Puig, the Spanish beauty brand owner, has reported a 26% loss in profits for the first half of 2024.
The parent company of Charlotte Tilbury and Byredo attributed the €57m loss to the cost of its IPO in May and recent acquisitions.
Puig purchased Dr. Babara Sturm in January and Byredo in March.
It was also noted that its €94m employee bonus scheme impacted profits.
However, the Barcelona-based firm reported a 10% sales increase in H1, with Puig's fragrance and fashion division the top performer at a 10.7% growth and generating €1.6bn sales.
Skin care, which included Uriage and Kama Ayurveda, was reported to be Puig's fastest-growing category.
The division grew by 25% and was said to be bolstered by the conglomerate's acquisition of Dr. Babara Sturm in January and Charlotte Tilbury's pivot into skin care.
Make-up sales were down by nearly 2% due to Puig brands, such as Christian Louboutin, having limited exposure in Asia, said Puig.
Reduce spending in China was highlighted as a difficult market due to the country's recent economic woes.
"We are particularly pleased with our performance across our core geographies despite a challenging economic environment marked by geopolitical tensions," said Marc Puig, CEO of Puig.
"Our continued focus on the premium beauty sector, as well as the strength and desirability of our brands alongside disciplined financial execution have ensured that our profitability remains compelling."
