Cosmetics giant Estée Lauder saw its organic net sales increase 8% to $17.74bn over the year to 30 June.
This was driven by double-digit growth in the Americas, Europe, the Middle East & Africa regions, due largely to the recovery in bricks & mortar retail stores following the relaxation of Covid restrictions. It also saw double-digit growth online and better trading in travel retail as holidays returned.
Despite higher costs related to restructuring, the US group’s operating profit rose 21% to $3.17bn.
Fabrizio Freda, President and Chief Executive, said: “We delivered excellent results in fiscal 2022, exceeding our expectations in the fourth quarter and achieving record revenue and profitability on an adjusted basis for the year.
“Our multiple engines of growth strategy proved invaluable amid pandemic and macro complexity, affording us the diversification to seize growth of the moment. The Americas and EMEA prospered, Fragrance soared, and Makeup realised the promise of its emerging renaissance.”
Looking ahead, Estée Lauder forecast that its sales and profit for its next financial are likely to come in below estimates due to a hit from Covid-related lockdowns in China – a key market for the business.
The company expects full-year 2023 net sales to increase between 3% and 5%, compared with analysts’ average estimate of a 7.6% rise. Estee also flagged a strong US dollar to impact its results for the year.
Freda concluded: “We are very confident in the strength of our company and in the vibrant long-term growth opportunity of prestige beauty, but recognise the environment remains complex and uncertain at this point in time. For fiscal 2023, we expect to deliver strong organic sales growth, fueled by our diversified growth engines and enticing innovation, and to take the opportunity in this volatile year to continue investing for our exciting future.”
