L’Occitane posts FY24 net sales growth of 24.1 percent
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L’Occitane International reported net sales of 2,541.9 million euros, exceeding the 2.5 billion euros milestone.
The company said in a release that the result represents sales growth of 19.1 percent at reported and 24.1 percent at constant rates, driven by the strong performance of Sol de Janeiro and the steady performance of L’Occitane en Provence, particularly in China where it outperformed in a difficult market.
Commenting on the outlook, Laurent Marteau, executive director and CEO of L’Occitane International said: “Looking ahead, we remain cautiously optimistic about our performance in FY2025. However, the company’s additional investments in marketing, IT and supply infrastructure and people and planet investments will continue to weigh on our profit margins in the months and years ahead.”
The company’s operating profit margin for the year was 12.1 percent. Sol de Janeiro contributed nearly 40 percent of total net sales and grew by 45.7 percent at constant rates in FY24. Online channels posted 25.2 percent growth at constant rates, mainly driven by Sol de Janeiro and Elemis as well as L’Occitane en Provence’s newly launched marketplace channel on Douyin in China.
The company added that retail sales globally grew 3 percent at constant rates, mostly contributed by the relative improvement of the retail environment in China.
By brand, L’Occitane en Provence reported growth of 2.7 percent at constant rates, mainly driven by double-digit sales growth in China.
Sol de Janeiro grew 167 percent at constant rates and delivered triple-digit growth across all geographies. Elemis sales remained flat following marked sales declines in the UK and US in the fourth quarter.
To position the company for future growth and geographical expansion, it has concluded an evolution in its leadership. As of April 1, 2024, Laurent Marteau, former managing director, succeeded André J. Hoffmann as the new CEO. Hoffmann will remain an executive director and member of the board. Effective June 30, 2023, Samuel Antunes was promoted to chief financial officer (CFO).