Colgate's Competitor to the Proposed IPO

Chaileedo Press
Feb 24, 2023
2 min read

Updated: Apr 3, 2023

Dencare’s core brand Lesening has a market share of about 60% in the anti-sensitive toothpaste segment.

Chongqing Dencare Oral Care Products Co.(hereinafter referred to as Dencare) updated its prospectus to continue the process of listing on the main board of Shenzhen Stock Exchange, with China Securities acting as the sponsor.

Dencare was established in 2001, with two oral care brands Dencare and Lesening, as well as high-end professional oral care brand Yi Yan, children's oral care brand Beilele, high-end baby oral care brand Monyum. Its main products cover toothpaste, toothbrushes, mouthwash, and other oral cleaning care products.

In June 2022, Dencare officially filed a prospectus. In terms of financial data, according to the latest prospectus, in the first half of 2022, the revenue and net profit of Denkang Oral was 611 million yuan ($88 million) and 58 million yuan ($8.4 million) respectively. In the second half of 2022, the revenue and net profit of Decare were 703 million yuan ($101.2 million) and 76 million yuan ($10.9 million) respectively.

According to Nielsen's offline retail statistics for 2021, the market share of retail sales of Lesening toothpaste ranked fourth in the industry and second for local brands. In the offline sales channel, the market share of Lesening toothpaste products was 6.83% in terms of retail sales and 9.95% in terms of sales. The market share of Lesening in the anti-sensitive toothpaste segment will remain stable at around 60% of offline retail sales from 2019 to 2021 and the first half of 2022.

From an industry perspective, in the oral care segment, according to Nielsen retail research data, China's toothpaste category market is relatively concentrated, with the overall sales size of the toothpaste market in 2021 at 33.98 billion ($4.9 billion), an increase of 0.86% compared to 2020. In the overall market, the top five manufacturers such as Yunnan Baiyao, DARLIE, Procter & Gamble, Dencare and Colgate have a market share of 59.50%.