HongKong

L’Occitane reportedly considering privatization – market capitalization about 597.9 billion yen – WWD JAPAN

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L’Occitane International is considering going private, Bloomberg reported. Chairman Reinld Geiger, who owns more than 70 percent of the company, may buy Hong Kong-listed shares from small shareholders, the people said. The company’s market value is 33.5 billion Hong Kong dollars (approximately 597.9 billion yen).

The company’s financial results for the first quarter of the fiscal year ending March 2024 showed sales of 502 million euros (approximately 78.3 billion yen), a year-on-year increase of 24.5% in local currency. The Brazilian body care brand “SOL DE JANEIRO” and China’s “L’Occitane” acquired in 2021 contributed to the steady growth. In terms of regions, driven by “The Sun”, sales in the United States increased by 57.5% year-on-year, and driven by the Chinese market, sales in the Asia-Pacific region increased by 11.2% year-on-year.

Vice Chairman and Chief Executive Officer Andre Hoffmann said: “We are concerned about a slower-than-expected recovery in the Chinese market, persistent inflation in key markets, and currency headwinds. We note economic volatility, but we remain cautious Optimistic outlook for FY2024: Increased marketing investment in L’Occitane’s major markets and channels; growth of new brands, such as the acquisition of the Australian skincare brand “GROWN ALCHEMIST” in 2022 and its expansion into the Asia-Pacific and global travel retail markets, are supporting growing.” The portfolio includes French brand MelVITA, British luxury spa and skincare brand ELEMIS, Korean brand ERBORIAN and American cosmetics brand LIMELIFE (BY ALCONE)”, as well as the group’s start-up company “DUOLAB” launched in 2020.

In order to enter the clean beauty market, L’Occitane Group acquired Elemis for approximately US$900 million (approximately 124.2 billion yen) in January 2019. In November 2009, acquired a majority stake in Sol de Janeiro for US$450 million (approximately 62.1 billion yen). Subsequently, in March 2010, it acquired a majority stake in Grown Alchemist for approximately A$50 million (approximately 4.6 billion yen).

And listed on the Hong Kong Stock Exchange in 2020 to capture growth opportunities in the Asian market. The company becomes the first French company to list in Hong Kong.

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