SMCP (SMCP) H1 2026 earnings summary

Executive summary

• H1 2026 sales reached €597m, up 0.6% organically year-over-year, with growth in America and EMEA, stable Asia Pacific, and a decline in France due to weak consumption and network contraction.

• Adjusted EBIT rose 25% to €53.2m (8.9% margin), and net income increased 52% to €16.8m, reflecting significant profitability improvement.

• Financial structure strengthened through deleveraging, with net financial debt reduced to €145m and leverage at a record-low 1.1x.

• Free cash flow was €3.5m, impacted by working capital timing; guidance for €50m FY free cash flow reaffirmed.

• Disciplined discount management, brand desirability initiatives, and network optimization supported performance.

Financial highlights

• H1 2026 revenue was €597m, up 0.6% organic and 1.6% like-for-like, with Q2 sales accelerating to €310m (+2.0% organic).

• Adjusted EBITDA rose 6% to €119.2m (20.0% margin), and management gross margin improved by 1.7 points to 76.0%.

• Net income grew to €16.8m from €11.0m year-over-year; basic EPS increased to €0.21.

• Capex increased to 3.4% of sales, supporting targeted investments.

• Free cash flow was €3.5m, down from €33.1m in H1 2025, mainly due to working capital timing.

Outlook and guidance

• Full-year 2026 guidance confirmed: targeting adjusted EBIT margin of ~10% in H2 and €50m free cash flow.

• Free cash flow generation expected mainly in H2.

• Continued focus on operational efficiency, cash generation, and value creation.