Puig's revenue up 9% to €1.79 billion in 2016, net income up 23%
The Catalan fragrance and fashion group is back on the profitability track. In 2015, its net income was down 28%, to €126 million, due to the costs of adding Jean Paul Gaultier to its portfolio, but in 2016 Puig posted a 23% rise in net income, reaching €155 milion.
Puig's annual revenue was also on an upward trajectory, reaching €1.79 billion and rising 9% at published figures and 5% in like-for-like terms and at constant exchange rates. An 85% share of Puig sales is generated outside of Spain, and 44% of them come from emerging markets.
The positive trend was confirmed in the first quarter of the 2017 fiscal year, which saw a 13% rise in revenue for the group which owns the Carolina Herrera, Nina Ricci, Paco Rabanne, Jean Paul Gaultier, Penhaligon’s and L’Artisan Parfumeur brands, and also operates the fragrance licenses for Prada, Valentino and Comme des Garçons. The result means the group is on course to reach its 2015-2017 objective of topping the mark of €2 billion in sales by the end of the period, equivalent to a 33% increase in three years.
Puig recently lost Ralph Toledano, who stepped down as President of the fashion division and was replaced by José Manuel Albesa. The group has attributed its robust revenue rise to the addition of Jean Paul Gaultier to its portfolio, as well as to the launch of fragrances like Prada Homme and Femme, Luna by Nina Ricci, and Good Girl by Carolina Herrera. Puig also remarked on the growth of Penhaligon's, a brand bought in 2015 which has opened new stores in the USA and Paris.
Other additions to Puig's brand portfolio in 2016 included EB Florals, a US niche fragrance label in which the group bought a minority stake in April, and Brazilian company Granado, a specialist in organic cosmetics, in which Puig acquired a minority interest last September.
Puig is headquartered in Barcelona and has more than 4,400 employees worldwide, 40% of them is Spain. The group operates 22 foreign subsidiaries, including the recently established ones in Colombia and Australia, and distributes its products in over 150 countries. All of its fragrances are manufactured at the group's own production sites, located in Spain and France.
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