L’Occitane delivers record profit for H12022; ‘strong set of results’ despite ongoing challenges of pandemic

L’Occitane delivers record profit for H12022; ‘strong set of results’ despite ongoing challenges of pandemic

THE WHAT? L’Occitane International has announced its results for the six months ended September 30, 2021. The French natural cosmetics manufacturer said that its performance in the first half continued to be affected by COVID-19, however, sales growth rose to 7 percent above pre-pandemic levels in the second quarter and its operating profit and net profit reached new heights.

THE DETAILS Net sales hit €696.4 million, up 12.9 percent at constant rates compared to the same period last year. Operating profit hit an all-time record, rising 143.8 percent to €78.9 million, and net profit stood at an unprecedented €60.6 million, up 262.6 percent and representing 8.7 percent of net sales.

Online sales grew a robust 11.6 percent in the second quarter, L’Occitane said, despite the reopening of physical stores, indicating a permanent shift in consumer behaviour.

The Group’s signature L’Occitane was the largest contributor to growth, while Elemis showed a strong performance in heritage markets and continued to expand into new territories.  

THE WHY? André Hoffmann, Chairman and Chief Executive Officer of L’Occitane, said, “We are very pleased with the strong results achieved against the still uncertain macroeconomic backdrop. This period of record profit coincided with the completion of major restructuring actions, and the evolution of the management team. This is a testament to the Group’s renewed sense of focus and discipline on a balanced approach to the top and bottom-line. Recently, we have accelerated our transformation into a multi-brand and geographically- balanced group that is supported by highly cash-generative businesses and growing earnings. We are now well-positioned for the longer-term to reach new markets and more age groups with innovative and exciting products and brands – all of which will continue to reflect our values and premium beauty image.”

“That said, the recent return of COVID-19 restrictions in parts of the world proves that the pandemic is nowhere near over. This may cause some headwinds in the near-term. But given our proven agility and adaptability, and the inherent strengths of our brands, epitomised in the continued strength of our online channels, we look forward with optimism to deliver a strong holiday season and long-term value for our shareholders.”