Puig considers going public to facilitate smooth transition to next generation

Marc Puig, the CEO of Puig, has hinted at the possibility of an initial public offering (IPO) to help ease future generational changes. This, he believes, may arise in the coming decade. Puig has noted that generational handovers can sometimes lead to problems such as taking on leadership roles or a decrease in enthusiasm. Allowing external investors to own part of the company may help to solve these issues.

In separate interviews with 'Financial Times' and 'La Vangaurdia', as reported by Europa Press, the CEO of Puig warned that family-owned businesses may gradually lose their market presence. This could result in them "slowly fading into obscurity, with no one in the company noticing". On the other hand, being held accountable to external investors can significantly influence a company's direction. However, he assured that an IPO is only one of several options that the company is exploring, and no decision has been made yet. He also reassured that even if the company goes public, the Puig family would still hold the majority of the company's ownership.

Puig believes that future choices may involve inviting private equity investors, long-term shareholders, or even entering the public stock market. He also emphasized that maintaining the current state is another alternative. Reflecting on the future, Puig cited that leading companies in the luxury and premium beauty world like LVMH and L'Oréal are typically family-controlled and publicly traded. He underlined the importance of a patient, long-term vision for luxury brands, which family-run businesses can provide, while public markets are more focused on short-term gains.

Additionally, Puig pointed out that the company's main challenge is attracting, retaining, and inspiring talent, creativity, and innovation. He highlighted that Puig has to compete with world-leading companies in their respective fields. From a financial point of view, the company has increased its debt in recent years due to its inorganic growth strategy. Yet, Puig clarified this doesn't impact their capacity to make further acquisitions and the entrance of external investors is not necessary for future expansion.

At the end of 2022, the group's debt was 1.6 times the company's EBITDA, which was approximately 638 million euros. The company is aiming to exceed 4 billion euros in revenue this year, following its 2022 revenue of 3.62 billion euros, a 40% increase from the previous year. Puig's brand portfolio boasts prominent names like Carolina Herrera, Rabanne, Jean Paul Gaultier, Dries Van Noten, Nina Ricci, Byredo, Penhaligon's, L'Artisan Parfumeur, Kama Ayurveda, Loto del Sur, Charlotte Tilbury, Uriage, Apivita, amid licenses for brands such as Comme des Garçons Parfums, Christian Louboutin, Benetton, Banderas perfumes, and Adolfo Dominguez, among others.