For the six month period, L’Occitane International reported net sales of 1,072 million euros, representing 19 percent growth at reported rates.
The company said in a statement that Sol de Janeiro’s sales were modified due to a reclassification of sales in the marketplace channel, hence the group’s comparable net sales during the period amounted to 904.5 million euros. So the group recorded sales growth of 18.5 percent at reported rates or 24.9 percent at constant rates.
The group delivered an operating profit margin of 8.4 percent.
Commenting on the first half trading, André Hoffmann, vice-chairman and chief executive officer of L’Occitane, said: “We are cautiously optimistic about our prospects in the second half of FY2024 as we head into the holiday and gifting seasons. Through our portfolio of strong and unique premium beauty brands and our commitment to investing for the long-term, we are well-positioned to continue driving sustainable growth and profitability for our shareholders and stakeholders.”
During the period under review, the company added, L’Occitane en Provence received the largest portion of the marketing budget to invest in key markets, notably in China but also in other strategic markets and channels such as the US, Japan, South Korea and travel retail. The core brand sales in China grew by 22 percent at constant rates despite muted consumer confidence in the overall economy.
Sol de Janeiro sales grew by 188.8 percent at constant rates, with triple-digit growth across all geographies and a strong contribution to the group’s profit, delivering an operating profit margin of 28.9 percent.
Elemis grew by 7.6 percent at constant rates, while its e-commerce channel in the US also continued to grow. In China, Elemis saw sales growth of over 200 percent as it accelerated marketing investments on social media channels.