L’Occitane posts H1 sales growth of 29.3 percent

In the first half period, L’Occitane International S.A., manufacturer and retailer of beauty and well-being products, reported net sales of 900.5 million euros, representing 29.3 percent growth at reported rates or 20.8 percent at constant rates.

The company said in a statement that this sales growth was mainly driven by the initial inclusion of recently acquired brands, Sol de Janeiro and Grown Alchemist, and the growth of the group’s key brands.

Commenting on the company’s performance, André Hoffmann, vice-chairman and CEO of L’Occitane, said: “Despite the challenging environment, the proven resilience of our business ensured that we continued to maintain strong growth momentum and achieve another record interim profit.”

“Although current macroeconomic headwinds are likely to continue and lead to cost ramifications in all parts of our business, we are highly focused on executing a strong holiday season,” added Hoffmann.

On a like-for-like basis, excluding the newly consolidated brands Sol de Janeiro and Grown Alchemist, Russia due to the group’s divestiture, the deconsolidation of the US subsidiary last year and at constant rates, sales growth was 5.9 percent, an acceleration from 5.1 percent in the first quarter to 6.7 percent in the second quarter of FY2023.

The group’s operating profit reached 87 million euros, an increase of 10.3 percent. On a management basis, the operating profit margin was 11.3 percent, a 1 point increase compared to last year. The group delivered a second consecutive year of record interim net profit of 63.9 million euros, an increase of 5.4 percent.

The company’s retail sales grew 4.4 percent at constant rates during the period, despite trading with 121 fewer stores as compared with the same period last year. Meanwhile, online sales also continued to grow, with its online sales mix remaining at 29.4 percent. The group’s online presence was further supported by the inclusion of digital-centric brands, such as Elemis and Sol de Janeiro.