PARIS — Puig said Thursday that its 2014 net profits rose 0.8 percent to 177 million euros, or $235.3 million at average exchange.
The Barcelona-based fragrance and fashion company reported sales for the year were up 0.6 percent to 1.51 billion euros, or $2 billion. On a like-for-like basis, the firm’s revenues gained 4.2 percent.
Puig expects its sales will reach 2 billion euros, or $2.13 billion at current exchange, in 2017, a 33 percent increase on 2014’s revenues.
In geographic terms, 86 percent of the company’s sales were generated abroad and 46 percent in emerging markets — outside of the European Union and North America. Seventy-six percent of its production took place in Spain; 31 percent in France, and 2 percent in Mexico.
“This year, [Puig] expects to see moderate single-digit growth, slightly higher than the market, as a result of the launch of fragrances such as L’Extase (Nina Ricci) and Olympéa (Paco Rabanne),” the company stated. “The initial investment required to successfully incorporate Jean Paul Gaultier is predicted to have a negative impact on profitability. This will also have a negative effect in 2016, a year of transition and the first year with the brand in its portfolio. By 2017, the company expects to achieve profitability ratios closer to current levels.”
Puig estimates about 50 percent of its sales will be generated in emerging markets by 2017, and its goal for 2020 is to rank third in the fragrance sector.