THE WHAT? L’Occitane International S.A. (0973.HK) announced its financial results for the year ending March 31, 2024. The company reported net sales of €2,541.9 million, marking a 19.1% increase from the previous year. Despite this growth, net income declined by 18.6%, totaling €93.89 million, and operating profit fell by 2.5% year-over-year.

THE DETAILS  The company attributed its strong sales momentum to the exceptional performance of Sol de Janeiro and steady growth from L’OCCITANE en Provence, especially in China. Sol de Janeiro, with a notable 167% growth, has become the company’s second-largest brand and main profit contributor. L’OCCITANE en Provence saw a modest growth of 2.7%, primarily driven by its success in China. Meanwhile, ELEMIS focused on premiumisation but faced flat sales due to declines in the UK and US markets in Q4. The company’s omni-channel strategy, particularly the expansion of online and wholesale channels, contributed significantly to its revenue.

THE WHY? L’Occitane’s strategic focus on marketing investments, geographical expansion, and brand diversification underpinned its sales growth. The company’s commitment to sustainability was highlighted by achieving B Corporation certification and initiatives aimed at reducing its carbon footprint and promoting biodiversity. Leadership changes, with Laurent Marteau stepping in as CEO and Samuel Antunes as CFO, are expected to drive the company’s future growth and transformation efforts. Looking forward, L’Occitane plans to continue investing in marketing, IT, and supply infrastructure to maintain its competitive edge in the global skincare and cosmetics industry.