German perfume and cosmetics retailer Douglas reported a net loss in the second quarter, affected by expenses linked to its IPO, the company said on Wednesday.

The company reported a net loss of 41.3 million euros ($44.84 million), still a 2% improvement from a year ago but overshadowed by one-off costs related to its IPO on the Frankfurt Stock Exchange.

Douglas’ listing in March was used to reduce its debt by 1.3 billion euros and to improve its financing conditions, allowing the company to reach a leverage ratio of 2.7.

“We also reconfirm our mid-term guidance to target the 2.0 leverage,” Mark Langer, Douglas’ CFO, said in a media call, adding that the company expects further deleveraging in the next financial year, with an increase in cash flow in the Christmas season.

“The company will also consider paying dividends once we are approaching the 2.0,” Langer added.

Douglas, which sells beauty products from brands like Chanel and Dior, is in talks to join the German small-cap index SDAX from June, after Deutsche Boerse conducts its review of the German DAX indices at the beginning of the month.

Operating profit was 145.9 million euros in the second quarter, up 16.2% compared to the same period last year.

The company confirmed its full-year guidance for 2023/2024.