On November 6th, Intercos, a globally renowned cosmetics OEM/ODM, released its financial report for the first nine months of 2023.
According to the report, as of September 30th, Intercos achieved a net sales revenue of 735 million euros, representing a year-on-year growth of 24.6%. The adjusted net profit reached 102 million euros, showing a growth of 21.2% compared to the same period last year.
Intercos stated that all business regions, departments, and customer categories experienced growth, and the order volume continued to rise with the support of new projects developed by the group.
In terms of business composition, cosmetics remained the largest segment among Intercos’ three main business lines. Although the third-quarter sales revenue declined to 150 million euros, the Makeup sector achieved a sales revenue of 454 million euros for the first nine months, with a year-on-year growth of 16.1%. Intercos mentioned a slight shrinkage in the Western markets, especially for multinational companies, during the third quarter. However, emerging brands and the Chinese market maintained strong performance.
The Hair&Body sector recorded a significant year-on-year growth of 56.6% to 171 million euros for the first nine months. Intercos stated that this segment signed agreements with many brands in the third quarter, leading to increased sales. To meet the growing demand in this market, the group expanded its production capacity at the end of 2022 and the beginning of 2023.
The Skincare sector achieved a 19.9% growth in the third quarter, benefiting from the push by North American and European customers. Both multinational companies and emerging brands performed steadily. The sales revenue for this department in the first nine months was 109.6 million euros.
In terms of regional performance, EMEA (Europe, Middle East, and Africa) remained the best-performing region overall, with a reported revenue growth of 34.4% to 380.5 million euros for the first nine months. The revenue for the third quarter was 122.3 million euros, representing a 14.9% increase. The Asian region benefited from outstanding contributions in the cosmetics business from China and South Korea, with a reported revenue of 120.5 million euros, growing by 15.3% year-on-year. The Americas region reported a revenue of 234 million euros, showing an 11.7% increase.
In terms of customer types, Intercos stated that emerging brand customers were the main driving force, with a year-on-year growth of 52.1% and reported revenue of 293.1 million euros, accounting for 39.88% of the overall reported revenue. Multinational company customers maintained their leading position with a reported revenue of 371.1 million euros, growing by 10.1% year-on-year. However, in the third quarter, this customer segment experienced a 10.1% decline in performance due to destocking actions for high-end cosmetics brands. Retailer customers benefited from the promotion of the cosmetics business department, with an 8.4% growth for the first nine months.
Renato Semerari, CEO of Intercos, stated, “Revenues for the first nine months were up 25% (at constant exchange rates) on the previous year. Growthis also reported for the third quarter (+11% at constant exchange rates), despite the extraordinary salesreported in the third quarter of the previous year (+29% at constant exchange rates) due to the execution ofpreviously unfilled orders as a result of the supply chain management difficulties.
The increase in revenues, again in the third quarter, was achieved thanks to our business model whose clearstrength is its diversification: the equal exposure to both the mass and prestige segments has allowed us tooffset the temporary realignment of inventory levels by the retailers and prestige brands. The Hair & Bodybusiness unit has benefitted from a quickly-expanding fragrances market, while our service of local brands inAsia allows us to offset the fluctuations among the western luxury brands – particularly in China, where our Group continues to grow”