The family beauty and fashion company Puig closed the 2020 fiscal year with net sales of 1,537 million euros, a figure that represents a 32% decrease compared to 2020 at constant perimeter. If the acquisition of the iconic luxury makeup company Charlotte Tilbury, made in June of last year, is taken into account, the cut in turnover stands at 24%.
"Although the company's results in the first two months of 2020 were very satisfactory, the year was cut short by covid-19, an unprecedented health and economic crisis that has greatly shaken almost all sectors," highlights the company chaired by Marc Puig, which, for the first time in recent history, has entered into losses. "It has been the worst year in our history," admits the businessman who, however, will also remember the year for having managed to buy Charlotte Tilbury, in an operation valued at around 900 million.
Thus, the year closed with a loss of 70 million euros, compared to the net profit of 226 million achieved in 2019. Although the ebitda has remained above 90 million, the closure of fashion and perfumery stores has taken its toll on the company, along with the disappearance of tourism and the collapse of airport traffic, another of the group's strong points.
Specifically, the closure of duty-free stores has cut Puig's selective fragrance sales in the travel retail channel by 71%, a percentage that triples the global 29% cut suffered by the company in fragrance sales. On the contrary, online sales of this category of products, where it operates with brands such as Carolina Herrera, Jean Paul Gaultier, Nina Ricci or Paco Rabanne, grew by 28%.
With a presence in 150 countries, the group based in Plaza Europa in L'Hospitalet is optimistic about the future and is confident of returning to profit this year. Puig has drawn up an ambitious growth plan that involves doubling its sales in 2023, when it expects to exceed 3,000 million, and reaching 4,500 million in 2025, which would mean tripling turnover. To achieve these objectives, the Barcelona-based multinational foresees a significant increase in online channel sales, which should generate 30% of the business in 2025. Likewise, the accelerator will be pressed in Asia, a market that should contribute another 25% of turnover that year.
A few months ago, Puig already announced a reorganization aimed at fulfilling these objectives. The main novelties are the structuring of the group into three large divisions and the incorporation, on January 1, of a series of cosmetic brands that until now were owned by the family ---through the Exea Empresarial holding company---, but that were outside Puig's perimeter. These are Uriage, Apivita and the 50% stake in Isdin (the other 50% belongs to the pharmaceutical company Esteve).
These three brands now integrate the new Derma division, which positions Puig as number 3 in the European dermocosmetics sector ranking. The group has also created a specific division for the British brand Charlotte Tilbury. The rest of the businesses, both in fashion and fragrances, now depend on the new Beauty and Fashion division, with which it is the fifth largest player in the world in selective perfumery, with a global market share close to 10%.
In addition to Paco Rabanne, Carolina Herrera, Jean Paul Gaultier and Nina Ricci, Puig owns Dries Van Noten, Penhaligon's and L'Artisan Parfumeur. It also holds the beauty licenses for Christian Louboutin and Comme des Garçons Parfums, as well as for the brands Adolfo Dominguez, Antonio Banderas, Shakira or Benetton.