L’Occitane Group report sustained growth
Beauty giant L’Occitane International S.A, has reported sustained growth in its unaudited update for the year ended 31 March 2023.
With net sales reaching 2,134.7 million euros, the firm has achieved a 17.9 percent growth at reported rates or 13.4 percent growth at constant rates.
The group’s sales performance in the fourth quarter rose 20.6 percent at constant rates. On a like-for-like basis, i.e. excluding Russia due to the group’s divestiture in June 2022, the newly consolidated brands Sol de Janeiro and Grown Alchemist, the deconsolidation of the US subsidiary last year. At constant rates, sales growth was 8.4 percent, a significant improvement from negative 1.7 percent in the third quarter.
Commenting on the trading update, André Hoffmann, vice-chairman & CEO of L’Occitane, said: “We saw a solid broad-based improvement in FY2023 Q4, boosting our sales to exceed the 2 billion euros mark in FY2023. We are well-positioned to sustain growth in the coming year as we introduce our newer brands into new markets and channels.”
In the fourth quarter, L’Occitane en Provence returned to growth of 0.8 percent due to the travel retail channel and an improvement in sales momentum in China following the lifting of Covid-19 restrictions. For FY2023, however, the brand recorded a slight sales decline of 0.5 percent at constant rates. Excluding the China and Russia markets, the brand posted sales growth of 6.8 percent and 9.9 percent in FY2023 and fourth quarter, respectively.
Elemis returned to growth of 18.1 percent in the fourth quarter and ended FY2023 with 8.9 percent growth at constant rates contributed by growth of 34 percent in the US as well as 29.2 percent growth in APAC. This was partly offset by a sales decline in the UK, in line with its strategic decision to reduce sales to certain wholesale partners to enhance brand equity.
Sol de Janeiro, with 267 million euros in sales in FY2023, grew 267.5 percent in the fourth quarter and 135.2 percent in FY2023. Other brands together also showed an improvement, posting 7.3 percent growth at constant rates for FY2023. Erborian and L’Occitane au Brésil recorded 33.4 percent and 41.2 percent growth respectively at constant rates in FY2023.
In terms of regional performance, the company added, the Americas led the growth with 80.4 percent at reported rates or 62.8 percent at constant rates in FY2023. APAC increased 2.4 percent at reported rates or 0.5 percent at constant rates. Excluding China, APAC grew by 8 percent at constant rates and same-store sales growth was 1.4 percent. EMEA saw a slight 0.7 percent sales decrease at constant rates, while excluding Russia, EMEA grew 10.2 percent at constant rates.
In terms of channel performance, wholesale & others led with 50.9 percent growth at constant rates in FY2023, online channels posted growth of 4.8 percent at constant rates, while retail sales saw a decrease of 2 percent, mainly affected by the divestiture of Russia, the store closures in China due to Covid-19 outbreaks, and the closure of some company-owned stores. Excluding the Russia and China markets, retail sales grew by 7.2 percent at constant rates.
