Intercos achieved $375.1 million, more than 30% from new brands!
- Chaileedo Press
- Aug 10, 2022
- 3 min read
Updated: Aug 25, 2022
Abstract: A few days ago, Intercos, the only global player in the cosmetics ODM industry, released its 2022 semi-annual report showing the company's revenue of $375.1 million, an increase of 17% year-on-year.
The financial results show that in the first half of this year, the revenue of Intercos increased by 13% at constant exchange rates, and net profit was $18.6 million, up 4.5% year-on-year. Meanwhile, all segments of Intercos's business achieved good performance growth, especially the color cosmetics segment which jumped 24% year-on-year. In addition, the skin care, hair and body care segments also grew by 9% and 4% respectively.
In analyzing the financial report, Chaileedo found that at present, color cosmetics is still the biggest business among Intercos's three main businesses, with revenue of $242.1 million in the first half of this year, accounting for 64.3% of revenue share. The revenue of skin care segment was $66.8 million, accounting for 17.8% of revenue share. The hair and body care segment generated $767.6 million, accounting for 18% of revenue share.
Intercos announced that the color cosmetics business has recovered and its revenue in the first half of the year was also 6% higher than before without the epidemic, especially in North America and Europe, where its color cosmetics segment's main customers are emerging brands and international beauty companies. In the skin care business, Intercos's growth in this segment was driven by sales in EMEA (an acronym for Europe, Middle East and Africa) and the Americas.
In its financial report, Intercos showed that despite the impact of multiple adverse factors such as the epidemic and the global supply chain crisis, the company achieved good results in the first half of the year, especially in the second quarter, when both revenue and adjusted EBITDA (earnings before tax, interest, depreciation and amortization) reached record levels.
According to the financial report, Intercos reported revenue of $197.8 million in the second quarter of this year, up 13 percent year-on-year. In the second quarter, Intercos's color cosmetics and hair and body care businesses grew 24% and 5% year-on-year, respectively, but its skin care business declined 7% year-on-year, mainly due to the impact of the epidemic lockdown in China.
In terms of geographic regions, last year, all 3 of Intercos's global regions achieved growth. Especially in the Americas, the year-on-year growth was close to 30%. According to the financial report, in the first half of this year, the revenue of the Americas region was $127.4 million, accounting for 33.8% of revenue share, which was the second largest region in Intercos's revenue share.
EMEA is still the largest market for Intercos, with revenue of $180.7 million in the first half of this year, representing a year-on-year growth rate of 12% and a revenue share of 48%. The Asian region performed slightly less well than before, with the smallest revenue share and year-on-year growth rate among the three regions, with revenue of $68.3 million in the first half of this year, up 10% year-on-year, with a revenue share of 18.2%.
Although Intercos relies heavily on the performance of multinational companies, it is not difficult to see from the financial report that Intercos was trying to change this pattern. The financial report showed that the company's emerging brand customers contributed $126.8 million in the first half of this year, an increase of 31% over the same period last year, the fastest growth rate among the three major customer types.
Taking the Chinese market as an example, Intercos has been increasing its cooperation with emerging brands in recent years. It is understood that in the first wave of the Double 11 in Tmall last year, eight brands from the Top 10 cooperated with Intercos, including new national makeup brands such as Perfect Diary, Florasis and Colorkey, in addition to international brands such as Estee Lauder.
For example, in February this year, Intercos and KATO-KATO cooperated to establish an R&D base for the foundation aesthetics. Public information shows that the latter is an up-and-coming national beauty brand founded in January 2020.
It is worth mentioning that the financial report also mentions that although Intercos's market share in China is still not large compared to other large beauty groups, and the emerging Western brands are only just starting to enter China, which means that Intercos is expected to grow in China and will continue to expand in China and the Asian region in the future.
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