Virus Leads Puig To Register The First Losses In His History

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The Puig group recorded last year with losses of 72 million, the worst result in the history of the company , compared to the profit of 304 million in 2019, as explained by the president of the group, Marc Puig . During the presentation of results, he attributed this evolution to confinement and social distancing, which has reduced the consumption of cosmetics and perfumery . 2020 has been “a complicated year”, he explained.

Despite all this, the operating result reached 93 million, compared to 333 million the previous year. Sales were 1,537 million, with a decrease of 24% thanks to the integration of the makeup brand Charlotte Tilbury , with great weight in the digital channel, in which it was the largest operation in its history.

The biggest drops in sales were registered in Spain, with 191 million and a decrease of 32% and in Latin America, with 257 million and a fall of 40%.

Puig has stated that they hope to return to benefits this year , although pre-pandemic levels will not be reached in “two or three years.” Despite the fact that the acquisition of Charlotte Tilbury has taken the company from excess cash to debt, Puig has ruled out going to the stock market to finance itself and expects to reduce the liability, higher income due to the expected growth.

The president of the group recalled that as of 2004, the company decided to focus on fewer activities, in fashion and perfumery , with which its worldwide presence went from 3% to close to 10%. Once they reached this critical mass, they opted to change their approach as a result of smartphones and China . Smart phones have triggered the use of products for the image , thanks to ‘selfies’ and social networks , Puig has argued.

That is why they opted for makeup and skin care products , since perfume has no impact in the digital world. This trend has led to further growth in cosmetics and perfumery. The other pillar is China, which stands out for its less use of perfumery than cosmetics. Puig has chosen to focus on these two pillars, and buy makeup companies, such as Charlotte Tilbury; and skin care, said Marc Puig.

New stores
After thanking his father for messages of appreciation, Mariano Puig , who recently passed away , has underlined, despite the effects of the pandemic, the opening of new company stores in Shanghai (China) and Los Angeles (USA), among others, since they did not have their own establishments outside of Europe. Last year the average of online sales was 28%, which was “a qualitative and quantitative leap”, he explained.

The company’s goal is to have “highly desirable and attractive” brands that help people “to reinforce self-confidence” through a family business, which provides a series of values ​​and ways of acting. The 2021-2023 strategic plan consists of doubling the turnover in three years and tripling it in five .

Despite the pandemic, the objectives are accelerating, he assured. In 2025 the goal is to have a series of brands at the level of 1 billion, another at 500 million and others, smaller, between 100 and 300 million. The focus is on Asia , which will assume 7% of the business in 2019 and will increase to 25% in 2025. And the digital channel, from 13% to 30% in five years.

Puig has stated that the group’s portfolio allows it to be ambitious in growth in Asia, particularly in China; and on the digital channel. The company has been divided into three divisions to accelerate growth. The group is currently the world’s fifth largest beauty and fashion group.

The president of the company recalled that in 2014, the year of its centenary, they already committed to being a greener and more social company. Despite meeting the objectives, there is a mandate from the family that requires it to be among the most advanced in sustainability issues .

“Many achievements have been made, but they are not enough,” he declared. Now the ambition is increasing for Puig to be recognized as one of the most advanced companies in this segment in its sector, he said.