Proya Outperformed the Global Top 10 in 2022 H1
- Chaileedo Press
- Aug 26, 2022
- 4 min read
Updated: Aug 31, 2022
Abstract: In the first half of this year, Proya's revenue exceeded the 2 billion yuan ($291 million) mark for the first time.
Proya Cosmetics Co., Ltd.(hereinafter referred to as "Proya") released its semi-annual report for 2022 today (August 25). According to the data, the company achieved revenue of 2.626 billion yuan ($383 million) in the first half of this year, an increase of 36.93% year-on-year. Net profit attributable to shareholders of the listed company was 297 million yuan ($43.3 million), up 31.33% compared to the same period last year.
It is worth mentioning that in the first half of this year, Proya's main brand "Proya" topped the "No. 1 Chinese beauty" in Tmall, TikTok, and Jingdong during the 618 promotion, standing out from the crowd of Chinese cosmetics. This is also enough to reflect the ability of Proya shares going across the industry cycle.
Proya sold 2.128 billion yuan ($310.4 million) for its single brand
Chaileedo combed through the semi-annual reports of Proya shares in the past five years and found that, except for 2020, when its revenue and net profit increased by single digits due to the epidemic, Proya shares have maintained a double-digit increase in performance since 2019. In the first half of this year, its revenue even exceeded the $2 billion yuan ($291 million) mark for the first time.
Also according to Proya shares, in the first half of this year, the company's main business achieved revenue of 2.616 billion yuan ($381.6 million), an increase of 36.87% year-on-year.
According to the financial report, at present, the main brands of Proya are Proya, Timage, Off&Relax, Hapsode, and other brands. According to the brand split, the sales of Proya in the first half of this year reached 2.128 billion yuan ($310.4 million ), up 43.12% year-on-year, accounting for about 81.36% of the main business revenue.
As the mainstay of Proya's revenue, the brand continued to focus on the "Large Single Product Strategy" in the first half of this year, continuously upgrading and expanding the existing large single products and related series. For example, the Ruby face cream and Night Light eye cream were upgraded in terms of ingredients, formulations, and packaging materials, and version 2.0 was launched. At the same time, continuing to strengthen the position of the core big single products in the industry, such as Ruby Essence and Double Anti-Essence, to lay a solid foundation of product power for the brand to win the market.
In addition, the earnings report also showed that the color cosmetics brand Timage achieved sales of 232 million yuan ($33.8 million). While maintaining a high growth rate of more than 100%, the share of Timage in the main business of Proya shares has also increased year by year, rising from 3.23% and 5.33% in 2020 and 2021 to 8.87% in the first half of 2022. Obviously, the importance of Timage to Proya's shares is increasing year by year.
By category, the revenue of skin care products in the first half of this year reached 2.264 billion yuan ($330.2 million ), accounting for 86.54% of the total revenue of the main business.
The growth rate outperformed the "Global Top 10"
It is worth mentioning that the continued implementation of the Large Single Product Strategy and the improvement of the income of the Timage, also allows the Proya shares of the product sales unit price to increase significantly. According to the key operating data for the second quarter of 2022 previously announced by Proya shares, the average selling price of the company's skincare products was RMB 39.07 per unit ($5.69 per unit) in the second quarter of 2022, up 41.56% from RMB 27.6 per unit ($4.026 per unit) in the second quarter of 2021.
It is worth mentioning that in Proya's 2021 annual report, it said that in 2022 it will focus on multi-category and multi-brand matrix construction; R&D construction as well as refined operations. And the actions of Proya shares in the first half of this year also fit with it, such as doubling the revenue of Choi Tong and rising 94.66% in R&D investment…
In addition, Chaileedo noted that, from the viewpoint of revenue growth, Proya shares in the first half of this year have comprehensively outperformed the "Top ten global cosmetics companies". According to Chaileedo's previous statistics, in the first half of this year, the fastest business growth rate of the Top ten global cosmetics companies was LVHM, which reached 20%, while the revenue growth rate of Proya shares in the first half of this year reached 36.93%.
As can also be seen in the financial reports of the Top 10 global cosmetics companies, the blockade brought about by the recurring epidemic in China has made the brand's supply chain and logistics hampered, making it one of the main factors affecting the cosmetics sales of major companies.
In the context of the domestic epidemic and the international raw material shortage, Proya relied on the "New Supply Chain Guarantee", which systematically integrated data and information from various information platforms to meet the balance of terminal sales and production capacity, providing a strong back-end guarantee for this year's 618 Promotion.
The fact that Proya has been able to continue to deliver impressive results in a challenging cosmetics market shows that its initiatives have laid a solid foundation for the company to achieve sustained growth. Likewise, it also reflects the fact that Proya has forged the ability to cope with industry cycles over a long period of time in the market.
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