Eurofragance, the multinational fragrance company, closed 2022 with sales of €113 million, an increase of 21% on the previous year. The company's positive performance in key markets helped mitigate the impact of rising commodity prices. Strong growth in the IMEA region (India, Middle East and Africa, most notably India), Turkey, Latin America and Spain contributed to Eurofragance's successful achievement of its 2022 targets. In addition, the Asia-Pacific region also made a notable contribution.
Eurofragance's CFO, Juan Ramón López Gil, says that this growth and the associated good results have been possible thanks to the company's combined efforts to improve costs and internal efficiency through a mitigation plan to minimise the impact of rising raw material costs. This plan also included passing on a portion of the sharp rise in costs to customers.
The increase in sales in 2022 is also due to new customer accounts and projects won. According to Eurofragance CEO Laurent Mercier: "For yet another year, we have achieved a record result. And this is largely thanks to our 'Vitality' strategy, in terms of sales of new products to existing customers and sales to new customers, designed more than five years ago to activate our business growth".
The results are promising for 2023, and López Gil adds: "The results of the first months of this year indicate a continuation of the good trend experienced in 2022 and show how strong growth has driven the profitability of the business. Despite geopolitical uncertainty, we will close a successful first quarter."
Eurofragance grows and adapts
Eurofragance launched in 2022 and globally a comprehensive transformation and digitalisation programme with the aim of responding to the continuous changes in the market to remain a competitive and relevant company. Laurent Mercier underlines: "With an achievement and result-oriented culture our motto is to do 'more with less' or to do more sales with fewer initiatives and more focus".
Due to the changing environment, the company's main objective is to become faster, more agile and efficient in order to continue to create value for all its employees, to react to changing market conditions and to strengthen alliances with its partners. Mercier says: "Becoming more agile and efficient requires being open to change; there can't be a gap between what happens outside the company and what happens inside". To this end, the company has planned major long-term investments in a number of areas, including enhancing the company's culture, as well as strengthening organisational structure, processes, systems and technologies.