Puig Achieves Net Revenues of €2.5 Billion in 2021

Puig, a leader in unique beauty and fashion, achieved net revenues of €2.5 billion (approximately in 2021 $2.6), representing an increase of 68% compared to 2020, and 27% compared to 2019. 

 

The incorporation of the Derma division and Charlotte Tilbury as part of the Puig operation contributed to this growth, according to the company. On a like-for-like basis, the company purports that sales growth would have been 40% in 2021 had the Charlotte Tilbury division and the Derma division, with Uriage and Apivita, been part of the company throughout 2020. 

 

The recovery of the markets in Europe, the Middle East, and Africa (EMEA) and the growth of the business in the US and Asia also had a positive impact on results. 

 

Strong growth has boosted business profitability, putting it at pre-pandemic levels. As a result, Puig, recorded earnings before interest, taxes, depreciation, and amortization (EBITDA) of €425 million, 16.4% of net revenues, which represents an increase of 357% over 2020, and 27% over 2019. Meanwhile, profit before tax grew to 365 million euros, 14.1% of net revenues, compared to a negative result (-72 million euros) in 2020, an increase of 20% over 2019, while the net income rose to €234 million. 

 

The economic impact on the business caused by the Covid-19 pandemic has significantly decreased, allowing for a substantial recovery in the fashion, fragrance and makeup categories. 

In the beauty and fragrance category, Puig recorded a 41% increase in sales compared to 2020. These positive results were boosted by the recovery of fragrance in markets such as EMEA, with particularly successful launches for Phantom by Paco Rabanne and Scandal pour Homme by Jean Paul Gaultier. 

 

In the US, the company’s fragrances experienced significant growth, with solid results from Carolina Herrera’s Good Girl. The niche segment, with Penhaligon’s, L’Artisan Parfumeur and Christian Louboutin, also grew substantially, increasing its importance within Puig. 

 

In makeup, Puig increased sales by 153% compared to 2020. Charlotte Tilbury, with its luxury makeup line and focus on digital business, continues to be the main driver of growth in this category, together with Christian Louboutin, thanks to geographical expansion and the opening of new points of sale in the US and China. 

 

In the dermo-cosmetics category, Puig achieved an increase in sales compared to 2020, owing to the perimeter change in the business. With Uriage, Apivita and Charlotte Tilbury, the category grew its presence in Europe, while continuing its international expansion in Asia, thus achieving double-digit growth. 

 

From a geographical perspective, in 2021 Puig grew by 104% in net revenues in the US, which has now become the company’s number one market. Moreover, the presence of Puig in China expanded significantly, with revenues tripling those of 2020, increasing by 212%. The company also increased sales by 60% in EMEA, thanks to that market’s recovery. 

 

Digital business, a priority for Puig, represented 28% of total net revenues in 2021 and was once again a source of growth for the company. However, travel retail suffered major constraints due to year-round travel restrictions. 

 

Strong Growth Ahead 

 

The results for the first months of 2022 indicate that the positive trend experienced at the end of 2021 continues, with strong growth set to outpace the objectives forecast for this year in the strategic plan, said the company.

 

The three-year plan presented in 2020 pointed to revenues of €3.0 billion in 2023. Thanks to the growth achieved in 2021, 2022 is on track to exceed this figure, as well as the €500 million of EBITDA, a year earlier than planned, company officials said. 

 

The company has reaffirmed its ambition to triple the net revenues of 2020 by 2025. 

 

The growth levers leading up to 2025 will be the expansion of the digital business; the growth of the company in Asia, especially in China, thanks to Charlotte Tilbury and the niche brands; as well as increased diversification in the makeup and dermo-cosmetics categories and the gradual recovery of the travel retail channel, noted Puig.