Intercos Net Sales Reach €488 Million in H1 with Double-Digit Growth in China
- Chaileedo Press
- Aug 4, 2023
- 4 min read
Despite the Chinese market not showing tangible signs of recovery from 2022, the region witnessed excellent performances. Notably, group sales in China experienced double-digit growth in the second quarter of 2023.
Intercos, a leading global provider of cosmetic and skincare solutions, has announced impressive financial results for Q2 and H1 of 2023. The company reported a record-breaking net sales figure of €488.4 million ($534.8 million), representing a remarkable increase of 32.7% compared to the same period in 2022. This growth was even more significant at constant exchange rates, with an increase of 33.3%. And its adjusted net profit was €26.9 million ($29.5 million), up 29.6%. The positive trend in order intake continued, supported by a steady flow of new projects, which reflects Intercos' commitment to innovation.
The sales growth was witnessed across all geographic areas, business units, and customer types, highlighting the company's broad-based success. In particular, the second quarter of 2023 saw record revenue of €253.8 million ($277.9 million), up 31.3% from the previous year, despite facing unfavorable exchange rate fluctuations. When considering constant exchange rates, the sales increase in the second quarter was an impressive 33.8%.
Analyzing the revenues by business unit in H1, the makeup segment performed exceptionally well, reporting revenues of €304.2 million ($333 million), a growth of 28.6%. This segment's strong growth continued into the second quarter, with significant contributions from all geographical areas and customer types. Asia and EMEA stood out for their excellent performance, along with emerging brands and multinational customers. The retail sector also showed signs of recovery during the second quarter.
The skincare segment achieved revenues of €72.1 million ($79 million) in the first half of 2023, up 10.3% compared to the same period in 2022. The strong performance of this business unit was primarily driven by North American customers, with good performances from both multinational and emerging brands. The second quarter's results were in line with the positive trend observed in the first quarter.
The hair and body segment experienced remarkable growth, with sales reaching €112.1 million ($122.7 million), a substantial increase of 69.8%. This growth confirms the strong growth rates expected following new agreements signed with renowned brands, including Dolce&Gabbana. The second quarter of 2023 saw an even greater acceleration, with sales surging by 88.9%.
In terms of sales by commercial area, EMEA emerged as the top-performing region, reporting revenues of €258.2 million ($282.7 million), a remarkable increase of 46.2% compared to the first half of 2022. All business units, customer types, and market segments (mass and prestige) experienced growth in this region. The hair and body and makeup business units, along with emerging brands, played a significant role in driving the area's growth during the second quarter.
The Americas posted revenues of €151.4 million ($165.8 million), representing a solid growth of 21.6% compared to the first half of 2022. This growth was supported by excellent results from all business units, with both emerging brands and multinational customers performing well. The second quarter also demonstrated strong performances in the region.
Asia reported revenues of €78.8 million ($86.3 million), an increase of 18% compared to the first six months of 2022. China and Korea were major contributors to this growth, particularly in the makeup segment. Despite the Chinese market not showing tangible signs of recovery from 2022, the region witnessed excellent performances. Notably, group sales in China experienced double-digit growth in the second quarter of 2023.
Intercos' customer types also experienced positive growth. Multinational customers achieved revenues of €254.8 million ($279 million), a notable increase of 21.6% driven by all business units. The performances in the US and EMEA were particularly excellent during the second quarter of the year.
Emerging brands customers solidified their role as the primary growth driver, with revenues reaching €187.1 million ($204.9 million), a remarkable increase of 62.3%. Both the mass and prestige segments reported growth, with the US and EMEA regions contributing significantly. All geographic areas demonstrated significant increases compared to the previous year, and this positive trend further strengthened during the second quarter.
Retailer customers also performed exceptionally well, generating revenues of €46.5 million ($50.9 million), up 7.7% from the previous year. The EMEA area primarily drove this growth, with a robust trend observed in the second quarter, recording a 15.1% increase.
Looking ahead, Intercos remains optimistic about the future. The company expects a consolidation of results in the second half of 2023, in line with the previous year. Despite a shift in customer and product mix, with a greater focus on the mass segment and increased sales with packaging components, Intercos anticipates a slight increase in H2 2023 sales compared to the same period in 2022. The company's robust order book at the end of the first six months of 2023 provides confidence for the second half of the year.
Although the Chinese market's recovery remains slower than anticipated, Intercos expects significant resilience in its target markets, particularlyin EMEA and the Americas. The company will continue to leverage its strong relationships with multinational and emerging brand customers to drive growth. Additionally, Intercos will maintain its commitment to innovation and product development, ensuring that it stays at the forefront of the cosmetic and skincare industry.
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