Financial focus: Kao, L’Occitane and more in our latest beauty business and finance update
1 – Sa Sa to expand product offerings as COVID concerns grow
Sa Sa will be expanding its product portfolio to boost sales and negate the adverse impact of Hong Kong’s fifth COVID-19 wave.
The Hong Kong authorities recently imposed new restrictions and the group expects that this would negatively affect its sales for the next quarter.
As part of its strategy to counter the impact of the latest wave of infections, Kwok said the company would undertake cost-cutting initiatives as well as expand the offerings in its product portfolio.
It identified that the health and fitness category would become more important moving forward.
2 – Kao to discontinue or divest another 13 of its beauty brands by 2024
Kao is mulling over the decision to discontinue or divest another 13 of its beauty brands by 2024 amid warnings that the impact of the pandemic will continue to be felt across the12 months.
The company expects the impact of the pandemic to persist this year and has decided to focus investments on a select group of brands and products moving forward.
The company had decided to discontinue or divest 28 brands to focus on its core G11 and R8 brands.
It had already axed 15 brands and the next 13 will be discontinued or divested by 2024.
3 – L’Occitane Q3 sales beat pre-pandemic levels by 14.6% despite Omicron fears
L’Occitane’s third-quarter sales results have risen by 14.6% like-for-like compared to its pre-pandemic 2020 numbers thanks to a strong holiday season.
The resurgence of COVID-19 in several key markets did not impact L’Occitane’s growth across all of the markets it operates in.
The results were primarily driven by the festive season in the third quarter (Q3), which saw sales grow by 9.5% to EUR650m (U$733m).
China continued to contribute most to the overall growth in Q3.
4 – LG H&H 2021 annual sales and operating profit figures break record highs
LG Household and Health Care announces record-breaking sales and operating profit numbers for its 2021 fiscal year, marking the company’s 17th consecutive year of growth.
Overall, its sales increased by 3.1% year on year (YoY) to KRW8.1tn (U$6.69bn) while operating profit increased 5.6% YoY to KRW1.3tn (U$1.07bn).
The company’s luxury beauty portfolio, which consists of brands such as History of Whoo and Su:m37, managed to sustain a strong showing.
Its performance was underpinned by the strong luxury beauty market in China, where the firm expanded into new channels such as Tmall and JD.
5 – Amorepacific highlights three strategies to drive growth in 2022
Amorepacific is taking a three-pronged approach for growth in 2022, including strengthening its branding and digital efforts, while also restructuring the business.
First, the firm would focus on its brand building and expand into potential sectors of growth, such as derma beauty and wellness.
At the same time, the company was planning to deepen its digital transformation as a means to reach millennials and Generation Z consumers.
Lastly, the company sees the need to restructure the business moving forward.