Makeup drives sales at Puig as annual revenue surpasses expectations

Puig has reported a 40% increase in revenue to £3.2 billion (€3.6 billion) for the financial year 2022, putting the group in a "strong position" to achieve its goal of £3.8 billion (€4.5 billion) revenue in 2025.

With a 52% increase in revenue, the makeup category saw the largest growth in 2022. Charlotte Tilbury saw revenues rise, driven by its product offering and technology innovations during the year.

Additionally, Carolina Herrera achieved its best results since the launch of its makeup line in 2020 and Byredo was boosted by the launch of a series of new products.

In fragrance, Puig reached an "all-time high" market share in the selective distribution category. This was driven by the "strength" of brands including Paco Rabanne and Carolina Herrera. In addition, the group's prestige segment was also improved by fragrances from Paco Rabanne and Carolina Herrera, as well as Jean Paul Gaultier.

The fashion category was helped by the success of the collaboration method implemented in the haute couture and prêt-à-porter collections of Jean Paul Gaultier, the signing of Harris Reed as Artistic Director of Nina Ricci, and the consolidation of the proposals of Julien Dossena at Paco Rabanne and Wes Gordon at Carolina Herrera.

Puig's digital revenues increased by 23% against 2021, and the channel now accounts for 25% of total revenue. Meanwhile, the travel retail channel grew by 72% in 2022. Travel retail was also up 28% compared to 2019, surpassing pre-pandemic levels.

EBITDA increased 37% to £564 million (€638 million), whilst net income rose 71% to £353 million (€400 million).

During the period, the group acquired a majority stake in Swedish luxury brand Byredo and incorporated wellness brands Kama Ayurveda and Loto del Sur into the business. Puig said these new brands are "highly valuable" from a strategic standpoint, although their impact on 2022 results "remained limited".

The three-year plan for Puig, which was presented in March 2021, aimed for sales of £2.6 billion (€3 billion) in 2023 and £3.9 billion (€4.5 billion) in 2025. Due to the growth in the last two years, the group has achieved its ambition one-year ahead of schedule, putting it in a "strong position" to reach the goal for 2025.