03.23.23
Puig closed 2022 with record net revenues of $3.89 billion, representing an increase of 40% on 2021 (+30% at comparable perimeter and with constant exchange rates), boosted by the good performance of its own brands in a market that is growing thanks to the recovery of consumer spending.
The company reached earnings before interest, taxes, depreciation and amortization (EBITDA) of $691.4 million, representing a 37% increase on 2021. Net income rose to $434.1 million, up 71% compared to the previous year. The company achieved these record results despite complex geopolitical environment, plus the impact of inflation and rising interest rates.
The three-year plan for Puig, which was presented in March 2021, aimed for sales of $3.25 billion in 2023.
In terms of inorganic growth, Puig carried out important acquisitions in 2022. During this period, the company acquired a majority stake in the Swedish luxury brand Byredo and incorporated the wellness brands Kama Ayurveda, in India, and Loto del Sur, in Colombia. All of these brands are firmly committed to sustainability and have a direct channel with consumers.
Fragrances
Puig accelerated its growth in the fragrances category ahead of the market average, with a 40% increase in net revenues compared to 2021, based not only on organic growth but also due to the incorporation of brands such as Byredo. In 2022, the company achieved a global market share of 10% in the fragrance market of selective distribution, marking a milestone in its history. This success was possible due to the strength of its own brands, with two of these, Paco Rabanne and Carolina Herrera, placed among the world’s top 10. The Puig brands in the Prestige segment had an excellent performance, boosted by the successful launch of Fame, a fragrance from Paco Rabanne; by the consolidation of Good Girl, from Carolina Herrera, following the launch of Very Good Girl in 2021; and by the good performance of Scandal from Jean Paul Gaultier. Likewise, the Niche brands reaffirmed their growth plan in Asia with the opening of new own points of sale for Penhaligon’s and L’Artisan Parfumeur in China. Dries Van Noten presented its first collection of perfumes with a line of ten gender fluid fragrances in refillable bottles.
Cosmetics
With a 52% increase of revenues over the previous year, makeup was the category with the largest growth in 2022. Charlotte Tilbury was the leading makeup brand in the UK, and it became even stronger in 2022 due to the strength of products such as the Pillow Talk color range, in addition to offering important technology innovations that combine the physical and virtual experience of makeup. In 2022 Carolina Herrera achieved its best results since the launch of its makeup line in 2020. Byredo had a very positive year, reinforced by the launch of a series of new iconic products. In 2022 Dries Van Noten made its first inroads into this category with a collection of 30 shades of lipstick in refillable containers.
Eco-friendly Formulas Boosted Growth in Skincare
Revenues in the skincare categories grew 20% in 2022. For Charlotte Tilbury, the leading product was Magic Cream, reinforcing its offer in this category while adhering to its commitment to providing a complete beauty wardrobe. Uriage and Apivita saw an accelerated investment in innovation and technology in order to continue developing science-based dermatology products that are respectful of the environment, mainly in the solar protection and anti-ageing ranges. The latter two brands are distributed largely through the pharmacy and drugstore channel.