Puig exceeds pre-pandemic turnover, revisits goals
The Spanish beauty and fashion conglomerate closed the 2021 financial year with a "better-than-expected growth", recording a 68% increase in sales to 2585 million euros compared to the 1537 million euros accumulated in the previous financial year, which also represents a growth of 27% compared to 2019 revenues. "These results reflect the fact that the group has overcome the temporary impact generated by the pandemic," stated the company during the presentation of its annual financial results on Monday, April 4.
Business profitability increased as a result of this growth, rebounding to pre-pandemic levels. In 2021, Puig recorded a 357% increase in Ebitda to €425 million, representing 16.4% of its net revenues. Meanwhile, pre-tax profit stood at 365 million euros, 14.1% of net revenues, which contrasted with the -72 million euros recorded in 2020. This figure grew by 20% compared to the previous year. Finally, net income rose from -70 to 234 million euros last year, which marked the first year of the "2021-23 strategic plan" in which the Puig family's company worked under its new structure. The group emphasized how the "incorporation of the Derma division and Charlotte Tilbury" contributed to this growth.
The fashion and fragrance division recorded a 41% increase in turnover to 1,898 million euros, representing 73% of the group's net sales. These results were bolstered by the category’s recovery in the EMEA region and the "significant growth" in fragrance sales in the American market, seeing "excellent results" from Carolina Herrera's Good Girl. The company also underlined the growth of its niche fragrance category, which includes Penhaligon’s, L’Artisan Parfumeur and Christian Louboutin, elevating their "relevance" within the group. In the fashion division, Puig highlighted the outstanding performance of Dries Van Noten and “its great resilience to the economic crisis, maintaining its 2019 levels.”
In the beauty division, sales grew by 58% on a like-for-like basis to €413 million, accounting for 19% of global turnover. Acquired in 2020 for around €1 billion, British cosmetics brand Charlotte Tilbury was the "main driver of growth" due to its focus on digital business, together with Christian Louboutin, which was driven by the expansion of its network of stores in the United States and China. Its dermocosmetics division, which includes Uriage, Apivita and Charlotte Tilbury and accounts for 11% of the company's revenues, increased its turnover by 18% on a like-for-like basis to 274 million euros.
Expected revenues of 3 billion euros in 2022
The company recorded a remarkable 104% growth in sales in the United States, making it the company's largest market. Meanwhile, the EMEA region, which accounts for 58% of Puig's revenues with a turnover of 1,498 million euros, saw a 60% increase in sales, while in China, sales increased threefold compared to 2020. On the digital front, online business rose to represent 28% of total revenues, while travel retail "suffered major constraints due to year-round travel restrictions."
Looking forward, the company expects to see a "continuation of the positive trend experienced at the end of 2021" over the course of this current fiscal year. Present in more than 150 countries and with its own offices in 27 of them, Puig intends to maintain "strong growth exceeding the targets set for this year in the strategic plan.” According to the group’s three-year plan, Puig expected to reach revenues of 3,000 million euros in 2023, a figure that the Spanish company expects to reach this year ahead of schedule, as well as Ebitda of 500 million euros.
The company led by Marc Puig restated its aim to increase its net revenues threefold compared to those recorded in 2020. In order to achieve this goal, the group plans to grow its digital business, expand its foothold in Asia (especially in China), increase the diversification of the beauty and dermocosmetics categories, and rely on the gradual recovery of the travel retail channel. Likewise, the company, which recently acquired the Chinese perfume brand Scent Library, said it will continue to "search for opportunities that align with the company's strategic objectives.”
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