L’Occitane's FY23 sales cross 2 billion euros

Beauty retailer L’Occitane International S.A. net sales grew 19.8 percent at reported rates to 2,134.7 million euros in FY23, exceeding the 2 billion euros mark for the first time.

Excluding the impact of the de-consolidation of the US subsidiary last year, the company said, sales grew 17.9 percent at reported rates and 13.4 percent at constant rates.

Commenting on the trading results, André Hoffmann, vice chairman and chief executive officer of L’Occitane, said: “We are cautiously optimistic as we head into FY2024. While the macroeconomic environment remains uncertain, we expect to achieve double-digit sales growth and healthy profitability, supported by significantly higher marketing investments for the core brand in key markets and channels, as well as for our new brands as they enter new markets, including the upcoming launch of Sol de Janeiro and Grown Alchemist in APAC.”

The company attributed the annual sales growth to the group’s newer brands, Elemis and Sol de Janeiro, as well as the resilience of the core L’occitane en Provence brand.

On a like-for-like basis, i.e. excluding Russia due to the group’s divestiture, the newly consolidated brands Sol de Janeiro and Grown Alchemist, the deconsolidation of the US subsidiary last year and at constant rates, sales growth was 3.7 percent in FY2023.

The group’s operating profit margin was 15.8 percent, while the group’s reported operating profit and net profit declined by 23 percent and 51.1 percent to 239.1 million euros and 118.2 million euros respectively.

Excluding the China and Russia markets, L’Occitane en Provence grew by 6.8 percent in FY2023. Elemis grew 8.9 percent, while powered by an authentic Brazilian philosophy of self-love and joy, Sol de Janeiro witnessed sales growth of 135.2 percent and an operating profit margin of 24.6 percent.