The Estee Lauder Companies FY2021: Freda hails ‘outstanding performance’ as net sales up 13 percent

The Estee Lauder Companies FY2021: Freda hails ‘outstanding performance’ as net sales up 13 percent

THE WHAT? The Estee Lauder Companies hailed its FY2021 results as ‘outstanding’ as the US prestige beauty giant posted sales of US$16.22 billion, a rise of 13 percent on 2020’s figures (+11 percent in constant currency).

THE DETAILS Net sales grew in every region and in most product categories – although make-up is yet to recover from its pandemic-low, with sales down 14 percent in constant currency to US$4,203 million. Skin care continued its star turn, up 25 percent to US$9,484 million and fragrance was also a highlight growing an impressive 21 percent to US$1,926 million. Hair care and the other category both saw rises in the low double digits.

In terms of regions, Asia continued to dominate with sales up 22 percent to US$5,486 million while Europe, Middle East & Africa increased a respectable 9 percent while sales in The Americas remained flat.

THE WHY? Fabrizio Freda, President and Chief Executive Officer said, “We delivered outstanding results in fiscal 2021, capped by an exceptional fourth quarter and powered by our multiple engines of growth strategy as well as the timeless desirability of prestige beauty. Notably, both sales and profitability meaningfully exceeded fiscal 2019 performance. Amid the challenges of the pandemic, we invested in near- and long-term growth opportunities and managed costs elsewhere with discipline, while making important progress on our social impact commitments and sustainability goals.

“Our growth engines of Skin Care, luxury and artisanal Fragrance, Asia/Pacific, travel retail in Asia/Pacific, and global Online performed exceptionally well. Innovation soared and eight of our brands grew sales double-digits, led by Estée Lauder, La Mer, and Jo Malone London. We amplified the strength of our skin care portfolio as we became majority owners of DECIEM, with its coveted brand The Ordinary. We also invested in an innovation center in Shanghai and a manufacturing facility near Tokyo to enhance our rapid growth in the region.”