L’Occitane sales have topped €1bn during the first half of its 2024 financial year.
Sales increased by 18.5% for the six months ended 30 September 2023, which was driven by an “impressive” performance from Sol de Janeiro.The Brazilian skin care brand’s sales jumped by 188.8% to €270m, exceeding its annual sales in 2023.
Growth was recorded across all of the brand’s key operating markets, which was supported by a successful summer campaign and new product launches.
“We maintained our double-digit growth momentum despite the difficult market context,” said André Hoffmann, Vice Chairman and CEO of L’Occitane.
“It is particularly pleasing to see Sol de Janeiro’s stellar growth accelerating amid the continued steady growth of our core brand.”
L’Occitane en Provence saw steady growth at 3.5%, on the back of strong consumer demand and sales growth in China.
Excluding Russia, which the company divested in June 2022, L’Occitane’s own brand posted sales growth of 4.8% at constant rates for H1.
L’Occitane acquired Sol De Janeiro in 2021
The brand said this was in line expectations as the brand continues to implement its premiumisation strategy.
US sales in particular were also impacted by a shortfall in L’Occitane’s maritime business.
“We are committed to Elemis' premiumisation strategy and believe it will enhance its long-term growth potential and profitability,” added Hoffman.
America saw the most significant sales increase in H1 at 63.6%, largely driven by Sol de Janeiro.
In Asia, sales grew 9.2% at constant rates, supported by China’s recovering consumer market.
“We remain cautiously optimistic about our prospects for FY2024 as we head into the important holiday and gifting seasons, which will be supported by higher marketing investments in key markets and channels for our core brand and the continued development of our newer brands,” said Hoffman.
“This will help us weather ongoing headwinds including foreign currency fluctuations and persistent inflation in certain markets.”
