Postcard from Madrid

Research evidence excerpt

Postcard from Madrid

Spain | Food & HPC

PUIG EquityJuneResearch18, 2026

FLASH NOTEPostcard from Madrid

Puig hosted a group sell-side meeting with CFO and IR today in Madrid. RATING BUY

The focus is on the underlying strategy in the wake of discontinued Estée PRICE €16.11^

merger talks with unchanged M&A priorities, manageable ME disruption, PRICE TARGET | % TO PT €20.00 | +24%

and adapting to shifting consumer preferences in the still-solid fragrance 52W HIGH-LOW €18.89 - €13.11

category. Our PT implies a re-rating from 14x to 17.5x NTM P/E. Retain Buy. FLOAT (%) | ADV MM (USD) 25.8% | 13.76

MARKET CAP €9.1B | $10.5B

CFO meeting. Puig hosted a group sell-side meeting with CFO Miquel Angel Serra Duran and TICKER PUIG SM

Investor Relations today in Madrid. ^Prior trading day's closing price unless otherwise

noted.

Estée in the rearview. Following the end of merger talks between Estée and Puig last month,

Puig renews its focus on the core. The co confirmed that there were 2 options for consideration:

a merger with Estée and Kering Beauty acquisition. Kering piqued management's attention

despite the brands being operated through a licencing model. The 50-year time frame was

long enough for Puig and Kering taking a stake in the co would have aligned the businesses'

incentives. The attraction to Estée was primarily driven by the complementarity between the

geographies/categories. However, with both strategic pivots now firmly in the rearview, focus

is totally on the core business and bolt-on acquisitions.

M&A priorities haven't shifted. The bolt-on strategy remains the priority for Puig as it moves

forward. Skincare and niche fragrance remain core targets. Inorganic growth could also

deepen Asia exposure, with a pipeline of assets already established in the region. Net debt/