Inter Parfums, the New York-based fragrance producer, reported $311.7 million net sales in 2023 Q1, with an increase of 24% compared to 2022 Q1. While operating income in Q1 reached $90.3 million, saw growth of 47%. Inter Parfums, the New York-based fragrance producer, reported $311.7 million net sales in 2023 Q1, with an increase of 24% compared to 2022 Q1. While operating income in Q1 reached $90.3 million, saw growth of 47%. The net income (attributable to IP) in Q1 reached $54.1 million, up 53%. The company’s diluted EPS increased by 52% to $1.68. Jean Madar, who serves as the Chairman and Chief Executive Officer of Inter Parfums, recently announced that the company had its most successful sales quarter in its history during the first quarter of 2023. The top line of the European operations grew by 26% or 29% in constant currency, while the U.S. based operations grew by 19%. Sales of the Jimmy Choo brand in Europe increased by 63%, surpassing Montblanc as Inter Parfums' largest brand due to the success of the I Want Choo line launched in 2021, I Want Choo Forever, and Rose Passion. In addition, new flankers were rolled out at the end of 2022 and early 2023. Montblanc and Coach brand sales rose by 28% and 24%, respectively, and there were double-digit sales gains on several mid-sized brands, including Karl Lagerfeld, Boucheron, and Rochas. In terms of US business, Inter Parfums achieved a 19% increase in sales during the first quarter of 2023, building upon the 77% increase achieved in the same quarter last year. The company reported that incremental sales from Donna Karan and DKNY, as well as double-digit growth for Ferragamo and Oscar de la Renta following successful brand extensions, contributed to much of the growth. Additionally, brand extensions within established lines for Abercrombie & Fitch and MCM also contributed to the sales increase. Inter Parfums achieved sales gains in all regions during the first quarter of 2023. The company's three largest markets, North America, Western Europe, and Asia/Pacific, saw sales growth of 36%, 21%, and 8%, respectively. Sales in Central and South America, Eastern Europe, and the Middle East also grew, by 43%, 25%, and 5%, respectively. Furthermore, the company's travel retail business has picked up in line with the resumption of international travel. The company is also optimistic about the progressive reopening of China, which is expected to lead to meaningful sales growth as the year unfolds. Inter Parfums said the company expects to achieve net sales of $1.25 billion and earnings per diluted share of $4.25 in 2023 full year.

Natura & Co, the São Paulo-based beauty company, reported consolidated net revenue of BRL 8,021.4 million ($1.6 billion) in 2023 Q1, with an increase of 3.4% in constant currency and down 2.8 in BRL. The company reported net loss of BRL 652.4 million ($130 million) in Q1. Natura & Co, the São Paulo-based beauty company, reported consolidated net revenue of BRL 8,021.4 million ($1.6 billion) in the first quarter of 2023. This represents an increase of 3.4% in constant currency, but a decrease of 2.8% in BRL. However, the company also reported a net loss of BRL 652.4 million ($130 million) during the same period. Natura & Co said the growth in constant currency (CC) was driven primarily by the strong performance of Natura &Co Latam, which saw a 9.0% increase in CC, and Aesop, which saw a 16.8% increase in CC. However, this growth was partially offset by ongoing challenges at The Body Shop, which saw a decline of 9.4% in CC, and to a lesser extent, at Avon International, which saw a decline of 7.5% in CC (or 3.7% excluding Russia and Ukraine). Excluding Aesop, Natura & Co's consolidated net revenue for the first quarter of 2023 was BRL 7.3 billion, which represents a 2.2% increase YoY in CC and a 3.8% decrease YoY in BRL. Natura & Co's consolidated gross profit was BRL 5.4 billion ($1.08 million), which corresponds to a gross margin of 67.7%. The improvement was mainly driven by pricing and mix, which compensated for inflation and foreign exchange pressures that continued to affect the company. While Natura & Co net loss in the first quarter of 2023 was BRL 652 million, which is broadly in line with the net loss reported for the same period last year. In terms of business unit, Natura &Co Latam net revenue in Q1 increased by 9.0% to BRL 4,863.7 million ($ 970.89 million) in constant currency (CC) and by 2.4% in BRL. The growth was driven by solid double-digit growth in CC at the Natura brand. However, this growth was partially offset by a high-single digit CC sales decline at Avon Latam. Avon International net revenue in Q1 declined by 7.5% to BRL 1,606.6 million ($ 320.71 million) YoY in constant currency (CC) and by 12.8% in BRL. However, the Beauty category (excluding Russia and Ukraine) saw positive growth, driven by the fragrance and color categories. On the other hand, the Fashion & Home category decreased by 21% in CC, which is attributed to the portfolio optimization strategy. The Body Shop net revenue in Q1 declined by 9.4% to BRL 849.9 million ($ 169.64 million) in constant currency (CC) and by 16.5% in BRL. However, the combined sales of core business distribution channels, which include stores, e-commerce, and franchise, showed only a low-single digit decline in CC during the same period. Aesop net revenue in Q1 increased by 16.8% to BRL 701.3 million ($ 139.99 million) in constant currency (CC) and by 9.2% in BRL. Despite a deteriorating macro environment, all regions delivered double-digit YoY growth during the same period. On April 3rd, Natura & Co disclosed that it had entered into a binding agreement to sell Aesop to L’Oréal for an enterprise value of $2.525 billion. The closing of this transaction is expected to take place in the third quarter of 2023, and Aesop will be classified as discontinued activities until then.

IFF, a global leader in the fragrance and flavor industry, has announced its first quarter performance for the fiscal year 2023. IFF's net sales in Q1 amounted to USD 3.03 billion, which is essentially flat compared to the same period last year. The company’s operating profit in Q1 was $131 million, down 62%. International Flavors & Fragrances (IFF), a global leader in the fragrance and flavor industry, has announced its first quarter performance for the fiscal year 2023. IFF's net sales in Q1 amounted to USD 3.03 billion, which is essentially flat compared to the same period last year. The company’s operating profit in Q1 was $131 million, down 62%. In the first quarter, IFF reported income before taxes was $14 million, while the adjusted operating EBITDA was $503 million. The adjusted operating EBITDA declined by 19% on a comparable basis and after accounting for currency fluctuations compared to the same period in the previous year. IFF said this was due to lower volumes and unfavorable manufacturing absorption, which offset the gains achieved from pricing and productivity, as a result of the inventory reduction program implemented by the company. Overall, in 2022, all four business segments of IFF, which are Scent, Nourish, Health & Biosciences, and Pharma Solutions, saw a decline in their operating EBITDA. “We delivered first quarter 2023 results in line or ahead of our expectations amidst a challenging operating environment," said IFF CEO Frank Clyburn. “Our team successfully navigated soft endmarket demand and customer inventory destocking as they executed on our priorities to deliver our financial commitments. As we look ahead to the balance of the year, we continue to believe our volume performance will improve, yet acknowledge that market conditions remain uncertain.” Specifically, the Scent segment reported a sales revenue of $608 million in the first quarter, showing a slight increase of 4% year-on-year. The growth was mainly driven by double-digit growth in the high-end fragrance and consumer fragrance businesses. Like other companies, the Scent segment was also affected by inflation pressure. However, strong sales and favorable product mix offset some of the negative impacts, resulting in a comparable currency-neutral sales growth of 8%. The Health & Biosciences segment, which includes the household and personal care business, reported a net sales revenue of $513 million in the first quarter, showing a decline of 22% year-on-year. This was due to the company's inventory reduction plan and measures to control production volumes, which offset the growth brought by price increases and productivity improvements. IFF expects its sales for the full year of 2023 will be around $12.3 billion, which is slightly lower than the previous estimate of $12.5 billion. However, the expected adjusted operating EBITDA for the full year of 2023 remains unchanged at approximately $2.34 billion.

The combination of two century-old enterprises has opened a new journey. Today (May 9th), DSM-Firmenich announced that it has successfully completed the merger and become one of the world's largest innovative companies in the fields of nutrition, health, and beauty. Dimitri de Vreeze, Co-CEO of the DSM-Firmenich global alliance, said, "The alliance of two great companies with a century of groundbreaking scientific research marks the beginning of a new journey. DSM-Firmenich will leverage its unique scientific expertise to unlock innovative possibilities that meet the personal desires of consumers, fulfill basic needs of the masses, and do not come at the expense of the planet. DSM-Firmenich is a truly global enterprise with proven scientific expertise and a wealth of nutrition, flavor, and fragrance solutions. We will position ourselves as innovators in the areas of nutrition, health, and beauty and work together to pursue a better future as we embark on this new journey." According to public information, DSM Group is an international nutrition, health, and materials company whose products are widely used in end products such as food and health supplements, personal care products, pharmaceuticals and medical devices, and animal feed. Firmenich is Switzerland's largest company in the research and production of fragrance ingredients, with its fragrances and flavors widely used in cosmetics, perfumes, and food. The Road to Merger The merger of two giant companies has been a long journey. On May 31, 2022, DSM and Firmenich announce that they have entered into a business combination agreement (the "BCA") to establish the leading creation and innovation partner in nutrition, beauty and well-being ("DSM-Firmenich"). The combination will bring together Firmenich's unique leading Perfumery and Taste businesses, its world-class science platforms and associated co-creation capabilities with DSM's outstanding Health and Nutrition portfolio and renowned scientific expertise. On November 22, 2022, the AFM has approved the Offering Circular, enabling the Company to formally launch the Exchange Offer as part of the merger of equals between DSM and Firmenich to create DSM-Firmenich. After that, DSM and Firmenich jointly announce that they have obtained the unconditional competition clearance from the European Commission on 22 February 2023. This follows the unconditional competition clearance of China's State Administration for Market Regulation (SAMR) received on 16 February 2023. Consequently, competition clearance has been obtained in nine out of the ten jurisdictions required to satisfy the offer condition relating to competition clearances. The two companies stated that the DSM-Firmenich merger will further accelerate industry innovation and bring new growth opportunities to customers. DSM-Firmenich will form a new global-scale partnership. According to the company announcement, after the merger of Firmenich and DSM, there will be four divisions, including Perfumery & Beauty, Food & Beverage / Taste & Beyond, Health, Nutrition & Care, and Animal Nutrition & Health. One of the largest mergers in the beauty industry At the formation of DSM-Firmenich, DSM shareholders will hold 65.5% of the new company, while Firmenich shareholders will hold 34.5%, in addition to €3.5 billion ($3.844 billion) in cash provided by DSM. In 2021, DSM had a total revenue of €7.3 billion ($8.017 billion) and Firmenich had a total revenue of €4.2 billion ($4.612 billion), resulting in a combined revenue of €11.4 billion ($12.52 billion). In the first half of 2022, DSM had a total revenue of €4.1 billion ($4.503 billion) and Firmenich had a total revenue of €2.4 billion ($2.635 billion), resulting in a combined revenue of €6.5 billion ($7.138 billion). CHAILEEDO find that, DSM's sales in the 2022 fiscal year were 8.39 billion euros (9.214 billion U.S. dollars). Meanwhile, Firmenich's revenue reached 4.922 billion Swiss francs (5.52 billion U.S. dollars). This means that the combined annual sales of the two companies are approximately 14.7 billion U.S. dollars, and the new company will become the world's leading enterprise in the field of fragrances and flavors, which is the largest merger case in the cosmetics raw materials industry in 2022. Firmenich's perfume and ingredient business will be merged with DSM's personal care and aroma businesses, further expanding the market share of the two companies in the beauty market. The merged Perfumery & Beauty division will be a leader in the fragrance ingredients industry and will have advanced technologies such as renewable, natural, and biodegradable options. Thomas Leysen, chairman of the DSM supervisory board, said, “DSM-Firmenich will bring together leading creativity and cutting-edge science and innovation. Together we will be able to better serve the needs of customers and deliver compelling growth and returns.” Patrick Firmenich, chairman of Firmenich, said, “The combination of DSM and Firmenich is transformational, and brings together two culturally aligned and iconic businesses, each with over 125 years’ heritage of innovation. Our shared purpose and common values, combined with our highly complementary capabilities gives me confidence we can accelerate our growth further through innovation and new creations.” DSM-Firmenich to empower women's nutrition and health in China DSM-Firmenich announced their first long-term commitment in China during a press conference, called the "DSM-Firmenich Together for Her Health and Beauty" program. The program aims to empower Chinese women's nutrition and health needs, improving their overall wellness and beauty, and enhancing their family's dietary and health literacy. "We will embark on a new journey with a brand-new image. Taking advantage of the vast opportunities brought by China's '14th Five-Year Plan', we will adhere to the concept of 'Innovating for China', and deepen and optimize our development in China based on our four highly complementary business capabilities, contributing outstandingly and positively to the food, nutrition, and beauty and health industries in China," said Zhou Tao, President of DSM-Firmenich China. "While focusing on our own steady development, we are also committed to working with our Chinese partners to promote the health and well-being of Chinese residents and create social value.” At the event, DSM-Firmenich China announced a partnership with the China Rural Development Foundation to launch the "She for Home - Children's Companion Mothers" project, the first project under the "DSM-Firmenich Towards Beauty and Common Development Plan". This marks the official launch of DSM-Firmenich's long-term commitment to empower Chinese women's nutrition and health. The project will provide online and offline health and nutrition training courses to improve the nutritional level and health awareness of rural women, including Children's Companion Mothers, helping them better care for and protect rural children, and become participants, builders, and beneficiaries of rural revitalization. The project is expected to cover 200,000 women and children nationwide.

POLA released its financial report for the first quarter of 2023. In Q1 of this year, the company's net sales were 42.136 billion yen ($312.11 million), up 11.9% year-on-year, with operating income of 4.549 billion yen ($33.7 million), up 137.9% compared to 2022 Q1. Pola Orbis Holdings Inc (Pola), the Tokyo-based cosmetics producer, released its financial report for the first quarter of 2023. During the first three months of fiscal year 2023, Pola consolidated net sales increased by 11.9% year-on-year to 42.136 billion yen ($312.11 million), indicating a recovery from the disruption caused by the COVID-19 pandemic in Japan and overseas. This increase in sales led to a rise in gross profit, which resulted in a 137.9% year-on-year increase in operating income to 4.549 billion yen ($33.7 million). While the ordinary income also increased by 16.7% year-on-year to 4,832 million yen ($35.79 million). However, profit attributable to owners of the parent decreased by 61.8% year-on-year to 2,743 million yen ($20.32 million), due to the combined effect of the above factors and a decrease in income taxes recorded in the previous year. In terms of the segments performance, in the first quarter of this year, the net sales of the Beauty Care segment were 40.95 billion yen ($303.33 million), an increase of 12.1% year-on-year. The operating profit was 436 million yen ($3.23 million), up 115.1% year-on-year. The Beauty Care segment includes flagship brands POLA and ORBIS, overseas brand Jurlique, as well as THREE, DECENCIA.FIVEISMX THREE, and FUJIMI. POLA pointed out that to boost the sales of aesthetic treatments domestically, the company utilized robust online advertising and social media presence, as well as new product offerings as incentives to attract customers to visit physical stores. Additionally, more offline events were actively promoted, which led to an increase in the number of new customers for the consignment sales channel. ORBIS U and UV special care products saw an increase in sales, and the company successfully acquired new customers, resulting in a higher number of direct sales customers compared to the previous year. In addition, external sales channels grew significantly by more than 80% year-on-year, primarily driven by the expansion of e-commerce platforms. In mainland China, retail sales increased year-on-year, despite being affected by COVID-19 in January. From February onwards, Jurlique strengthened its product offerings and cross-selling efforts, particularly with cosmetic oil, resulting in an increase in sales. In Australia and Hong Kong, revenue increased significantly with a gradual recovery in customer traffic, as well as stronger new product offerings and storefront initiatives.

Puig, the Spanish beauty giant, is undergoing a corporate restructuring that involves consolidating all of its businesses under Puig Brands SA, which may lead a potential IPO for Puig. (Credit: Byredo Mojave Ghost Parfum at Puig Group) Puig, the Spanish beauty giant, is undergoing a corporate restructuring that involves consolidating all of its businesses under Puig Brands SA, which may lead a potential IPO for Puig. Puig achieved a new sales record in 2022, generating 3.62 billion euros ($4 billion) in revenue and a net profit of 400 million euros ($441.8 million). The fashion and fragrance division accounted for 74% of its total sales. The company has set a target to reach a revenue of 4.5 billion euros ($4.97 billion) by 2025. As a result of the restructuring, company Jorba Perfumes has become the new parent company of the Puig group and has been renamed as Puig Brands SA. The company has also undertaken a "non-cash" capital increase of 29.30 million euros ($32.4 million). In 2022, Puig announced its intention to acquire a majority stake in the Swedish luxury fragrance brand, Byredo. The terms of the deal have not been disclosed yet. The original majority shareholder, Manzanita Capital, will retain a minority stake, while the founder, Ben Gorham, will continue to serve as the Chief Creative Officer. Besides Puig, other global beauty giants such as L’Oréal and also showed interesting in acquiring Byredo. Puig won the bidding finally. Byredo's sales are reportedly over $100 million and have been steadily increasing. Industry analysts indicate that the brand's valuation is $1 billion. In 2019, Byredo officially entered the Chinese market with the opening of its first nationwide store in Shanghai's Henderson Plaza. As of June 2022, the brand has opened a total of 10 stores across China, located in high-end shopping malls and centers such as SKP-S, The Mixc, ICC, and Taikoo Li. These stores are located in Beijing, Shanghai, Shenzhen, Hangzhou, Nanjing, and Chengdu. In 2021, Byredo also launched its flagship store on Tmall. (Source：fashion network)

The recovery in China during the quarter was driven by the travel retail channel in Asia Pacific and increased sales following the end of the epidemic restrictions in China. (Credit: L'Occitane Protect & Pamper Gift Box) On 5 May, L'Occitane Group announced its financial results for the fourth quarter of the fiscal year 2023 and its annual fiscal year 2023. According to the results, the Group's net sales for FY2023 exceeded €2 billion ($2.2 billion), which was €2.135 billion ($2.4 billion) as of March 31, up 17.9% at reported exchange rates and 13.4% at constant exchange rates. Growth resumes in China In terms of regional sales results, the Americas were the fastest growing region with sales of €695 million ($767.5 million), up 80.4% at reported exchange rates and 62.8% at constant exchange rates. The performance in Asia Pacific also recovered overall, leading the region with sales of €896 million ($989.5 million), up 2.4% at reported exchange rates. The business in the EMEA region was down 0.7% at constant exchange rates, mainly due to the withdrawal of operations from Russia. In its financial results in Q3 of FY2023, L'Occitane said that sales in its China operations were down ten percent at constant exchange rates, mainly due to the impact of the epidemic. The recovery in China in the fourth quarter was mainly due to the travel retail channel in Asia Pacific and increased sales following the end of the epidemic restrictions in China. Despite the recovery in growth in China, L'Occitane En Provence at L’Occitane Group was also affected by the outbreak in China. L'Occitane En Provence's sales growth in the fourth quarter of fiscal year 2023 was driven by the active travel-retail channel and increased sales momentum following the easing of restrictions in China, according to the results. This compares to a 0.5% decline for the full year of the fiscal year 2023, mainly due to the difficult conditions in China for most of the year and the withdrawal from Russia. In terms of channel performance, the wholesale and other channels led the way with a constant growth rate of 50.9% in FY2023, with dynamic growth in wholesale chains, international distribution and travel retail. Retail sales declined by 2.0% due to the impact of the divestment of the Russian business and the closure of shops in China due to the previous outbreak (as of March 31, 2023, the offline shops of L’Occitane reduced 128.). Excluding the Russian and Chinese markets, retail sales grew by 7.2% at a constant rate in the fiscal year 2023. (Credit: L'Occitane Mother's Day gift box) Sol de Janeiro jumps to second largest brand in the Group In terms of brand performance, the sales of L'Occitane en Provence recovered, which was €305 million ($336.8 million), with a growth of 0.8% in the fourth quarter of FY2023, thanks to an active travel retail channel and the opening of restrictions in China. But in terms of the overall financial year, sales were €1.421 billion ($1.57 billion), down at constant exchange rates of 0.5%. It was affected by its withdrawal from Russia and the management of its policy in China for most of the year. In addition, its brand ELEMIS returned to growth of 18.1% in the fourth quarter of FY2023, with sales of €74.4 million ($82.6 million). The overall fiscal year sales of €256.0 million ($282.7 million), up 8.9% year-on-year at constant exchange rates, driven by increased sales, mainly on the back of e-commerce, the cruise business and internal brand development in Asia Pacific. In FY2023, Sol de Janeiro maintained its strong growth, jumping 135.2% (in local currency) to reach net sales of €267 million ($294.8 million), making it the second largest brand in the L'Occitane Group. The brand's Bum Bum Firmeza skin oil, Brazilian Bum Bum cream and Rio Radiance fragrance spray performed very well. In terms of sales channels, Sol de Janeiro was particularly strong in the online channel. According to the results, the online channel recorded a full-year growth of 4.8% at constant exchange rates in FY2023. L'Occitane is reported to have acquired an indirect 83% stake in Brazilian beauty brand Sol de Janeiro in 2021. Regarding the addition of the brand, L'Occitane has said that it further expands its brand portfolio and helps to transform L'Occitane into a multi-brand and geographically balanced group. In fact, Sol de Janeiro's performance has climbed year on year since the acquisition, boosting the L'Occitane Group's performance to some extent. (Credit: Sol de Janeiro's Share in the L'Occitane Group in recent years) Jefferies Financial Group Inc. said Sol de Janeiro's digital presence and established body care business in the US complemented L'Occitane's geographic strategy to build a balanced portfolio of brands in all major regions. L'Occitane said the transaction is in line with the Group's strategy to build a leading portfolio of premium beauty brands and that the acquisition complements the Group's balanced geographic strategy to build a strong brand portfolio, benefiting the Group's future global growth and profitability. André Hoffmann, Vice Chairman and Chief Executive Officer of L'Occitane, said: "We saw a solid broad-based improvement in FY2023 Q4, boosting our sales to exceed the €2 billion mark in FY2023. We are well-positioned to sustain growth in the coming year as we introduce our newer brands into new markets and channels. The ongoing success of our multi-brand strategy is becoming more apparent with Sol de Janeiro now our second-largest brand, less than 18 months since its acquisition." Sales of other brands also picked up overall, with Erborian and L'OCCITANE au Brési in particular growing by 33.4% and 41.2% respectively at constant exchange rates in FY2023. (Credit: Sol de Janeiro body spray) Spotlight on the personal care sector According to CBNData, China's body care market has long exceeded 8 billion yuan ($1.2 billion). But body care products only account for around 5% of the overall skin care category, meaning that the body care market has a large potential for growth. CHAILEEDO found that both L'Occitane en Provence and Sol de Janeiro, which grew by 135.2% this year, focus on the personal care sector, with hot-selling products including hand creams, body lotions, skin care oils and other series. In L'Occitane's Tmall flagship shop, the highest-selling product is the L'Occitane Hand Cream Gift Set, priced at 380 yuan ($54.9)/4 pieces, with monthly sales of 1000+ units. According to data from the Meiyeyanjiuyuan, for the whole of 2022 (channels limited to Tmall \ Taobao), L'Occitane ranked third among the top 10 selling brands of body care oils in China, with 13,000+ units. The success of the L'Occitane Group in China cannot be separated from the development of its core brand L'Occitane in the Chinese market. In terms of marketing strategy, the brand's core products have become the most popular "stars" in the hand cream sector in the eyes of consumers, and the brand continues to sit at the top of the premium body care and hand care categories. In response to Chinese consumers' demand for niche premium brands, the L'Occitane Group has also been introducing its brands to China over the past few years. It is an effective way to optimize the brand portfolio in the market and to drive further growth with these new brands. These include Melvita, a French natural skincare brand that entered the Chinese market in 2015, Elemis, a high-end British skincare brand in the bag for 2019, as well as Grown Alchemist, an Australian pure beauty brand, and Sol de Janeiro, a Brazilian beauty brand that was recently acquired. According to Vogue, L'Occitane Group will also introduce the skincare brand Sol de Janeiro to its online channel in the first quarter of 2024. Mr Reinold Geiger, Chairman and Chief Executive Officer of L'Occitane, said in the results: "Our sales momentum continues to accelerate as we move through the epidemic, particularly in markets such as China, which have stabilized after the crisis. In addition to the low base effect in some markets, our good performance is due to the strength and resilience of our brands and teams." As can be seen, the body care market as a whole is improving and has strong potential for growth. China is a growth engine that the L'Occitane Group is bullish on. This earnings report shows that L'Occitane will continue to increase its presence in body care brands in the future, which also shows continued optimism in this category.

National Institute for Food and Drug Control issued the Technical Guidance for Submission of Cosmetic Ingredient Safety Information (consultation draft), in the safety information of the same raw materials filled by the same registrant or filer in cosmetic registration and filing, the composition of the raw materials should be consistent. The China National Institute for Food and Drug Control issued the Technical Guidance for Submission of Cosmetic Ingredient Safety Information (consultation draft), which consists of 11 parts focusing on basic information of raw materials, production process descriptions, quality control requirements, and risk substance limit requirements. The consultation draft summarizes the technical points and principles that need to be considered in the process of filling in safety information for raw materials. The public opinion solicitation period will end on May 20th. In the registration and filing information of cosmetics, the safety information of raw materials that is self-filled and submitted by the cosmetic registrants or filers should be signed and endorsed by them, and they should take responsibility for the content. Cosmetic registrants or filers should keep relevant information and materials for future reference, and they are responsible for the authenticity, accuracy, completeness, and traceability of the safety information of raw materials. According to the consultation draft, in the safety information of the same raw materials filled by the same registrant or filer in cosmetic registration and filing, the composition of the raw materials should be consistent. Due to different technical understandings, different registrants or filers of cosmetics may have differences in the filling of trace components that are not subjectively added. Such differences should not affect the safety evaluation of cosmetics and can be explained through reasonable interpretation. Cosmetic registrants or filers should conduct safety assessments based on the principles and procedures of cosmetic safety assessment, considering all ingredients, and known risk substances in the formula, as well as relevant information such as the product's usage method, usage site, and exposure level. They should also be responsible for the safety and effectiveness of using raw materials in cosmetics. According to the consultation draft, as for the basic information of raw materials. The composition of raw materials is an important part of the safety information, and cosmetic registrants or filers should truthfully and scientifically fill in the composition of raw materials based on the information provided by the raw material suppliers and other information such as the source and production process of the raw materials. To fully evaluate the safety of cosmetics, the filling of raw material components should be as detailed and clear as possible. In principle, components that are intentionally or deliberately added and ultimately exist in the raw materials, as well as components generated during the production process that occupy a certain proportion in the raw materials, should generally be truthfully filled in as raw material components. For raw materials composed of different components, the percentage range of each component should be filled in. The filled component content should reflect the composition and quality control of the raw materials and can be theoretically calculated based on the production process or obtained through monitoring data over a longer period or representative data. The relevant numerical values should be based on facts and should not be too broad. As for the quality control requirements, consultation draft pointed that indicators and methods should be established to effectively control the quality of raw materials. To evaluate the quality and safety of cosmetic raw materials, relevant content on quality control requirements should be truthfully filled in the safety information of raw materials, focusing on identification methods, control indicators, and testing methods of raw materials, as well as other key information closely related to the quality of raw materials. Unless otherwise specified, cosmetic registrants or filers should generally fill in the relevant content on quality control requirements based on the information provided by the raw material suppliers. If cosmetic registrants or filers set their own control indicators or other requirements, they should ensure that the relevant raw materials meet the quality control standards through agreements with the raw material suppliers and acceptance inspection of raw materials. In Addition, in the safety assessment of cosmetics, data or risk assessment materials published by internationally authoritative organizations are an important technical reference, and cosmetic registrants, filers, and raw material manufacturers should strengthen the collection and use of relevant data. Common technical organizations include the European Commission's Scientific Committee on Consumer Safety (SCCS), the Cosmetic Ingredient Review (CIR), the International Fragrance Association (IFRA), the World Health Organization (WHO), the Food and Agriculture Organization of the United Nations (FAO), etc.

Amorepacific Group, the Korean beauty giant released its 2023 Q1 results. The company reported 1009.1 KRW billion ($765.66 million) in revenue, with a decrease of 20.1% compared to 2022 Q1. The company’s operating profit in Q1 reached 81.6 KRW billion ($61.91 million), down 52.3% compared to the same period of last year. Amorepacific Group, the Korean beauty giant released its 2023 Q1 results. The company reported 1009.1 KRW billion ($765.66 million) in revenue, with a decrease of 20.1% compared to 2022 Q1. The company’s operating profit in Q1 reached 81.6 KRW billion ($61.91 million), down 52.3% compared to the same period of last year. Amorepacific Group’s subsidiary Amorepacific delivered 913.7 KRW billion ($693.27 million) in revenue, down 21.6% compared to 2022 Q1. Operating profit for Amorepacific reached 64.4 KRW billion ($48.86 million), saw a decrease of 59.3%. In terms of domestic business, Amorepacific revenue down 25% in Q1. Travel retail channel revenue down by double digital and department store and multi-brand shop channel sales saw growth. While for the overseas business, Amorepacific Q1 revenue declined 17% with Asia revenue down 27%. China accounts for over 50% of Amorepacific’s revenue and revenue for Amorepacific in China down over 40% in Q1. North America sales posted 80% growth driven by reinforcing major brand marketing. EMEA revenue increased 94% with strong sales growth from all brands. In terms of brands performance, revenue for Innisfree were 66.7 KRW billion ($50.61 million), a year-on-year decrease of 7.1%. However, the brand's operating profit increased by 67.5% year-on-year to 5.7 billion KRW billion ($4.325 million), mainly due to the restructuring of product sales channels. Etude House's revenue in the quarter increased by 8.8% year-on-year, and operating profit skyrocketed by 1746.2%. Etude House officially announced its exit from the Hong Kong market from April 24, 2023. In addition, Espoir's operating profit in the first quarter increased by 184.4% due to the update of its domestic MBS channel. AMOS Professional is preparing to reinvest to increase brand awareness and has increased marketing investment, resulting in a 17.1% decrease in operating profit. OSULLOC's operating profit decreased by 51.3% due to increased investment costs in overseas expansion.

Intercos, the Italian cosmetic manufacturer, reported net sales of €234.6 million ($263 Million) in 2023 Q1, representing a growth rate of 34% based on reported rates or 33% based on constant rates. Intercos, the Italian cosmetic manufacturer, well-known for its color cosmetic, reported net sales of €234.6 million ($263 Million) in 2023 Q1, increasing by €59.9m ($67.15 Million) compared to 1Q22 , representing a growth rate of 34% based on reported rates or 33% based on constant rates. In terms of business units, make up business saw a significant increase of 35% in 1Q23. This growth was observed across all commercial areas and types of clients, and was evident in all market segments, including both prestige and mass markets. Skincare business reported 8% growth in 1Q23, which was mainly driven by US good performance. The net sales for Hair & Body business posted a significant growth of 53% in 1Q23. This growth can be attributed to the new agreements that were signed with some new brands, such as Dolce & Gabbana Beauty. As a result, the company anticipates strong growth rates in the medium term for this segment. In terms of geographical region, EMEA region reported 44% growth in net sales, which was driven by strong performances in the Make-up and Hair & Body segments. Americas saw growth of 28%, which was supported by strong results from both Multinationals and Emerging Brands and in both prestige and mass segments. While in Asia, Intercos net sales increased by 17% 1Q23, which was primarily driven by Korea. Korea continues to perform significantly better than the rest of the region. Additionally, China also showed positive results in the first quarter of the year. Intercos now has revised its forecast for FY23 net sales, which are expected to increase in the range of 12% to 14% at constant exchange rates. This represents a significant increase compared to the 8% to 11% communicated at the end of FY22. The company expects the revenue generation to be more more homogeneous between the different quarters of FY23, unlike what happened in FY22. The company expects that most of the growth compared to the previous year will be concentrated in the first half of the current fiscal year due to comparable reasons.

Coty, the New York-based beauty company, announced that the board has authorized the Company’s management to seek a dual listing on the Paris Stock Exchange. Coty, the New York-based beauty company, announced that the board has authorized the Company’s management to seek a dual listing on the Paris Stock Exchange. Coty went public on 2013 June with listing on New York Stock Exchange (NYSE). If Coty start the process of listing its shares on the Paris Stock Exchange (PAR), Coty will become a dual listed company on NYSE and on PAR. Coty said the dual listing can provide companies with greater access to capital and a broader range of investors, as well as increased visibility in multiple markets. By listing on the Paris Stock Exchange, Coty Inc. would be able to tap into the European investor base and potentially increase its presence in the region. Coty pointed out that the company has a significant business presence in Europe, including several manufacturing and research and development facilities. The company has a long history in France, where it was founded over 100 years ago and where it still maintains a strong presence. A dual listing on the Paris Stock Exchange would therefore be in line with Coty's heritage and business footprint in Europe. “Paris is the historic home of beauty, and the industry still holds a special attraction for investors there. The Board’s interest in exploring a potential listing on the Paris Stock Exchange has been made possible thanks to the progress Coty has made under Sue’s leadership”, said Peter Harf, Coty’s Chairman. “We have seen consistent growth over the last 10 quarters, in line with or ahead of market expectations, underpinned by targeted investment, disciplined cost controls and a clear debt reduction program.” Source: Business Wire

French National Academy of Medicine released a statement that issued a warning about the potential premature aging and skin cancer associated with the use of ultraviolet (UV) lamps for the application of semi-permanent nail polish. The French National Academy of Medicine issued a warning about cautioning against the use of UV lamps that are used for heating during the application of semi-permanent nail polish. This beauty treatment has been popular for around 10 years, but the Academy is concerned that the lamps could cause premature aging and increase the risk of skin cancer. The French scientists are urging people to be aware of these risks and take caution when using such lamps. The French National Academy of Medicine said over the past decade, the nail industry has seen a tremendous surge in popularity. A report shows that in 2010-2011, more than 87% of nail salons used UV lamps. The international nail market is currently experiencing a 9.5% growth in value and is expected to reach 13 billion euros by 2024. Nails now account for 15% of the overall beauty market and are popular among people of all ages, ranging from 17 to 90 years old. The French National Academy of Medicine pointed that semi-permanent nail polish, which can last for up to 2 or 3 weeks is very popular. The application of semi-permanent polish requires the use of a lamp that combines UV (at least 48 watts) and light-emitting diode (LED) technology to dry and fix each layer of polish. The French National Academy of Medicine warns that the using of UV are known to accelerate the aging process and increase the risk of developing skin cancers. Allergic skin reactions, nail mechanical damage and UV- induced skin squamous cell carcinoma are the three types of the side effects induced by semi-permanent varnishes in a summary in 2022. The French National Academy of Medicine said the risk of using of semi-permanent nail polish seems to be linked to three factors: the young age at the start of use on average at 20, the close frequency of exposure on average 5 to 6 times a year, or even more with the development of home lamps and exposure over several years. The French National Academy of Medicine recommends applying sunscreen with UVA protection at least 20 minutes before exposing hands to UV/LED lamps. In addition, the Academy advises to conduct a census of the number of UV/LED devices sold each year and attaching a written warning and recommendations to each lamp purchased and conduct epidemiological studies to assess the risk of skin carcinoma induced by the frequent use of these lamps over a long period. Source: Académie nationale de médecine