L’Occitane, the popular cosmetics group, has just revealed its impressive sales figures for the 2023/24 financial year, which ended on March 31. The company reported a record-breaking €2.5 billion in sales, marking a significant 24.1% increase at constant exchange rates. This success was largely driven by the performance of the American skincare brand Sol de Janeiro, while the flagship brand L’Occitane en Provence maintained stability.
Despite the overall positive sales figures, the Group’s operating profit saw a slight decline of 2.5% to 233.1 million euros. L’Occitane attributes this decrease to the rise in marketing costs in its key markets. The brand L’Occitane en Provence, which reported sales of €1.38 billion, experienced a slight decrease from the previous year. Despite investing heavily in marketing to drive growth opportunities and maintain market share, the brand fell short in terms of growth and profitability. However, investments in marketing did lead to a 2.7% growth at constant exchange rates, particularly driven by strong sales growth in China.
On the other hand, Sol de Janeiro saw remarkable success with sales of €686 million, marking an impressive 167% growth at constant exchange rates. The brand achieved triple-digit growth in all regions, driven by popular products like the Bum Bum cream and perfume mists. Additionally, Elemis reported sales of €253 million, while the division including LimeLife, Melvita, Erborian, L’Occitane in Brazil, and Grown Alchemist saw a sales increase of 14.7% to €686 million.
Sales in the Americas region experienced a significant 63% increase, surpassing €1 billion and becoming L’Occitane’s top-selling region, ahead of Asia-Pacific. In Asia-Pacific, sales reached 884 million euros, compared to 896 million euros the previous year. Sales in the Europe, Middle East, and Africa region also saw a 4% rise, reaching €565 million.
In an exciting development, the majority shareholder of L’Occitane, Austrian billionaire Reinold Geiger, announced his intention to acquire all the remaining shares he did not already own. This move could potentially have a significant impact on the future direction and growth of the cosmetics group.
Overall, L’Occitane’s record-breaking sales figures and strategic investments in marketing and brand expansion are positioning the company for continued success in the competitive cosmetics industry. With strong performances from key brands and a focus on growth opportunities in key markets, L’Occitane is poised for further growth and expansion in the coming years.
