April 4, 2022
The Spanish beauty and fashion group closed its fiscal year 2021 with “better-than-expected growth”, recording a 68% increase in revenue to €2585 million compared with €1537 million accumulated in the fiscal year. Prior to that, this also represented a 27% increase in revenue in 2019. “These results reflect the fact that the group has weathered the temporary impact of the pandemic,” the company said. said during its annual financial results presentation on Monday, April 4.
Business profits boosted this growth, recovering back to pre-pandemic levels. In 2021, Puig sees Ebitda grow 357% to €425 million, representing 16.4% of the company’s net sales. Meanwhile, pre-tax profit stood at 365 million euros, accounting for 14.1% of net sales, as opposed to -72 million euros recorded in 2020. This figure is up 20% from the previous year. . Finally, net income increased from -70 to 234 million euros last year, marking the first year of the “strategic plan 2021-23”, in which the Puig family company operates under the new structure. The team highlighted how the “combination of the Derma and Charlotte Tilbury division” contributed to this development.
The fashion and perfumery division recorded a 41% increase in revenue to 1,898 million euros, accounting for 73% of the group’s net sales. These results were bolstered by the category’s recovery in the EMEA region and “significant growth” in perfume sales in the US market, which saw “excellent results” from Good Girl. by Carolina Herrera. The company also highlighted the growth of its niche fragrance portfolio, which includes Penhaligon’s, L’Artisan Parfumeur and Christian Louboutin, elevating their “relevance” within the group. In the fashion department, Puig highlighted Dries Van Noten’s stellar track record and its “great resilience to the economic crisis, maintaining 2019 levels”.
In the beauty division, sales increased by a similar 58% to 413 million euros, representing 19% of total global sales. Acquired in 2020 for around 1 billion euros, British cosmetics brand Charlotte Tilbury is a “key growth driver” due to its focus on digital business, which, along with Christian Louboutin, is fueled by the opening. Expanded store network in the United States. and China. Its dermocosmetics division, which includes Uriage, Apivita and Charlotte Tilbury and accounts for 11% of the company’s revenue, increased sales by a similar 18% to 274 million euros.
Expected turnover of 3 billion euros in 2022
The company recorded a remarkable 104% growth in sales in the United States, making it its largest market. Meanwhile, the EMEA region, which accounts for 58% of Puig’s sales with a turnover of 1,498 million euros, saw a 60% increase in sales, while in China, sales tripled compared to 2020. On the digital side, online business has grown. accounted for 28% of total sales, while travel retail “suffers major hardships due to year-round travel restrictions.”
Looking ahead, the company expects to see “a continuation of the positive trend experienced at the end of 2021” throughout this current financial year. Present in more than 150 countries and with offices in 27 of them, Puig intends to maintain “strong growth rates that exceed the targets set out for this year in the strategic plan”. Under the group’s three-year plan, Puig is expected to reach sales of 3,000 million euros by 2023, a number the Spanish company is expected to hit ahead of schedule this year, as is Ebitda. 500 million euros.
The company led by Marc Puig has redefined the goal of increasing net sales to three times the level recorded by 2020. To achieve this goal, the group plans to develop its digital business, expanding foothold in Asia (especially in China), increasing diversification of beauty and travel categories, and relying on gradual recovery of travel retail. Likewise, the company, which recently acquired Chinese fragrance brand Scent Library, said it will continue to “seek opportunities that align with the company’s strategic goals.”
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