Puig Sales Surge Past the 4 Billion-euro Mark in 2023
PARIS — Beauty and fashion group Puig crossed the 4 billion-euro sales threshold in 2023.
The family-owned Spanish company posted net sales of 4.3 billion euros in the 12 months ended Dec. 31, a 19 percent increase in both reported and like-for-like terms, powered by all segments and regions, which registered double-digit sales growth.
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Despite tailwinds from challenging economic and geopolitical environments, Puig significantly outpaced the beauty market that grew an estimated 8-plus percent last year.
“We have achieved these strong results thanks to our strategy of building up a portfolio of owned brands, focusing on prestige products and expanding our leadership in niche fragrances and makeup,” said Marc Puig, chairman and chief executive officer of Puig, in a statement released Thursday morning. “Due to the strength and desirability of our diversified portfolio, we have reinforced our position in our core regions — Europe and the Americas — while continuing to invest in markets with high growth potential for our brands.
“We have kicked off 2024 with positive momentum, including strengthening our foothold in premium skin care, with the acquisition of Dr. Barbara Sturm,” Puig continued, referring to the transaction in January.
Among other highlights he underlined were the inauguration of Puig’s new tower in Barcelona, in the presence of King Felipe VI and Queen Letizia of Spain last month.
Puig’s strong showing in 2023 was powered by a confluence of factors instigated over the past 15 years, including integrating dermocosmetics and focusing on storytelling. Company-owned brands last year generated 95 of the group’s overall sales.
In 2023, Puig’s net profits were 465 million euros, up 16 percent on a like-for-like basis. Its earnings before interest, taxes, depreciation and amortization reached 849 million euros, a 33 percent rise against 2022, equating to an EBITDA margin of 20 percent.
Puig in March 2021 presented a three-year plan with the goal of reaching sales of 3 billion in 2023 and 4.5 billion euros in 2025. But because of strong growth over the past three years, the company doubled 2020 net sales a year ahead of schedule and almost tripled sales two years earlier than expected.
At the end of 2023, Puig net debt amounted to 1.2 billion euros.
During the year, the group’s fragrances and fashion activity’s sales combined reached 3.12 billion euros, up 17 percent, driven by its own brands’ business. The activity made up 72 percent of Puig’s sales against 74 percent in 2022. Last year, Rabanne became the first Puig brand to cross the 1 billion-euro net sales threshold, after introducing a new brand identity. Meanwhile, Jean Paul Gaultier became the company’s fastest-growing brand.
Helping spur Puig to lasso 11 percent prestige fragrance market share worldwide in 2023 were perfumes including Rabanne’s 1 Million and Carolina Herrera’s Good Girl, as well as the launches of Gaultier’s Le Male Elixir and Divine.
The company noted that there was strong momentum at Dries Van Noten, its fastest-growing niche brand, and that Byredo, in its first year at Puig, notched up double-digit growth despite the slowdown of retail sales in Asia.
The group’s fashion activity posted double-digit gains. Its highlights included Carolina Herrera’s first resort show in Rio de Janeiro, Harris Reed joining Nina Ricci as creative director, and Gaultier signing on guest designers Haider Ackermann and Julien Dossena.
Dossena crossed the 10-year line as creative director at Rabanne, and had a well-received collaboration with H&M. Van Noten’s debuted his first beauty and accessories store, in Paris.
Puig’s makeup sales reached 773 million euros, a 23 percent gain and the equivalent to 18 percent of the group’s net revenues versus 17 percent in 2022. The growth continued to be driven by Charlotte Tilbury, which turned 10 last year and performed strongly in the U.K., North America, Europe, the Middle East, Australia and Singapore.
“The strong growth in the segment was further fueled by the acceleration in the Middle East and Latin America, the performance of Christian Louboutin Beauté and the positive reception of the launch of Rabanne’s makeup line, which is advancing the brand’s appeal with new and diverse audiences,” the company said.
Skin care eclipsed makeup as the Puig category with the fastest growth, which advanced 31 percent to 431 million euros, or 10 percent of group sales. Business was buoyed by Charlotte Tilbury’s bestseller, Magic Cream, and products from dermatological brands Uriage and Apivita. The group said the incorporation of Loto del Sur and Kama Ayurveda’s sales in 2023 were key to skin care obtaining robust double-digit gains last year.
By geographic region, Puig’s growth was the fastest in Asia Pacific, where sales increased 26 percent to 439 million euros. “This positive performance follows Puig’s strategic investment in regions with high growth potential for the company’s brands and establishment of a strong presence in Asia, including in China and India,” the group said.
China is a priority and the company’s biggest Asian country in terms of sales, which were up 27 percent last year, bolstered by Charlotte Tilbury and Byredo, Puig’s largest brand and fastest-growing niche label in the region, respectively.
Sales in the Europe, Middle East and Africa zone rose 18 percent to 2.32 billion euros. There, it registered strong growth in Spain, which rings up 7 percent of company sales, France and the U.K, where Kama Ayurveda opened a store and a Harrods spa in London. Charlotte Tilbury entered Poland, Sweden and Saudi Arabia. Puig opened new offices in Paris.
In the Americas, sales reached 1.54 billion euros, gaining 18 percent, driven mostly by the U.S., Brazil and Mexico. In the U.S., which is the world’s largest beauty market and Puig’s biggest sales-wise, substantial growth came from prestige fragrances. There, Good Girl became the second top-seller among prestige women’s perfumes, and Charlotte Tilbury was the number-five makeup brand, despite limited distribution, according to Puig estimates.
“Growth in Brazil, Mexico and Chile was boosted by fragrances, and the integration of Loto del Sur consolidated Puig’s presence in Colombia,” the company said.
Also in 2023, Puig opened a Miami travel retail hub, which reinforced the group’s ambitions in the region and channel.
The company’s digital business remained robust, rising one percentage point to represent 26 percent of total company sales.
Puig’s travel retail business recovered from the coronavirus pandemic, reaching business levels above those of 2019. The group uses the channel to launch some perfumes, such as Rabanne’s Phantom and Fame.
Last year, Marc Puig said the company is assessing all strategic options for the group’s future, including the option of opening its capital to third parties via an initial public offering.
The company revealed its partnership with the 37th America’s Cup, including the first Puig Women’s America’s Cup. The event will be held in Barcelona, Puig’s headquarters, from August to October.
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