DOUGLAS – Fiscal year 2024/25 with solid sales growth and strong net profit – The DOUGLAS Group, Europe’s leading provider of premium beauty, closed the 2024/25 fiscal year with solid sales growth, thereby achieving its updated guidance. After a good start in the first quarter (October to December 2024), consumer sentiment and consumer spending weakened in the first months of 2025, particularly in Germany and France. A turnaround in the third quarter was followed by an upturn in online business from July to September 2025 – nevertheless, profitability remained under pressure due to difficult market conditions. Thanks in particular to a significant reduction in debt, the DOUGLAS Group more than doubled its net profit in the financial year. At the same time, it made great progress in implementing its omnichannel strategy ‘Let it Bloom’.
Sander van der Laan, CEO of the DOUGLAS Group, said: “In a very volatile and therefore challenging year, we achieved results that were broadly in line with expectations. For the future, we expect solid overall growth in the European premium beauty market, but see changes in consumer behaviour compared to the extremely dynamic years following the pandemic. As a leading player, we want to take advantage of the opportunities offered by this phase of market consolidation and realignment. We have the strength and ambition to continue to grow and also expect momentum from the further expansion of our store network and the development of new markets – including outside Europe. We are therefore currently intensively examining market entry in the Gulf region, where we see great potential for our premium beauty business.”
DOUGLAS – Fiscal Year 2024/25 – Results in FY 2024/25 in line with expectations
In fiscal year 2024/25, sales rose by 2.8%, or 3.5% excluding the sold online pharmacy Disapo, to 4.58 billion euros. Both the stores, with +2.5% (like-for-like: +0.2%), and e-commerce, with +5.6% (excluding Disapo), contributed to the overall growth. Cross-channel services such as Click & Collect Express – which are allocated to e-commerce – performed exceptionally well. Reported EBITDA rose by 3.6% to €756.5 million, corresponding to a margin of 16.5% (previous year: 16.4%). Adjusted EBITDA fell by 5.0% to €768.4 million, with a margin of 16.8% (previous year: 18.2%) – also due to lower adjustments. Net profit more than doubled to €175.4 million (previous year: €84.0 million). Free cash flow declined by 12.0% to €461.0 million (previous year: €524.0 million). Average net working capital (NWC) as a percentage of consolidated revenue improved to 4.4% (previous year: 5.3%). The DOUGLAS Group thus met its guidance for the 2024/25 financial year, which it had updated on 20 March 2025 in response to a changed market environment, in all four KPIs.
Strong online business characterises last quarter of financial year
The DOUGLAS Group closed the financial year with a solid fourth quarter: Revenue rose by 2.3%, or 2.6% excluding Disapo, to EUR 981.9 million (like-for-like: +1.2%). This was driven by strong online business, while higher revenue in the store business was attributable to the successful expansion of the network. All segments contributed positively to overall growth. The Group subsidiary NOCIBÉ was able to expand its position in the French market, which had recently weakened further, in Q4 and gain market share; in the slightly growing German market, the DOUGLAS Group was also able to increase its market share for the year as a whole. Store sales were 0.6% above the previous year’s figure, with the development varying between segments : Sales rose in Central Eastern Europe (+6.4%) and Southern Europe (+2.2%), while they remained stable (-0.3%) in DACHNL. In France, store sales declined slightly (-1.5%). Online sales
increased almost everywhere in the fourth quarter, rising by 6.2% overall – or 7.3% excluding Disapo. In addition to the online segment Parfumdreams / Niche Beauty (+17.5%), Central Eastern Europe (+13.8%)
and France (+11.0%) recorded the strongest relative growth. Consistent cost management contributed to profitability in the quarter, but the gross margin was impacted by changes in consumer behaviour, including greater price sensitivity, as well as ongoing competitive pressure from discount campaigns and lower supplier bonuses. Reported EBITDA fell 15.1% to €129.8 million, with a margin of 13.2% (previous year: 15.9%). Adjusted EBITDA fell 11.4% to €134.3 million, with a margin of 13.7% (previous year: 15.8%). The debt ratio as of 30 September 2025 was 2.9x (30 September 2024: 2.8x) or 2.1x before IFRS 16.
Targeted investments in growth initiatives and efficiency improvements
The Group continues to make targeted investments in strategic initiatives to support its growth objectives in a changing and realigning market, including IT, the supply chain and harmonised processes and systems across the entire organisation. In addition, the company is testing the use of AI in various areas such as marketing and online shops.Sander van der Laan: ‘We firmly believe that “Let it Bloom” is the right strategy for us andomnichannel is the model for success in premium beauty. We want to grow profitably and invest in initiatives that improve the business and efficiency – such as IT, e-commerce and our expansion.’
DOUGLAS – Financial year 2024/25 – Possible expansion outside Europe
The DOUGLAS Group is considering expansion outside Europe and is examining a possible market entry in the Gulf region or the so-called GCC countries (‘Gulf Cooperation Council’). The region, with its thriving retail landscape, rapidly growing markets and affluent customer base, is predestined for the company’s premium beauty offering. A final decision is to be made in the course of 2026.
Milestones in various strategic initiatives
The company remains clearly committed to brick-and-mortar retail and has further expanded its store network: Between July and September 2025, 35 new company-owned stores were opened (net), including the first flagship store in Tallinn, Estonia, and a new store in the Swiss capital Bern. In addition, the Group modernised 36 existing company-owned stores (including relocations). In total , 139 company-owned stores were modernised (including relocations) and 74 new company-owned stores were opened (net) in 2024/25. Including franchises, the DOUGLAS Group thus operated 1,959 stores as of 30 September 2025. The Group has also achieved milestones in other strategic initiatives: In the fourth quarter, three new exclusive brands were launched (NEST, Iräye, Drybar) and a new campaign platform will ensure consistent brand communication in all 22 omnichannel countries in the future. In addition, the company has made good progress in introducing its OWAC supply chain model (‘One Warehouse, All Channels’): The fifth OWAC warehouse near Warsaw, Poland, began operations in August, improving service quality, delivery timesand customer experience. The warehouse currently handles all B2C orders and store deliveries in Poland, with six more countries to follow. In Italy, OWAC operations have been relocated to a modern, highly automated new warehouse: although the move will have a temporary impact on service rates during the start-up phase, it is expected to lead to a significant reduction in logistics costs. In addition, the Group recently signed a contract for the OWAC warehouse in the Netherlands, which will supply the BENE region.
Guidance for the 2024/25 financial year and medium-term targets
In view of the economic conditions and market developments, which have led, among other things, to greater price sensitivity among consumers, the DOUGLAS Group expects DOUGLAS Group expects sales of between €4.65 and €4.80 billion for the 2025/26 financial year, an adjusted EBITDA margin of around 16.5% and net debt of between 2.5x and 3.0x as of 30 September 2026. In addition to the guidance, the Group anticipates positive developments in average net working capital (less than 4% of twelve-month sales (‘LTM’)) and plans capital expenditure of around 150 million euros (excluding rents). The company has also published its medium-term targets and expects annual revenue growthin the low to mid single-digit percentage range with a stable adjusted EBITDA margin and a reduction in net debt to 2.0x to 2.5x. With this level of debt, it believes it will be in a position to potentially pay a dividend.
Van der Laan: “Thanks to our highly motivated employees, loyal customers and strong relationships with our business partners, we have come through a challenging year well. Our markets are changing in a difficult environment, but we are well positioned to continue growing – primarily due to our effective omnichannel model and our strong retail brands. We believe in our strengths and our strategic direction.”
Solid start to the new financial year – trading statement on 19 January
The DOUGLAS Group has made a solid start to 2025/26 and will publish further information on dvelopments in the first quarter in a trading statement on 19 January 2026.
[Text: epcnews/Photo: Douglas]