Published Jul 28, 2021
Eurofragance closes 2020 with consolidated sales of €78 Mil. and forecasts 20% growth in 2021
• The company ended 2020 with a turnover of 78 million euros, representing an 13% decline compared with the previous year, owing to slowing fine perfumery sales during the first wave of the pandemic.
• Following a gradual recovery, over the last two quarters of 2020, the company recovered and surpassed its pre-pandemic sales and profit levels in the first half of 2021. For this full year, the Spanish multinational forecasts sales of 94 million euros representing 20% growth.
• This relatively rapid recovery illustrates the strength of Eurofragance's strategic plan, which is to consolidate its leadership in fine perfumery while driving growth in the personal and home care categories.
Barcelona, July 28, 2021 – Eurofragance, a company that creates fragrances, closed 2020 with sales of 78 million euros, a decline of 13% compared with 2019. The multinational came through the first year of the pandemic with little impact on its results, despite the economic repercussions of Covid-19 in some of its key markets, such as Indonesia and the Philippines in Asia and Kuwait and Saudi Arabia in the Middle East. Given healthy forecasts and higher than expected sales in the first half of 2021, Juan Ramón López Gil, CFO of Eurofragance, says: "We expect sales of 94 million euros, representing 20% growth in the current financial year, despite normality having not yet returned across all markets."
The decrease is mainly due to the sharp sales decline in the fine perfumery category during the pandemic, notably in the second quarter of 2020. Despite this, rose in the first half of 2021, recovering and surpassing pre-pandemic sales and profit levels. “We have faced a number of challenges this year, but we are pleased with our results because we have weathered the first year of the pandemic storm. This is thanks to the resilience of our employees and the trust placed in us by our partners. Production never stopped and we were able to continue providing customers with quality services and fragrances, enabling us to maintain our position as their partner of choice,” explains Laurent Mercier, CEO of Eurofragance.
This relatively quick recovery reflects the strength of Eurofragance’s strategic plan and of its global network, with three plants and eight subsidiaries around the world. Not only does the fragrance house aim to grow vertically, consolidating its leadership in the fine perfumery category and further penetrate other categories such as personal and home care, in order to rebalance its broad product portfolio, but it also seeks to continue growing horizontally to expand its scope of influence and consolidate new markets in Latin America, sub-Saharan Africa and ASEAN. Toward this end, the company has recently appointed Olegario Monegal, as the Global Business Unit Director, Home & Personal Care, who is responsible for leading and accelerating the growth of both categories. Monegal states: “The commitment that characterizes Eurofragance has captured the attention of many customers around the world. We thank them for entrusting us with their business, as it has allowed the company to grow over the years, almost tripling the growth of the industry.”
Sustainability and innovation, Eurofragance's major commitment
Sustainability is a transversal lever in Eurofragance and is part of its corporate philosophy as they produce fragrances that are safe for people and planet. This year, self-consumption solar panels installed at the Rubí factory (Barcelona) will reduce CO2 emissions by 35 tons per year and enable the plant to be electrically self-sufficient over half of the year. Furthermore, ongoing research and the competencies of R&D professionals enable the incorporation of the latest technologies in order to increase fragrance productivity with still less resources. The company also joined the United Nations Global Compact for sustainability, rallying the commitment of thousands of organizations worldwide to take responsible business actions and achieve a more sustainable world. In addition, the company will issue its first sustainability report this year.