L’Occitane International’s H1 growth boosted by skincare brand Elemis
In H1 of the 2019-20 financial year, closed on September 30, L’Occitane International (owner among others of L’Occitane, Erborian and Melvita) recorded a revenue of €727.15 million, equivalent to a 22% growth (and a 19% one at constant exchange rates). In the same period, operating income for the cosmetics group, which is listed on the Hong Kong stock exchange, was €41.7 million, compared to €5.8 million last year.
The group's positive performance was spearheaded by the UK, where revenue grew by 200%, chiefly thanks to Elemis, the British luxe skincare brand bought by L'Occitane International in March 2019. In H1, sales for the group in the UK were worth €76.8 million, accounting for 48% of L’Occitane International’s growth in the period.
The group’s American business also benefited from the boost provided by Elemis, as sales in the USA grew 26% to €133.5 million. However, net of Elemis's contribution, the US market recorded a sales loss of 5.1% for the group, due to the closure of 12 L’Occitane en Provence stores, and also to an unfavourable comparison basis. Last year, the US business benefited from an increase in the stake the group holds in beauty brand LimeLife.
With the help of the latter, the USA remained L’Occitane International’s leading market, ahead of Japan, the UK, China, Hong Kong and France. In H1, sales for the group in France, through the L’Occitane en Provence brand, reached €48.6 million, up by 7.1%.
In terms of individual brands, Elemis is now the group’s second largest, with sales of €84.2 million. L’Occitane en Provence was still by far the group’s best-seller, with a revenue of €554.9 million, up by 8.5%. LimeLife was third in the ranking, recording sales of €40.7 million, down 0.8% due to the absence of new product launches. The Melvita, Erborian and L’Occitane au Brésil brands generated altogether a revenue of €47.3 million, equivalent to a 10.4% increase.
As of September 30 2019, the L’Occitane International group operated 3,428 stores worldwide.
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