In a press conference last Thursday, officiated by Marc Puig, the executive president of Puig, presented the results obtained by the company in the 2022 financial year. Puig has exceeded 3,600 million euros in revenue and has reached 400 million euros in net profit. This figure represents a 40% increase in net income for Puig last year. In the Catalan group's three-year strategic plan, sales were estimated at 3,000 million euros, a figure that has finally been surpassed by the extra 600 million euros, despite the impact of the pandemic and global restrictions.
"We are more than a third-party manufacturer"
Marc Puig took advantage of the appearance to briefly review the business trajectory of the Puig group and how it has managed to become a giant in the fragrance industry, and highlighted the role of Spain, which currently accounts for 7% of the group's total sales, when 10 years ago, it was less than 4%: "It is the result of a series of decisions we have taken over time. The first important commitment was made almost 20 years ago when we focused our efforts on what we thought could differentiate us on a global level. We stopped doing many things that had been part of our history. We set ourselves the goal of reaching 10% of the world's selective perfumery market. One of last year's milestones was that target set 20 years ago. The second decision is to start in selective perfumery as licensees. We have focused on own brands, and as our confidence and capacity for growth and development of own brands has improved, we have abandoned the licensing of important brands in our catalogue. The third commitment is to niche perfumery, an area in which we are an important figure worldwide. The fourth commitment, initiated a few years ago, has been to diversify the world of beauty: perfumery, cosmetics treatment and colour cosmetics. We were only involved in perfumery and later on we opted for skin care. It is true that from Puig, we incorporated it on 1 January 2021, but from the family holding we already had shares in ISDIN, so our presence in the world of skincare cosmetics has been there for a long time. In the world of make-up, we entered with the purchase of Charlotte Thilbury", the executive chairman explained in detail.
"We are more than a third-party manufacturer. We are a home of highly desirable beauty and fashion brands within a family business that promotes wellness and trust and works to leave a better world. More than 90% of sales are own brands" concluded Marc Puig.
Its core business remains fragrances, but Charlotte Tilbury's growth is highlighted
Of the three categories in which Puig operates, 'Fragrances and fashion', 'Make-up' and 'Dermocosmetics', all have seen their sales increase, but the first is the one that remains the most important, highlighting the launch of Carolina Herrera's Fame, although the rest of the brands have continued to consolidate in its portfolio.
The group's chief executive highlighted the spectacular growth of the make-up brand Charlotte Tilbury, which has seen its revenues grow by 52% compared to the previous year and has been the number one brand in the UK. "In the make-up category, Charlotte Tilbury's growth is spectacular and it is the brand in our portfolio that has grown the most in absolute terms," added Marc Puig.
Acquisitions, takeovers and brand incorporations
Marc Puig wanted to make it clear during the presentation that the company is not currently considering such moves in the short term, although he admitted that it is attentive to market opportunities. During 2022, it added the Swedish luxury brand Byredo, the Indian wellness brand Kama Ayurveda and Loto del Sur, from Colombia, to its brand portfolio. Regarding them, the CEO added that they are brands with a storytelling to exploit and that share the group's values, something that is a prerequisite when it comes to taking the final step: "12 years ago we combined organic and inorganic growth. This growth is financed by the own resources generated. We have made 12-14 acquisitions in 12 years, two of the most important ones have occurred in 2020 and 2022, so we need some time to digest these acquisitions. Opportunities come when they come, we are not active at the moment, but we are always scanning the market to see what is happening."
The president also stressed that cosmetics is one of the areas that the company wishes to promote and gain a greater foothold in the dermo-cosmetics market: "We are interested in carefully choosing the brands with which we partner, we want to promote many areas, cosmetic treatment is one, but so are the rest. It depends more on the opportunity and whether the brand fits our criteria. It has to be a brand that has a reason to exist, that is differentiating to nurture that brand and make it flourish."
Growth 2022 and forecasts for 2023
The group's executive chairman stressed that the most valuable and relevant area for the group continues to be EMEA, although he also highlighted the 36% growth in the Americas. In Asia, where the group has a smaller presence, it has grown by 41%. Regarding its position in the Chinese market, Marc Puig explained that the growth forecast in China will have to be adapted due to the impact of Covid: "We believe that the second quarter will be a big growth. We won't get the 25% we are targeting for 2025, but it will mean a big increase in our portfolio. Now that Covid is history for them, we are very optimistic about the recovery of that market".
As the executive chairman indicated, what the group expects and foresees for 2023 is double-digit growth and they expect, "good prospects for the future, with such a well-chosen portfolio of brands, our perspective is to grow above any growth that the sector may have. Despite the uncertainty, volatility and risks, we have not seen any signs of slowdown in our production and business, so we are very optimistic about 2023", explained Marc Puig.
Closure of the Besós plant
Last November 'Europa Press' reported the news that Puig would close its plant located in Sant Adrià del Besòs at the beginning of this year, in response to the need for "growth, impulse and innovation". The closure of the Besòs plant, the company's oldest and active since 1968, which employed some 400 people, meant that they would be transferred to Vacarisses. Regarding this restructuring of employees and manufacturing model, the executive president argued that: "The Besòs plant was a rented plant and the family holding company will decide what to do with it. The Vacarisses factory will continue to develop in the field of cosmetics treatment and everything will be channelled towards this production unit. Last year, between acquisitions and organic growth, nearly 2,000 people joined the company within the group. At the Besós plant, we reached an agreement with the workers in which all the workers felt comfortable".