Strong Cash Generation
- • FCF improved 18% YoY to €7.4B driven by margin expansion and NWC discipline
- • FCF conversion ~91% of net income, above peer average of 85%
- • CapEx intensity 3.7% of sales, in line with guidance of 3.5-4.0%
Capital Deployment Priorities
- • 35% allocated to growth CapEx (expanding capacity in EM markets)
- • €1.5B/year shareholder returns (dividends + buybacks)
- • Targeted M&A in prestige beauty and health/wellness segments
- • Maintain net debt/EBITDA below 2.5x (currently 2.0x)
Management Guidance
- • Target FCF of €7.5-8.0B annually through 2026
- • CapEx intensity to remain 3.5-4.0% of sales
- • Focus on asset-light growth via licensing and partnerships
