The Spanish group, which was previously family-owned, has just been restructured into a limited company, Puig Brands SA. The Spanish press sees this as a sign of a possible stock market listing, which Puig denies.
Is Puig, the perfume, cosmetics, and fashion group (Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten…) preparing its IPO?
This is the conclusion reached by the Spanish press in light of the maneuvers underway in the Barcelona-based group, even if the group denies, today, such intentions.
While it had a family organization until now, Puig has just restructured, bringing together its different activities, in a limited company called Puig Brands SA. The daily newspaper L’Expansión has taken the first step towards the idea that the group wants to go public.
Puig, it should be remembered, owns the brands Carolina Herrera, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten, Nina Ricci and Comme des Garçons Perfumes licensee, Christian Louboutin, Benetton, etc. …
An IPO denied
However, the group has denied this hypothesis, with a spokesman explaining that “the Board has approved no IPO of Directors” and “no investment bank has been involved”…
According to L’Expansión, during the restructuring, the group increased its non-cash working capital by 29.3 million euros, raising its share capital to 144 million euros. Changes have also been made to the company’s articles of association, including the number and nominal value of shares, the creation and transfer of class shares, and the rights conferred on their holders. The functioning of the Board of Directors has also changed: it is now composed of 14 members, some of whom do not belong to the Puig family.
Marc Puig’s succession?
This latest development gives rise to another hypothesis put forward by other observers to explain this shift toward a single-holding company. The group would be preparing for the succession to the presidency of Marc Puig, a member of the third generation since the creation of the group by Antonio Puig in 1914. Other members of the family could take over the reins based on the informed opinions of the new independent members who have joined the board of directors.
Marc Puig, who became CEO in 2007, turned his group around spectacularly after the pandemic. The various confinements caused its sales to fall to 1.5 billion euros in 2020 instead of 2 billion euros in 2019. But by 2021, the group has surpassed its pre-covid activity level.
One year ahead of schedule
And in 2022, it has achieved its revenue target of 3.6 billion euros, a year ahead of schedule (thanks to a +30% year-on-year increase). Its net profit was rounded up by 40% to 400 million euros. Puig thus maintained its margin at 17.6%.
“The winds of 2022 have surprised us by their intensity, but it is also the result of choices made in recent years that have paid off,“ said Marc Puig.
And the group intends to continue this good momentum: the CEO of the Puig Group has indicated that he will present a new strategic plan for Puig before 2024.
Read also > Puig : more record results in 2022
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