Yesterday (October 24), L’Occitane International S.A., a global group known for its production and retail of beauty and well-being products, has released its unaudited quarterly update for the period ending September 30, 2023.
The group maintained solid momentum, with net sales amounting to €1.072 billion in the six months ending September 30, 2023 (FY2024 H1). This represents a growth rate of 18.5% at reported rates or 24.9% at constant rates. The growth was primarily driven by the outstanding performance of Sol de Janeiro and the steady growth of L’OCCITANE en Provence, particularly in China’s recovering market.
Geographically, the Asia-Pacific region (APAC) achieved €371.4 million, exhibiting a growth rate of 9.2% at constant rates. The Americas achieved €442.4 million, showcasing significant growth of 63.6% at constant rates. The EMEA region achieved €258.3 million, reflecting a growth rate of 4.1%.
Sol de Janeiro’s exceptional sales momentum continued, reaching €270 million in FY2024 H1, with a remarkable growth rate of 188.8% at constant rates. This surpassed its total sales for the entire fiscal year of 2023. The brand experienced triple-digit growth in all regions, driven by a highly successful summer campaign and the popularity of its core products and new launches.
L’OCCITANE en Provence achieved €595.6 million, with a growth rate of 3.5% at constant rates., primarily due to double-digit sales growth in China. Excluding Russia, from which the group divested in June 2022, the brand achieved sales growth of 4.8% at constant rates in FY2024 H1.
Mr. André Hoffmann, Vice-Chairman & Chief Executive Officer of L’Occitane, expressed satisfaction with the group’s double-digit growth momentum despite the challenging market context. He highlighted the accelerated growth of Sol de Janeiro and the steady growth of the core brand.
Looking ahead, the group remains cautiously optimistic about its prospects for FY2024, particularly with the upcoming holiday and gifting seasons. They plan to support these seasons with increased marketing investments in key markets and channels for their core brand, as well as the ongoing development of newer brands. These strategies aim to navigate ongoing challenges, including foreign currency fluctuations and persistent inflation in certain markets.