Puig ramps up its business with an ambitious growth plan

Puig has reorganized its business structure with the creation of three divisions: Beauty and Fashion, Charlotte Tilbury, and Derma. All will be operational as of January 1, 2021.

The Beauty and Fashion division will be made up of the brands Paco Rabanne, Carolina Herrera, Jean Paul Gaultier, Nina Ricci, Dries Van Noten, Penhaligon’s and L’Artisan Parfumeur; the licenses of Christian Louboutin and Comme des Garçons Parfums, and the Lifestyle brands of Adolfo Dominguez, Antonio Banderas, Shakira and Benetton.

The fragrance business of these brands positions Puig as the fifth largest player in the world in prestige perfumes with a value market share of nearly 10% and with three brands in the top 20 of the world rankings.

The Charlotte Tilbury division will integrate the beauty brand in the company. Puig acquired a majority stake in the brand in June.

The newly created Derma division will incorporate Uriage and Apivita, in which Puig has a majority stake, in addition to the 50% stake in Isdin. These three brands together position Puig as the third largest player in Europe in the sector of dermo-cosmetic products for sale in pharmacies. Two of these brands are in the top 10 rankings.

Based on this ambitious growth scenario driven by the plans of the three divisions, Puig aims to reach €3 billion in sales in 2023.

Puig expects sales to drop from €2 billion in 2019 to €1.5 billion this year due to the pandemic. As effects of COVID-19 recede, Puig expects significant recovery in its business, with sales in 2021 fore-cast to surpass the record figure of €2 billion obtained in 2019. The company has set a sales target of €3 billion for 2023 and hopes to achieve over €4 billion in 2025.

By that time, the portfolio is expected to include two almost 1 billion-euro brands (Paco Rabanne and Carolina Herrera), two brands with sales of €500 million (Isdin and Charlotte Tilbury); as well as others such as Jean Paul Gaultier, Penhaligon’s, Dries Van Noten, Uriage, Apivita, L’Artisan Parfumeur and the Christian Louboutin license, with sales of between €100 million and €500 million.

In this context, the company expects significant growth due to digital and growth in China, which will account for 30% and 25% of sales respectively in 2025. More-over, Puig has signed agreements that will enable it to obtain majority stakes in companies in which it is currently a minority shareholder, such as Loto del Sur in Colombia and Kama Ayurveda in India.