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Puig Builds Market Share, Increases Profits 19% in 2011
Posted: April 13, 2012
Puig announced it saw sales increase by 12% in 2011, resulting in a profit increase of 19% for the year. Net revenues totaled €1,343 million, with international markets generating 80% of business, up from 64% in 2007, and in the past four years, the company has significantly increased its market share worldwide in the selective perfumery sector, from 5.1% in 2007 to 7.6% in 2011, capturing 25% of global growth in the category since 2006. Additionally, the company’s acquisition of Jean Paul Gaultier confirms its commitment to the hybrid model of fashion and fragrances.
Specifically for its fragrance division in 2011, Puig increased its market share to 7.6%, consolidating its position at No. 7 in the world perfumery ranking. One of the main factors behind the growth in fragrances in 2011 has been the launches of 212 VIP Men and CH L’Eau by Carolina Herrera. The 1 Million by Paco Rabanne fragrance also has continued to be successful maintaining its position near the top of world rankings, as has Lady Million, and the launches of Valentina by Valentino and Prada Candy by Prada fragrances were also very positive. The company also highlighted the performance of its The Golden Secret (Antonio Banderas), S by Shakira Eau Florale and Mango scents, which have allowed Puig to maintain a significant position in the fragrance masstige category in the Spanish and international markets.
Geographically, Spain, the main market for Puig, represents 20% of its net revenues, down from 36% in 2007. This decrease is related to the contraction of the Spanish market and the sale of non-strategic brands. International markets represent 80% and have seen double-digit growth. Currently, Puig sells its products in over 130 countries and has subsidiaries in 21 of them.
The company's sales grew by 20% in the first quarter of the 2012, following the 2011 trend with double-digit growth in international markets and single-digit decreases in the domestic market. Puig expects to surpass €1,400 million in net revenues in 2012.
Puig also instituted its Centennial Plan in 2011, a four-year strategic plan (2011–2014) with the goal of attaining a global market share of 10% in selective perfumery and sufficient size to allow the company to be sustainable in the long term and to enter the top five of the world industry rankings. As the Centennial Plan was beginning, the company also laid the cornerstone for its new corporate headquarters in Barcelona, which will open in 2014 to coincide with the company’s centenary.