Puig Brands stock down following voluntary recall by Charlotte Tilbury

Investing.com -- Shares of Puig Brands, S.A., tumbled more than 4% on Friday, after it said one of its flagship makeup brands, Charlotte Tilbury, is voluntarily recalling certain batches of its Airbrush Flawless Setting Spray. 

The recall, disclosed in a company statement issued Thursday, was triggered by a quality issue identified in a limited number of batches during routine analysis. 

The company said that the flaw does not pose a safety risk to consumers, and no other Charlotte Tilbury products are affected.

Puig said that the recall is unlikely to materially impact the company's annual financial results.

In its statement, Puig acknowledged the recall would affect the performance of this particular division but maintained confidence in its overall medium-term targets, including stable EBITDA margins in 2024.

Puig, headquartered in L'Hospitalet de Llobregat near Barcelona, reiterated that its medium-term guidance, as outlined during its recent public offering, remains unchanged. 

“Although the company is still confident in achieving its 2024 and mid-term guidance, we see LSD consensus EPS downgrade due to this withdrawal, which is driven by 40bps headwind to group 2024 OSG and 30bps headwind to group 2025 OSG per our estimate,” said analysts at Citi Research in a note.

Source: Investing.com