Puig annual sales grow 19% as Rabanne label hits $1.46 billion

MADRID/PARIS – Fashion and fragrance company Puig said on March 7 that its annual sales grew 19 per cent, boosted by recent acquisitions, with net sales of its leading Rabanne label surpassing €1 billion (S$1.46 billion) for the first time, in a sign of resilience in the high-end beauty market.

The family-owned Spanish company behind fashion label Carolina Herrera, Jean Paul Gaultier fragrances and exclusive skincare and make-up brands like Charlotte Tilbury, reached its highest sales volume of €4.3 billion in 2023, up 19 per cent from 2022, in line with its forecast.

The Luxe division of L’Oreal, a global leader in high-end perfumes and cosmetics whose fragrances include blockbuster Libre for the Yves Saint Laurent label and Prada’s Paradoxe, clocked 4.5 per cent organic growth in 2023. LVMH’s perfumes and cosmetics division posted 11 per cent organic sales growth last year.

Puig said its share of the global selective distribution fragrance market stands at 11 per cent. It estimated that two more of its fashion and fragrance labels will surpass €1 billion in sales in the near future.

The Barcelona-based group is benefiting as the premium perfume industry steers customers towards more luxury goods.

Puig, which recently acquired a majority stake in German celebrity skincare brand Dr Barbara Sturm, also owns prestige fragrance label Byredo.

“We have reinforced our position in our core regions of Europe and the Americas,” said Puig chairman and chief executive Marc Puig said in a statement.

Like other firms, the company has been considering a stock market listing, which would encourage market accountability while retaining family control, he said in an interview published by local newspaper La Vanguardia in October.

Puig hired Goldman Sachs and JPMorgan to advise on a possible listing before the summer, people familiar with the matter told Reuters.

Puig’s sales in the Americas, Europe, the Middle East and Africa account for 90 per cent of its total revenue. The company has less exposure to Asia than its global competitors, but said the region has “high growth potential” for its brands.

Puig expects to expand in 2024 into markets such as India, Japan and South Korea. In 2023, China was the leading Asian market, with sales rising 27 per cent over the year due to strong demand for brands as Charlotte Tilbury and Byredo.

Net profit rose 16 per cent to €465 million in 2023. Profits jumped 71 per cent in 2022 as premium-market shoppers are less sensitive to higher prices, it said. REUTERS