Aesop Exceeds Expectations in China
- Chaileedo Press
- Mar 14, 2023
- 2 min read
Updated: Apr 4, 2023
Aesop's parent company, Natura & Co, stated financial results showing the Aesop’s two physical shops in China opened performed well, with sales sweeping into the Top 1 and Top 2 of Aesop's signature shops worldwide.
Recently, the parent company of Aesop and Avon, Brazilian beauty giant Natura & Co, released its financial results for the fourth quarter of 2022 and the FY 2022.
The results show that Natura & Co's total revenue for FY2022 was R$36.3 billion ($6.9 billion), down 9.5% year-on-year, with a net loss of R$2.9 billion ($552.7 million), a significant drop of 372.9% year-on-year. For the fourth quarter, Natura & Co's total revenue was R$10.4 billion ($2 billion), down 10.8% year-on-year, with a net income loss of R$890.4 million ($170 million), down 228% year-on-year.
In terms of overall net profit, its performance has improved somewhat compared to the huge decline of 1,869.5% in the first half of the year although still down over 300% for the year.
Natura & Co boasts four brands, Natura & Co Latam, Avon International, The Body Shop and Aesop, all recorded negative growth in the fourth quarter.
Natura & Co Latam's FY2022 revenue was R$22 billion ($4.2 billion), down 1.7% year-on-year. Body Shop's net revenue in FY2022 fell 24.3% to R$4.4 billion ($838.6 million). Avon International’s net revenue also fell 22.9% to R$7.2 billion ($1.37 billion) in FY2022.
Aesop's net income declined by 2.1% to R$879.6 million ($167.6 million) in the fourth quarter and increased by 4.6% to R$2.7 billion ($514.6 million) for FY2022. The results show that Aesop achieved double-digit year-on-year growth in all regions, despite a deteriorating macro environment.
The financial report made special mention of Aesop's impressive performance in China. 2022 saw the opening of Aesop's first shop in China in November in Shanghai, followed by the opening of Aesop's second shop in Shanghai too a month later. The two physical shops achieved better results.
In response to Aesop's impressive performance, the Group commented that the launch of the business in China was a very critical move in Aesop's strategy. Although Aesop is still in the early stages in China, the two shops mentioned above have exceeded expectations and their sales have become the Top 1 and Top 2 of Aesop's signature shops worldwide.
It is worth noting that Natura & Co said it was considering a public offering or split of Aesop last year. Since then, many big companies such as Shiseido, L'Occitane Group and private equity giant CVC Capital Partners have all been rumored to be preparing bids for Aesop. Later on, luxury consumer goods companies such as LVMH and L'Oréal are weighing offers to buy a stake in Aesop, which could value the high-end cosmetics brand at $2 billion.
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