L’OCCITANE Group posted revenue of €1,072.0 million (US$1,136 million) for its first half ending 30 September, up by +18.5% on a reported basis (+24.9% at constant rates).
The beauty and well-being company attributed the positive result to the notable performance of Sol de Janeiro and the stable growth of L’OCCITANE en Provence amid the continued recovery in China.
L’OCCITANE Vice-Chairman & Chief Executive Officer André Hoffmann said: “We maintained our double-digit growth momentum despite the difficult market context. It is particularly pleasing to see Sol de Janeiro’s stellar growth accelerating amid the continued steady growth of our core brand.
“Meanwhile, we are committed to Elemis’ premiumisation strategy and believe it will enhance its long-term growth potential and profitability.”
The group has also registered solid growth for its second quarter ended 30 September, with net sales reaching €569.8 million (US$603.8 million), representing a reported increase of +17.1% (+25.3% at constant rates).
Among the key brands, L’OCCITANE en Provence posted steady growth of +3.5% (constant rates) during the six-month period, mainly driven by a double-digit sales increase in China.
Excluding Russia, from which the Group divested in June 2022, the brand recorded sales growth of +4.8% (constant rates).
Sales for Elemis grew at +7.6% at constant rates in for the first half of the financial year.
In line with earlier forecasts, Elemis saw a -2.4% (constant rates) drop in overall sales in the UK and the US in Q2 as the brand continued to execute its premiumisation strategy.
In the UK, the brand saw double-digit growth in its ecommerce channel after a decision to reduce investment in certain web partners.
Elemis US sales suffered from an expected shortfall in the maritime business due to a timing shift of order shipments into the second half of the financial year. Excluding the maritime channel, the brand’s domestic sales in the US jumped by +18.3% (constant rates) in Q2.
The company noted the steady growth of the ecommerce channel in both markets, with an ongoing focus on reducing discounting depth and frequency, in line with the outlined strategy.
Sol de Janeiro remained the highest growth contributor, with +188.8% growth (constant rates) to reach €270.0 million in sales in the six-month period, surpassing its annual sales in FY2023.
Across all geographies, the brand posted triple-digit growth, boosted by what was described as a highly successful summer campaign and the high demand for core products and new launches.
Other brands had a combined growth of +10.7% (constant rates) in the first half. Erborian and L’OCCITANE au Brésil showed the most notable growth, up +44.3% (constant rates) and +35.7% (constant rates) respectively.
By region, the Americas posted the highest growth rate, with +63.6% (constant rates) in the first half, led by the performance of Sol de Janeiro in the US. APAC saw a +9.2% (constant rates) increase, with a strong +28% growth (constant rates) in China, which was driven by the stable growth of L’OCCITANE en Provence and the continued development of Elemis.
EMEA also delivered positive results with an increase of +4.1% (constant rates), mainly due to Sol de Janeiro’s strong growth and good results of Erborian.
Excluding Russia, EMEA grew by +8.7% (constant rates).
Across all channels, wholesale and others posted the highest increase, with 44.9% (constant rates) in the six-month period. Dynamic growth was seen in wholesale chains and international distribution.
Online channels also showed significant improvement, up by +26.9% (constant rates) due to the strong results of Sol de Janeiro and L’OCCITANE en Provence’s recently launched marketplace channel in China.
Retail sales maintained a steady growth of +3.7% (constant rates) as conditions in China continue to improve.
Looking ahead, Hoffmann said: “We remain cautiously optimistic about our prospects for FY2024 as we head into the important holiday and gifting seasons, which will be supported by higher marketing investments in key markets and channels for our core brand and the continued development of our newer brands.
“This will help us weather ongoing headwinds including foreign currency fluctuations and persistent inflation in certain markets.” ✈
