- 2024-03-08
- 阅读量：5069
- 来源｜Cosmetic Business Online
- 作者｜Liu Jia Hui
Diversification strategy.
Recently, Intercos, a leading Italian cosmetics manufacturer, reported its full-year results for 2023.According to the report, Intercos Group sales set a new record in 2023, reaching 988.2 million euros (approximately 7.815 billion yuan at current exchange rates, the same below), a 20% year-on-year increase at constant exchange rates. And this breakthrough result was achieved from a high base of 19% year-on-year growth in 2022. Among them, the fourth quarter of 2023 was a standout performance, with revenues exceeding expectations to reach €253.2 million (approximately RMB 1,981 million), representing year-on-year growth of 8% at constant exchange rates.
01
Personal care surges as emerging brand clients gain prominence
In terms of business segments, all three of the Group's businesses recorded sales growth, with double-digit growth rates in the skincare business and the hair and body care business.
The color cosmetics business is Intercos' largest source of revenue, accounting for 60.65% of Intercos' total revenue, with sales of EUR599.4 million (approximately RMB4,290.0 million), up 9.5% year-on-year, outperforming the total sales of the other two categories. Notably, the growth rate of the color cosmetics business declined slightly in the second half of the year due to significant growth in the second half of 2022 as well as temporary adjustments in inventory levels of well-known brands.
The hair and body care business grew at the fastest rate, with sales up 47% to €231.3 million (Rs. 1,809 million), almost doubling from 2022. The high growth rate in this business was driven by new commercial agreements signed by Intercos with a number of customers.
The skincare business grew significantly by 20.4% to €157.5 million (roughly Rs. 1,232 million). Among them, the fourth quarter of 2023 saw the fastest growth rate of 40.1%.
In terms of customers, sales to multinational customers amounted to EUR485.2 million (approximately RMB3,796 million), up 4.0% year-on-year. However, performance contracted in the fourth quarter due to inventory adjustments by brands. Emerging brand customers, seen as the main growth driver of the Group, grew 46.2% year-on-year, with sales reaching EUR405.9 million (approximately RMB3,176 million), with growth in both the mass and premium markets as well as in different regional markets. Retailer customers also showed a solid growth trend, with revenues reaching EUR97.0 million (RMB759.0 million), up 6.5% year-on-year.
02
Excellent performance in China
Within all the regions covered by Intercos' business, the EMEA (Europe, Middle East and Africa) region was the best performer, with sales of 507.2 million euros (approx. 3,968 million yuan), up 25.9%, and growth across all customer types and business segments.
Sales in the Americas slowed from the high 30% growth in 2022, growing 7.4% to €310.5 million (Rs. 2,429 million).Intercos suggested in its earnings report that the skincare business saw the strongest growth in the region, followed by the color cosmetics business.
Sales in Asia amounted to €170.5 million (approx. Rs. 1,334 million), an increase of 18.7% compared to 2022 and a gradual acceleration of the growth rate throughout the year. In addition, when commenting on the Asian results, Intercos highlighted that the business in China performed very well in the fourth quarter, thanks to local Chinese brands, and once again achieved double-digit growth.
The Chinese market has always occupied a strategically important position in the Asian market. Since entering the Chinese market in 2004, Intercos has opened 3 branches in China. Meanwhile, Intercos has been adapting to the local conditions by setting up two R&D centers in China and deepening its cooperation with local brands. From the headline brands such as Huaxizi, Perfect Diary, Maoguo Ping and Perrier, to the continuous expansion of newer brands such as DewyLab, more and more potentials of local brands are being tapped.
In addition to the performance of the results, a number of personnel changes were mentioned in the financial report. Maggie Fanari, Non-Executive Director of the Group, resigned with effect from March 1, 2024, and it was decided not to co-opt a director to replace Maggie Fanari in her previous position. In addition, Arabella Ferrari, Executive Director, was appointed as the new Group Chief Innovation Officer and Vittorio Brenna, Senior Director, as the new Group Chief Operating Officer.
Diversification was mentioned several times in Intercos' financial results as a key word for Intercos to maintain its good growth.Renato Semerari, CEO of Intercos, said, "We will look to the future with optimism that our ability to innovate, together with our strategy of diversification, will allow the Group to continue to outperform the market's growth trajectory. 2024 will see Intercos further upgrading and expanding its key laboratories to achieve greater production capacity."
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