(AOF) – Bogart recorded in the fourth quarter a turnover up 12.4% to 94.6 million euros. At constant scope and exchange rates, growth was 7.6%. In the end, the turnover of the specialist in perfumes and luxury cosmetic products increased by 19.2% to 293 million euros in 2022. It fell by 6.4% at constant scope and exchange rates. However, as announced, the group recorded a drop in the profitability of its network of stores in France, which will have an impact on the results for the 2022 financial year.
“Reorganization measures were taken quickly on this network and are currently in discussion with the representative organizations of the personnel”, specifies the company.
The decline in the profitability of the Bogart Beauty Retail business in France – the decline in EBITDA of which is estimated at around €5 million – will weigh on the Group’s results in 2022.
Although Bogart’s 2022 Ebitda should be maintained, thanks to the accounting treatment of rents from new stores, current operating income is expected to decline significantly compared to 2021 but should nevertheless remain positive over the year. In 2021, it was 5.3 million euros.
At the start of the 2023 financial year, Bogart is confident of the continued growth of its perfume and cosmetics brands over the next financial year.
At the same time, Bogart will be attentive to its fixed costs to limit the effects of inflation in its store network. In France, Bogart will continue its discussions with employee representative bodies for the implementation of its Job Safeguard Plan project.
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Learn more about the luxury sector
Market boom for several more years
According to Bain & Company, the global luxury market (fashion, cars, hotels, wines and spirits, cruises, etc.) will have recorded a 21% jump in sales in 2022, to 1,384 billion euros. The luxury personal products segment (jewellery, clothing, watches, leather goods, etc.) should grow by 22% and again grow by 3% to 8% in 2023 despite the expected economic slowdown. Growth should continue in the following years, with an increase that should reach 60% by 2030! According to Bain, spending by Americans in Europe has more than doubled between 2019 and 2022. This development is largely explained by a strong dollar. The Chinese market, on the other hand, is at half mast due to the “zero Covid” policy and strict confinements.