The Spain-based fragrance manufacturer saw global turnover of €90m thanks to expansion into India and China, while investment in sustainability and digital will be key for the future
Eurofragance, the Spanish fragrance manufacturer, has revealed it enjoyed 15% organic growth in 2019, posting a global turnover of €90m driven by its continued international expansion efforts in India and China.
Said to be a record for growth in recent years, the figures follow the company's strategic growth plan to increase profits and global diversification to meet the needs of clients in the 60 markets it operates in worldwide.
Notably, in 2019 Eurofragance increased its presence in China's key markets, while also solidifying its business operations in India with the opening of new facilities in Shanghai and Mumbai.
Laurent Mercier, Eurofragance CEO, explained: “In both countries, we have opted for a local production model, supported by our partnership with two very trusted and experienced partners, enabling us to provide quick and agile responses for our clients locally.
“Neither market is new to us, as we have been working with customers and sourcing raw materials in both for many years, so the transition to a full sales and marketing operation was a logical next step.”
Meanwhile, the company also witnessed strong growth in the Latin American, Asia Pacific, European, African and Turkish markets, with sales up between 15-30%.
This was in part due to its investment in optimising its global facilities and internal processes, which included increased automation in its Singapore factory and renovation of its whole plant in Mexico.
Mercier added: “2019 has been a key year in terms of both company expansion and process optimisation in all branches, supported by a production increase of over 30% in the Singapore factory.”
Looking to the future, the company has also revealed its new business plans to address the global impact of the coronavirus (Covid-19) pandemic, which has created opportunities to meet the surge in consumer demand for hygiene products, as well as a shift in its US business.
Mercier confirmed that Eurofragance will cease its operations in Atlanta, Georgia, in the country and will team up with a “highly reputable” US-based manufacturing partner to offer more efficient service, increase production capacity and optimise its factories' performance.
Meanwhile, its 2020-2023 strategic plan will see the company focus on sustainability with its new Comittee for Sustainability, which will design and implement sustainability measures throughout the business and aim to get employees involved, while it will also work on its digital transformation in a bid to help consumers adjust to the 'new normal'.
“This new reality is speeding up the digitalisation of all industries,” Mercier noted.
“To this end, we are working together with our customers to help them grow.”