Prada licensing agreement receives a 20 million euro boost from Puig's endorsement
In a strategic move to bolster its fragrance and skincare business, the Spanish perfume company Puig has injected €20 million into its fully-owned subsidiary, Fragrance and Skincare. This investment comes after Puig took full control of the company following the end of its joint venture with Prada.
Puig, which currently holds a 7% share of the global selective perfumery market, has been managing Prada's perfumes since 2003. However, the business alliance between the two companies ended in April, transforming the joint venture into a licensing agreement.
The new majority owner of Jean Paul Gaultier, another premium brand under Puig's wing, is the Puig Group. The company acquired a 45% stake in Gaultier in May 2011, later taking full control. The license for Gaultier's perfumes remains with Shiseido until 2016.
Puig's business model includes owning some brands, such as Paco Rabanne, Nina Ricci, Carolina Herrera, and Jean Paul Gaultier, while managing others, like Prada, through licensing agreements. The company's strategic focus on luxury is evident in its recent moves.
Fragrance and Skincare has carried out a capital increase of €20 million, setting its share capital at €24 million. This investment is part of Puig's efforts to strengthen its fragrance and skincare business, which showed significant improvement in 2010. Despite a 5% decrease in sales the previous year, Puig's 2010 revenues showed a 22% growth, reaching €1,202 million.
The Spanish market accounted for 25% of Puig's 2010 revenues. In 2010, Puig experienced a 7% increase in net attributable profit compared to 2009, reaching €130 million.
With this strategic investment, Puig continues to solidify its position in the global selective perfumery market and strengthen its fragrance and skincare business.
Read also:
- Federal petition from CEI seeking federal intervention against state climate disclosure laws, alleging these laws negatively impact interstate commerce and surpass constitutional boundaries.
- Duty on cotton imported into India remains unchanged, as U.S. tariffs escalate to their most severe levels yet
- Steak 'n Shake CEO's supposed poor leadership criticism sparks retaliation from Cracker Barrel, accusing him of self-interest
- President von der Leyen's address at the Fourth Renewable Hydrogen Summit, delivered remotely
