THE WHAT? L’Occitane has reported its results for fiscal 2022. The French natural beauty brand branded its financial performance ‘outstanding’ with a record full-year operating profit and its highest operating profit margin since listing.
THE DETAILS Net sales jumped 15.8 percent to €1,781.4 million with operating profit accounting for 17.4 percent of net sales, at €310.7 million.
The group’s eponymous core brand remained its largest growth contributor, attaining a ‘world-class’ operating margin of 19.8 percent. Sales growth accelerated at Elemis too, driven by the rebound of its spa and wholesale business, strong online sales in the UK and US and the return of its maritime and in-flight businesses.
THE WHY? L’Occitane said that its record profit was driven by better operating leverage, gains from restructuring efforts and targeted investments in key channels and countries. André Hoffmann, Vice-Chairman and Chief Executive Officer of L’Occitane, explains, “We are proud to report a set of impressive financial results, an excellent outcome that once again demonstrates the resilience of the Group’s brands and teams, as well as our ability to withstand and overcome market turbulences. At the same time, we are keeping a strong eye on the future, with the acquisition of two strong brands in FY2022 that will accelerate our reach into new markets and appeal to younger consumers.”