L’Occitane Profits Surges 21.8 Percent

L’Occitane International S.A. went from a net cash position to a net debt one this year as a result of loan financing for its recent Elemis acquisition, but the Hong Kong-listed, Swiss-based multibrand group maintained profitability and reported 21.8 percent growth in net profit to 117.6 million euros. The increase in profits can be attributed to targeted investments and acquisitions made to strengthen the brand’s position in the skin-care market. While the group said the results of the Elemis acquisition are largely accretive and the effects of the deal would only be seen in the next year, L’Occitane en Provence saw a successful launch of the Immortelle Reset serum. More than 800,000 units of the product were sold globally in fiscal year 2019, making it the group’s best-selling skin-care product to date, serving to consolidate the group’s position in that market. The group also expressed an interest in maintaining a solid production pipeline with product innovation playing a key role in driving future growth. Off of the success of the serum, there are plans to extend the line to encompass face masks, eye serums and broaden the scope to hair-care and body products in a bid to create product outside of fall and winter

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