Puig reports +9% growth in 2016 as company targets €2 billion annual revenue

INTERNATIONAL/SPAIN. Puig net revenues in 2016 reached €1,790 million, a +9% year-on-year increase in reported net sales and a +5% rise on a like-for-like and constant currency basis.

Profit before tax at the Spanish fashion and fragrance house represented 12% of net revenues while net income reached €155 million, or 9% of earnings.

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Despite the additional costs related to the integration of Jean Paul Gaultier in 2016, Puig reported improved profitability in line with its three-year strategic plan ending in 2017.

In 2016, 15% of revenues were generated in Spain and 85% in the rest of the world. Emerging markets outside the European Union and North America accounted for 44% of the company’s business.

Fragrance growth was driven by the integration of Jean Paul Gaultier and the launches of L’Homme and La Femme by Prada, Luna by Nina Ricci, and Good Girl by Carolina Herrera. The former brand currently holds a leading position in every market where it has been launched, according to Puig.

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L’Homme Prada and La Femme Prada were described by Puig as the “most significant” launches in the history of the fashion house

Penhaligon’s opened six new owned stores in the USA and consolidated its position in the rest of the world with 16 stores in the UK, six in Asia, and two in Paris. Growth in sales was supported by the launch of the new Portraits line, a tribute to British eccentricity and aristocracy.

In April 2016, Puig acquired a minority stake in EB Florals and in September 2016 it acquired a minority stake in Brazilian company Granado.

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Good Girl by Carolina Herrera currently holds a leading position in every market where it has been launched, according to Puig

The company recently created two new owned subsidiaries, one in Colombia and another in Australia. It has also entered into a joint venture based in Singapore with Luxasia to consolidate its operations in South East Asia.

Revenues grew by +13% during the first quarter of 2017. The company said it is making steady progress towards its goal of boosting revenues by +33% between 2015 and 2017, moving up from €1,500 million reported at the end of 2014 to a forecasted €2 billion in 2017.

Corporate Social Responsibility

Puig maintained its strong commitment to sustainability in five areas of action (Product Stewardship, Sustainable Sourcing, Responsible Logistics, Responsible Manufacturing, and Employees and Facilities) through 13 specific programmes that are all reportedly in line to meet objectives established for 2020.

The company said it reduced its greenhouse gas emissions by -18% in 2016 and is on track to meet its objective of being carbon neutral in 2020.

Invisible Beauty, a social project run by the Puig Foundation in collaboration with Ashoka, selected five new teams of young social entrepreneurs between the ages of 18 and 28. Each team will receive a grant as well as mentoring and training to promote and develop their projects.

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