Yesterday, Intercos released its second and half-year financial report. In the second quarter, Intercos reported net sales of €278.9 million, a 9.9% increase from the same period last year, driven by growth in Skincare and Hair&Body segments, and stable performance in the Make-up business unit. Despite a challenging first quarter due to a cyber attack, which led to a 5.8% decline compared to the previous year, the company achieved first-half sales of €499.9 million, reflecting a 2.4% growth (3% at constant exchange rates). The order intake remained strong, surpassing the levels of the previous year.
Adjusted Net Profit for the first half was €22.9 million, a 14.9% decrease due to the first quarter’s impact, increased amortization, depreciation, and taxes. The Consolidated Profit stood at €17.9 million. Breakdown by business unit showed Make-up sales at €283.4 million (-6.8% yoy), Skincare at €83 million (+15.2% yoy), and Hair&Body at €133.5 million (+19.1% yoy).
Make-up reported sales in the second quarter of €155.5 million, in line with the excellent performances of the previous year (Q2 2023 reported growth of +22.8% on 2022). The performance, although good, was impacted by the inability to order raw materials during the period of the cyber attack and the slow resumption of production processes at the beginning of the second quarter. The first half of the year, therefore, reported sales of €283.4 million, decreasing by 6.8%. The excellent order intake, particularly from prestige customers in the first six months of the year, is expected to contribute to increased Group sales in the second half of the year.
Skincare in the second quarter reported sales of €43.6 million, thereby resuming solid growth rates (+9.1%). The period reported sales of €83 million, up +15.2% on the first half of 2023. The Hair&Body business unit, unlike Make-up, saw its production plants less impacted by the cyber attack. Both quarters contributed to growth, supported by excellent performance from Emerging Brand and Multinational customers in North America and Asia.
Hair&Body in the second quarter reported sales of €79.8 million, an increase of +38.9%. The business unit reported significant growth in the first half of the year to €133.5 million (+19.1%), with performances supported by increases among the European customer base.
Geographically, EMEA sales were €263.3 million (+2% yoy), the Americas reported €135.5 million (-10.5% yoy), and Asia saw €101.1 million (+28.3% yoy). In the second quarter, Make-up sales were €155.5 million, maintaining last year’s high levels despite initial production slowdowns post-cyber attack. Skincare and Hair&Body segments demonstrated solid growth, with second-quarter sales of €43.6 million (+9.1%) and €79.8 million (+38.9%), respectively.
EMEA saw second-quarter sales of €146.3 million (+11.5%), supporting first-half growth. The Americas experienced a decline, with second-quarter sales of €74.9 million (-5.2%) and first-half sales of €135.5 million (-10.5%). Asia continued to excel, with second-quarter sales of €57.7 million (+32.0%) and first-half sales of €101.1 million (+28.3%).
Sales from multinational customers were €124.7 million in Q2, consistent with last year’s performance, but down 10% for the first half at €229.3 million due to raw material procurement issues. Emerging Brands saw significant growth, with second-quarter sales of €136.5 million (+34.2%) and first-half sales of €237.1 million (+25.5%).
Retailers faced a decline, with Q2 sales of €17.6 million (-28.1%) and first-half sales of €33.4 million (-25%), partly due to the cyber attack and financial troubles of a key customer, The Body Shop.
CEO Renato Semerari highlighted ongoing international expansion efforts, including new facilities in Korea and China, and a new office and research lab in Mumbai. Despite first-quarter challenges, the group demonstrated resilience, setting new records in Q2. The company remains optimistic, forecasting second-half sales growth of 10-13%, outperforming the global beauty market.
