MADRID: Puig net revenues in 2015 reached €1,645 million, a +9% rise in reported net sales and a +2% rise on a like-for-like and constant currency basis.
However, profit before tax fell sharply, down -26% year-on-year (see table), representing 11% of revenues. Net income amounted to €126 million, or 8% of sales.
The company said that profits were hit by expenses related to the integration of Jean Paul Gaultier fragrances (from BPI) into the Puig portfolio and heavy brand investment to achieve growth objectives for the 2015-2017 period.
In geographic terms, 14% of all revenues in 2015 were generated in Spain, where the company grew +8%, and 86% in the rest of the world. Emerging markets outside the European Union and North America represented 47% of business
Puig sells its products in over 150 countries with subsidiaries in 22.
The growth in alcohol-based perfumes in 2015 was driven by fragrances including 1 Million and Invictus by Paco Rabanne, and new product launches such as Olympéa (Paco Rabanne), CH Men Privé (Carolina Herrera), L’Extase (Nina Ricci), Valentino Donna (Valentino), and Les Infusions de Prada and Prada Luna Rossa Sport (Prada).
Other launches included United Dreams from Benetton, Clandestine from Pacha and fragrances such as King of Seduction Absolute signed by actor Antonio Banderas.
Puig said it is maintaining its +33% growth objective for the three-year 2015-2017 period, reaching €2 billion in revenues. To achieve this, the company will invest further in its brands at the cost of lower profitability. However profits are expected to bounce back by the end of that period.
Despite macro-economic volatility and uncertainty, particularly in emerging markets such as Latin America, the Middle East and Russia, Puig hopes to see double-digit growth in 2016 and keep its three-year plan on track.
Growth in fragrance sales for 2015 was driven by success stories such as Invictus by Paco Rabanne (left) and new launch Olympéa
In 2015 Puig began its Invisible Beauty Project, a CSR initiative implemented under the auspices of the Fundación Puig. The project supports entrepreneurs with innovative projects aimed at improving the lives of young people. Fundación Puig will invest €10 million in the initiative over the coming years.
The Puig Sustainability Program, which reflects the company’s commitment to building a sustainable future for the environment, has a long-term plan that covers 13 wide-ranging projects and a series of specific actions through the year 2020.
Based on five pillars of activity (product management, sustainable purchasing, responsible logistics, responsible manufacturing and the involvement of employees and facilities), the Sustainability Program advocates sustainability throughout the entire Puig value chain.
