L’Occitane Reports Mixed Financial Results Amid Buyout Efforts
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L’Occitane Reports Mixed Financial Results Amid Buyout Efforts

THE WHAT? L’Occitane International SA, the Hong Kong-listed beauty group, released its financial results for the year ending March 2024. The company saw net sales rise to 25.4 billion euros, marking a 19.1% year-over-year increase. However, net income fell by 18.6%, totaling 93.89 million euros, and operating profit dropped by 2.5%.

THE DETAILS  The company cited increased marketing expenditure in key markets as a primary reason for the decline in operating profit. Retail sales globally grew by 3% at constant rates, significantly boosted by an improved retail environment in China compared to fiscal 2023. L’Occitane’s Sol de Janeiro brand delivered a remarkable 167% growth, becoming the second-largest brand in the company’s portfolio with an operating margin of 23.6%. The core L’Occitane en Provence label also recorded double-digit growth in China. Meanwhile, Elemis faced flat sales due to declines in the U.S. and U.K., though it saw double-digit growth in China through influencer livestreaming on Douyin.

THE WHY? CEO Laurent Marteau highlighted that the company remains cautiously optimistic about its performance for fiscal 2025. However, he noted that additional investments in marketing, IT, supply infrastructure, and sustainability will continue to impact profit margins. These investments are deemed necessary to sustain growth amidst intensifying competition in the global skincare and cosmetics industry.

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