Puig eyes €3bn in sales for 2023 after carving out Derma division
As of January 1, 2021, Puig now operated business under three different divisions: Beauty and Fashion, Charlotte Tilbury and Derma. This latter, newly formed division incorporated the Uriage and Apivita brands and Puig’s 50% stake in Spanish skin care firm Isdin.
“These three brands together position Puig as the third largest player in Europe in the sector of dermo-cosmetic products for sale in pharmacies,” the company said.
According to Puig, Isdin generated annual sales of €500m and Uriage and Apivita between €100-500m. Apivita had also recently expanded into the US market, under a distribution deal with Amerikas Beauty Distribution Services.
Re-boosting growth after COVID-19
Puig said overall 2020 sales had been negatively affected by the COVID-19 pandemic, leading to a “significant decrease” forecast for sales – down to €1.5 billion versus €2 billion in 2019.
However, as the effects of COVID-19 began to recede, Puig said it expected a “significant recovery in its business”.
It had an “ambitious growth plan” that aimed to see 2021 sales surpass the €2bn mark and hit €3 billion for 2023. In 2025, the goal was to reel in sales of over €4 billion.
This growth, Puig said, would largely be driven by digital – an aspect of its global business set to account for 30% of sales in 2025. Growth in China would also account for 25% of sales in the same year.
The company said it had also signed agreements that would enable it to obtain majority stakes in certain companies it currently held minority shares in, such as Loto del Sur in Colombia and Kama Ayurveda in India.
A growing ‘ecosystem with entrepreneurs’
Puig said that in recent years it had driven growth by “developing an ecosystem with entrepreneurs with whom it shares values and a common business vision in building brands”. This, it said, had enabled the company to position itself as a significant player in the luxury beauty category.
Puig’s Charlotte Tilbury division was only very recently carved out, following the acquisition of a majority stake in the namesake business of the British makeup back in June. Puig said at the time the brand was a “compelling” addition to its global luxury portfolio of fashion, fragrance and beauty brands and experts suggesting it offered Puig the change to become a “superior competitor” in the market.