L’Occitane announces the annual results of the Group for the year ended 31 March 2023. The Group’s net sales exceeded €2 billion ($2.18 billion) to reach €2,134.7 million ($2.33 billion) at reported rates in FY2023.
L’Occitane has released its annual financial results for the fiscal year that ended on March 31st, 2023. The Group reported net sales of €2,134.7 million ($2.33 billion) at reported rates, surpassing the €2 billion ($2.18 billion) mark, which represents a growth rate of 19.8% at reported rates. L’Occitane stated that this growth was primarily due to the exceptional performance of Sol de Janeiro and the steady growth of ELEMIS. While the reported operating profit for FY2023 was €239.1 million ($261.24 million). However, this represents a decline of 23.0% compared to the previous year.
As of March 31st, 2023, the Group owned 2,774 retail locations, which is 294 fewer than the previous year, representing a decrease of 9.6%. The number of retail stores owned by the Group decreased from 1,490 to 1,362 during the same period, a net decrease of 128 or 8.6%. The decline was primarily due to the sale of assets in Russia.
In terms of performance by brand, L’OCCITANE en Provence experienced a slight decrease in sales of 0.5% at constant rates in FY2023. This decline was primarily attributed to the challenging market conditions in China which persisted throughout most of the year, as well as the divestment of assets in Russia.
ELEMIS’s growth for FY2023 slowed down to 8.9%, primarily due to a strategic decision made in the second half of FY2023 in its biggest market, the UK.
Sol de Janeiro had an exceptional performance in FY2023, surpassing management expectations and achieving a growth rate of 135.2% in local currency. This outstanding growth resulted in the brand becoming the Group’s second-largest, with sales of €267.0 million ($291.72 million).
In terms of the performance by region, The Group’s sales were geographically well-distributed, with the Asia-Pacific (APAC) region being the largest, contributing 42.0% of net sales. The Americas were the second largest region, accounting for 32.6% of net sales, while EMEA accounted for the remaining 25.5% of sales.
In terms of individual markets, the United States was the largest, accounting for 27.2% of the Group’s net sales, largely due to the strong performance of Sol de Janeiro and the presence of six of the Group’s eight brands in the US. China was the second largest market, representing 14.0% of the Group’s net sales, followed by Japan at 8.5%.
In terms of performance by channel, In FY2023, online channels experienced a growth rate of 4.8% at constant rates. This growth was largely attributed to the exceptional performance of Sol de Janeiro.
While retail sales in FY2023 decreased by 2.0%, primarily due to the divestiture of Russia and the store closures in China during COVID-19 outbreaks. However, if we exclude the Russia and China markets, retail sales increased by 7.2% at constant rates during the same period.