qualitative. So has your outlook on the growth of the Prestige beauty market changed for the year? Or how should we think about it? I remember that a few months ago, Marc was discussing the 5% growth in consensus as being the right ballpark for the year. Do you confirm that this is still the number?

Thank you, Joffrey, for your questions. First, let me give you a little bit of color of the -- how do we see the performance of the premium market. We see that premium beauty still remains a very attractive consumer segment, and this is due to the global population with a strong appetite for innovation and for self-care.

Having said that, inside of this premium beauty, we see fragrance. This is expected to remain for us the more dynamic category, and we see particularly growth pockets in China, in Latin America, Middle East and Africa. We also think that this segment is driven by the premiumization of the fragrance. And in this case, as you know, we'll have a very strong portfolio of niche brands, which is growing faster than the overall fragrance market.

Having said that, and after many years of stellar growth, we are seeing that the fragrance market is normalizing and is going towards historical levels. And we are also seeing that brands are taking different strategies to growth with more promotions with more price offers and also with innovating in mass. In this sense, we are not going to play this game. We will lean on the strengths of our brands, and we remain confident that we will outperform through innovation.

So it's hard to say now how do we foresee the market evolving. But if we have a look at Q1, we can share that selective fragrance market is growing around 3.5% in Q1 like-for-like terms. This is based on the data at that time, we'll see the impact of the Middle East in the future months. We can share also with you that Makeup is growing at a low middle single-digit growth. And we see in derma middle single-digit growth. So we foresee a continuity of those first data for the year-end. I hope this answers your questions.

The next question comes from Aron Adamski from Goldman Sachs.

I have 2. First, on the U.S. launch of La Bomba. Can you share with us how much did it contribute to the Q1 fragrance growth? And should we expect that benefit to continue or to reverse in the second quarter? And then my second question on capital returns. I noticed a slight change in the outlook slide at the end around the capital return alternatives. And I just wanted to ask if we should read into that, if that suggests if there is a possibility of a share buyback in the medium term -- in the near term.

Thank you, Aron. First of all, let me take the first question about La Bomba. As you know, we launched in European and Latin America last year La Bomba, which became the #1 launch in 2025 with great results exceeding our expectation. We just launched La Bomba in the U.S. 2 weeks ago. So it's quite recent. We are ranking top 5 in those 2 weeks. We are expecting no cannibalization in Good Girl as we are seeing in the first 2 weeks, and we are extremely confident in these results. In the countries where we launched last year, we see continuous growth and continuous gaining on market share last year in Carolina Herrera and this year, Q1 also in Carolina Herrera, thanks to La Bomba. In terms of capital return, I'm going to hand out this question to Miquel Angel, our CFO. Miquel Angel?

Thank you, Jose Manuel. Aron, with respect to capital allocation, our priority will be remaining following our policy when it comes to dividend payout. So in this case, just a reminder, it would be 40% of net profit reported levels. Again, the next one will be approved in our AGM that's going to be held on the 29th of May. And then we continue to evaluate the different alternatives, but always bearing in mind that we are aiming not to have a capital structure of net debt over EBITDA levels below 2x. So no real change whatsoever to our capital allocation structure there. I hope that answers your question, Aron.

Yes. That's very helpful. And if I could just follow up quickly on the new Jean Paul Gaultier launch. I think you mentioned in the press release. Can you give us a sense on how many distribution points you're targeting with this new product this year and whether it will also launch in the U.S. at some point this year? And should we expect that to have a meaningful impact on the numbers or not?

Sure, Aron. This is a very important launch for us. This launch will happen in the second semester of this year. And this will be the first time we launch a feminine fragrance in Jean Paul Gaultier for the last 10 years. So we think that there is an important opportunity in the feminine fragrance, which represents roughly 65% of the total market. We are well known that our strong position in masculine fragrance market, which represents roughly 35% of the market and where we have a market share of 16.6%.

So our ambition for the next years is to capitalize on the feminine market. We launched La Bomba last year. We have this important launch of Jean Paul Gaultier in the second semester of 2026 in a very good momentum because the brand is enjoying a lot of momentum in worldwide. And we will continue in the next 2 years capitalizing on these feminine launches through innovation. So we see that innovation is the name of the game from our side, and we want really to make a statement in the next 3 years with those important feminine launches. Hope that helps and clarifies your question, Aron.

The next question comes from Celine Pannuti from JPM.

Congratulations on your new appointment. My question, I understand you cannot talk about the deal. Just my question is, nonetheless, understanding the motivation of talking or thinking about the merger. I think 2 years ago, we followed the IPO of Puig. Clearly, your performance and even today, you talked about the opportunities ahead. You seem to be very optimistic, and you flagged as well Asia, still a lot to conquer.

So why is it that Puig cannot conquer all of that on a stand-alone basis? What has changed versus the narrative of the IPO and as well the fact that the family had been engaged on a solo basis for more than 100 years. And just I have a follow-up question on could you tell us how big is Niche as a percentage of the total fragrance category? And when you say double digit, and I see how strong Asia is, and I think you bought Byredo, you mentioned and it's one of your biggest brands, am I right to believe it could be like in the 30% type of growth?

Thank you, Celine, for your question. I really understand that there is a lot of curiosity about the progress of this discussion. However, unless an agreement is reached, there cannot be assurance regarding the transaction or the terms. Therefore, at this stage, I cannot comment further on this evolving situation. As of today, the only thing I can confirm to you is that conversations are ongoing, but not final decision has been made yet and no agreement has been reached.

Having said that, proud -- at Puig, we are very proud of our first Q1 results, okay? We are pleased with those sales, and we see that as a solid start of the year. Concerning your second question around Niche, Niche is enjoying a strong double-digit growth in each one of our 4 Niche brands and in every single market worldwide. We see huge potential for Niche. We experienced amazing growth in Asia, but we are also seeing huge opportunities in North America.

As you may know, the U.S. represents roughly 25% of the total Niche global market, and we only account -- includes for 15% of our sales. We are only in 150 doors in terms of wholesale, where main competitors are roughly 600-plus doors, sorry. So we have a tremendous opportunity that we are going to take starting this year through expansion and escalation, which will be selective and productivity driven. We will increase our reach, but for sure, without compromising our positioning and our productivity in Niche. I hope this answers your question.

The next question comes from Mariano Szachtman from Santander.

So my question is on Asia Pacific, which was very, very strong. So could you provide more color on any particular country that you could flag on this superb growth? Also, if you could share approximately how much can be attributed to niche versus Charlotte Tilbury. And then lastly, on Asia Pacific, if you could also comment on this acceleration that you're expecting, any plans that you could share for the future of this region?

Thank you, Mariano, for this question. APAC represents roughly in the beauty -- in the global beauty market around 39%. And in our case, in the case of Puig, it only accounts for 11%. Having said that, we have a very interesting like-for-like growth this quarter with plus 26%, and we have been enjoying double-digit growth for the last 3 quarters, okay?

So we think it's the right momentum for us to take the opportunity of APAC. In the last 5 years, our main focus was in the U.S., where we are reaching roughly a 21% penetration, and now it's the right moment for Asia. So if we want to go deeper into Asia, what we are doing is to focus in 2 different strategy depending on the area. For Northeast Asia, we are going to focus on consolidate our Niche brands and Charlotte Tilbury.

As I was saying before to Celine, our Niche brands are enjoying an amazing double-digit growth and Charlotte Tilbury is growing in a very fantastic path. So we are quite happy, and we will focus on these Niche brands and Charlotte Tilbury. As you may know, over the last years, we created a subsidiary in Japan, we created a subsidiary in Korea, and we are going to take this opportunity to really focus on Northeast Asia.

If we have a look to the other part of APAC, we see Southeast Asia, India and Oceania, our focus will be in Prestige Fragrance and in Derma. So we are setting a high level of ambition, but without compromising our profitability. We are excited with the results. The teams are extremely motivated and the first results are extremely encouraging. I hope this answers your question.

The next question comes from Jeff Stent from BNP Paribas.

Okay. Just one question and one housekeeping question. The question is just following on from the last response. Would it be fair for us to assume, therefore, that we should see very strong growth in APAC for the foreseeable future, given that it's going to be much more of a focus for you than it has been and you'll be putting more resource in the region? That's the question. And the housekeeping, if you could just confirm that the Middle East impact, the 120 basis points, that was just on EMEA as opposed to the group as a whole?

Yes. Jeff, thank you for the question. Starting with Middle East. Middle East roughly represents about 4% of our total sales, I can be transparent with that. And the impact in this first quarter was 1.2%, okay? We see that first half, we expect this impact to be 1%, okay? So we are very careful of the situation and our first priority is the safety of all our employees. We can also share with you that travel retail is the most affected part of the Middle East business, and we see different levels of performance between Saudi and Dubai. But overall, we are taking good care of the situation. Your second question...

Just to confirm, the 120 basis points, is that's on the group level as opposed to EMEA or EMEA?

Jeff, so the rough impact is 1.2% on the EMEA region, okay? Just to help you with the math, it's around EUR 8 million.

Concerning APAC, it's a priority for us in the long term. We are focused on outperforming in the long term. I really want to see that this level of ambition is going to happen without compromising about profitability. As I was saying before, we have huge potential for growth. If we take a brand like Charlotte Tilbury, for example, is in a very reduced distribution, no more than 15 doors in China, not yet present in Korea, in Japan or in Taiwan. If we take our niche brands, we see high potential to grow. We are gaining market share, increasing our productivity per door, and we are extremely happy with those results. We will take a careful approach. But for sure, Asia is a long-term priority for us. I hope it answers your question.

The next question comes from Tom Randall from Jefferies.

Just one from us. So we had noticed there wasn't any color given around Barbara Sturm. So if you could provide an update on how the new strategy for the brand is going? And any context on what extent you've pruned the SKU count and by how much you've reduced the distribution as you've spoken about at the full year results? And are you seeing any good results so far? And what sort of time frame do you expect the turnaround to take?

Thank you, Tom, for your question. It's been roughly 2 years when we acquired this brand. In Puig, our first 2 years are really dedicated to premiumization of the brands, okay? So what we are doing for those 2 years. First, we put a lot of focus on reducing distribution. We cut roughly 30% of the existing doors. We also put a big focus on reducing the number of SKUs. So that was the first part of the premiumization of the brand.

Second part, we have been working together with Barbara in new launches. We just launched our first product together, Peptide Serum was launched 3 weeks ago with great results. It is today top 2 SKU in our portfolio. And we plan to launch our second launch together by the second half of the year in the anti-aging sector with huge expectation as our #1 launch.

So main focus those 2 years have been about that. We have not go to new markets, we have concentrated in the markets where we were, roughly U.S., U.K. and Germany. And as time goes by, we will start to first increase distribution in doors, improve the existing location as we have been doing up to now, and we will analyze future market in the years to come. I hope this answers your question.

The next question comes from Luis Colaco from JB Capital.

Just one question from my side regarding the Makeup business. This quarter had a relatively softer comparable when we compare with the next quarters that we're going to have. What type of growth can we expect for the Makeup, bearing in mind that you came from 90% growth in the third quarter, 27% in the fourth quarter, now 9.2%. What type of growth can we expect? And can you comment on the -- on how this is explained by the sell-in and sell-out of the segment?

Sure. I mean first of all, what I -- well, Luis, thank you for your question. And let me first share with you some data about how we are doing in Makeup. We are extremely pleased with our sell-out results. If we take a look at the first quarter of the year, we have been growing market share worldwide. We have grown more than 1.4% in Germany, more than 1.8% in France, more than 1.1% in Italy. We have grown 0.2% in the U.S., 0.3% in Canada.

So we are growing market share in every single country. We are extremely happy with the performance of our last Christmas campaign with great sell-out results. It's true that when you talk about Makeup, it's mainly Charlotte Tilbury and its brands -- has been only one brand, has a very specific calendar with anniversaries to do in terms of innovation and in terms of rollout distribution.

As we all know, last second half of the year -- last year, we opened Amazon in the U.S., and we also opened some doors in Australia with Makeup and in the U.S. with Ulta.

So anniversary of this opening will be compensated with an important innovation calendar for the second half of 2026. This first quarter, we enjoy a growth of 9.2% like-for-like basis. So we are happy for that. And we are going to see some in the second quarter, we're going to see important openings. For the first time, we will go to Boots with Charlotte Tilbury.

We will open a limited number of stores in the U.K., and we have also important innovation. There's also this balance between sell-in and sell-out that will happen in the second quarter. We have a very important sell-in due to the Amazon piece last year that will be equilibrated, but we are extremely happy and confident due to the good results of our sales growth in every single market. I hope this answers your question.

Thank you for allowing me a follow-up. I wanted on Middle East to understand so the impact, so it feels -- so my calculation is that March was down 50%, 5-0. Is that right? And can you explain where this came from? And what are you baking when you say 1% for H1? Yes.

And then what do you expect to be the collateral damages, so to speak, in terms of potential cost inflation, especially in glass, potential demand in travel retail globally and how Europe consumer may react to higher price point elsewhere, general inflation in the fragrance category? And then maybe also, could you comment on Americas? There's been no question on this and the region was quite weak. If you could comment on whether Latin America was negative, what drove quite a low level of growth in that region?

So I'm going to pass to Miquel Angel to take your question before about Middle East. So please, Miquel Angel?

Thank you, Jose Manuel. Thank you, Celine, for the question. So in terms of Middle East, and I think what Jose was explained before in one of the questions asked on the topic, we have been facing a higher pressure on the travel retail business over there versus the local business. This EUR 8 million impact, again, this is the March impact. And we do expect that with the conflict continuing over Q2 that the overall impact on growth for the group during first half to be around 1%.

That is how we are projecting the growth impact due to the conflict in Middle East. To the topic with respect to profitability and how the cost pressures, both on cost of goods or distribution could affect us, we are monitoring that reality, given the current situation, given the evolution of our brands and again, the plans we have for the year, we do still confirm our guidance for the year to keep EBITDA margins flat versus the ones we had last year. And as a reminder, we're at 20.7% over net revenues. So that is a bit what we are expecting with respect to Middle East. And I hand it back to Jose Manuel to answer the question on the Americas.

So for the Americas, first of all, in North America, we have a very healthy situation with fragrance. The launch of Good Girl is a good proof of that and the way we are scaling our Niche fragrance, Byredo and Penhaligon's. Latin America, as you know, last quarters have this ups and downs, but we feel confident with the region. We have a very important market share in this region.

We are putting, as I was saying before, efforts in Charlotte Tilbury. We just launched last year second quarter -- second half, sorry, of the year in Mexico with extraordinary results, reaching already a 3% market share with a very few distribution doors. So we are expanding this door, and we are considering new markets in Latin America. Also, Derma is an important priority for the future in Latin America.

We have good results in Chile and Mexico, which are the main markets where we are starting this skincare of Uriage in the region. So we feel excited. And La Bomba was a great success. We have a very important launch now in Carolina Herrera, which is the #1 brand in the area with 212. So it's specifically done for Latin America. And we have also the launch of Jean Paul Gaultier. So we have important expectation. Niche also was not a priority in the area, it's getting more and more relevant. we launched in Mexico, Penhaligon's and Byredo with good results. We are extremely happy, and we see much more potential than we saw at the very beginning and the same came for Brazil. So we are confident with that. I hope to answer your question.

And just to clarify Miquel Angel, the 1% for H1 is at the group level, not EMEA region?

You're referring to the overall performance for the group in H1.

The Middle East impact?

The Middle East impact in the overall figures for the group on growth to be around 1%.

Thanks, Celine. That was the last question in the queue. Thank you all for your questions today. We will be hosting our Annual General Meeting on the 29th of May and we'll be presenting our Q2 and H1 results during the week of July 27. We look forward to speaking again then. Thank you.

Good morning, and thank you for joining us as we discuss our results for the fiscal year 2025 that ended on December 31, 2025. Today, we have with us our Chairman and CEO, Marc Puig; and our CFO, Joan Albiol. Marc and Joan will share some brief remarks on the performance, financial results and outlook. We will then open up the line for Q&A.

You will find this presentation, the press release and other supporting regulatory documents on our website. You will also be able to access a replay of this recording shortly also on our website. Marc?

Good morning, everyone. 2025 was another year of strong delivery for Puig. We achieved record sales surpassing the EUR 5 billion milestone in net revenue, representing plus 7.8% like-for-like and plus 5.3% reported growth at the top end of our 6% to 8% like-for-like growth outlook for 2025.

Gross profit margin improved further to 75.1% despite the impact of tariffs and foreign exchange over the course of 2025, a reflection of our continued strong execution capabilities at scale. Adjusted EBITDA reached EUR 1.045 billion with a margin of 20.7%. This is an impressive improvement versus 20.2% in 2024 and comfortably above our guidance for the year.

Adjusted net profit grew to EUR 587 million, a margin of 11.6%, growing 6.5% over 2024. This represents EUR 1.04 of adjusted earnings per share. Reported net profit was EUR 594 million or 11.8% of sales, up 70 basis points as we cycle the IPO-related one-off costs in 2024.

Free cash flow conversion was solid at 64%, and we ended 2025 with leverage at 0.7x net debt to adjusted EBITDA, comfortably below our threshold of 2x. Joan will discuss our financial performance in further detail later in the presentation.

2025 was another year of strong disciplined execution with net revenues reaching EUR 5 billion despite meaningful currency headwinds. Our 7.8% like-for-like growth at the top end of our 2025 outlook range after absorbing a 2.6% negative impact from foreign exchange resulted in 5.3% reported growth. Growth remained broad-based across all business segments with a healthy performance in Prestige, while Niche showed strong continued momentum. Makeup delivered a standout year with double-digit performance.

We also continued growth into skincare, where strong organic growth in Dermo-Cosmetics, complemented by Charlotte Tilbury skincare, further strengthened our position in one of beauty's largest categories.

Our like-for-like growth included a negative 0.4% impact from the hyperinflation adjustment in Argentina versus a positive impact last year. Despite this headwind, we still delivered strong high-quality growth aligned with our long-term ambitions.

We saw growth across all of our regions with noteworthy double-digit like-for-like growth in Asia Pacific, where we are still underrepresented.

Turning to the fourth quarter. We delivered another very strong finish to the year with 9.8% like-for-like growth even as we cycled a very strong Q4 last year. This performance reflects the strong demand for our brands from retailers over a very important holiday period and our ability to execute effectively across markets. Net revenues reached $1.45 billion, supported by solid underlying momentum, even as we absorbed a 3.6% foreign exchange headwind in the quarter, an impact we expect to continue into 2026.

Looking across the year, we achieved consistent performance each quarter, accelerating into Q4, even while underlying growth in the fragrance market moderated into the second half. Overall, Q4 capped a year of robust and balanced growth.

To share some more color by business segments, let me start with Fragrance and Fashion, which continues to anchor our portfolio. Representing 72% of our net revenues in 2025, the segment delivered another year of impressive and resilient growth, reaching EUR 3.6 billion with like-for-like growth of 6.4%. This was a strong performance in a promotional and highly competitive environment, and it enabled us to defend our global value market share at 11.1% for the year.

Our growth was driven by continued momentum in Carolina Herrera, supported by the launch of La Bomba, along with excellent delivery from Jean Paul Gaultier. Our Niche portfolio once again outperformed with double-digit growth led by Byredo. We continue to hold 3 of the top 10 positions in global Prestige fragrance brands with Rabanne, Carolina Herrera, and Jean Paul Gaultier reaffirming our leadership position in the category.

We also saw strong creative progress across our fashion houses, including the boots at Jean Paul Gaultier and Dries Van Noten and high visibility Carolina Herrera show in Madrid. Dries Van Noten fashion delivered a notable contribution this year.

In Q4, net revenues reached just over EUR 1 billion with like-for-like growth of 6.2%. This represented a slight acceleration versus Q3, supported by robust holiday sell-in while lapping a very strong comparable last year. The quarter also absorbed a 1.9% hyperinflation impact from Argentina. Overall, this was a solid finish to the year for our largest segment.

Turning to Makeup. This was our strongest growing segment in 2025. Makeup delivered EUR 845 million in revenue, up 13.7% like-for-like. The performance was led by Charlotte Tilbury, our largest makeup brand, which had an exceptional year. We saw a powerful combination of innovation, geographic expansion, strong activation in APAC contributing to consistently high growth.

The innovation pipeline remained very robust, with the Airbrush Flawless Foundation and Setting Spray Matte, the Super nudes collection and the expansion of the Unreal franchise. At the same time, we strengthened our distribution footprint with Amazon in the U.S. and entered a new market in Mexico. Charlotte Tilbury maintained its #1 Prestige makeup ranking in the U.K., and #3 in the U.S.

In Q4, makeup generated EUR 276 million in revenue with exceptional like-for-like growth of 26.5%. The quarter benefited from strong momentum across Charlotte Tilbury and the fact that we were lapping a softer competitor.

In skincare, we delivered a very solid year with net revenues of EUR 551 million, up 8.9% like-for-like. This represents 11% of the company's total revenues and marks another year of consistent execution. Growth was led by Uriage, which continued to deliver double-digit performance driven by the strength of its hero franchises, Xemose and Age Absolu, supported by new launches such as Bari sun Invisible stick and the Ros liane serum. This was complemented by ongoing growth in Charlotte Tilbury skincare, which continues to be an important contributor to the segment.

In Q4, skincare reached EUR 141 million in revenue, delivering 7.9% like-for-like growth. This closed out a year of steady and balanced performance across the portfolio, with strong consumer response to both established pillars and new innovations.

Turning now to our performance by region. We saw broad-based international growth in 2025, with healthy demand across all markets. Starting with EMEA, our largest region at 55% of revenues. The business delivered EUR 2.75 billion for the full year, growing 5.5% like-for-like. This reflects disciplined execution in the fragrance market that has normalized from previously elevated levels with continued strength from Charlotte Tilbury and Derma.

In Q4, EMEA grew 9.2% like-for-like to EUR 854 million, an acceleration versus the prior quarter, supported by strong holiday sell-in and solid fundamentals across the region. The Americas represented 35% of group revenues, delivering EUR 1.76 billion and 7.7% like-for-like growth for the year. Foreign exchange was a meaningful headwind throughout 2025, driven by the U.S. dollar and several Latin American currencies and the hyperinflation adjustment in Argentina reduced like-for-like growth by 1.1%. Despite this, performance remained broad-based across categories and was supported by the launch of Charlotte Tilbury on Amazon in the U.S.

In Q4, the region delivered 7.6% like-for-like growth to EUR 429 million. We saw an improvement versus Q3, particularly in Latin America, even as we absorbed a 4.5% hyperinflation impact from Argentina. Asia Pacific was our fastest-growing region, delivering EUR 530 million and 21.7% like-for-like growth for the year. Growth was strong across Charlotte Tilbury, Niche and Derma and benefited from the up fleet associated with the consolidation of local subsidiaries, an effect we do not expect to repeat 2026.

In Q4, the region grew 18.9% like-for-like to EUR 163 million, maintaining strong momentum across all key categories. Overall, all 3 regions contributed positively in both fiscal year 2025 and Q4, demonstrating the strength and diversification of our global footprint.

We continue to make progress toward our ambition of being at the forefront of ESG practices. In addition to the rankings and scores that we shared a few months ago, in 2025, our efforts have continued with APIVITA renewing its B Corp certification with one of the highest scores ever recorded. We are proud to share that Uriage has also joined the B Corp community, marking another step in our commitment to purpose-driven growth.

With this, I will hand it over to Joan, who will walk you through the details of the financial performance.

Thank you, Marc. We are very proud of the financial performance of Puig during 2025. We showed a strong growth ahead of the market and at the top end of our outlook for 2025. We improved our EBITDA generation while continuing to maintain a healthy investment level behind our brands. We continue to improve our cash flow management. And finally, our capital structure remained robust, comfortably below our threshold, providing significant flexibility for future commitments.

Now let's get into the details. I would like to start by providing you with a summary of our income statement for 2025, where I would like to highlight our net revenue like-for-like growth of 7.8%, our gross margin of 75.1% maintaining its position as one of the highest in the industry. We delivered adjusted EBITDA of EUR 1.045 billion, at 20.7% is also an improvement of 49 basis points compared to the prior year, ahead of our guidance for full year 2025.

Finally, our adjusted net profit was EUR 587 million with an 11.6% margin. This represent an increase of 6.5% compared to the prior year. Our key indicator for operational profitability, the adjusted EBITDA margin has increased to 20.7%.

Let's review the drivers. First, we improved our gross margin further to 75.1%, an increase of 19 basis points versus full year 2024. This reflects ongoing operational efficiency and a favorable mix evolution driven by the growth of Niche, partially offset by negative foreign exchange impact and the U.S. tariff effect. Our distribution cost margins were flat versus 2024.

We continue to leverage our SG&A expenses, improving by 37 basis points over full year 2024. As we have continued to expand our footprint and own store network, our D&A as a percentage of net revenue increased by 22 basis points. At the same time, we continue to invest at best-in-class levels of A&P at 32.7% of net revenues to support sustainable long-term growth.

Our total operating profit reached EUR 812 million, an increase from the EUR 759 million in the prior year, with an overall operating profit margin of 16.1%, which reflects an improvement of 27 basis points versus 2024.

Looking at each business segment, we have seen valid contributions and dynamics. Our Fragrance and Fashion operating profit amount to EUR 683 million in 2025 compared to EUR 678 million in 2024, implying an 18.7% margin or 55 basis points decrease versus 2024. This reflects a slightly higher A&P to support growth in a normalizing market and the continued expansion of Niche.

The Makeup segment show a significant improvement in operating profit, reaching EUR 96 million or 11.4% margin over 5.6 percentage point improvement over 2024. This reflects the strong performance of Charlotte Tilbury, driven in part by the initial pipeline of Charlotte Tilbury into Amazon in U.S.

At the same time, our smaller makeup initiatives continued to prioritize investment with a disciplined focus on return. It is also worth noting that 2024 profitability include nonrecurring events that temporarily reduced margins, contributing to the magnitude of the year-on-year improvement.

Skincare segment operating profit amount to EUR 33 million in full year 2025, implying a margin of 6% or a decrease of 1.25 percentage points versus full year 2024. Profitability in this segment was affected by continued investment and integration cost related to Dr. Barbara Sturm and other subscale skincare brands, reflecting our commitment to building long-term capability and scale across the portfolio. Overall, each category reflects disciplined execution and investment aligned to long-term strategic priorities, with operating margin expanding at group level despite varying dynamics within individual segments.

We continue to believe that as we gain scale in makeup and skincare segments, their profitability will have the potential to converge with the group level.

Focusing on the bottom line, we delivered a solid performance in our adjusted net profit for 2025, reaching EUR 587 million, with a margin of 16.6%, up 10 basis points over 2024. This was driven by the strong growth overall business, along with the improvement in operating profit and lower interest expenses on debt in 2025 versus 2024, which was partially offset by the foreign exchange impact on financial results, lower income from associates and joint ventures and the higher tax rate.

Reported net profit grew 11.9%, representing a margin of 11.8%, up 70 basis points. This primarily reflects the absence of nonrecurring IPO-related items that negatively impact full year 2024 reported net profit. Full year 2025 was another strong year of cash generation.

Let me take you through the key elements. Our free cash flow from operations improved to EUR 664 million, compared to the EUR 634 million in 2024. This reflects the flow through the higher operating profit and working capital improvements. Following a few years of pandemic-related disruptions, this marks our second consecutive year of strengthening working capital performance, bringing us closer to normalized operating level. This resulted in 64% free cash flow conversion of adjusted EBITDA.

Our CapEx remained in line with expectations at 4% of net revenues. Operational cash flow improved substantially to EUR 684 million compared to EUR 549 million in 2024. This reflects improved underlying cash generation and the absence of IPO-related cash outflows of EUR 85 million recorded in the prior year. This year, we also had a positive cash adjustment due to the nonrecurring cash inflow from the relocation agreement of our manufacturing facility in Chartres, France.

Our net financial leverage currently stands at 0.7x net debt to adjusted EBITDA, which is comfortably below our 2x medium-term threshold, allowing us to maintain both operation and financial flexibility. Net debt was EUR 716 million during the period, reducing by over EUR 350 million versus the end of 2024, and this reflects strong operational cash flow after CapEx, payment of EUR 212 million in dividends, a minor stake increase in Kama Ayurveda in April 2025 and also the negative impact from financial flows and leases. We finished 2025 with leverage 0.4x lower than those in 2024, reflecting a strengthening capital structure and continued financial flexibility.

Liabilities from business combination stood at EUR 988 million, a decrease from EUR 1,088 million at the end of 2024. This was mainly due to foreign exchange movement and the periodic reassessment of our future obligations. There were no significant new transactions in 2025.

To wrap up our financial remarks, we would like to provide also a view on the timing of expected cash outflows related to this liability from business combinations.

As you can see in the calendar, out of the EUR 988 million of liabilities, the largest cash outflows is expected to happen about 5 years from now in 2031. And relating to the minority stakes not owned by Puig in Charlotte Tilbury and Barbara Sturm. In 2026, we have upcoming maturities currently valued at EUR 351 million, which will be paid in cash over the first half of the year. Even with these payments, we'll remain comfortably below our leverage threshold.

I'll now pass it back to Marc for the outlook and a few closing comments.

Thank you, Joan. Before I move into our updated guidance, I want to briefly highlight that in 2025, we once again delivered firmly against the commitments we set out at the start of the year and at our IPO. We outperformed the premium beauty market, growing high single-digit like-for-like, advance our margin improvement ahead of guidance and strengthen our balance sheet, all while continuing to invest for sustainable long-term growth.

In 2025, we completed our previous 5-year strategic plan communicated in early 2021, which set our ambition to double our 2020 revenue in 3 years and triple it in 5. We exceeded those goals, more than doubling our revenue by 2022 and more than tripling it by 2025.

Looking ahead to 2026, our guidance framework has been updated to reflect the evolving dynamics of the beauty market while remaining anchored in the strength and desirability of our brands. We remain confident in our ability to continue delivering like-for-like revenue outperformance versus the premium beauty market. As in 2025, we anticipate a negative foreign exchange impact, particularly in the first quarter, but this does not change our fundamental growth ambition.

As a reminder, we will also be lapping a strong comparable, particularly in the Fragrance segment in Q1. We continue to see medium-term upside for adjusted EBITDA margin, supported by mix evolution and operational discipline. In 2025, we reached a margin of 20.7%, well ahead of our initial guidance, where we expect it to improve about 20 basis points this year.

For 2026, we expect margins to remain stable, and we have factored in healthy investment levels in our brands while anticipating impact from tariffs and foreign exchange. Our capital structure policy remains unchanged. We will maintain strategic flexibility to finance future growth, targeting a net debt to adjusted EBITDA ratio not exceeding 2x. We also confirm our intention to maintain a 40% dividend payout ratio out of reported net profits, consistent with our track record.

For 2025 results, this would translate into a dividend of EUR 237 million or EUR 0.42 per share, subject to shareholder approval at the Annual General Meeting.

Finally, we will continue to follow a highly selective approach to M&A, focused on opportunities that present a clear strategic fit with our portfolio while maintaining our capital discipline. In summary, our guidance reflects confidence in the resilience of our business model, the continuing strength of our brands and Puig commitment to delivering sustainable value-creating growth.

Before we close, I want to leave you with a sense of the excitement we are bringing into 2026. We entered the year with great momentum, and we have an excellent pipeline across our brands, innovation platforms and operations.

Let me share just a few highlights. First, in Fragrances, we have an exciting calendar coming from Jean Paul Gaultier, including a major Haute Perfumerie launch. Gaultier continues to be one of the most culturally resonant houses in our portfolio, and 2026 will be a year of significant creative expansion and market impact.

We will also continue the geographical rollout of La Bomba in the U.S. in the first half of this year. This will be complemented as in every year by range extensions from all of our prestige brands and collections-based launches from our Niche brands true to our DNA as a home of creativity. Second, Charlotte Tilbury will continue this year with a very strong pipeline of innovation, which will further reinforce its hero franchises and leadership in Prestige beauty.

Third, on the operational side, our Chartres' production plant will transition to a new site within the French Cosmetic Valley. This move represents another step forward in scaling our capabilities, improving efficiency and supporting the long-term growth of our fragrance operations. The move will allow us to significantly improve and increase capacity and flexibility in manufacturing processes when compared to the existing one. This project started in 2025 and works will continue until the first semester of 2027 when the opening is planned with no interruptions in production while ensuring the best transition for our people.

And finally, in April, we will host our first-ever Capital Markets Day. This will be an important moment for us to share our new long-term strategic road map, our priorities for sustainable allocation and the powerful trajectory we see ahead for Puig. Please note that we have brought forward the date. It will now take place on April 14 in Madrid and will be accessible via live stream. Details will be made available on our website in due course. Taken together, these highlights reflect a company that is moving with confidence, innovating, investing and shaping the future of beauty. We are very excited about what lies ahead.

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

The next question comes from Aron Adamski from Goldman Sachs.

Congrats on the results. I have 3 questions. First on the outlook. Could you please give us a sense on what is your latest read for the premium beauty market growth rate year-to-date? And in that context, how are you feeling about consensus expectations for 5% organic growth in 2026? And given your comments, would you expect the growth to be weighted towards the second half of the year?

Second, on La Bomba, which you briefly mentioned. Can you give us an update on how the consumer replenishment is tracking for this launch since you have launched it a few months ago? And how many outlets have you reached with it so far in 2025? And how many additional points of sales do you expect to add in 2026?

And third, the last question on Charlotte Tilbury. Can you give us a sense of how this brand is performing in its existing outlets? And how much of the growth is driven by the distribution footprint expansion? And if you could, what are your expectations for makeup growth this year?

Thank you, Aron. I'm going to start in reverse order. First, Charlotte Tilbury. Charlotte Tilbury is a brand that even in those markets where it has a long history and high rankings like the U.K. is still distributed in much less number of doors than its main competitors. So it is obvious that as we progressively expand distribution, it will eventually lose some of the sales in those existing doors. But we still have plenty of room for expansion, and that's one of the reasons that brand has been growing.

Your second question regarding La Bomba, it takes time for a pillar, as we call it, to prove its validity. When we look at the sister line, Good Girl that we launched in 2016, it reaches its top rankings just last year. So it took 8 years in this case. Our initial results for La Bomba are very promising. We have launched only in a few markets in Europe and Latin America. This year, we we're going to launch in the U.S. So it's going to be a significant -- the largest market in the world, a significant upbeat. And so far, the indications and the results we have are very promising, and we are very happy with this launch.

Regarding the outlook, we -- it is clear that you're asking from the premium beauty market, and I'm going to talk more about the fragrance market. We have been living both in fragrance, particularly in the premium beauty market on a super cycle, as some of you call, since COVID. And we have -- we see tailwinds, particularly for the fragrance category because there are many trends that we have seen emerging in the last few years that give us confidence that the category will continue growing faster than the many other consumer categories. The challenge is this transition from super cycle to normalization, it's more difficult to predict. And that's the challenge that I've seen also in some of our peers when they are talking about 2026.

What I can say about 2026 is that we think that current consensus for our growth is not unreasonable. I think this answers your question, Aron.

The next question comes from Jeff Stent from BNP Paribas.

Just one quick question. Barbara Sturm, can you just please comment on that? And I think you only touched on it from the sort of margin perspective, but just how things are going there and whether you remain confident in the outlook for Barbara Sturm?

Thank you, Jeff. Yes. We have explained oftentimes that when we buy or partner with a brand like this one, it takes time to bring it to the level that we think it should be. In the case of Barbara Sturm, there's been a number of steps that we have taken so far. We pruned the portfolio. We reduced distribution. Barbara told us that she had expanded distribution a little too much prior to selling the company. So we have pruned also distribution. And in the last 18 months, we have been integrating that company into our portfolio. So that means that there is a certain transition since we take over a brand, and we see the situation in reality of the brand.

Having said this, we are firmly confident of the potential of this brand as we were when we bought it, and we know it takes time. That's one of the reasons why we think or we say that in premium beauty, you have to have patient capital that can be comfortable in taking time when you have to build brands. I hope this answers your question, Jeff.

The next question comes from Celine Pannuti from JPM.

Congrats on the great '25. My first question relates to the fragrance division. So you had a strong quarter 4, and I think you mentioned La Bomba additional sales there. But you also mentioned that the fragrance market was slowing into year-end. So I just want to understand the sell-in benefit that you had in Q4? And what does that mean for Q1? You mentioned Q1 had a tough comp. Do we expect some rollback in Q1? And I don't know if there's -- to which extent we can have that.

And maybe also on fragrance, Marc, you seem to mention the transition between super cycle and normalization. Beyond the Q1, what kind of visibility you have for the year on the fragrance category growth? My second question is on some of the moving parts on the P&L. Can you talk about what was the impact of tariff and FX on gross margin in '25? Do we double that for '26? And on FX, it was unclear to me, you mentioned that Q1 would be as Q4, but can you give us an impact on FX for the year? And then maybe just as well on that point, if you could give us as well some guide to understand the moving part in net financial and associate income for '26?

Thank you, Celine. Many questions. On fragrance, we had a soft Q3. And when we talked to you in September, the expectations at that point were a little bit more moderate, let's say. And then we saw competition in Q4 that accelerated from that time. Now it's -- sometimes it's difficult to -- when you have Q3 and Q4 in our case, given the penetration of fragrance in our portfolio, you always have Christmas season in September. Cat at the end of September could be earlier or later and can have an effect on the Q3 and Q4 momentum. So in that sense, I think that we saw a Christmas season that was a little better than what we had anticipated, and in spite of a quite aggressive promotional activity from many of our peers.

Regarding the transition between super cycle and normalization, as I said, it's a little difficult to project how this transition will be. As I said, we're confident about the category because remember, many of the trends we've seen in the past few years, whether it is the potential in emerging markets because when people go from low class to middle class, fragrance is one of the first categories that they are attracted to. We've seen the young crowd through TikTok, particularly teenage boys jumping into the category.

We've seen the social network curiosity of our fragrance has had an impact in sales. We've seen many emerging -- many markets where the culture of fragrance was not very developed. The young generation is jumping into that category. And whenever people start using fragrance, where it is occasional usage or as part of your routine, people don't go back. It's very sticky. So those -- all those trends give us confidence that the category has momentum, has tailwinds. And as -- the challenge is to predict how this super cycle will go to normalization. And that's why I think '26 is in that year. So that's why we're reluctant to give numbers yet. And best we can say is we're confident we will be able to keep growing faster than the category as we have done or the industry, as we have done in the many of the past years, but more difficult to give a specific number.

Third, on tariffs and impact on gross margin. As you saw, we were able to absorb in 2025, the impact of tariffs as well as the impact of foreign exchange. Our gross margin increased last year in 2025 versus 2024.

In 2026, there will be a full year impact. And our projection is that we will be able to absorb the impact that we will have both in foreign exchange and in tariffs with the operational efficiency and some of the evolution of our mix. In terms of -- yes, you were mentioning the Q1 and -- yes, in foreign exchange, it's difficult to project more than Q1 because I don't know what different currencies will do. The effect we expect for Q1, it's going to be similar than what we saw in Q4 last year, around 3.6% foreign exchange negative impact.

Finally, regarding net debt. Yes. Regarding evolution of net debt, we -- of the different -- maybe Joan, you want to comment on that. The question was...

It was on associates.

On associates.

On associates. Evolution of...

On Isdin. Right?

Net debt on -- so on. No, no, no. On the business combinations, I understand, no. No?

Isdin. Isdin.

Sorry, Celine, can you repeat the question? Is that possible?

Yes, absolutely. If I look at '25 below the EBIT, your net financial came ahead of what we had and associates came a bit below. So I just want to understand how to look at that for '26, please?

No, I think this refers to Isdin. After years of high growth, this year Isdin has had a flat year. And we have had a negative impact in the profitability due to the flat sales and due to some LatAm currencies. This trend, it's difficult to predict in terms of the impact of LatAm currencies, how this will evolve. But we think we'll continue similar trend. So we think will be -- associates will move similar this year.

On the other side, we have had very good performance in Granado. So we think that this will compensate any potential reduction in Isdin. So in general, we think we will be stable. I don't know if we answered your question, Celine.

Yes. Anything on net financial, please?

On net financial.

Yes. Any...

No, I think there is nothing. As we mentioned, there is some outflows of the liabilities we have in the first part of the year, basically because we are buying part of the percentage that we have with Charlotte Tilbury, and we have indicated in the presentation that we have an outflow of EUR 351 million extraordinary this year that is related to the increase of our participation in Charlotte Tilbury. We'll end up with 85% of the company after that. Other than that, I think everything stays similar that we have this year.

The next question comes from Fernando Abril-Martorell from Alantra.

Hello. Sorry, do you hear me?

Yes.

Okay. Now so just a quick follow-up on the last one on associates. So you've mentioned that sales were broadly flat in Isdin. I've seen the report, but profits are down due to ForEx? Or is there any other one-offs or extra investments that you've carried out in fiscal year '25?

Then a couple of more questions on working capital. So as you said, this is the second consecutive year of working capital inflows. So how should we think about working capital dynamics in '26 and whether you see there is room for further improvement? Or should we expect some sort of normalization from current levels?

And last one, on gross margin. So you've mentioned the growth in the Niche. But I don't know if you can comment on the sales mix. I understood that makeup typically have typically has a higher gross margin than the group average and whether this was also a notable margin driver for fiscal year '25 or not at all?

Thank you, Fernando. First question in Isdin, the flattish sales evolution had an impact in the results, but mostly foreign exchange impact from Latin America currencies was what had biggest impact in the P&L.

In working capital, at the time of the IPO, we did mention that due to the inefficiencies built after COVID because there were problems of supply and very high growth, we had been investing in building up stock to levels that were above what we had typically had in the past. And we said that it will take about 18 months to normalize. And that's why last year, we had a good cash flow benefit from this normalization of working capital. And this year, we have continued to do so. We are closer to normalization.

So going forward, we'll see a normal path in terms of cash flow generation through working capital improvement. There's a little room, but much less than what we've had in the past.

And then finally, on gross margin, it's true that some of our -- the Niche has been growing faster. We mentioned in our notes that it has been growing at double digit, and Niche has a higher gross margin, in particular, because certain percentage of the business that we do in Niche is direct to consumer as well as the makeup, there is a higher gross margin. So the weighted average combination is benefiting from the evolution of our mix. Fernando, I think that -- I hope that answers your questions.

The next question comes from Tom Randall from Jefferies.

A couple if I may. So first of all, one of your peers had said that the luxury fragrance category grew around 5% in 2025. But you've indicated this morning that your share has gone from 11.5% last year to 11.1%. So do you mind just walking us through those dynamics and maybe let us know what you saw the fragrance category grow in '25? And then if you did lose share, where was the share lost, which kind of markets or channels?

And then secondly, regarding the makeup segment. So should we expect a slower start to the year in makeup in the U.S. or in total as retailers find the right level of inventory following the Amazon launch? And should you expect any kind of unwind in makeup following the launch? Or should we see those Amazon sales as mostly incremental?

Thank you, Tom. In terms of luxury fragrance evolution, we have -- we show last year our market share 11.5% and this year at 11.1%. It's true that we -- every year, we try to improve the measurement of our market share. And in our internal numbers, we have lost a little less than what this 0.4% gap shows.

Last year, there was a very -- in certain markets, a very aggressive promotional activity from some of our peers, particularly in markets where we have high market share like in Latin America. And that was a dynamic that we didn't necessarily follow, which proved that we might have lost a little bit of market share because of that. The -- when you look at our evolution of market share over the last 2 decades if you want, we went from 3% market share 20 years ago to 11%. And with our formula on brands creativity, desirability, storytelling, and we have been able to continually progressively gain market share. Maybe it doesn't mean that every single year we have done so. But as a whole, we still believe our formula has -- allows us to keep winning in this market in spite of maybe last year was a little bit flattish.

In terms of your second question, makeup, we had a very strong Q4 and added with the Q3 in the launch in Amazon, was a strong end of the year, thanks to a very powerful Christmas campaign that resulted in a good response from consumers.

Now for Q1, we have mentioned that -- and that's for makeup, but also for the other categories. We had a very strong -- I mean we are lapping a very strong Q1 in 2025. We have an impact on foreign exchange that will impact our reported sales. So we see probably a softer Q1, but we're confident on our overall year for next year. Tom, I think -- I hope I answered your questions.

The next question comes from Jos Rito from Caixabank.

So I have 2 questions. The first one on Charlotte Tilbury. So I think that in Q4, we had a strong contribution also from Amazon, as it was the case in Q3. My question is if this will prevail in the first half of 2026? And if you intend to have or planning to have a big retailer launch such as Amazon in 2026. That will be my first question.

Then the second question on APAC sales evolution. So it was quite strong in Q4. Just to see if you can provide any color in terms of if all divisions had a strong performance in APAC or if this was also driven by makeup?

Thank you, Jos . First question regarding Charlotte Tilbury. It's true that last year, particularly in the second half, we have the launch in Amazon. But as I said, in general, Charlotte Tilbury is a brand that is much less distributed than many of its peers. There are many markets. Latin America, we have only launched in Mexico. Travel Retail, we're only starting last year to really enhance our presence. There are many markets where we have launched only in 1 or 2 exclusive retailers until we expand.

And an example is in the U.K., where the brand is #1 retailer. We're not present in boots, and we are going to open a few boots this 2026 for the first time, not all because it's a huge network, but we're starting to open boots in that market. So it's a proof that the brand still has legs to grow.

Regarding the APAC, we have probably of the companies, in our peer companies, we are the company that has a less penetration in APAC. And since we have been evolving our portfolio, in a way that is more aligned with some of the needs of APAC markets, we see continuous opportunities to grow in APAC. And this should -- last year, we had an additional benefit, which was the consolidation of some of the subsidiaries that we had been opening during the year or the prior year, which will not be repeated this year. But in general, APAC is a territory where both makeup, skincare, niche fragrances or overall fragrances have potential to keep growing. I hope that answered your question, Jos .

The next question comes from Jie Zhang from AlphaValue.

Congratulations on the strong results. Actually, most of my questions are already answered. So one left for me, please. So Marc, you mentioned that at the end of presentation that you will stay active on M&A. So could you share a little more which category you are looking more actively so this year 2026, please?

Thank you, Jie, for your congratulations. I like that. M&A. We have always said that we don't commit to the M&A inorganic growth for our future growth because we don't want to be slave of our words. It's true that when you look back, we have -- M&A has been an integral part of our growth. The challenge is that we only get excited with certain brands and that we believe have potential, have a story to tell, have a reason to exist, and then we get excited.

So going forward, we do about 100 things a year. And some years, we don't pursue anything. Others, we do and because there's an option, we don't necessarily win. So we are actively looking and -- which doesn't necessarily mean that something will happen. That's, I guess, what I can say.

The next question comes from David Da Maia from CIC.

Actually, I have 2. The first one on LatAm, which is an important market for you. I was a bit surprised to see that in Q4, you mentioned strong performance in the last quarter because one of your peers mentioned recently that, that market was a bit slowing down at the end of last year. So it was mainly due to the launch of La Bomba on that market. So that was my first question.

And the second one, on your Prestige segment, can you give us more color on the performance in the full year of your main brands like Rabanne, for example, it seems that the brand is losing some momentum. It's still a billionaire brand today. And are you confident, for example, to see Charlotte Tilbury reaching that threshold this year?

Thank you, David. LatAm, we -- we have -- that's the region of the world where we have the highest penetration of our brands. And particularly, Carolina Herrera is in fragrance, #1 in every single market, if I'm not mistaken. So the launch of La Bomba evidently has had a positive impact.

On top of it, some of the promotional activity that other brands did in the past few years because we saw energies and resources, channel from APAC to LatAm by some of our peers, and that was an area that was affecting us the most. But this -- as you anniversary some of these events, we saw that benefit from not having to -- from the same situation than last year. So overall, LatAm had a good performance for us.

When you say -- if you can give a little bit more color on Prestige, it's true that, look, our brands, we have 17 brands in our portfolio. And we have proven because we are very good at creating the desirability behind our brands, at surprising consumers, but brands have cycles. And what, the advantage of having a portfolio is that you have some brands that have momentum 1 year and less momentum the other. So it's true that in our case, Rabanne has been softer, but we have very good pipeline of ideas going forward and confident that we will be able to manage the portfolio in a way that overall, we can keep beating the market. With this, David, I hope I answered your questions.

Thank you all for your questions today. We look forward to speaking again at our Capital Markets Day on April 14, where we will also be discussing our Q1 sales. Thank you very much.

Good evening and thank you for joining us as we discuss our sales update for the third quarter of the fiscal year 2025 that ended on September 30, 2025. Today, we are joined by our Chairman and CEO, Marc Puig; and our CFO, Joan Albiol. Marc 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 on our website after the event.

Good evening, everyone. It is good to speak to you all for our third quarter update for the fiscal year 2025. We are pleased to report that Puig has delivered another strong quarter, demonstrating the consistent execution and resilience of our brand portfolio in a dynamic market. These results reflect our consistent delivery, which we set out to achieve at the start of the year.

Let's turn to the details of the update. We have delivered a strong performance for the first 9 months of 2025, which has resulted in net revenue of nearly EUR 3.6 billion. This represents a 7% like-for-like growth and a 4.9% increase on a reported basis, reflecting continued foreign exchange headwinds. This performance is a result of all 3 of our business segments, delivering within or above our full year growth outlook of 6% to 8%.

In the third quarter, Puig continued to deliver a steady performance, reaching net revenue of EUR 1.3 billion. This represents a 6.1% like-for-like growth and 3.2% on a reported basis, ahead of the global premium beauty market. These results reflect our disciplined management and the sustained desirability of our brands as we enter the most important trading period of the year even as we lap a very strong Q3 from last year.

Let me share some more color on the performance of each of our business segments. The Fragrance and Fashion segment generated net revenue of EUR 2.6 billion in the first 9 months, growing 6.4% on a like-for-like basis. This segment was 73% of Puig net revenue in the period.

In Q3, net revenue reached EUR 932 million, up 2.8% like-for-like, which reflects the anticipated moderation in global fragrance markets, particularly as we lap Q3 of 2024, where we grew 11.1% in this category. We continue to drive growth at scale with exciting launches, including the official launch of La Bomba from Carolina Herrera.

The Makeup segment, which contributed 16% of Puig net revenue generated EUR 569 million in the first 9 months of the year, an increase of 8.3% like-for-like. In Q3, the segment built upon its momentum from Q2 and delivered exceptionally strong growth, recording revenue of EUR 230 million, a remarkable 18.8% like-for-like increase. This was driven by the sustained success and continued innovation at Charlotte Tilbury, supported by robust retail channel performance and the strategic pipelining into our online partner, Amazon in the U.S.

For the Skincare segment, revenue for first 9 months totaled EUR 410 million, a 9.2% like-for-like growth. This represents 11% of Puig's total net revenue. In Q3 2025, the segment delivered EUR 135 million in net revenue, an increase of 10.5% on a like-for-like basis. This was supported by the strong performance of Uriage and Charlotte Tilbury Skincare.

From a geographical standpoint, the business grew across all regions on a like-for-like basis. EMEA, which accounts for 53% of our net revenue, reached EUR 1.9 billion in the first 9 months, up 3.9% like-for-like. The region generated revenue of EUR 699 million in the third quarter. This performance was supported by continued strength in Derma and Charlotte Tilbury.

The Americas, representing 37% of our net revenue, posted revenue of EUR 1.3 billion in the first 9 months, a strong 7.8% like-for-like growth. In Q3, the region generated EUR 464 million in revenue, which is 2.3% growth in like-for-like terms and minus 2.7% in reported terms. This reflects the anticipated normalization in fragrance and the negative impact from foreign exchange.

Further, in this region, Fashion and Fragrance remained healthy in the U.S. However, we saw increased softness in the LatAm markets where we also continue to see competitive dynamics more broadly.

APAC continued to outperform with revenue totaling EUR 368 million in the first 9 months, an outstanding 23% like-for-like growth. The region generated EUR 134 million in revenue in Q3 alone, representing a 35.8% like-for-like increase. This performance was supported by successful brand activations and strong momentum from Charlotte Tilbury and a continued expansion of our Niche fragrance business in the region, further helped by the continued benefit from the consolidation of our subsidiaries that we have been seeing this year. APAC now represents 10% of Puig's total net revenue and is the company's fastest-growing region.

Let's talk a little about innovation. In Fragrances and Fashion, one key highlight in Q3 was a spectacular fashion show for Carolina in Madrid where we officially launched La Bomba. First indications show a strong sell-out with no cannibalization of Good Girl, and we see potential for this pillar to be a lever of growth for the future.

On the Niche side, we launched the reimagined Night Veils collection by Byredo. We also launched a bold new campaign to introduce 50 ml travel and experiment-friendly formats of Potions by Penhaligon's.

On the Makeup side, in the last quarter, we introduced additions to the Flawless franchise in the form of Charlotte's Airbrush Flawless Foundation and Matte Setting Spray, reinforcing the Flawless franchise and leadership position of the Airbrush Flawless Finish Powder, both in the U.S. and U.K. markets. We're also excited about our Christmas initiative that we recently launched with a Celine Dion as face of the campaign.

In Skincare, we were pleased to see the continued innovation across hero franchises at Uriage and also the new Exoso-metic collection from Dr. Barbara Sturm. We are confident in our pipeline of strong existing pillars and new launches for the upcoming holiday season.

We continue to feel encouraged by our consolidated performance across our complementary brands and segments. With most of the year behind us and with visibility from the holiday sell-in, we maintain our full year 2025 outlook of like-for-like revenue growth in the 6% to 8% range. We have had a solid start to Q4. And with that, we now expect growth for 2025 to be in the middle of this range, an improvement versus our expectations in September.

Further, we are confident in our expectations for adjusted EBITDA margin expansion in line with the improvement we delivered in 2024. We approach the holiday period, which is very important for us, with confidence in achieving our full year outlook.

Further, we are excited to share that we plan to organize a capital market day on April 16 and 17, 2026. In 2021, we presented the last vision plan up to 2025. With this year ending, we are now in the process of defining the next such plan. During the Capital Markets Day, we plan to share this vision with you.

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

The next question comes from Patrick Folan from Barclays. Please go ahead.

Just a couple of questions for me. Can you maybe help us understand how much of a benefit the Charlotte Tilbury sell-in on Amazon was for the Americas like-for-like in the period? And should we expect any further benefit for Q4? And can you give us a sense of the growth rate or the exit rate in the Q3 period? You commented that you seem to have greater visibility for the holiday period now, and it looks to be going reasonably well.

And then I guess my second question is that you kind of said you're seeing better performance now than you did in September. Can you just maybe explain what is different now because it does seem like fragrance is still moderating, but you've had good sell-in with Charlotte Tilbury? So just maybe trying to square those two points. Thank you.

Thank you, Patrick. First regarding your first question, the improvement or the growth that we had in the third quarter for the makeup category, Amazon represents about half of that 18.8% growth that we saw during the period, and we still expect some benefit in the fourth quarter coming from that expansion in distribution.

Regarding the -- why we have improved our guideline for the year, in early September when we last spoke with you, we had seen a soft July and August. The current trading at that time was soft, and we said that the Christmas season is a very important part of the year, particularly for the fragrance category. And we -- since still 90% of our business is done through wholesale, and we wanted to see the open-to-buy from the retailers. September and October have gone high, and the mood we've seen in the open-to-buy has been healthy. We see healthy expectations for the Christmas campaign, and that's why we are now ratifying our expectations for the year to be in the middle of the range and no longer on the low side of the range that we set in September. I hope that answers your questions.

Thank you. And just can I follow up quickly? Should we expect a similar level of benefit from Amazon than in Q4 for Charlotte Tilbury and Makeup?

Not at the same level of impact that we saw in Q3.

The next question comes from Mariano Szachtman from Santander.

Can you please comment on the evolution of Charlotte Tilbury initiatives? We're seeing very strong growth. So trying to understand if this is what coming from innovation or -- and if demand is picking up for the brand, and also what could we expect in terms of geographical expansion? We've seen a very strong figure in Asia. That's my first question.

And my second question is on fragrances. Could you comment on the performance of Niche versus premium within the category? I mean in the past, the Niche was growing double digits. So any color you could provide on Niche or the performance in particular of Byredo would be helpful.

Thank you, Mariano. Regarding Charlotte Tilbury, remember that this is a brand that is relatively young and still, in terms of distribution, has a much smaller distribution than many of the competitors we compare to. And we've seen, in the past few months, impact from geographical presence and initiatives we have taken in Asia and in the U.S., with Charlotte visiting some of the markets in the last few months.

We're seeing also the campaign that Celine Dion has done for Christmas that's starting to pay off in the demand that we're seeing for the brand as well as the innovation that we have mentioned in our prepared remarks. So overall, there is an opportunity for this brand to expand geographically still and expand distribution, but we want to do that carefully step by step. And that's one of the reasons, for instance, when we decided to open with Amazon, as a channel that in the U.S. has proven to be a very important new entrant, let's say, in the beauty territory.

Regarding your second question, it's been now nearly more than 10 years that we see that the niche category is the segment of the fragrance market that continues to grow faster than the overall category. In our case, we're seeing the Niche year-to-date growth for our brands at double digit and continues to bring growth for the category and Byredo being, in our case, the engine of growth among the different brands that we have there. Yes. So I think that answers the question.

The next question comes from Aron Adamski from Goldman Sachs.

I have two on fragrances. First, on your blockbuster launch. Can you please give us some color on how much of the growth came from the initial pipelining of La Bomba? And could you also please share what has been the initial retailer feedback on this launch so far? And maybe how are the replenishment orders looking like in October?

And second, a bigger picture on inventories. I mean you called it out, and we have clearly seen the category growth moderate in recent months. Can you please give us your assessment of the latest category growth? And given this moderation of trends, what is your view on the current retailer inventories? Are you seeing your customers being more cautious on stock levels? And would you expect to see some retailer stock adjustments next year if the category is not growing as fast as it used to in recent years?

Thank you, Aron. The La Bomba launch has been still relatively limited in terms of geographical presence and because we started -- we launched it in the travel retail channel, and then we have expanded it in some European countries. And -- but we're not launching it in the U.S. We have not launched in other places.

So for us, La Bomba this year will have a limited impact. The important thing is to see whether the reaction from consumers has been strong in terms of the first impulse to buy. And we will see whether there is a repeat business 6 months from now when they finish the different bottles. So it's -- to us, to declare, let's say, a launch a significant success and a new pillar, as we call these new launches, let's say, it takes more time than a few months.

What we can say is that the first indications are promising that we are not seeing cannibalization with the last -- the other big pillar, feminine pillar for Carolina Herrera, which is Good Girl because the fragrances are very different territories, let's say. And that is what gives us hopes and make us feel confident that we have started or we have a good start of this project, and it's promising going forward in the future. But still, it's a small percentage of our sales, and we will not be able to see whether that's a big contributor for growth until a few months from now.

Regarding the inventory stock that the retailers have, we will -- as I said, we see retailers have good sense of whether the Christmas campaign as it comes -- has a good trend. What we are seeing so far is that the open-to-buy from retailers is healthy. And we will not know whether -- and so far, we don't see problems in terms of challenges in terms of stock at the retail level. The question will be early next year, after the Christmas campaign is over, whether the consumer has bought into the category or not.

We have been seeing moderation in the category over the past few months. But as I said before, we see good vibes from the retailers at this point, and that was what gave us confidence about our guidance. 10 months are already in, and there's only a small percentage of the year, and that's why we now gave that improvement in our guidance, let's say.

The next question comes from Joffrey Bellicha Meller from BofA Securities.

My first question relates to the Charlotte Tilbury launch in Mexico. I know you quantified the contribution of Amazon U.S. in the third quarter to the Makeup growth. I was just wondering if you could quantify the impact of Mexico's launch in the third quarter as well, please?

And the second question I have is regarding your guidance towards the end of the year. I was wondering if that meant that fragrance should also fall between the 6% to 8% range for the end of the year and which would obviously imply some form of a reacceleration probably for the category at the end of the year. And I guess the third question I have also is you made obviously some pretty positive comments on the open-to-buy of the retailers. Is that a comment that's specific to fragrances? Or is that a comment that you would attribute to other categories?

Yes, Joffrey. First, regarding the Charlotte Tilbury in Mexico, when -- the way Charlotte Tilbury has entered different markets has always been through exclusive arrangements with a few retailers. So in Mexico, we opened with only a few doors in [ Palacio de Hierro ] and with only a few doors with Sephora. So the impact on this launch, let's say, is still very small.

But the reason we do this with this brand is because we want to create the demand, and we want to create the scarcity, and we want to make sure that wherever we are, we have the best location and we make a lot of noise. So the impact on the brand in that market will take some time to be meaningful for the overall business. So as I said, low impact for the third quarter of Charlotte Tilbury or Makeup in Mexico.

Second, regarding the guidance for end of the year, what we -- when we say is we've seen moderation of growth in the fragrance category, we see that the second half, our projections is for a low single-digit growth, and we believe we'll do better than that. So that's our projection.

And third, regarding the -- whether the open-to-buy from retailers is specific to fragrance, the Christmas season is a very important part of the year, particularly for fragrance, more than for makeup and even more than skincare because it's a gifting impulse category. So that's why most of the open-to-buy comments that we've made regarding the response from retailer does affect, let's say, fragrance. It's 77% of our business and fragrance for Christmas is the biggest category. So that's why most of the comments come for that category.

The next question comes from Jeff Stent from BNP Paribas.

Just one question, if I may. What do you estimate sell-out was across your business in Q3? If you could give us any color on that, that would be great.

Thank you, Jeff. That was -- that's a tough question because it's the sell-out by category, by -- it's -- we monitor sell-out by category and by brand, which is not what we disclose. And we don't have yet the sell-out information.

It takes a little bit more time to gather the different information by market because some of them are very sophisticated, and we have weekly sell-out information. In other markets, we only get monthly. And in our cases, only every 6 months. So we don't have yet more precise sell-out information. We have the perception from the different mechanism we have to gather that information. And the sensation we have is positive. That's why we also decided to upgrade our projections for the year or our guidance for the year-end. Yes. Not very specific, Jeff, but that's the best I could do.

The next question comes from Tom Randall from Jefferies.

Well, I just got the one. Asia Pacific was a very strong quarter. So I just wanted to know if you can get some more color on what's driving the performance there. We're seeing a pickup in travel retail in the region. And is there an acceleration of your presence kind of in the channel? And then also just a follow-up on that, are there any one-offs that we should be aware of in the region?

Yes. Thank you, Tom. There are several -- I mean, first of all, remember that APAC represents for our company, 10% of our business, which is one of the lowest penetrations of -- in the industry. And growth comes from different vectors. Number one, because we have had an important impulse in the Charlotte Tilbury in several markets in terms of initiatives we have taken for brand efforts, we have seen growth in the Niche category in the different markets where we have the Niche brands.

We have also a positive impact due to some of the subsidiaries that we have opened in the past few years. We have gone from distributors in some of the markets to subsidiaries. So after a certain transition period that may have a negative impact, we're seeing now the benefit of that move. And overall, that's why we are seeing a significant growth in the area, which we believe will continue because we still have low penetration in that area.

In terms of travel retail, in our case, travel retail worldwide is less than 10% of our sales and particularly in APAC, not necessarily very strong since it's in that geography, the -- it's skincare and makeup are the biggest categories. And we have not seen necessarily a big impulse in travel retail in the area other than the normal evolution. I hope that answers your question.

The next question comes from Fernando Abril-Martorell from Alantra.

Fernando, can you check if you are on mute? We go to the next question.

The next question comes from Celine Pannuti from JPM.

My first question is on Americas, which was 2.3%. So I understand there was this impact from Amazon. So ex Amazon, I think it was slightly negative. Can you talk us through the moving parts, I presume between LatAm and North America and fragrance versus makeup?

And maybe a second question, but as a follow-up on that. Last year, you had in Q4, the impact from Argentinian peso that was a contribution. Given it has been quite a volatile currency, can you say what is the impact of the peso as much as you can say from now if the spot prevails, what we should expect for the fourth quarter?

And then my second question, Europe has accelerated, and I wanted to understand -- sorry, it's not accelerated. It's 4%, slight acceleration, but it's quite robust. I wanted to understand whether -- what drove that? If you could give us a bit of an idea of what the fragrance versus makeup performance was there?

Thank you, Celine. First question regarding the Americas. We have seen in LatAm over the past few years, a territory where we have historically hold a very strong first position in terms of fragrance category.

We have seen -- and I mentioned that in prior calls, we have seen the emphasis and focus from some of our competitors that send, let's say, or put resources out of APAC and into other territories and LatAm has been one of them. And we have seen a significant competitive environment, and we have been reluctant to fall into some of these dynamics, and that has affected a little bit our business. So that's an area where we still hold a very strong position. Our brands are top ranking in the area, and we're seeing how to respond to some of these dynamics.

Regarding the Argentina peso, maybe Joan, you want to give some color there, and then I'll answer the third question.

Good evening, Celine. I think last year, we had in Q4 a positive impact for Argentinian peso of EUR 11 million. I think this year, you know that for hyperinflation accounting, we have to wait until the last moment of the year, but we are considering a partially negative impact, but at lower level than the one we have last year.

And in terms of Europe, you mentioned quite robust performance, mostly is due to Charlotte Tilbury and derma strength in the area that has imposed the overall business for us. I hope Celine, that was...

Can I just follow up on my first question on the Americas. So if I understand, Latin America was under pressure. Was fragrance U.S. positive? And also Charlotte Tilbury, I mean, clearly, you are getting the benefit of Amazon sell-in and you mentioned that it will be less in Q4. Last time, I think 2 years ago, you had the benefit of Ulta sell-in and then we had seen some quarters where the growth had been slower. I just want to understand whether there would be -- like when do you expect maybe that we have a bit of a normalization of that sell-in?

I think related to fragrance in U.S. was positive. And related to Charlotte Tilbury, as Marc explained, out of the 18.8% increase in Q3 of Makeup, half was Amazon, but the rest has been organic and we have had a positive trend. And we think that this positive trend will continue in the case of Charlotte.

The next question comes from José Rito from CaixaBank.

I have a question on Charlotte Tilbury. So in terms of pipelines of new countries, retailers, we are seeing the positive impact from adding either new countries such as Mexico or the retailers such as Amazon. So anything new over the coming quarters expected?

And also related to this, second question is why aren't Puig moving faster in expanding Charlotte Tilbury? I mean we are seeing the very strong results of adding new countries or new retailers. So why not moving faster? Is this because of marketing budget constraints? Is because it's dilutive? Just to understand why.

And then my third question on the market share evolution in fragrances. There were some deterioration, I remember, I think, in the first half. It seems that now you are getting again market share in fragrances in the second half of the year. Could you update on this?

José, sorry, I didn't get the last question. Can you -- because we have some -- that sounded a little bit intermittent. Do you mind repeating the question?

Yes. It was on the market share evolution in fragrances, if you can update on this because in the first half, I think it was a deterioration on the market share evolution, slightly decline. If you can update. It seems that you are gaining again market share in the second half for fragrances.

Okay. First question, Charlotte Tilbury pipeline, whether we have opportunities going forward in opening new markets and new territories. And the answer is yes. As an example, there are many markets where we still have an exclusive retailer because we have made a commitment to have 2 or 3 years of exclusivity. So there is an expansion opportunity in other doors.

We have other markets where we have not entered. The case of example is LatAm. We have a very strong position as an organization, and we have only opened Mexico and with few doors, as we mentioned. And there are even strong large European markets where we still have very low penetration. So the answer is yes, there are opportunities for growth that are obvious.

And then your second question is a natural question, why don't you move faster? The reason is because the formula has been very successful, and we are careful at making sure that this is -- that what we do is sustainable over time. Look at the position of Charlotte Tilbury in the U.K., where it's a #1 brand. That's the market where we have been the longest. And we still are not present in a very significant retail operator that has most, if not all, of our competitors, and we're not yet even present. So there is opportunities to keep expanding the brand.

I think we believe it's important to maintain the desire and this scarcity and this willingness from operators, from retailers to have the brand and that gives us the leverage to select the position and the space. And that's a formula that has proven to work, and we want to make sure that we protect that over time. But could we move faster? The answer is yes.

Third question regarding market share. In the Q2, we had -- we mentioned the market share that we have...

10.9%.

10.9%. When you look at our evolution over time, and I go back a little bit in time. 20 years ago, we had 3% market share in fragrances, in Prestige fragrances worldwide. We chose to focus on this category. We believe we have structural advantages that make us able to continue gaining market share.

But when you look at the last 20 years, not necessarily, we have won market share every quarter of every year. And this is a category that is very much linked to innovation to successful launches. And sometimes we don't necessarily make all the launches successful. But over -- we are confident that we have the ingredients to be able to keep winning in the long term. And we normally in the -- when we look at the year as a whole, we normally win positions during Christmas. So we hope that this Christmas, we will continue being able to capture market share as we have been doing for many of the past years. I guess that answers your question, José?

Yes.

The next question comes from Fernando Abril-Martorell from Alantra.

Can you hear me now? Sorry before I had some connection issues. I'm sorry if I repeat some questions. I've missed a couple. First, was there any impact from Argentina's devaluation in your Q3 performance in fragrance? And second, based on your better outlook for Q4, should we expect a reacceleration growth for this segment in the last quarter?

Segment, meaning fragrance. I understand.

Yes.

Thank you, Fernando. Regarding whether there is any impact on the Q3 for the devaluation of Argentina peso, the answer is no. And that's easy to answer and quick.

And what we expect for the fragrance category for the fourth quarter, what we said before is that we are seeing or we're projecting for the second half, low single-digit growth for the category as a whole in the market, and we are projecting growing faster than that. So that's why, among other things, we are improving our overall guidance for the year. Yes.

The next question comes from Luis Colaco from JB Capital.

Just one question on the like-for-likes of Makeup. You said that there was a big contribution from Amazon. I think 50% of the growth was coming from the contribution from Amazon. Even knowing that in the fourth quarter, you won't have the same type of contribution, the comparable figure for the fourth quarter seems to be softer. So can we expect the same type of like-for-like growth in the fourth quarter for Makeup?

Thank you, Luis. The answer is no. It's true that last year, we had an impact for the setting spray that was impacted negatively to the category. For the fourth quarter, we will not have that impact. And so we expect a healthy like-for-like growth, but not as much as we have seen in the third quarter.

That was our last question. Thank you all for your questions today. We will be presenting our full set of full year 2025 results during the week of February 16, 2026. We look forward to speaking again with you then. Thank you very much.

Good evening, and thank you for joining us this evening as we discuss our results for the first half of 2025 that ended on June 30. Today, we have with us our Chairman and CEO, Marc Puig; and our CFO, Joan Albiol. Marc and Joan will share some brief remarks on the performance, financial results and outlook. We will then open up the line for Q&A. You will find this presentation, the press release and other supporting regulatory documents on our website. You will also be able to access a replay of this recording shortly, also on our website.

Good evening, everyone. We are pleased to report a strong first half of 2025, where we have continued to deliver on our commitments and outperformed the premium beauty market. In July, we discussed our sales performance. We delivered net revenues of EUR 2.3 billion. This represents plus 7.6% like-for-like and plus 5.9 percentage reported growth, in line with our 6% to 8% like-for-like growth outlook for 2025.

We achieved this while delivering a strong gross margin position of 75.8% for first half 2025, which reflects the desirability of our premium brands and our strong ability to execute at scale. Our adjusted EBITDA of EUR 445 million implied a margin of 19.4%, which is a 0.5 percentage points improvement versus the comparable period in the prior year and puts us on track to deliver on our outlook for fiscal year 2025, in line with the margin improvement in 2024.

Our adjusted net profit was EUR 247 million or 10.8% of sales, implying an increase of 3.9% versus 2024 and reported net profit was EUR 275 million or 12% of sales, growing plus 78.8% over 2024. In 2024, reported net profit was impacted by one-off costs incurred at the time of the IPO. Further, we continued to improve our free cash flow generation and had leverage of 1.4x net debt adjusted EBITDA, comfortably below our stated threshold. Joan will discuss our financial performance in further detail later in the presentation. To quickly recap our sales performance, which we discussed in detail previously, the EUR 2.3 billion of net revenues were a result of plus 7.6% like-for-like growth with a negative 1.7% impact from foreign exchange.

This was a result of a few factors. A healthy performance in our Fragrance and Fashion segment, an encouraging improvement in our makeup segment in Q2 and robust delivery from our Skin Care segment throughout the first half of 2025. We saw growth across all of our regions with a noteworthy double-digit like-for-like growth in the Americas and Asia Pacific. This performance is consistent with the like-for-like growth in Q1 and Q2 of 7.5% and 7.7%, respectively.

We have already discussed our net revenue performance per segment, but I would like to make a few incremental comments on each of these business segments. The Fragrance and Fashion segment delivered another solid performance with EUR 1.7 billion in revenues, up plus 8.6% like-for-like for the first half of 2025 in spite of some moderation in underlying growth, which was particularly evident in Q2. Three of our brands, Rabanne, Carolina Herrera and Jean Paul Gaultier continued holding rankings within the top 10 fragrance brands globally. This underscores our ability to achieve and maintain leadership positions while also highlighting the continued opportunity for further advancement. Niche grew double digit, led by Byredo.

In H1 2025, we achieved a value market share of 10.9% in fragrances, reflecting our ability to execute in an increasingly competitive and promotional market. We continued to maintain strong market shares across regions with global Travel Retail showing standout share gain. LatAm, where we continue to defend a very strong #1 market share position, continue to show tough competition from promotional activity. In the first half of 2025, the makeup segment recorded net revenue of EUR 339 million with growth of 2% like-for-like and 1.4% reported. We saw an encouraging improvement in momentum in the second quarter. Our largest contributor to makeup, Charlotte Tilbury, maintained its #1 ranking in the U.K. and #3 ranking among makeup brands in the U.S.

The brand continues to drive innovation in the category with Super Nudes collection and the expansion of the [indiscernible] franchise being key highlights. The Skincare segment delivered revenue of EUR 276 million in H1 2025, representing plus 8.6% like-for-like and plus 8.1% reported year-on-year. In particular, Dermo-Cosmetics continued to perform strongly with Uriage delivering double-digit organic growth supported by successful launches and hero franchise accelerations. This was complemented by a strong contribution from Charlotte Tilbury skincare, which drives the premium component of this segment.

To quickly recap the performance of our geographical segments, which we discussed in detail a few weeks ago, we saw growth across all of our regions. In particular, we delivered strong like-for-like growth in the Americas and Asia Pacific. While our EMEA performance was more moderate, we saw particular improvement in skin care and makeup in this region. We continue to make progress toward our ambition of being at the forefront of ESG practices in our industry with further improvements to our scores. To call out a couple of examples, we maintain our position on CDP's A list for climate change. We were awarded an improved score of 19.8 by Sustainalytics, promoting us to low risk, which is #10 in the household product industry out of 101 and also improved our EcoVadis score to 80 out of 100, an improvement from 70 last year, retaining gold medal status and putting us in the 98 percentile.

With this, I will hand it over to Joan, who will walk you through the details of the financial performance.

Thank you, Marc. We'll now like to spend more time on Puig's financial performance during the first 6 months of the fiscal year 2025. We are very proud of the financial performance of Puig during the first half of 2025. We showed strong growth ahead of the market and in line with our outlook for 2025. We improved our EBITDA generation while continuing to maintain a healthy investment level behind our brands. We continue to improve our cash flow management.

And finally, our capital structure remains robust with net debt comfortably below our threshold, providing significant flexibility for future commitments. Now let's get into the details. I would like to start by providing you with a summary of our income statement for the first half of 2025, where I would like to highlight our net revenues like-for-like growth of 7.6%. Our gross margin of 75.8%, maintaining its position as one of the highest in the industry. The positive contribution from the premiumization of the portfolio as our niche brands scale were offset by negative impact due to foreign exchange. We delivered adjusted EBITDA of EUR 445 million, which at 19.4% is also an improvement of 0.5 percentage points compared to the prior year and puts us on track to deliver on our outlook for full year 2025, where we expect 20 basis points of improvement for the year.

Finally, our adjusted net profit was EUR 247 million. This represents a modest increase of 3.9% compared to the prior year. While operating profit margin was aligned with first half 2024, adjusted net profit was negatively impacted by foreign exchange differences in the financial results and a lower income from associates, resulting in a margin decrease of 0.2 percentage points to 10.8%. Our key indicator for operational profitability, the adjusted EBITDA margin has increased to 19.4%. Let's review the drivers of this increase. First, we continue to maintain a strong gross margin at 75.8%. Our distribution costs improved by 20 basis points.

We continue to leverage our SG&A expenses, improving 1.3 percentage points over the first half 2024. As we have continued to invest in CapEx over the recent years and our own stores count has increased, our depreciation and amortization as a percentage of sales increased 0.4 percentage points. These effects were partially offset by our continued A&P investment, which increased by 1.4 percentage points. In first half 2025, we invest in A&P to support sustainable long-term growth. As you know, we launched Million Gold by Rabanne in second half 2024, but only launched in the U.S. in first half 2025.

This market tends to be an A&P intense region, which drove this as well. While we saw an increase of 140 basis points in the first half 2025, we do not expect the same level of increase in A&P as a percentage of sales for the full year 2025. Moving to operating profit. We demonstrated growth across all our segments in first half 2025. Our total operating profit reached EUR 332 million, an increase from EUR 330 million in the prior year with an overall operating profit margin of 14.5%, which remained stable versus last year. Analyzing the profitability of our business segments, we have seen varied contributions and dynamics. Our core fragrance and fashion business show an increase in operating profit to EUR 299 million in first half 2025 compared to EUR 294 million in the prior year.

This reflects the growth of the segment at the scale. The operating profit margin show a small decline to 17.8% from 18.6% in first half 2024. This slight decrease in margin is a result of continued strategic A&P investment to support brand equity in key strategic regions like the U.S., as we just mentioned a few moments ago, demonstrating our commitment to long-term brand building. The makeup segment show an improvement in operating profit rising to EUR 12 million in first half 2025 compared to breakeven in first half 2024.

This results in an operating profit margin of 3.6%. This improvement reflects enhanced profitability across our makeup initiatives, including the smaller [ exercise ]. Our Skincare segment also delivered a strong performance with operating profit increasing to EUR 21 million from EUR 80 million in first half 2024. The operating profit margin improved by approximately 40 basis points to 7.6%. This improvement was driven by the continued scaling of our larger skin care offerings, Uriage and Charlotte Tilbury. We continue to believe that as we gain scale in the makeup and skin care segments, their profitability will have the potential to converge with the group level.

Focusing on the bottom line, we delivered a solid performance in our reported net profit for Puig in first half 2025, reaching EUR 275 million. While operating profit margins improved slightly above the first half of last year, we saw the negative impact of a couple of items below the line, which were an increase in costs due to foreign exchange impacts and a decrease in the income from associates, which impacted adjusted net profit negatively. While last year, we had a negative impact from one-off in our reported net profit due to the IPO. This year, we have made an adjustment to our net profit to reflect our reduction in the provision for outstanding earn-out reflecting the current environment.

Moving on to cash flow. As we have previously outlined in our business in order to serve the heavier demand during the holiday season in the second half of the year, the business require an increase in working capital during the first half. During the first half of 2025, our free cash flow from operations improved markedly to minus EUR 116 million compared to minus EUR 173 million in the first half of 2024. Although it remains negative, this represents an improvement in line with the seasonal working capital build typically observed ahead of the second half. This improvement was primarily driven by better working capital management. Our CapEx remained in line with expectations as a percentage of net revenues.

Operational cash flow improved to minus EUR 116 million compared to minus EUR 257 million in the first half of 2024, which was significantly impacted negatively by nonrecurring IPO-related cash flows. Our net financial leverage currently stands at 1.4x net debt to adjusted EBITDA, which is comfortably below our 2x medium-term threshold, allowing us to maintain both operating and financial flexibility. Net debt was EUR 1,426 million, and this reflects the seasonality of our operating cash flow, payment of EUR 202 million in dividends with another EUR 10 million in tax liabilities, which will be paid by the end of the year.

With less material, we increased our stake by a further 12.5% in Kama Ayurveda in April 2025 for EUR 13 million, bringing our ownership to 97.5%. And there was a small impact from financial flows and leases. We finished first half 2025 with leverage levels 0.3x lower than those than June 30, 2024, reflecting our strengthened capital structure and continued financial flexibility. Liabilities from business combination stood at EUR 907 million, a decrease from EUR 1,088 million from last year.

In the 6-month period of 2025, this decrease was mainly due to change in the market multiples to which the put call options are linked as well as to translation difference and update business projections to reflect recent performance. This also reflects the impact of our strategic decisions to increase our stake in Kama Ayurveda. Based on the combined effect of these 3 factors, the liabilities from business combinations were further reduced by EUR 181 million over the last 6 months.

I now pass it back to Marc for a few closing comments.

Thank you, Joan. We feel confident that based on the strength and desirability of our brands, we will be able to outperform the premium beauty market. For the full year 2025, we reaffirm our outlook. We continue to expect net revenue like-for-like growth to be in the 6% to 8% range, albeit expecting to land in the lower side of the range. For the second half of the year, we're seeing a further moderation of growth in Fragrances, our largest business segment, where we expect outperformance in makeup and skin care.

Coming to adjusted EBITDA with a head start in the first half of 2025 and while remaining cautious about the impact of foreign exchange and potential impact from tariff implementation, we continue to aim for margin improvement in 2025 in line with 2024. We made significant progress this year with respect to our capital structure, as Joan described a few minutes ago. We continue to manage our balance sheet conservatively, maintaining the threshold of 2x net debt adjusted EBITDA.

We maintain our intention for a 40% dividend payout ratio in line with our historical practices. The first dividend since our IPO was paid in June 2025 with respect to the full year 2024. And lastly, we continue to maintain a highly selective approach to M&A. True to our character as a home of creativity, we have some great initiatives for the second half of 2025. Of these innovations, we are most excited about the launch of Carolina Herrera La Bomba. We prelaunched this in very selective points of sale in June with the official launch in EMEA and LatAm that will take place in September.

We will be making a worldwide presentation in Madrid on the occasion of the Carolina Herrera fashion show, which will be taking place there. As always, you will see the rollout of extensions with our prestige fragrance brands. We continue with our collection-based approach with launches in niche. The Cut from Penhaligon's, Havana Gold from Dries Van Noten and Alto Astral from Byredo are a few examples. While Charlotte Tilbury is a very well-known brand, its distribution even in some of its largest markets remains well below some of its comparable makeup brands. In Q3, we expect to roll out Charlotte Tilbury on Amazon in the U.S., which is increasingly becoming a channel of importance for the makeup shopper in this region.

In Fashion, we strengthened our portfolio with the appointment of Duran Lantink as Permanent Creative Director of Jean Paul Gaultier, marking a shift in strategy after 5 years of revolving guest designers. His first ready-to-wear collection for Jean Paul Gaultier will be presented in early October 2025. In skin care, we have a steady pipeline of launches over the course of the year across our brands. We continue innovating on Uriage Age Absolu, [indiscernible] and XEMOSE. I also want to share an organizational update with you today. I have made the decision together with the Puig's Board to create the role of Deputy CEO. I am pleased to announce the appointment of Jose Manuel Albesa to this position in charge of all divisions and reporting directly to me.

As Deputy CEO, he will drive the delivery of Puig vision and strategy across the business. He will also continue in his role as President of the Beauty and Fashion division. I remain fully committed to my role as Chairman and CEO of Puig. I have worked closely with Jose Manuel since 2004, and I can attest that his passion, deep understanding of Puig's story and exceptional talent as a brand builder and leader have been instrumental in our transformation to becoming the global premium beauty player we are today.

He was instrumental in repositioning Rabanne, Carolina Herrera and Jean Paul Gaultier, transforming them into 3 of the world's top 10 fragrance brands. I wish him every success in this expanded position. Before I close, I want to reiterate how proud we are of our results. They are a testament to our ability to be a true home of creativity and our commitment to deliver on our promises. We are energized by all the great initiatives we have planned for the rest of the year.

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

The next question comes from Patrick Folan from Barclays.

Just, Marc, touching on your new appointment of Jose to Deputy CEO, which is a new role. I guess what is the reason behind this new role and appointment? And I guess, how should we think of Jose's role over the medium term? Will he be joining results calls? Or will he be not as public facing?

And my second question is just on margin phasing. So you said A&P won't increase at the same level for the full year as we saw in the first half. So should the second half A&P as a percent of sales be broadly similar to levels we saw in the second half last year?

Thank you, Patrick. Look, the reason for the nomination of the Deputy CEO is it seems like since I was appointed the CEO nearly 20 years ago, the company has more than 6 -- growth more than 6x. And the complexity and the challenges we have made us together with the Board, decide to reinforce with the appointment of Jose Manuel Albesa. And at this point, that we are starting to work with him in this position.

And that's as much as I can share with you because that's what we have decided so far. Whether he will be joining the calls maybe later on early next year or at the end of this year, we probably will also ask him to join us so that he can answer some of the questions that will be posed for him. Regarding the second question, the margin call, basically, Joan want to answer that question?

Yes. I think, Patrick, you're right. I think we're expecting second half of the year similar A&P that what we had last year. What we are saying is overall, we are not expecting the increase we have had in the first half to stay at the same level in the -- for full year.

The next question comes from Mariano Szachtman from Santander.

So my first question is on fragrance demand. So could you please comment on the summer trends? Have you noticed any material change from what was seen in the first half? And also if you could expand on the comment on the moderation here?

And also my second question is on Fragrance and Fashion margin. The decline in year-on-year margin to understand is this almost exclusively due to the Rabanne 1 Million Gold campaign or it's increased investments in most of fragrance brands?

Thank you, Mariano. Regarding the fragrance demand, during the first half, our best estimation of the growth of the category as a whole, it was in the mid the mid-single-digit number. And over the past couple of months, we're seeing moderation even from this growth. So we expect the second half to be more in the low single digit. But it's still maybe too early because in fragrance, the most important season is Christmas. And we still don't have yet the feedback from retailers in terms of open to buy nor we have yet the -- all the answers, let's say, from the consequences of some of the impacts of the tariffs, for instance.

So still a little too early, but we see -- since we have seen a moderation over the last couple of months, we expect the second half to be in the lower single-digit percentage versus, let's say, mid-single digit in the first half for the category as a whole. I hope this responds your question. In the -- for the second question, I'm going to pass to Joan.

Yes, Mariano. I think related to advertising and promotion is related to fragrance is more overall, but Rabanne Gold play an important role in it. So I think with this, what we are saying is that A&P, it has been growing in the first half, but we don't expect the same level of increase in the second half of the year. It's more related to seasonality of the launches. I hope I have answered your question.

That was our last question. Thank you all for your questions today. We look forward to speaking again when we present our sales update for Q3 of 2025 at the end of October. Thank you very much.