Puig's profit shoots up 47% in 2017
today Apr 12, 2018
Catalan fashion and fragrance company Puig has reported revenues of 1.93 billion euros, an 8.1% increase, in fiscal 2017. In the last three years, the group – which owns Carolina Herrera, Nina Ricci, Paco Rabanne, Jean Paul Gaultier, Penhaligon's and L'Artisan Parfumeur, and also holds fragrance licenses from Prada, Valentino and Comme des Garçons – has therefore seen average annual growth of 28%, "well above the industry average", as pointed out by Puig, whose pre-tax profit totaled 310 million euros, growing 44%. For its part, the company's net profit came to 228 million euros, a 47% increase.
In 2017, 15% of Puig's revenue came from its domestic market, Spain, which saw a 7% increase. 44% of the company's sales were made in emerging economies, outside of the European Union and North America, which still achieved 793 million euros in revenue between them, an increase of 8%. Puig has also seen particular growth in its niche fragrance segment: Penhaligon's, L'Artisan Parfumeur and Eric Buterbaugh (EB Florals),in which Puig now holds a majority stake, demonstrated double-figure growth, driven by sales at their network of branded boutiques.
In the coming years, Puig is hoping to see particularly strong growth in selective perfumery both through travel retail and on the Asian market, which is progressing at a rhythm almost two times faster than the global average. For this reason, the company has reinforced its position in South-East Asia, and signed deals with Luxasia, a company that specializes in the retail and omnichannel distribution of luxury beauty products in Asia, and with Trimex Pty Ltd, a Clarins subsidiary operating in Australia and New Zealand, to improve its position in Oceania.
Puig is expecting to see growth of over 5% in 2018, which will be leveled out by the negative impact of exchange rates. For 2025, the group's ambition is to achieve 3 billion euros in revenue.
And to help accelerate growth, Puig has launched its platform Puig Furures, a kind of innovation incubator which aims to create new business models and foster partnerships, but above all to invest in innovative companies.
Puig currently employs 4,472 people and sells its products in more than 150 countries, with subsidiaries in 26.
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