Puig records historic sales of 2,585 million due to higher consumption in the US and China

The Barcelona-based multinational fragrance and fashion company Puig has put an end to the pandemic period and closed the last fiscal year in positive territory, with record sales figures and returning to profit for the whole of 2021. It has been "a very good year", said the executive chairman of the Catalan family company, Marc Puig. The primary reason has been the progressive recovery in the fashion, fragrance, and makeup categories due to consumer interest in buying beauty products again once social activity was re-established. And this has been exponentially reflected in the US and Chinese markets.

Thus, after recording losses of 70 million in 2020 due to the impact of the pandemic, the Puig group closed 2021 with profits of 234 million euros and historical sales of 2,585 million, with a growth of 68% compared to 2020 and 27% more than in 2019. Its president also highlighted the weight of dermatological products with the incorporation into the company of the Derma division (which includes the companies Uriage, Apivita, and 50% of Isdin) and Charlotte Tilbury, as well as niche brands, specialized products with very limited distribution. In fact, 73% of 2021 turnover came from fragrances; 16% from makeup and 11% from dermocosmetics.

The positive trend has consolidated in the first quarter of this year, so the company has revised upwards the forecasts of its growth plan: the business will reach 3,000 million in 2022, a year earlier than expected, according to Marc Puig. The company, owner of brands such as Carolina Herrera, Nina Ricci, Paco Rabanne, Jean Paul Gaultier, Dries Van Noten, Penhaligon's, and Artisan Parfumeur, also expects to record operating results of 500 million euros this year, when last year they amounted to 425 million (27% above 2019).

Marc Puig explained that in the last year, sales of makeup products grew by up to 153% compared to 2020. Charlotte Tilbury, with her line of luxury make-up and her focus on the digital business, continues to be the main growth engine for this category, along with Christian Louboutin, thanks to geographical expansion and the opening of points of sale in the US and China. This does not mean that Europe is not still the main market for the company in all its categories and that online sales generate 28% of the business, consolidating the penetration advances achieved during the pandemic.

In the fashion and fragrances category, Puig registered a 41% increase in sales compared to 2020. These positive results were boosted thanks to the recovery in the fragrance category in the areas of Europe, the Middle East, and Africa, where the launches of Phantom by Paco Rabanne and Scandal pour Homme by Jean Paul Gaultier stood out. In the US, the company registered significant growth in fragrances, with excellent results from Good Girl by Carolina Herrera. The niche brands segment also grew significantly, with a higher price and superior quality and very limited distribution, through products such as Penhaligon's, Artisan Parfumeur, and Christian Louboutin, which have increased their relevance within the Puig group as a whole.

With a presence in 150 countries ---and its own offices in 27 of them-- and corporate headquarters in Plaza Europa in L'Hospitalet, the company wants to continue growing and seeking opportunities that align with its strategic objectives. In this regard, Marc Puig specified that the level of financial debt is less than 0.5 times Ebitda.