L’Occitane has reported a strong start to its 2024 financial year after posting a double-digit rise in sales for the first quarter of trading.
Sales increased by 20.2% to €502.2m during the three months ended 30 June, which was driven by an “outstanding” performance from Sol de Janeiro.
The Brazilian skin care brand saw sales rise by 171% to €113m and benefited from strong sales of its core product range and new launches including its Fragrance Mists, released in May.
Elemis also recorded double-digit growth, with sales increasing 23.6% at a constant rate in Q1.
“It is pleasing to kick off the new financial year with double-digit growth that is being led by our newer brands, Elemis and Sol de Janeiro, who jointly contributed nearly a third of our sales this quarter in line with our multi-brand strategy,” said André Hoffmann, Vice Chairman and CEO of of L’Occitane.
During the quarter the beauty brand saw improved trading in China, as the country continues to reopen and recover from the Covid-19 pandemic.
L’Occitane en Provence saw particularly growth in the market, with sales up 4.4%.
The company’s performance in the UK and the US also increased by 27.9% and 19.9% respectively, driven by a boost in online sales.
“We are mindful of the lingering macroeconomic uncertainties, such as signs of a slower-than-expected recovery in China, persistent inflation in major markets and foreign currency exchange headwinds,” added Hoffmann.
“Yet, we remain cautiously optimistic about our prospects in FY2024, supported by higher marketing investments in key markets and channels for the core brand and the continued development of our newer brands, including the recent entry of Sol de Janeiro and Grown Alchemist into APAC and global travel retail channels.”
The positive start to the year comes after L’Occitane reported a 23% slump in profits for FY23.
The decrease in income to €239.1m was attributed to the divestiture of L’Occitane’s Russian arm and resulting share losses from associates in the country.
Impairments from two underperforming brands, Melvita and LimeLife, also contributed to reduced profits during the year.
The brand owner's sales performance fared better, increasing by 19.8% to €2.1bn in the face of surging global inflation and the ongoing cost of living crisis.
This was also supported by a robust performance from Sol de Janeiro, which saw sales rocket by 135.2% in 2023.
