Douglas returns to the path of growth. In the third quarter of fiscal year 2024/25, the European premium beauty group Douglas achieved a solid commercial rebound, recording sales of one million euros, which represents an increase of 3.2% compared to the same period of the previous year.
This growth marked a significant return to positive territory after a fall of 2% in the second quarter. Store sales increased by 2.1%, although like-for-like sales fell by 0.7%, while the digital channel rebounded with strong growth: +5.4%, or +8.2% excluding Disapo.
By region, Central and Eastern Europe stood out for its good performance with a growth of 10.5%, and Parfumdreams together with Niche Beauty accelerated by 19.2%, driven by a better commercial strategy and a more attractive offer. In Germany, the group's largest market, sales also improved year-on-year. In contrast, France experienced a certain decline in demand, although Nocibé managed to maintain its share in stores and e-commerce despite a slight decrease in sales.
In terms of profitability, Douglas managed to contain the pressure on its margins through tight cost management: reported EBITDA advanced by 1.4% to 154.6 million euros, with a margin of 15.3% (vs. 15.6% in the previous year), while adjusted EBITDA fell by 2.9% to 158.2 million €, exceeding analysts' expectations. The quarterly net profit took an impressive turn, going from a loss of -71.6 million euros to a profit of 17.3 million, benefiting from the financial restructuring after its IPO in 2024, which reduced financial costs.
At an accumulated level in the first nine months of the year, the group's sales grew by 2.9% to 3,600 million euros. Reported EBITDA rose by 8.5% to 626.7 million euros, although adjusted EBITDA decreased by 3.5% to 634.1 million €; free cash flow was 412.8 million € and net profit reached 161.3 million €, compared to 12.2 million the previous year.
Douglas has also continued to develop its "Let it Bloom" strategic plan, opening 22 new stores and renovating 39 establishments during the quarter, including new formats and omnichannel services that enhance the customer experience. The company's shares have performed favorably, climbing almost 9% after the announcement of results.
Finally, according to Reuters, the relatively improved performance of adjusted EBITDA managed to exceed market estimates (158.2 million compared to the 143.8 million expected), thanks to an effective cost control strategy that compensated for a more intense promotional environment expected for the second half of the year.