Puig CEO ready to deliver on promises after IPO

What the Barcelona-based company behind Jean Paul Gaultier and Rabanne plans to do coming off the largest initial public offering this year.

‘Investors are very cautious and prudent, especially in times of uncertainty’, Marc Puig said. Picture: Getty Images

Spanish premium beauty house Puig is ready to confront sceptics and make a statement in the cosmetics world.

“We have gone public and have made a number of promises, since there’s guidance, so I have to deliver now,” chief executive Marc Puig said.

The Barcelona-based company behind Jean Paul Gaultier and Rabanne, mainly known for the perfumes of its high-end fashion brands, is coming off the largest initial public offering this year. The company is targeting sales growth ahead of the broader high-end beauty market, and it must prove itself to investors and consumers.

“Investors are very cautious and prudent, especially in times of uncertainty,” Marc Puig said. “We’re not in an euphoric moment where any IPO is acceptable, but we have received a positive response from the market,” he added.

Puig shares are up about 19 per cent since they started trading on the Madrid Stock Exchange and other Spanish exchanges in May. Now valued at nearly USD$17 billion, the company is the third-largest player in the beauty industry based on market capitalisation after L’Oreal and Estée Lauder, according to FactSet. Puig is the latest in a string of European listings that have revived the continent’s IPO market.

The company is using the proceeds from its IPO to integrate its latest round of mergers and acquisitions and tie up some loose ends, such as refinancing its acquisition of U.K. makeup brand Charlotte Tilbury, which allowed it to enter the colour cosmetics category, and reducing its overall debt position. Marc Puig recently reorganised the company into three business segments — fashion and fragrance, makeup, and skincare. Its fashion and fragrance category accounts for the bulk of its revenue.

Puig doesn’t plan to make any additional big purchases with the funds it has raised in the near term, the CEO said. “We have a very curated portfolio of brands.”

Nine of the 14 brands owned by Puig are pure beauty players, including Greek natural cosmetics brand Apivita and Charlotte Tilbury, Marc Puig said, noting the company has been “feminising the portfolio” over the past few years.

Puig expects to gain market share. The company forecasts revenue to grow at a high single-digit rate in the medium term, well ahead of the expected growth for the premium beauty market, according to its offering prospectus.

While male-marketed products no longer represent the majority of Puig’s sales like they did less than a decade ago, they remain key to its top-line performance. In the U.S., Puig’s main market, sales of men’s prestige fragrances rose 10 per cent to USD$2.7 billion last year, according to data provided by Circana.

“Teenage boys are now entering the perfume market,” Marc Puig said, adding that some of Puig’s best selling fragrances such as Jean Paul Gaultier’s Le Male have been going viral on TikTok, which helps to attract a younger customer base. Competitor L’Oreal recently cited male customers as a growth opportunity.

Puig has been building its international reach, its CEO said. Only 7 per cent of its sales came from Spain in 2023, and it has been strengthening its portfolio in the U.S. and China. Puig is expanding into the Indian emerging market after taking over beauty brand Kama Ayurveda, and reinforcing its position in the Latin American market following the acquisition of Colombian wellness brand Loto del Sur.

One adjustment for the 110-year old company is that now, it has to respond to the market as a publicly traded company. Marc Puig isn’t shying away from the spotlight.

The 62-year-old executive will lead the future of the company with a renewed board of directors following the exit of three family members ahead of the IPO. Marc Puig and his cousin Manuel Puig are the only two family members serving on the board, which has 13 directors.

“The focus is set on making things work. This is the first time I take a company public, and I won’t do this ever again,” he said. “I’m not going anywhere yet.”

The Wall Street Journal

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Puig sets sail with new ambitions

Luxury has never been as entwined with the sporting world as now. For Puig chief executive Marc Puig the decision to sponsor the Women’s America’s Cup (held in Barcelona in October) as global beauty partner, is a logical one.

“We’ve been sponsoring the Copa del Rey for almost 25 years and this year marks the 17th year of our support for an annual classic boat regatta in Barcelona, the Puig Vela Clàssica. Our roots are in Barcelona; Our company was born here, and we have spent our 110-year history here,” he says. “It felt like we were meant to be the Global Beauty Partner of the 37th edition of the America’s Cup and the naming partner of the inaugural women’s competition.”

“Many of our customers in beauty, perfume, and fashion are women, and over 70 per cent of our employees are women, so supporting this competition made complete sense for us.”

The Puig Women's America's Cup trophy, designed by Spanish architect and designer Patricia Urquiola.

This year the trophy was designed by the celebrated Spanish architect and designer Patricia Urquiola. For Puig, it was another way to honour women and their accomplishments.

“Puig has always been linked to creativity, design, and art … This legacy stems from our family, who boldly embraced modernity and good taste during challenging times. [W]e have worked with design pioneers in Spain such as [industrial designer] André Ricard and [Swiss graphic designer] Yves Zimmerman to define Puig’s modernity from the 50s onwards,” he says.

“Collaborating with a designer as renowned as Patricia Urquiola aligns perfectly with Puig’s values … She has created something truly exceptional, continuing our proud design tradition.”

Annie Brown