PARIS — Puig has taken a majority stake in Loto del Sur, Colombia’s leading natural cosmetics brand.
Financial terms of the deal were not disclosed.
The family-owned Spanish beauty and fashion house had purchased a minority stake in the company in March 2019.
Puig said in a statement Wednesday that Loto del Sur, which has a range of natural products made from Latin American flora, has large growth potential.
The acquisition takes place as consumers are increasingly homing in on natural beauty products.
Loto del Sur’s founder Johana Sanint will continue steering the Bogota-based brand. Puig said no changes are expected to be made to the company’s business model, which is built on its own retail network.
Puig said it remains committed to boosting Loto del Sur’s leadership in Latin America and bolstering its international growth. The brand will be launched in Spain, with the opening of a store in Madrid, and in North America, with a door in Miami. Loto del Sur’s reach in Latin America will broaden, beginning with countries such as Mexico and Chile.
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“Loto del Sur products, which are made from a careful selection of natural ingredients from native flora, pay tribute to the vast Latin American biodiversity and have strong roots in the local community, through a powerful network of 21 company-owned stores in Colombia,” Puig said.
It added that the company’s environmental and social sustainability commitment fits perfectly with Puig’s Environmental, Social and Governance strategy and 2030 Agenda, also related to ESG.
Puig, which owns brands including Paco Rabanne, Carolina Herrera, Jean Paul Gaultier, Dries Van Noten, Penhaligon’s, Charlotte Tilbury and Byredo, said: “The Colombian brand will contribute to achieving the Spanish company’s recently announced goals of doubling its 2020 turnover by 2023 and tripling it by 2025.”
Puig returned to pre-pandemic growth levels in 2021, spurred by a confluence of factors, including strong gains in the U.S. and China, and from all three of its divisions. It said in April that after the better-than-expected results last year, Puig expects to reach revenues of more than 3 billion euros in 2022, 12 months ahead of its formerly announced plan.
In 2021, Puig’s net profits were 234 million euros, versus a net loss of 70 million euros the prior year. The group’s net sales came in at 2.59 billion euros, a 68 percent gain in reported terms and up 40 percent on a like-for-like basis.