Puig sees record revenues in 2022

Puig Chairman and CEO Marc Puig

Spanish company Puig said it saw a record year in 2022, with net revenues up 40% over 2021 to €3.62bn and net income reaching €400m, an increase of 71%. EBITDA for the year came in at €638m, an increase of 37% over 2021. On an organic basis, revenues rose 30%.

“Two years ago, the company set out a goal to double revenues and reach €3bn in 2023. This has gone much faster than expected,” commented Puig Chairman and CEO Marc Puig at a financial meeting this morning, underlining that the company had reached its €3bn sales target one year ahead of schedule.

In 2020, the company’s revenues were €1.537bn, and in 2021 they reached €2.585bn.

Puig says its 2022 performance puts it in a strong position to reach its target of €4.5bn in revenues for 2025.

In 2022, the company acquired a majority stake in the Swedish luxury brand Byredo and incorporated the wellness brands Kama Ayurveda and Loto del Sur.

Puig stated that it now has three brands with €1bn in turnover and that five of its brands have a turnover of more than €100m.

Fragrance market share reaches 10%

The company also outlined that it has now reached its goal of a 10% market share of the global prestige fragrance market.

By category, sales in the Fragrance & Fashion division (which accounts for 74% of sales), rose 40% in 2022. The company claims that Paco Rabanne and Carolina Herrera are among global top-10 fragrance brands.

Last year, fragrance sales were boosted by the launch of Fame from Paco Rabanne, Scandal from Jean Paul Gaultier and the consolidation of Good Girl from Carolina Herrera. In the niche category, the company opened new stores for Penhaligon’s and L’Artisan Parfumeur in China. Puig said it is aiming for a market share of 20% in the niche fragrance category.

Make-up (which represents 17% of sales, mainly with Charlotte Tilbury, but also Dries Van Noten, Louboutin and Carolina Herrera) saw sales increase 52%.

In skincare (which accounts for 9% of business with the Charlotte Tilbury, Uriage and Apivita brands), sales were up by 20%.

By region, EMEA sales rose 31%, while sales in the Americas were up 56%.

In the US, the largest market in net revenues for Puig, the company said it saw strong growth in prestige fragrances and from Charlotte Tilbury, which it claims is the number-one brand in Sephora in the country.

In Asia, sales grew by 41%, while in China sales were up 36%, despite the country’s zero-Covid strategy. Puig says that China is a top-10 market for the company.  

Puig noted that it has seen a strong recovery in travel retail, with sales up 72% over 2021 and a growth rate of 28% over 2019.

Sales through digital grew by 23%, and digital channels now represent 25% of the company’s sales.

For 2023, Puig is forecasting double-digit growth.

Talking about the market, Marc Puig said that the beauty sector continues to perform well despite the current political and macro-economic context.

“The sector is very resilient to economic risk and uncertainty. The sector has good perspectives for growth […]. Our outlook is for above-sector growth. For the first months of the year, we have not seen any signs of a slowdown and we are optimistic for 2023,” Puig stated.