L’Occitane benefits from Sol de Janeiro’s triple-digit growth in the first half of the year

In the first half of its 2023/24 fiscal year, concluding on September 30, the cosmetics group L’Occitane reported a revenue of 1.07 billion euros, signifying an 18.5% increase (or 24.9% at constant exchange rates) compared to the same period the previous year.

“In spite of a challenging environment, we have sustained our double-digit growth momentum. It is particularly satisfying to witness the stellar growth of Sol de Janeiro accelerating amidst the stable growth of our flagship brands. We remain cautiously optimistic about our prospects for the 2024 fiscal year as we head into the holiday season. During this period, we are intensifying our marketing investments in key markets, which should help us withstand headwinds and persistent currency fluctuations in some markets,” stated André Hoffmann, the CEO of L’Occitane.
 
The group’s flagship brand, L’Occitane en Provence, achieved sales of 595.6 million euros, a decline of 2.4% (but up by 3.5% when excluding the effects of currency fluctuations). Elemis, on the other hand, experienced growth of 3.8%, reaching 109.2 million euros. The portfolio of brands, including LimeLife, Melvita, Erborian, L’Occitane au Brésil, and the group’s most recent acquisition, Grown Alchemist, saw its sales rise by 7.5% to 97.2 million euros.

However, it’s still the American skincare brand Sol de Janeiro, acquired at the end of 2021, that is driving L’Occitane’s growth with a remarkable 173.9% increase in sales, totaling 270 million euros (or 202% at constant exchange rates). Sol de Janeiro notably experienced triple-digit growth in online sales across all regions of the world.

Regionally, the Asia-Pacific region experienced sluggish growth at 0.1% (but rose by 9.2% when excluding the effects of currency fluctuations) to reach 371.4 million euros. The Americas region saw sales of 442.4 million euros, marking a substantial 55.7% increase, while the Europe, Middle East, and Africa region reported sales of 258.3 million euros, representing a 3.6% growth.