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Puig Brands (XMAD:PUIG) Operating Income : € Mil (TTM As of Dec. 2023)


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What is Puig Brands Operating Income?

Puig Brands's Operating Income for the six months ended in Dec. 2023 was €693 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Puig Brands's Operating Income for the six months ended in Dec. 2023 was €693 Mil. Puig Brands's Revenue for the six months ended in Dec. 2023 was €4,304 Mil. Therefore, Puig Brands's Operating Margin % for the quarter that ended in Dec. 2023 was 16.10%.

Puig Brands's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Puig Brands's annualized ROC % for the quarter that ended in Dec. 2023 was 8.88%. Puig Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 97.33%.


Puig Brands Operating Income Historical Data

The historical data trend for Puig Brands's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Puig Brands Operating Income Chart

Puig Brands Annual Data
Trend Dec21 Dec22 Dec23
Operating Income
386.53 536.50 692.97

Puig Brands Semi-Annual Data
Dec21 Dec22 Dec23
Operating Income 386.53 536.50 692.97

Puig Brands Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

For stock reported annually, GuruFocus uses latest annual data as the TTM data. Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was € Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Puig Brands  (XMAD:PUIG) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Puig Brands's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=692.97 * ( 1 - 22.28% )/( (5771.716 + 6352.243)/ 2 )
=538.576284/6061.9795
=8.88 %

where

Invested Capital(Q: Dec. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=7115.112 - 633.346 - ( 710.05 - max(0, 1194.634 - 1956.378+710.05))
=5771.716

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=7711.288 - 695.75 - ( 855.996 - max(0, 1649.886 - 2313.181+855.996))
=6352.243

Note: The Operating Income data used here is one times the annual (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Puig Brands's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2022  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=702.612/( ( (510.967 + max(144.722, 0)) + (614.263 + max(173.763, 0)) )/ 2 )
=702.612/( ( 655.689 + 788.026 )/ 2 )
=702.612/721.8575
=97.33 %

where Working Capital is:

Working Capital(Q: Dec. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(387.936 + 626.333 + 104.17) - (633.346 + 0 + 340.371)
=144.722

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(484.705 + 788.866 + 133.633) - (695.75 + 0 + 537.691)
=173.763

When net working capital is negative, 0 is used.

Note: The EBIT data used here is one times the annual (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Puig Brands's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=692.97/4304.067
=16.10 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Puig Brands Operating Income Related Terms

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Puig Brands Business Description

Comparable Companies
Traded in Other Exchanges
Address
Plaza Europa 46-48, L Hospitalet de Llobregat, Barcelona, ESP, 08902
Puig is a premium beauty product maker that focuses on fragrances (72% of 2023 sales), with more limited exposure to color cosmetics (18%) and skincare (10%). Through a series of acquisitions, Puig has built a premium portfolio, including brands such as Rabanne, Carolina Herrera, Byredo, L'Artisan Parfumeur, Penhaligon's, Dries Van Noten, and Charlotte Tilbury, which contributes 95% of total sales. It also has long-term licensing agreements with Christian Louboutin, Adolfo Dominguez, and Antonio Banderas. Puig generates close to 54% of sales from Europe, 36% from the Americas, and 10% from Asia. The Puig family owns 70% of the economic interests in the company and 94% of the voting rights via a dual-class share structure.

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