Puig, the Spanish family business known for its perfume brands, has grown rapidly under third-generation CEO Marc Puig,
a
Financial Times
profile noted.
Puig, whose fragrance brands include Paco Rabanne, Nina Ricci and Prada, has a nearly 9% share of the prestige-fragrance market, up from less than 4% in 2004, the article said. Revenues nearly doubled in the same period, to €1.499 million, and net profits grew from €1 million to €176 million, the article said.
Marc Puig told the
FT
his goal is to have 12% of the market and jump from the sixth-largest to the third-largest company in the sector.
To celebrate its centennial, the company moved its headquarters to a 100-meter-high tower near Barcelona designed by architect Rafael Moneo, the article said. The company has been led by a family member for three generations.
Ten years ago, Puig was struggling with a high debt load, the report noted. Marc Puig, newly named as CEO after running the company’s U.S. operations, closed five of the company’s ten factories and divested several product lines to concentrate on high-end fashion and prestige fragrances, the article said.
Puig’s board consists of two family members and eight non-family directors, the
FT
article said. No family member serves on the nominating or compensation committee. “Even the family holding that has ultimate control of the company has a strong presence of non-family members, whose advice the family is required to listen to before taking big decisions,” the article said.
Puig told the
FT
that while he hopes to pass ownership to the next generation, he does not expect them to run the company. “They are groomed to become good shareholders and stewards of this project — but not its managers,” he said. (Source:
Financial Times,
May 27, 2014.)
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