Elemis a ‘strong growth driver’ for L’Occitane in first half of FY2020
The beauty major registered €727.2m in net sales for the six-month period ending September 30, 2019, up 22.1% on the previous year with profit sitting at €25.2m. The UK represented L’Occitane’s fastest-growing market for the period, with sales growth at 234.7%, largely due to the contribution of UK-headquartered luxury skin care brand Elemis which it acquired in January.
Sales growth was also up 26% in the US and China, Brazil and Russia all posted double-digit growth for the period.
Elemis now L’Occitane’s second-largest brand
Elemis generated more than €84.2m in sales for the first half of financial year 2020, accounting for 11.6% of total group sales, and represented L’Occitane’s second-largest brand behind the flagship brand L’OCCITANE en Provence which accounted for 76.3% of group sales.
The company said Elemis was a “strong growth driver” that contributed to the group’s “flourishing skin care image”.
Reinold Geiger, chairman and CEO of L’Occitane, said: “The improved profitability in the first half demonstrates the accretive impact of Elemis, as well as the effectiveness of our targeted investments.”
Geiger said the results left L’Occitane “well positioned” to maximise the upcoming peak holiday sales period.
“Notwithstanding various macroeconomic conditions in different markets, we are confident that the initial achievements made in the first half will carry on for the rest of the year and beyond. By focusing on improving the fundamentals of our business, we are safeguarding our future profitability and ability to deliver value to our shareholders.”
Introducing Elemis to world markets in ‘disciplined manner’
L’Occitane said it planned to introduce Elemis “into new markets in a disciplined manner, notably in Asia and Russia as first steps”.
The skin care brand already had a store on TMall Global and there were plans to launch domestically in China next year.
For FY2020, overall sales in China were up thanks to strength in e-commerce but neighbouring Hong Kong continued to experience a sales slump due to economic and social factors dampening consumer sentiment, L’Occitane said.