Puig is feeling the effects on its shares after recalling several batches of one of its products from the iconic Charlotte Tilbury brand. The Catalan cosmetics and perfumery company fell on Friday in the stock market due to the voluntary recall of Airbrush Flawless Setting Spray because of quality problems ‘in a limited number of batches’.
The make-up fixer is priced at around 40 euros and contains 100 millilitres. Puig submitted the information to the Spanish Securities and Exchange Commission announcing the voluntary recall due to a quality issue and the company stresses that it expects it will not impact the performance of Puig's make-up business segment and that it expects to achieve its 2024 targets.
As the economic media CincoDías points out, the investment bank Citi has explained that it sees single-digit reductions in earnings per share estimates for 2024. According to analysts at this bank, they point out that ‘this is due to a reduction of 40 basis points in organic sales growth in 2024 and 30 basis points in 2025’.
Puig was floated on the stock market in May this year, and on its debut, saw its share price rise to over 20% on its first day. However, it has been somewhat irregular and is trying to stabilise after its inclusion in the Ibex 35. As CincoDías points out, its shares have fallen by up to 25% since it was floated, but it has good support from analysts. Bloomberg analysts agree that its shares could rise to over 25% of their current share price.
Puig is confident in the development of Charlotte Tilbury, which has the ambition to become a brand capable of reaching a turnover of 1 billion euros and is the leading brand in the make-up market in the United Kingdom and is in the top five in the United States. This same year, Puig has also acquired 100% of Charlotte Tilbury, in which it entered for the first time in 2020 with a majority stake in an investment that has exceeded 1,000 million euros.
Puig's latest turnover figures are for the third quarter of the year, in which it had a turnover of 1,257 million euros, 11.6% more than the same period last year.