L’Occitane reports record half-year beauty profits for 2021

By Becky Bargh 30-Nov-2021

Net profits soared 262% to more than €60m for the six month period as sales return to pre-pandemic levels

L'Occitane's sales grew 7% above pre-pandemic levels for the six months

L’Occitane, the French beauty and wellness player, has reported record half-year profits for the six months to 30 September 2021 (FY2022 H1).

For the period, the group saw net profits spike to €60.6m, a 262% improvement on the previous year.

Operating profit also stands at an all-time high for L’Occitane, increasing 143% to €78.9m.

The business also kept its operating margin at around 11% due to higher sales, which supported fixed costs and distribution costs.

In spite of the continued impact of Covid-19, beauty sales grew to 7% above pre-pandemic levels, and the continued effects of the pandemic have shifted some of L’Occitane’s customers' behaviours.

Online channels grew 11.6% in the six month period, that’s on top of a 64% growth in the same quarter for the previous year.

British skin care brand Elemis, owned by L’Occitane, also contributed to the business’ success, with accelerated sales in FY2022 H1.

Its expansion in Asia and other markets, with an upscaled bricks-and-mortar presence positively impacted the business’ results.

“We are very pleased with the strong results achieved against the still uncertain macroeconomic backdrop,” said André Hoffmann, Vice Chairman and Chief Executive Officer of L’Occitane.

“This period of record profit coincided with the completion of major restructuring actions, and the evolution of the management team.

“This is a testament to the Group’s renewed sense of focus and discipline on a balanced approach to the top and bottom-line.”

Hoffmann, meanwhile, warned that the changing situation with Covid-19 could hamper the business’ bounceback.

“The recent return of Covid-19 restrictions in parts of the world proves that the pandemic is nowhere near over. This may cause some headwinds in the near-term.

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“But given our proven agility and adaptability, and the inherent strengths of our brands, epitomised in the continued strength of our online channels, we look forward with optimism to deliver a strong holiday season and long-term value for our shareholders.”

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