Retail Channel

Japanese retailer Aeon says it has entered into exclusive negotiations with Oasis Management to acquire Tsuruha Drugstore. Nikkei News reported earlier that Aeon may make Tsuruha Drugstore its affiliate under the equity method if Oasis agrees to sell its roughly 13 per cent stake in the company.

Brands and Industries

On the evening of 30 January 2024, Liren Lixiang (605136.SH) disclosed its 2023 annual results forecast. The company expects 2023 annual net profit of the mother to achieve between 28 million yuan and 35 million yuan, the fourth quarter results are bright, the company turned a profit for the year, business operations continue to improve.

On January 29, Ruoyuchen announced that the company expects 2023 net profit of 42 million yuan to 54.6 million yuan, an increase of 24.42% to 61.75%; basic earnings per share of 0.3433 yuan per share to 0.4463 yuan per share. 2023 the company's own brand "bloom home" operating income increased significantly. Increase.

Colgate (CL.US) recently announced its fourth quarter and full year 2023 financial results. According to the results, net sales for the fourth quarter were $4.950 billion, an increase of 7%, compared to $4.620 billion in the same period the previous year. Quarterly net income was $718 million, well above the $5 million reported in the year-ago period. Colgate's 2023 net sales were $19.457 billion, up 8.5 per cent from a year earlier.

On 30 January, Guangdong Bawei Bio-technology Co. released its 2023 annual review report. The report shows that from 1 January to 31 December 2023, the company achieved operating revenue of RMB 469 million (hereinafter referred to as RMB), up 2.02% year-on-year, net profit of RMB 41,159,200, up 8.20% year-on-year, and basic earnings per share of RMB 0.5400.

(hereinafter referred to as "Mingshen Health") released its annual results forecast for 2023, which showed that for the whole year of 2023, Mingshen Health expected net profit attributable to shareholders of the listed company to be in the range of RMB70 million-100 million (hereinafter referred to as RMB25.33 million for the same period last year), up 176.35%-294.79% year-on-year. All of the following are in RMB), compared to RMB 25.33 million in the same period last year, up 176.35%-294.79% year-on-year; and deducted net profit between RMB 65 million and RMB 95 million, up 1462.68%-2091.61% year-on-year.

On 30 January, Liuzhou Two Faces Needle Company Limited released a 2023 annual earnings forecast announcement. It is expected that the net profit attributable to shareholders of listed companies for the year 2023 will be RMB18 million to RMB27 million, which will turn a loss into a profit; and it is expected that the withholding net profit attributable to shareholders of listed companies will be RMB11 million to RMB16 million.

On 29th January, Orveda, a French luxury skincare brand under the Coty Group, officially landed in the Chinese market, focusing on skin damage caused by excessive skincare, emphasising on biocompatible technology, and adhering to the brand's philosophy of green, pure and vegan. Orveda's first domestic brand home is located in Jianye Li, Shanghai, which was once called "the vegan version of LA MER".

Recently, Kimberly-Clark announced its 2023 financial results, the company's net sales in 2023 was $20.4 billion, an increase of 1% year-on-year; organic sales increased by 5% year-on-year. In the fourth quarter of 2023, Kimberly-Clark's net sales were $5 billion, essentially unchanged from the same period a year earlier. Key drivers of Kimberly-Clark's 2023 sales growth included higher selling prices and product mix optimisation. Product sales volume, on the other hand, declined 2% year-over-year, and currency exchange rate changes reduced Kimberly-Clark's full-year sales by approximately 3%. Kimberly-Clark exited its tissue and commercial products business in Brazil, resulting in a 1 per cent decrease in sales.

Bejing Stock Exchange-listed company Parkstar Dragon (833075.BJ) released its 2023 annual results snapshot in the evening, showing that last year's revenue and net profit achieved double-digit growth, with net profit growing at a rate of 19 per cent year-on-year, scaling up to 46.53 million yuan. The company said that the reason for the performance growth is mainly due to the significant growth of business in the overseas cosmetics and luxury goods market.

According to the performance snapshot, Parkstar Dragon's 2023 revenue exceeded the 500 million yuan mark, reaching 538 million yuan, a year-on-year increase of 10.29 per cent; the net profit attributable to the mother of 46.53 million yuan, a year-on-year improvement of 19.15 per cent.

A few days ago, Coty Group announced that it has signed a new licensing agreement with Italian luxury brand Marni to develop, produce and distribute perfumes and beauty products for Marni, with the first batch of products to be launched in 2026.Barbara Calò, CEO of Marni, said that the partnership marks another key step for the brand, which will provide consumers with a more complete brand experience.

According to Spanish media sources, out of three options - the Madrid Stock Exchange, the New York Stock Exchange and the Paris Stock Exchange - the Puig group finally chose to list in Madrid, the capital of its home base in Spain, in order to seek the maximum valuation. The group, which owns brands such as Jean Paul Gaultier, Carolina Herrera and Nina Ricci, has been initially valued at more than 10 billion euros, according to the plan.

Japan's Kao Group (Kao) will stop production of its beauty brand AUBE from March, and plans to end product sales in August.

The latest figures released by Cosmetica Italia show that sales of Italian beauty companies grew by 13.3 per cent in 2023 compared to 2022 to reach the €15bn milestone, with sales expected to grow by a further 9.8 per cent in 2024 to reach €16.5bn. Exports, which have been the main sales driver for the Italian beauty industry, grew by 19.5 per cent compared to 2022 to reach €7.0 billion, accounting for 46.4 per cent of total revenues. Europe is the main export destination for Italian beauty products, with a 61 per cent share, followed by the Americas and Asia, each accounting for 18 per cent of the total. The beauty industry has also been the sector with the largest increase in Italian exports, ahead of categories such as boats and yachts, jewellery and eyewear. In terms of value, beauty products ranked seventh, while fashion topped the list with €19bn in total exports.

Coty Group sales jumped 13 per cent year-on-year to US$1.73 billion in the three months to 31 December last year, the 14th consecutive quarter of outperformance, and 16 per cent in the first half of the financial year to US$3.37 billion. In China, the group's high-end beauty division saw double-digit revenue growth, with Hainan more than tripling its performance.

In the three months to December 31 last year, e.l.f Beauty sales jumped 85 per cent year-on-year to US$270 million, beating analysts' expectations, while gross margin improved to 71 per cent and net profit recorded US$26.9 million, a jump of nearly 41 per cent from the same period a year earlier. The group said the strong performance was largely due to high consumer demand for cheaper beauty products, and it expects full-year sales for the current financial year to rise further to $990 million.

New Zealand has announced that it will ban the use of perfluorinated and polyfluoroalkyl substances (PFAS) in cosmetics from 2026 to protect humans and the environment from them.

PFAS, also known as permanent chemical substances, are heat-resistant, waterproof and highly stable. A growing body of international research has linked PFAS to cancer, birth defects and problems with the immune system in humans and animals.

On 8 February, Kenvue released its first annual report transcript after its independent listing. The earnings report showed that in 2023, Kenvue's net sales were $15.444 billion (approximately RMB 111.144 billion), the highest in nearly five years. Reporting fourth-quarter results, Kenvue reported fourth-quarter net sales of $4.378 billion (roughly Rs. 31.507 billion) in its Skin Health & Beauty business, representing organic growth of 1.8 per cent, including 6.6 per cent value realisation that partially offset a 4.8 per cent decline in volume.

Data from the General Administration of Customs of the People's Republic of China showed that France's cosmetic exports to China reached RMB 33.720 billion in 2023, remaining the top importer for the second consecutive year. Japan ranked second, with cosmetic exports to China totalling $27.802 billion, while South Korea ranked third at $15.411 billion. According to the data released by the French Federation of Beauty Enterprises (FEBEA), since 2019, China's weight in the French cosmetics exporters is increasing. 2022, France's cosmetic exports to China broke the 30 billion yuan mark in one fell swoop, ranking first.

Recently, the State Drug Administration cosmetic raw material filing information platform shows that by Amore Pacific Co., Ltd. previously filed "acequip" has been cancelled at the beginning of February for the record, to become the first cancellation of the record of the new raw materials, the reason for the cancellation has not yet been announced. It is reported, aceitrap filed in March 2023, is a chemical raw material, raw materials used for the purpose of skin protection agent, can be used in addition to spray all kinds of cosmetics, cosmetics use the maximum allowable concentration of 0.08% of the trunk with products, facial products 0.4%, hand products 0.3%.

Italian affordable make-up brand KIKO may be acquired by LVMH's fund, the former's annual sales had reached 671 million euros (about 5 billion yuan). The Percassi family, owners of Italian make-up brand KIKO MILANO, are said to be in exclusive talks with LCatterton to sell part of their stake.

Recently, Shanghai Sima Plastic Packaging Co Ltd, a beauty packager that has worked with headline companies such as Shanghai Jahwa, Revlon and Johnson & Johnson, is now heading for bankruptcy and liquidation due to debts of nearly $100 million.

On 20 February, according to the first fiscal year results report after the merger of DSM-Finemax recently announced, the company's sales in fiscal year 2023 reached 12.310 billion euros (about RMB 95.61 billion), a year-on-year decline of 7%; adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was 1.777 billion euros (about RMB 13.80 billion), a year-on-year decline of 22%. Among them, net sales of the fragrance and beauty division were EUR3.709 billion (RMB28.81 billion) down 2% year-on-year; adjusted EBITDA was EUR783 million (RMB6.082 billion), up 5% year-on-year. The company expects adjusted EBITDA to reach at least 1.9 billion euros (about RMB 14.76 billion) in fiscal year 2024.

On February 20, global fragrance giant IFF (International Flavours and Fragrances) announced its fourth quarter and full-year financial results for 2023.For the full year of 2023, IFF achieved net sales of $11.479 billion (RMB 82.471 billion), down 8% year-on-year; it reported a loss in operating profit of $2.110 billion (RMB 15.158 billion), compared with a loss of US$1.326 billion (approximately RMB9.526 billion).IFF net sales in the fourth quarter of 2023 were US$2.703 billion (approximately RMB19.397 billion), down 5% year-on-year. The Flavours and Fragrances division reported fourth quarter sales of US$578 million (RMB 4,152 million) and full year 2023 sales of US$2,390 million (RMB 17,170 million), driven by double-digit growth in daily fragrances and fine fragrances, and on a comparable basis, excluding currency, sales increased by 8%.

E-commerce platform

On 31 January, Jitterbug E-commerce released a data report on "Jitterbug Mall Goods New Year's Cargo Festival" (13-28 January), which showed that the average daily GMV of the mall during the festival increased by 98% year-on-year. In the "Shake in New Year's goods must buy trend gold list", the proportion of national products reached 70%, many brand merchants in the activity period to win the New Year market increment.

Among them, the sales of Han Shu brand increased by more than 10 times compared with the same period in 2022, and the "red waist" gift box was quite popular. Perrier's sales in the "New Year's Eve" increased by more than 200 per cent year-on-year, with the highest single-day sales of more than 100,000 orders.

International conglomerates

On 1 February, Henkel Group announced that it has signed an agreement with Procter & Gamble to acquire the Sassoon brand and its related hair care business in Greater China. The addition of Sassoon will complement Henkel's consumer brands portfolio in China and fill a gap in the high-end retail market. Vidal Sassoon's portfolio focuses on the premium hair care segment, including shampoos and conditioners, and also offers styling and treatment products. This business has a strong presence in China, achieving sales of more than €200 million in the 2022/2023 financial year.

L'Occitane has announced its results figures for the first nine months of fiscal 2024, with sales jumping 18.9 per cent year-on-year to €1.915bn, up 24.8 per cent at constant exchange rates, driven by strong performances from Sol de Janeiro and ELEMIS.

On 30 January, Amorepacific released its fourth quarter and full-year financial results for 2023. for the full year 2023, Amorepacific reported total sales of KRW 3,674 billion (RMB 19,766 million), down 11.1% year-on-year, and an operating profit of KRW 108.2 billion (RMB 583 million), a 49.5% year-on-year drop.

In the fourth quarter, Amore Pacific reported sales of 926 billion won (about RMB 4.991 billion), down 14.9 per cent year-on-year, and operating profit of 20.7 billion won (about RMB 112 million), down 63.7 per cent year-on-year. According to the earnings report, Amore Pacific's sales in China 2023 fell by around 20 percent (based on localisation). It is said to be due to its brand renewal, offline efficiency, and channel inventory reduction leading to the overall sales decline.

On 31 January, LG Living Health released its Q4 and full-year 2023 financial results.LG Living Health's Q4 2023 sales were down 13.3% year-on-year to KRW 1,567.2bn (roughly Rs. 8,419m), and its operating profit was down 57.6% year-on-year to KRW 54.7bn (roughly Rs. 294m).

For the full year of 2023, LG Life & Health sales sales of 680.48 billion won (about RMB 36.555 billion), down 5.3% year-on-year, operating profit of 487 billion won (about RMB 2.616 billion), down 31.5% year-on-year.

On 5 February, Estée Lauder Group released its fiscal year 2024 second quarter financial results. The financial report shows that in the second quarter ended December 31, the Group achieved net sales of $4.28 billion (about RMB 30.809 billion), down 7% year-on-year, and organic net sales fell 8%. In terms of product categories, net sales of skincare products were $2.173 billion (roughly RMB 15.642 billion), down 10 per cent year-on-year; sales of the colour cosmetics division were $1.167 billion (roughly RMB 8.401 billion), down 8 per cent year-on-year; and revenues of fragrance and hair care products were $737 million (roughly RMB 5.305 billion) and $173 billion (about RMB 1.245 billion), net sales fell 6% year-on-year.

On 9 February, Japanese beauty giant Shiseido Group released its financial results for the full year ending 31 December 2023 and Q4. The group's net sales for the full year of 2023 were 973 billion yen (about RMB 46.64 billion), a year-on-year decline of 8.8%, while operating profit was 28.1 billion yen (about RMB 1.35 billion), a year-on-year decline of 39.6%.Q4 sales for 2023 were 250.6 billion yen (about RMB 12.061 billion), which, compared with sales figures for the same period of the previous year, were down significantly Decline.

On 8 February, Unilever released its Q4 2023 and annual financial reports. The financial report showed that the beauty and health division had a strong full-year performance, with full-year turnover of 12.5 billion euros (about RMB 96.799 billion), up 1.8% year-on-year, with underlying sales growth of 8.3%, and volume growth in the range of 4.4%-3.8%. In particular, the premium beauty and health business continued to grow strongly and now accounts for a quarter of beauty and health turnover. Vaseline, on the other hand, reached a turnover of 1 billion euros (about Rs. 7.744 billion) in 2023.

Kering unveiled its Kering Beauté strategic plan at its latest earnings meeting, focusing on betting on high-end fragrances, with the first fragrance for its Bottega Veneta to be launched later this year, and Balenciaga and Alexander McQueen to follow with high-end fragrance lines.

On 9 February, L'Oreal Group handed over the full year of 2023 and the fourth quarter "report card". According to the financial report, in 2023, L'Oreal Group achieved sales of 41.18 billion euros (about 318.7 billion yuan), an increase of 7.6% year-on-year, based on the same comparable structure and the same exchange rate under the growth rate of 11%. 2023 fourth quarter, the L'Oreal Group recorded a total of 10.605 billion euros (about 82.074 billion yuan), an increase of 2.8% year-on-year. 2.8 per cent.

February 14 , Japan's KOSE (KOSE) group released financial results, the group's revenue in 2023 was 300.4 billion yen (about 14.416 billion yuan), an increase of 3.9% year-on-year; operating profit was 15.9 billion yen (about 763 million yuan), a decline of 27.7% year-on-year; ordinary profit was 20.2 billion yen (about 969 million yuan), a year-on-year decrease of 28.7 per cent.

Duty Free News

According to the statistics of Haikou Customs on 18th February, from 10th to 17th February, Haikou Customs supervised a total of 2.489 billion RMB for duty-free shopping on the outlying islands, and the number of shoppers was 297,700, with a per capita consumption of 8,358 RMB. Compared with the Spring Festival holiday in 2023, the amount of duty-free shopping in Hainan during this year's Spring Festival holiday has increased by nearly 60%, and the number of shoppers has increased by nearly 90%. According to tourists' feedback, duty-free products such as bags, skin care products and perfumes are affordable.

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