Puig's Revenue in Asia Soars 41%

Marc Puig comments on the Puig business in China saying that Puig China is not yet in the group's top three, but expects this result to come soon.

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Yesterday, Spanish fragrance and fashion group Puig released its 2022 financial results. The results show that Puig's revenue for 2022 is 3.62 billion euros ($3.9 billion), a 40% jump compared to 2021. Its net income was 400 million euros ($433 million), up 71% year-on-year.

Marc Puig, chairman and chief executive officer of Puig, noted that the company's showing "is a result of many of the choices that we have taken over the past 15 years."

Puig presented a "three-year plan" in March 2021, aiming for sales of 3 billion euros by 2023 and 4.5 billion euros by 2025. This means that Puig wants to double its sales in three years and triple them in five years, on the base of its 2020 sales.

Thanks to the growth of the last two years, Puig has achieved its ambition of doubling its revenues by 2020 one year ahead of schedule. On this trend, the Group is well-positioned to achieve revenues of 4.5 billion euros by 2025.

In 2022, the Puig Group also acquired three iconic companies, which contributed to the company's growth. In Puig's 2022 financial results, the company acquired a majority stake in the Swedish luxury brand Byredo, the wellness brands Kama Ayurveda in India and Loto del Sur in Colombia. These new brands have significantly increased the company's sales. Puig said that the addition of these three companies had a limited impact on overall sales in 2022.

The Puig Group has three categories: fragrance and fashion, makeup and skincare. In terms of each category, its fragrance and fashion business generated sales of 2.67 billion euros ($2.9 billion) in 2022, up 40% and above the market average, with the division's sales growth being driven by organic growth and the new brand Byredo.

In the financial report, Puig also mentioned it achieved a 10% global market share in the selective distribution fragrance market in 2022, marking a milestone in its history. It is driven by the inclusion of two of its own brands, Paco Rabanne and Carolina Herrera,, placed among the world’s top 10.

The makeup business is Puig's fastest-growing product category in 2022, with the division growing by 52% to 626 million euros ($678 million), driven by the Charlotte Tilbury and Carolina Herrera. Charlotte Tilbury is the number one makeup brand in the UK, with products such as the Pillow Talk make-up range is highly sought after.

By region, Puig's US business is its largest sales market and grew fastest in the Americas in 2022, with sales up 56% to 1.31 billion euros ($1.4 billion), accounting for 36% of the total sales of the Group.

Puig's sales in Asia grew by 41% to 349 million euros ($378 million) as the group strengthened its presence. China remained in the group's top 10 markets and achieved growth of 36%, despite the constraints of pandemic control in the country, among other reasons. Commenting on the Chinese market, Marc Puig said that Puig China was not yet in the group's top three markets but expected this result to come soon.

Although the outlook for 2023 remains uncertain, Puig forecasts that it will continue to lead the market in terms of growth in the next financial year. It is evident in the positive performance of the first two months of 2023.