Spain’s leading beauty group has reorganized its business structure with the creation of three divisions: Beauty and Fashion, Charlotte Tilbury, and Derma, all operational since January 1, 2021. Once the impact of the crisis linked to the global pandemic is overcome, the company aims to reach EUR 3 billion in sales in 2023. Sales in the digital channel and in China are expected to be the main growth drivers.
World’s fifth largest player in prestige perfumes
The Beauty and Fashion division will be made up of the brands Paco Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci, Dries Van Noten, Penhaligon’s and L’Artisan Parfumeur; the licenses of Christian Louboutin and Comme des Garçons Parfums, and the Lifestyle brands of Adolfo Dominguez, Antonio Banderas, Shakira and Benetton.
“The fragrance business of these brands positions Puig as the fifth largest player in the world in prestige perfumes with a value market share of nearly 10% and with three brands in the top 20 of the world rankings,” says the Spanish group.
The Charlotte Tilbury division will integrate this iconic beauty brand that has revolutionized its category since its launch in 2012 and in which Puig acquired a majority stake in June.
The newly created Derma division will incorporate Uriage and Apivita brands, in which Puig has a majority stake, in addition to the 50% stake in Isdin.
These three brands together position Puig as the third largest player in Europe in the sector of dermo-cosmetic products for sale in pharmacies, with two of its brands in the top 10 of the rankings.
Sales impact by the Covid-19 pandemic
In 2020, the company’s sales have been affected by the Covid-19 pandemic, which is why a significant decrease is forecast. Puig expects sales to drop from EUR 2 billion in 2019 to EUR 1.5 billion this year. As the effects of Covid-19 begin to recede, Puig expects a significant recovery in its business, with sales in 2021 forecast to surpass the record figure of EUR 2 billion obtained in 2019.
Meanwhile, the company has set a sales target of EUR 3 billion for 2023 and hopes to achieve over EUR 4 billion in 2025.
“By that time, the portfolio is expected to include two almost 1 billion-euro brands (Paco Rabanne and Carolina Herrera), two brands with sales of EUR 500 million (Isdin and Charlotte Tilbury); as well as others such as Jean Paul Gaultier, Penhaligon’s, Dries Van Noten, Uriage, Apivita, L’Artisan Parfumeur and the Christian Louboutin license, with sales of between EUR 100 million and EUR 500 million,” adds the company.
In this context, the company expects significant growth due to digital and growth in China, which will account for 30% and 25% of sales respectively in 2025.
Moreover, Puig has signed agreements that will enable it to obtain majority stakes in companies in which it is currently a minority shareholder, such as Loto del Sur in Colombia and Kama Ayurveda in India.