THE WHAT? L’Occitane has reported its results for the 12 months ended March 31, 2023 (FY2023). The French natural cosmetics group delivered strong double-digit growth with net sales soaring 19.8 percent to €2,134.7 million – breaching the €2 billion mark for the first time.

THE DETAILS Operating profit dropped 23 percent versus the prior year mainly due to impairments as a result of the divestiture in Russia and the exceptional impacts of impairments on two underperforming brands.

André Hoffmann, Vice-Chairman and Chief Executive Officer of L’Occitane, commented, “We are cautiously optimistic as we head into FY2024. While the macroeconomic environment remains uncertain, we expect to achieve double-digit sales growth and healthy profitability, supported by significantly higher marketing investments for the core brand in key markets and channels, as well as for our new brands as they enter new markets, including the upcoming launch of Sol de Janeiro and Grown Alchemist in APAC.”

“We are convinced that these investments will not only allow us to capitalise on the clear opportunities this year with the gradual return of international travel and a rebound in China, but also to propel our development as a multi-billion Euro, multi-brand group in the years to come.”

THE WHY? L’Occitane said that its newer brands, Elemis (+8.9 percent) and Sol de Janeiro (+135.2 percent), contributed to its impressive sales growth while its eponymous L’Occitane en Provence label gained ground in the final quarter thanks to early positive signs in China and travel retail’s bounceback.