Today, L’Occitane International S.A. reported its FY2024 annual results. The company achieved net sales of €2,541.9 million, surpassing the €2.5 billion milestone with a 24.1% increase at constant rates, driven by the robust performance of Sol de Janeiro and stable growth from L’OCCITANE en Provence, particularly in the challenging Chinese market.
Despite the impressive sales figures, the operating profit declined by 2.5% to €233.1 million due to heightened marketing expenditures in crucial markets and channels. The gross profit margin slightly decreased to 79.3%, influenced by a higher wholesale mix. On a management basis, the operating profit margin fell from 15.8% in FY2023 to 12.1% in FY2024.
Sol de Janeiro emerged as a key driver of growth, with a remarkable 167% increase at constant rates, establishing itself as the company’s second-largest brand and the largest contributor to profitability with an operating margin of 23.6%. In contrast, ELEMIS focused on a premiumisation strategy, experiencing flat sales overall but achieving notable success in social media marketing and livestreaming, which drove double-digit growth in specific markets.
By channel, the wholesale and other channels were the largest sales channels for the L’Occitane Group, contributing nearly 40% of total net sales and growing by 45.7% at constant rates. Online channels grew by 25.2% at constant rates, driven primarily by Sol de Janeiro and the newly launched online marketplace channel for L’OCCITANE en Provence on Douyin in China. Global retail channels grew by 3% at constant rates, benefiting from an improved retail environment in China.
By brand, L’OCCITANE en Provence underperformed relative to the company’s other brands, growing by 2.7% at constant rates. Sol de Janeiro was the main growth driver, significantly increasing by 167% at constant rates, becoming the company’s second-largest brand and the largest contributor to profitability with an operating profit margin of 23.6%. In contrast, ELEMIS focused on a premiumisation strategy, with overall sales remaining flat, but achieving significant success in social media marketing and livestreaming, particularly through KOL livestreaming on Douyin in China, resulting in double-digit growth in sales for ELEMIS in China.
By region, in FY2024, net sales in the Asia-Pacific region reached €884.2 million, growing by 6.3% at constant rates, mainly due to a 19.3% growth in the Chinese market at constant rates. The Americas remained L’Occitane’s largest market, with net sales of €1,092.5 million, growing by 63% at constant rates. The Europe, Middle East, and Africa region achieved net sales of €565.2 million, growing by 4% at constant rates.
