L’Occitane buoyant thanks to Sol de Janeiro’s performance

By

Sarah Ahssen

Translated by
Nicola Mira

Published
Feb 1, 2023

In the first nine months of fiscal 2022-23, ended on December 31 2022, cosmetics group L’Occitane recorded a 16.5% increase in sales, to €1.6 billion. At constant exchange rates, the increase was 10.6%. A result greatly influenced by the performance of Sol de Janeiro, the US skincare brand acquired by L’Occitane in November 2021. The performance of L’Occitane en Provence, the group’s flagship brand, was disrupted by the vagaries of the Japanese and Asian markets.
 

In the period in question, sales for L'Occitane en Provence were in fact worth €1.11 billion and grew 3.1%, but were down 0.9% at constant exchange rates. A mixed result, due to the group’s exit from the Russian market in June 2022, but also to the complex economic situation in Japan, and renewed Covid-related lockdowns in China. Additionally, the year-end festive period, a pivotal one for cosmetics brands, was impacted by an aggressive discount policy, and also by weaker consumption in France and the UK.
 
In the first nine months of fiscal 2022-23, Sol de Janeiro, in which L’Occitane has bought an 83% stake, generated a revenue of €158.8 million. As a result, and largely thanks to the skincare brand founded in 2015 in the USA, with products like the Bum Bum body cream, sales in the Americas region jumped up by 75.1%, and by 53.7% at constant exchange rates, reaching €492.2 million.

Sales in the Europe, Middle East and Africa region were instead worth €423.8 million, down 0.3% at constant exchange rates, while those in the Asia-Pacific region slumped by 0.6%, falling to €686.4 million.
 
“The headwinds we are currently facing will probably be short-lived. As fiscal 2024 approaches, we are seeing many growth opportunities, and we are looking forward to launching some of our newest brands into new markets and channels. We remain optimistic about our multi-brand, geographically balanced corporate strategy,” said André Hoffmann, CEO of the L’Occitane group, which currently operates 1,386 monobrand stores worldwide.
 
Sales for the group’s ‘other brands’ division, which includes Melvita, L'Occitane in Brazil, Erborian and Grown Alchemist, amounted to €145.3 million, up 5,5%, spearheaded by Erborian and L'Occitane in Brazil, whose sales increased by 28.3% and 38.1% respectively.
 
Finally, Elemis, the British skincare brand acquired by L’Occitane in 2019 which has recently obtained B Corp certification, generated sales worth €181.6 million, up by 11.3%, and by 5.3% at constant exchange rates.