Beauty to fashion house Puig today reported its annual results for 2020, posting a -32% decline in like-for-like net revenues to €1,537 million. The decline was partially offset by the incorporation of Charlotte Tilbury in June 2020, reducing the reported decline to -24%.
Within this, travel retail revenues declined by -71% with many airport stores shut for long periods. The global selective fragrances business fell by -29% though online fragrances revenues increased and accounted for 28% of total turnover.
Despite the turbulent past year, Puig remains upbeat about the future. Building on its new structure since 1 January, the company the company aims to exceed revenues of €3 billion in 2023 (as revealed in December) and reach €4.5 billion in 2025. This translates to a doubling of current turnover in 2023 and tripling it in 2025. Sales were €2 billion in 2019.
The plan is based on forecasts of significant growth via digital channels and an increase in revenues in Asia, which will represent 30% and 25% of the business respectively by 2025.
For the first time in its recent history, Puig ended the year with a net loss (-€70 million) due to the impact of the pandemic. The company noted that lockdown and social distancing measures reduced perfume and fashion consumption, while business customers around the world were forced close down, including perfumeries, department stores, airport shops and shopping malls.
From 1 January 1, following the incorporation of the brands Uriage, Apivita and the company’s 50% stake in Isdin, Puig has reorganised its business structure into three divisions:
Beauty and Fashion Division, including Paco Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci, Dries Van Noten, Penhaligon’s and L’Artisan Parfumeur; the beauty product licenses of Christian Louboutin and Comme des Garçons Parfums, and the Lifestyle brands Adolfo Dominguez, Antonio Banderas, Shakira and Benetton. The fragrance business of these brands positions Puig as the fifth largest player in the world in selective perfumes with a market share of nearly 10% and with three brands in the top 20 of the world rankings.
Charlotte Tilbury, the British makeup and cosmetics brand.
Derma Division, made up of Uriage, Apivita and the 50% stake in Isdin included in the Puig portfolio (the latter company’s figures are not consolidated into those of Puig). With these brands, Puig said it is now the third largest company in the European dermocosmetics sector.
The company also elaborated on its ESG (environment, social and corporate governance) commitments in its annual release notice. During 2020, Puig carried out the CDP (Carbon Disclosure Project) climate questionnaire for the first time, taking its next steps in the measurement, transparency and adoption of measures that directly reduce greenhouse gas emissions. In 2020 the company obtained a B grade.
Also, in 2020, a new commitment was undertaken: adherence to the global Science Based Targets (SBT) initiative, which helps companies set science-based targets aligned with the Paris Agreement’s goal of limiting the global temperature increase to 1.5 °C.
In addition, in line with its commitment to society, the company has channelled its social action in two ways: the Global Invisible Beauty Program plus local actions suggested and managed by each business unit.
In November, together with Ashoka, Puig launched the sixth international edition of the Invisible Beauty Program, an entrepreneurship initiative through which the company supports entrepreneurs with social ideas to improve their communities. Adapting the new edition to a digital environment due to the circumstances and restrictions of the pandemic, a total of 26 applications for projects were submitted by young social entrepreneurs.
