Lesening Parent Company Dencare Oral Revenue Up 11% in Q1

Dencare Oral, the parent company of the Chinese famous toothpaste Brand Lesening, posted a 343 million yuan ($49.48 million) in operating revenue in 2023 Q1, saw growth of 10.65% compared to the same period of 2022.

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Dencare (Chongqing) Oral Care Co., Ltd. (Dencare Oral), the parent company of the Chinese famous toothpaste Brand Lesening, posted a 343 million yuan ($49.48 million) in operating revenue in 2023 Q1, saw growth of 10.65% compared to the same period of 2022. The company’s net profit reached 32.28 million yuan ($4.66 million), a year-on-year increase of 13.54%.

Dencare Oral is primarily involved in the production and sale of oral care products under its brands "Dencare", "Lesening", and "Yiyan". These products include toothpaste, toothbrushes, mouthwash, electric toothbrushes, water flossers, oral antibacterial ointments and liquids, and desensitizing agents. The "Lesening" brand holds a majority market share of around 60% in the Chinese anti-sensitive toothpaste market.

In terms of financial performance, Dencare Oral has been experiencing consistent growth in revenue and net profit. In 2022, the company's revenue increased by 14.95% compared to the previous year, reaching 1.313 billion yuan ($190.94 million), while its net profit increased by 13.25% to 119 million yuan($17.31 million).

Dencare Oral's revenue are mainly from its adult basic oral care products. According to the prospectus, from 2019 to the first half of 2022, the revenue of the company's adult basic oral care products was RMB 886 million ($128.74 million), RMB 947 million ($137.72 million), RMB 1.026 billion ($149.2 million), and RMB 552 million ($80.27 million), accounting for 94.12%, 92.17%, 90.00%, and 90.38% of the main business income, respectively.

In terms of competition within the industry, Dencare Oral is a leading company, with higher operating income compared to other companies such as Yunnan Baiyao Group Co., Ltd, Liuzhou Liangmianzhen Co., Ltd, Perfect Group Corp., Ltd, and Lafang China Co., Ltd. According to the prospectus, Dencare Oral ranks fourth in the toothpaste market share and second among domestic brands. Additionally, its core brand "Lesening" has maintained a stable market share of around 60% in the sub-segment of anti -sensitive toothpaste through offline retail sales.