Puig sales increase 9% in 2015 but profits drop by 28%
Spanish luxury group PUIG ended 2015 with an increase in sales of 9% to 1.64 billion euros, but the group’s profits suffered a 28% decline to 126 million euros.
The Spanish company said in its annual report that its profits revealed the negative impact of the integration of Jean Paul Gaultier fragrances to its portfolio of brands, and the significant investment effort behind its brands to achieve their growth objectives.
Despite last year’s results, the Barcelona-based company said the strategic investments will help it achieve its goal of reaching 2 billion euros in revenue by 2017 and growth of 33% in the three-year period between 2015 and 2017.
2015 also marked a key year for the company with the acquisition of the luxury fragrance houses Penhaligon’s from the UK and L’Artisan Parfumeur from France. By the end of 2016, Puig hopes to see a double-digit growth.
Most of Puig’s annual revenue was generated outside of Spain, representing 86% of the total, however the company’s Spanish business grew by 8% in the period. Meanwhile, emerging markets accounted for almost half of the company’s business with 47% of the total generated outside of the European Union and North America.
Puig sells its products in more than 150 countries and operates its own stores in 22 markets. Its Spanish production plants accounted for 68% of the total number of units sold around the world, while its French production center represented 29% of the total. At the end of 2015, the Spanish company had 4,483 employees.