Intercos stated that this growth was even more remarkable considering the strong performance in 2022, where sales grew by 19% at constant exchange rates. The diversification of Intercos’ business model played a vital role in driving this growth, with all geographic areas and business units contributing to the positive results.
The company also experienced robust order intake, setting a new record for the Group in the November-December 2023 period, primarily driven by the make-up business unit. This positive order trend continued into the first month of 2024.
Intercos reported an adjusted net profit of €56.5 million, representing a 10.1% increase over the previous year. The Group Consolidated Net Profit reached €52.4 million, reflecting a substantial growth of 16.5% compared to the previous year.
Renato Semerari, CEO of Intercos, expressed his satisfaction with the performance of the company in 2023, emphasizing the strength of their business model. He highlighted the double-digit growth experienced in all divisions and regions, surpassing the general market. With sales approaching the €1 billion mark, reaching €988.2 million, and an adjusted EBITDA of €137.5 million, Intercos has demonstrated its ability to consistently deliver strong financial results.
All divisions recorded growth, with hair and body care growing the fastest
By segments, the make-up segment reported sales of €599.4 million, representing a growth of 9.5%. While there was a slight decline in the second half of the year due to the significant growth in the same period of 2022 and temporary stock realignment, the emerging brands within this segment continued to exhibit robust growth throughout the year.
The skincare segment experienced significant growth, reaching €157.5 million, a remarkable increase of 20.4%. This growth was supported by a less challenging 2022 level, particularly in the second half, with notable fourth-quarter growth of 40.1%. Sales acceleration was observed across all geographic areas, customer types, and market segments.
The hair and body segment achieved sales of €231.3 million, demonstrating impressive growth of 47%. This growth was consistent throughout the year, driven by new commercial agreements signed with customers, including in the fragrances segment, which experienced significant growth post-COVID. The growth rate in the fourth quarter was slightly lower at 24.9%, as the benefits of these new contracts had already begun to emerge in the same period of 2022.
Sales by customer type showed multinational customers achieving sales of €485.2 million, a 4.0% increase attributed to strong performances across all business units. The temporary realignment of inventory levels by prestigious make-up brands influenced the contraction observed in the final quarter.
Emerging brand customers emerged as the primary growth driver, reaching sales of €405.9 million, a substantial increase of 46.2%. Both mass and prestige segments experienced growth across all regions.
Retailer customers also demonstrated a solid growth trend, with revenues of €97.1 million, representing a 6.5% increase. The final quarter of the year showed a slight uptick compared to the same period in the previous year.
Asia rises 18.7%, China market named in praise
By areas, the EMEA region reported sales of €507.2 million, a substantial increase of €100 million (25.9%) compared to 2022. All customer types and business units contributed to this growth, although the final quarter’s growth rate was more moderate due to exceptional make-up performances in the previous year’s fourth quarter.
The Americas region experienced normalized growth levels, with sales increasing by 7.4% for the year following a year of growth rates exceeding 30% in 2022. The skincare business unit performed strongly in this region, followed by the make-up business unit. The emerging brand customers were the main drivers of growth in the Americas.
Asia reported revenues of €170.5 million, reflecting a growth rate of 18.7% compared to 2022. The region experienced a gradual increase in growth throughout the year, with China performing particularly well in the fourth quarter, driven by local brands.
During the earnings conference, Intercos said that the Chinese market made a noteworthy contribution to the Group’s excellent performance this year, and that China also performed well in the fourth quarter of FY23, once again achieving double-digit growth supported by the performance of its local brands, many of which are already served through the Group’s various subsidiaries in the region.
Intercos’ collaboration with Chinese domestic brands has drawn attention within the industry. Some notable Chinese clients include Hua Xizi, Wanmei Diary, Maogeping, and Perlier. In Maogeping’s public prospectus, Intercos Technology (Suzhou Industrial Park) Co., Ltd. was ranked as the top outsourcing manufacturer.
It is worth mentioning that at the 2022 China International Import Expo, Perfect Diary’s parent company, Yatsen, signed a strategic cooperation agreement with Intercos, aiming to deepen collaboration in the field of beauty and cosmetics research. Additionally, in August of the previous year, Intercos established a partnership with the emerging Chinese domestic brand, DewyLab, to support DewyLab in product formulation development, research and application of core ingredients, and market transformation for consumers.
Overall, Intercos’ performance in Asia and its collaboration with Chinese brands have further solidified its position in the Chinese market and made positive contributions to the group’s growth. Intercos will continue to dedicate itself to cooperation with the Chinese market and further expand its global business.
