Puig announces restructured portfolio and projects €3 billion in sales by 2023

Family-owned fragrance and beauty house Puig has reorganised its business structure and created three new divisions: Beauty and Fashion, Charlotte Tilbury and Derma. The move will take effect from 1 January 2021. The company also revealed an ambitious plan to hit €3 billion in sales by 2023, around double the estimate for 2020 (see below).

The new Beauty and Fashion division comprises the Paco Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci, Dries Van Noten, Penhaligon’s and L’Artisan Parfumeur brands. It also includes the licences for Christian Louboutin and Comme des Garçons Parfums, and the Adolfo Dominguez, Antonio Banderas, Shakira and Benetton lifestyle brands.

The Beauty and Fashion division’s powerful fragrance portfolio places Puig as the fifth biggest player in the prestige perfumes category. The company said it has a market share of nearly 10% and has three brands in the world’s top 20 prestige fragrance brands.

Barcelona-based Puig has created three new divisions – Beauty and Fashion, Charlotte Tilbury and Derma — effective from 2021
Charlotte Tilbury: “We’ve reached a pivotal point in our growth since launching seven years ago, and we’re looking forward to unlocking new opportunities with Puig”

The Charlotte Tilbury division integrates the British beauty brand, Charlotte Tilbury, which Puig acquired in June. As reported, Founder Charlotte Tilbury will retain a significant minority stake and remain with the company as Chairman, President and Chief Creative Officer.

The Derma division incorporates the Uriage and Apivita brands. Puig has a majority stake in both brands in addition to a 50% stake in Isdin. The three derma-cosmetic brands make Puig the third largest player in the derma-cosmetic category within pharmacies in Europe. Two of Puig’s derma-cosmetics brands are in the top ten highest ranked derma-cosmetic brands in Europe.

Following the reorganisation of its business, as noted above, Puig has set the ambitious goal of reaching €3 billion (US$3.63 billion) sales in 2023, with the aim of achieving over €4 billion (US$4.84 billion) sales in 2025.

Due to the economic impact of the COVID-19 pandemic crisis, Puig expects sales to decrease from €2 billion (US$2.42 billion) in 2019 to €1.5 billion (US$1.815 billion) in 2020.

As the financial impacts of the crisis begin to ease, Puig is confident that it will achieve a significant recovery. The Barcelona-based company forecasts 2021 sales to surpass the record €2 billion benchmark it achieved in 2019.

Qatar Duty Free recently launched pop-ups for Penhaligon’s and Carolina Herrera at Hamad International Airport (HIA), in partnership with Puig. Click here to read our story. 

By 2025, Puig said its portfolio will include two brands, Paco Rabanne and Carolina Herrera, which are worth almost €1 billion (US$1.21 billion) each; Isdin and Charlotte Tilbury with €500 million (US$605 million) sales; and brands such as Jean Paul Gaultier, Penhaligon’s, Dries Van Note, Uriage, Apivita, L’Artisan Parfumeur and Christian Louboutin with sales between €100 million (US$121 million) and €500 million (US$605 million).

Puig also forecasts a significant growth trajectory in digital and in China. The company projects that digital will account for 30% of sales and China 25% of sales in 2025.

In addition, Puig has also signed agreements to obtain majority stakes in Colombian company Loto del Sur and Indian company Kama Ayurveda, for which it is currently a minority stakeholder.

Carolina Herrera and Paco Rabanne: Two €1 billion brands by 2025

To supports its ambitious growth strategy, Puig has built an ecosystem of entrepreneurs over the years with whom its shares common business goals and values. This strategy has helped position Puig as a major player in the future of the luxury beauty and fragrance category, it said.

*In a recent interview with The Moodie Davitt Report President Dermot Davitt, Puig Chief Operating Officer Javier Bach outlined the company’s COVID-19 recovery strategy, its outlook on travel retail and how it is eyeing opportunity in times of crisis.

Travel retail will remain a business driver for Puig in the long-term, says Chief Operating Officer Javier Bach. Click here to read our interview.
Food & Beverage The Magazine eZine