For the first time in its recent history, Spanish cosmetics and fragrance owner Puig has announced a loss for the year due to the effects of the Covid-19 pandemic.
The conglomerate reported a decrease in like-for-like growth of 32% for 2020 trading, with revenues down way below its 2019 earnings, which exceeded €2bn (€2.029bn).
However, the group was cushioned from the full effects of the outbreak thanks to its purchase of an undisclosed majority stake in British make-up sweetheart Charlotte Tilbury.
The incorporation of the business reduced Puig’s decline for the year to 24%, meaning the business’ full year revenue stands at €1.537bn.
“For the first time in the recent history of the company, Puig ended the year at a loss,” the company wrote in a statement.
“Lockdown and social distancing measures reduced perfume and fashion consumption, while our business customers all over the world started to close down: perfumeries, department stores, airport shops and shopping malls.”
Puig’s native Spain was its second worst performing market with a 32% dip in revenue compared with 2019, behind Latin America, which saw profits nosedive by 40%.
Despite a shaky start to the new decade, Puig is planning to implement an ‘ambitious’ reshuffle of its business structure for 2021.
Now operating its business across three divisions, giving Charlotte Tilbury its own category, alongside Beauty and Fashion, and Derma, the group wants to generate €3bn in sales for 2023 – just less than double of its 2020 earnings.
Building on that momentum, Puig has set its sights on reaching €4bn for 2025 with Carolina Herrera and Paco Rabanne generating €1bn each in the same year.