Intercos, a leading global provider of cosmetic products, has reported a solid financial performance for the third quarter of 2024, with net sales reaching €275.2 million, marking an 11.6% growth compared to the same period in the previous year (+12.0% at constant exchange rates). This growth is attributed to the strong performance of the Make-up business unit, which returned to double-digit growth (+14.6%) and remarkable results in Asia, where sales surged by 30%, significantly outpacing Western competitors.
For the first nine months of 2024, Intercos reported sales of €775.1 million, a 5.4% increase over the same period in 2023 (+6% at constant exchange rates). The company continues to see strong order intake, with an upward trend in the past four months, further indicating robust market demand.
Renato Semerari, CEO of Intercos, highlighted that despite weaker-than-expected performance in the broader Beauty market, particularly in China and the U.S., Q3 revenues met the company’s expectations, with double-digit growth (+12% at constant exchange rates). The Make-up unit’s impressive performance and strong growth in Asia (+30%) and EMEA (+15.3%) were key drivers. Sales growth was also notable in the multinational sector (+10.4%) and the emerging brands (+17.6%).
Semerari attributed the continued revenue growth to the company’s ability to gain market share, driven by innovation and the diversification of its business model. However, a shift in customer mix toward “full-service” products (which include packaging supplied by Intercos) led to a slight dip in profitability, although overall EBITDA increased by 12.3% to €39.2 million. This trend is expected to continue into the fourth quarter, with the company forecasting sales growth between 10% and 13% for Q4 2024.
In specific segments, the Make-up business unit showed the strongest growth, with Q3 sales reaching €171.6 million (+14.6%). This performance fully recovered the dip in sales during the first half of 2024, impacted by the cyber attack earlier in the year. Growth was widespread, particularly strong in Asia, and led by both multinational and emerging brand customers.
Skincare sales amounted to €42.2 million in Q3 (+12.3%), driven by growth in the emerging brands and Asia. For the first nine months, Skincare reported a double-digit increase of 14.2% over 2023, benefiting from a lower impact from the cyber attack compared to the first quarter.
The Hair & Body business unit saw a more modest growth of +3.4% in Q3, reaching €61.3 million, following a strong performance in Q3 2023 (+36.7%).
For regions, The EMEA region delivered a strong Q3 performance, with sales of €140.9 million, a 15.3% increase year-on-year. Both Make-up and Hair & Body units performed well, driven by multinational and emerging brand customers. For the first nine months, sales grew by 6.2%, despite the earlier impact of the cyber attack.
In the Americas, Q3 sales declined by 3.2%, amounting to €80 million. The weaker performance was particularly evident in the skincare segment, while Make-up showed resilience. For the first nine months, sales totaled €215.5 million, down 7.9% compared to 2023.
Asia continues to be a strong growth driver for Intercos, with Q3 sales reaching €54.3 million, a 30% increase over the previous year. Both Make-up and Skincare units posted excellent results, fueled by growth in China and South Korea. For the first nine months, Asia reported sales of €155.4 million, a 28.9% increase compared to the same period in 2023.
For customer segment performance, sales to multinational customers rose by 10.4% in Q3, totaling €128.2 million, largely driven by strong Make-up sales in Asia and EMEA. However, the first nine months saw a slight decline (-3.6%) due to the impact of the cyber attack on early 2024 results.
Emerging Brands continued their growth trajectory, with Q3 sales up 17.6% to €126.3 million. This strong performance was seen across all business units, especially in Asia and EMEA. For the first nine months, sales amounted to €363.4 million, a 22.6% increase.
Sales to retailer customers contracted by 10.7% in Q3, totaling €20.7 million. For the first nine months, retailer sales amounted to €54.1 million, reflecting the lower share of business with retailers compared to other customer segments. This decline was particularly impacted by reduced business volumes with “The Body Shop.”
