Intercos (ICOS) Q2 2025 earnings summary

Executive summary

• Net sales reached €524.9 million in H1 2025, up 6.1% at constant FX and 5.0% at reported FX, with Make-up exceeding 60% of total sales and driving strong EBITDA growth.

• Adjusted EBITDA rose 16.5% to €74.5 million, with margin expansion to 14.2% on net sales and 18.2% on value-added sales, driven by favorable business mix and productivity gains.

• Record quarterly EBITDA of €45.3 million achieved in Q2 2025.

• Net debt as of June 30, 2025, was €134.5 million, with a leverage ratio of 0.87x, reflecting a sound financial structure.

• Adjusted net profit was €20.7 million, down year-over-year due to higher financial expenses and currency effects.

Financial highlights

• H1 2025 revenues grew 5% year-over-year to €524.9 million, with value-added sales up 5.2%.

• Adjusted EBITDA margin improved by 140bps to 14.2% on net sales and 18.3% on value-added sales.

• EBIT rose 25% to €43.9 million, with margin up to 8.4% of revenues.

• Operating cash flow was €7.7 million, down year-over-year due to higher capex and working capital needs.

• Gross margin increased to 21.3% from 20.0% in H1 2024.

Outlook and guidance

• Full-year sales growth at constant rates now expected in the low single digits (3%-4%), below previous guidance, due to Hair and Body segment weakness.

• Profitability is expected to improve significantly, with EBITDA margin gains above initial expectations and in line with consensus.

• Order intake remains solid, especially in Make-up and prestige segments, but delivery timelines may vary due to tariff uncertainties.

• No project delays; focus remains on core business and innovation in Make-up.

• Management expects continued growth for 2025, with a focus on profitability amid market volatility.