News Center


In the first half of the year, 15 major international beauty giants sold 520 billion

Release time:


On the evening of August 18, Estee Lauder released financial results for fiscal year 2022 Q4 and fiscal year 2022. Data show that in fiscal year 2022, Estee Lauder achieved net sales of US $17.74 billion (approximately RMB 120.35 billion), a year-on-year increase of 9%; but net profit was US $2.39 billion (approximately RMB 16.217 billion), a year-on-year decrease of 16%.

So far, the international famous beauty brand in the first half of the relevant financial data disclosure has been completed.

Cosmetics Observation combed the previously released financial reports of 15 global beauty giants such as L'Oreal, Unilever, Estee Lauder, Procter & Gamble, and found that throughout the first half of the year, the total sales of these 15 beauty companies reached 519.5 billion yuan, and the total operating profit reached 131.6 billion yuan.

It is worth noting that a number of companies represented by Procter & Gamble and Unilever have revealed their expected growth rates for the whole year. Judging from the performance in the first half of the year, the sales of the above-mentioned 15 giants exceeded one trillion yuan this year, which is just around the corner.

01 L 'Oré al Contributes 24% Results, Overall Operating Profit Declines 0.38

In terms of sales, in the first half of 2022, the total sales of the beauty business of these 15 companies were 485.3 billion yuan compared with last year, an increase of 34.2 billion yuan, an increase of 7.05 percent over the same period last year.

Among them, L'Oreal, with its sales of 126.27 billion yuan, has become the only international beauty company that has broken 100 billion yuan in half a year, and has also contributed 24% to the overall sales. Unilever's beauty and makeup section followed closely with sales of 83.712 billion yuan. In addition, Estee Lauder and Johnson & Johnson also exceeded the 50 billion yuan mark in the first half of the year, ranking third and fourth respectively.

Judging from the growth rate of performance, 9 of the 15 beauty makeup enterprises are growing positively.

According to the results, L'Oreal also maintained a consolidated growth rate of 20.85 per cent throughout the first half of the year, also topping the list of the 15 companies.

Unilever's sales also increased by 17% from 71.55 billion yuan last year. Its financial report pointed out that the growth was mainly due to the effect of product price increases. In addition, LVMH and Beiersdorf's cosmetics business also increased by more than 10% in the first half of the year.

Another six saw a decline in sales growth. Among them, LG Life Health declined the most, with a decline of 19.51, and Amore Pacific and Natura & Co also fell more than 10%.

It is also relatively less optimistic in terms of operating profit. In the first half of the year, the overall operating profit of the above-mentioned 15 companies was 131.6 billion yuan, a slight decrease of 0.38 from 132.1 billion yuan in the same period last year. Among them, Avon's parent company Natura & Co and Revlon, which are in a "bankruptcy" predicament, became the only beauty company on the list with a negative net profit in the first half of the year. The financial report showed that the former had a net loss of 1.851 billion yuan in the first half of the year, while the latter had a net loss of 2.3 billion yuan.

A number of companies, including Shiseido and Amore Pacific, mentioned in their financial reports that continued macroeconomic and geopolitical uncertainty due to the first half of the epidemic triggered a chain reaction, such as supply chain disruptions, increased transportation costs, and higher costs due to rising raw material prices.

02 China's market performance under pressure again

Cosmetics observation and combing found that among the 15 international beauty giants, the Chinese market has played a vital role in the overall performance.

Some with the Chinese market led to a reversal in performance, typically such as L'Oreal, the financial report pointed out that the impact of the outbreak, the Chinese beauty market in the early second quarter of the sharp contraction. But with a strong supply infrastructure, L'Oréal weathered the shock and achieved solid growth, achieving double-digit growth in June, strengthening its market share across all segments in the second quarter.

In March last year, Shanghai was officially upgraded to become the headquarters of L'Oréal Group in North Asia. At that time, L'Oreal North Asia President and China CEO Fei Berry publicly stated, "In the future, the Chinese mainland market will accelerate to become the group's largest market in the world." Judging from this performance, this dream is expected to become a reality.

Part of the trapped in the Chinese market, affecting the overall performance of the decline.

Shiseido, for example, had total sales of 24.719 billion yuan in the first half of the year, down 0.4 percent from 24.817 billion yuan last year, of which sales in China were 5.856 billion yuan in the first half of the year, down 1.428 billion yuan or 19.7 percent from the same period last year, making it the market with the largest decline in sales worldwide. In its earnings report, it noted that Shanghai-focused activities were restricted due to the outbreak, resulting in fewer offline customers and the closure of some stores while shortening business hours.

Estee Lauder's financial report also showed that the Asia Pacific region became the only market that declined in the group's fiscal year 2022. The earnings report said that more than half of the Asia-Pacific market was affected by the rebound in the first half of the year, "the Asia-Pacific region maintained single-digit growth in the first three quarters, but was offset by the negative impact of the fourth quarter of the outbreak in the Chinese market, which eventually led to a slight decline in the Asia-Pacific region this fiscal year."

Amore Pacific's revenue in China also fell by more than 50% in the first half of the year. The financial report said that online and offline sales channels, production facilities, and distribution centers were all affected by the Shanghai blockade and supply chain problems.

In addition, Gaosi, LG Life Health, and LVMH Group's revenue in China have also declined to varying degrees.

03 High-end brands are performance catalysts

Financial reports show that high-end cosmetics have become a catalyst for the growth of corporate performance.

In the first half of this year, the sales of the high-end cosmetics department, L'Oreal's largest business unit, increased by 16.4 year-on-year to 47.3 billion yuan, once again outperforming the global luxury beauty market. The report pointed out that the sector's performance growth in each category is faster than the market.

For its part, Beiersdorf said organic sales of its luxury brand La Prairie Leponi rose 1.8 per cent in the first half of the year. Especially in the North American market, Lepony achieved strong double-digit growth in the first half of the year, and the Chinese market has also achieved a good growth rate since June. In addition, its acquisition of luxury brand CHANTECAILLE Santaka also contributed to good revenue in the first half of the year.

In addition, Shiseido's high-end products NARS and CPB have all increased, with NARS brand sales rising the most year-on-year, reaching 26%, while CPB rose slightly by 3%.

Hua Wang also said in the financial report that sales of high-end brand SUQQU also increased in the first half of the year amid the downturn in the Asian market. After LG Life Health's high-end brand Whoo, it grew 36% month-on-month in the second quarter of this year, ranking first in fast-hand and tremolo sales during the 618 period.

Based on this background, many international beauty companies through the sale of mass brands, the launch or acquisition of high-end brands, further increase the high-end layout.

For example, since 2021, Shiseido has successively transferred its personal care business, including 10 affordable personal care brands such as Shuizhiyu and Shanke, and three makeup brands such as bareMinerals, BUXOM and Laura Mercier. In July this year, Shiseido launched a new male personal care brand SIDEKICK in the Chinese market, entering the high-end men's bureau and regarding it as an important growth line.

As early as June 2020, Estee Lauder Group's two high-luxury fragrance brands KILIAN Kailian and FREDERIC MALLE Fumar Perfume Publishing House opened China's first store in Shanghai. This year, it introduced high-end hair care brand Aveda Aveda.

Coincidentally, a few days ago, L 'Oré al's luxury beauty brand Carita officially entered the Chinese market and opened Asia's first boutique in Nanjing Deji Square on August 1. The SKP counter in Beijing also opened on the same day.

04 Digital/price increase system growth two board axe.

Among these rising international giants, digital transformation and terminal price increases have become the two axes of performance growth.

L 'Oré al said in its semi-annual report that performance growth cannot be separated from the operational advantages of e-commerce channels. During June 18 this year, on the Tmall platform, L'Oreal's six major brands entered the top 12 sales rankings of each sub-category. Among them, L'Oreal Paris ranked first in beauty and skin care. Casey ranked first in the field of hair care, while 3CEStylenanda topped the list of cosmetics hot-selling. L'Oréal said it will continue to consolidate its e-commerce business in markets such as Spain, Portugal, Germany and Italy in the second half of the year.

Unilever also pointed out in its financial report that in the first half of 2022, e-commerce sales increased from 2% in 2016 to 14%. At present, one of the company's five strategies is still to lead the channel reform. Natura & Co also said that the plan to enter the Chinese market will be implemented in the second half of this year, and it will also invest in digital platforms.

According to public reports, manufacturing costs in the cosmetics industry may rise by 25-30% due to shortages of raw materials and rising logistics costs caused by the outbreak and the Russian-Ukrainian conflict. Therefore, in addition to e-commerce, price increases have also become a means to ensure performance.

Unilever said that in the second quarter, the company's underlying sales (USG) rose 8.1 per cent, underlying sales (UVG) fell 2.1 per cent, and underlying prices (UPG) rose 11 per cent, up 8.1 per cent, down 1.6 per cent and up 9.8 per cent respectively.

"Price increases are in response to high inflation and cost pressures brought about by rising raw materials," Unilever pointed out that although the company has raised prices for its products, profit margins for the whole of this year will still be hit in the face of rising raw materials and rising logistics costs.

Procter & Gamble also said that it will raise the prices of certain commodities in September to cope with rising commodity prices; L'Oreal may also raise product prices in the second half of the year to cope with rising production costs.

In January this year, Estee Lauder has raised the price of products. Estee Lauder Group Chief Financial Officer Tracey Travis publicly stated at the time that in order to cope with rising raw material prices and rising costs caused by inflation, the group would raise product prices again from July to August. According to market feedback, Estee Lauder has started a new round of price increases in July, generally within 10%.

At the same time, L 'Oré al Group's high-end brand Helena and LVMH's high-end brand Guerlain also adjusted prices last month.

Can the full-year performance break trillion?

The report card of the first half of the year has been handed over. For the trend of the second half of the year, these international beauty giants have shown the attitude of "several happy and several sad.

Companies represented by Procter & Gamble and Unilever remain optimistic about their full-year expectations.

Procter & Gamble pointed out in the financial report that the overall sales in fiscal year 2023 are expected to increase by 2% over the previous fiscal year; the endogenous sales growth in fiscal year 2023 is expected to be between 3% and 5%. According to the current performance calculation, in fiscal year 2023, P & G's overall sales may reach 81.784 billion US dollars (about 551.5 billion yuan).

Unilever had previously expected underlying sales growth in 2022 in the range of 4.5 to 6.5 per cent, but it now appears that full-year sales growth is expected to be above that range. Beiersdorf also said that China's growth in the third quarter is expected to reach double digits. At present, it is strengthening its cooperation with Jingdong and is confident that it will achieve good growth in the consumer business sector in the future.

Based on concerns about repeated outbreaks in the second half of the year, a number of companies, represented by Estee Lauder and Shiseido, have lowered their full-year forecasts.

Estee Lauder expects reported net sales this year to fall 10 to 8 percent from a year earlier, with organic net sales expected to fall 6 to 4 percent.

Shiseido has lowered its expected net sales for 2022 from 1.075 trillion yen (about 53.54 billion yuan) to 1.07 trillion yen (about 53.29 billion yuan), and its expected core operating profit from 62 billion yen (about 3.088 billion yuan). Lowered to 40 billion yen (about 1.99 billion yuan).

Kao also said that it would reduce the company's sales in 2022 from 1.57 trillion yen (about 78.2 billion yuan) to 1.49 trillion yen (about 74.2 billion yuan), but at the same time, Kao also raised its operating profit forecast from 14.5 billion yen (about 0.72 billion yuan) to 16 billion yen (about 0.796 billion yuan).

Although Gao Si did not lower its expected sales for 2022 to 293 billion yen (about 14.6 billion yuan), it lowered its operating profit from 22 billion yen (about 1.1 billion yuan) to 20 billion yen (about 1 billion yuan).

According to the cosmetics observation rough finishing, according to the above-mentioned enterprise full-year expectations, the overall performance of these 15 enterprises for the whole year or is expected to break trillion.


520 billion, Sales, Growth, First Half, Brand, Enterprise

Recommended News

In the first half of the year, 15 major international beauty giants sold 520 billion

On the evening of August 18, Estee Lauder released financial results for fiscal year 2022 Q4 and fiscal year 2022. Data show that in fiscal year 2022, Estee Lauder achieved net sales of US $17.74 billion (approximately RMB 120.35 billion), a year-on-year increase of 9%; but net profit was US $2.39 billion (approximately RMB 16.217 billion), a year-on-year decrease of 16%.


[The 29th International Science and Technology Exhibition of Life Paper Successfully Concluded] We are still forging ahead and the future can be expected.

From July 29 to 31, 2022, the three-day 29th International Technology Exhibition of tissue paper came to a successful conclusion. Thank you for your visit and guidance, and thank every customer for their trust and support. Although the exhibition is only a short period of 3 days, our passion will not fade away. Tianhong Tianda staff serve every customer and friend with sincerity, integrity, sincerity and enthusiasm, and look forward to meeting you again! Looking back at the scene, there was still a lot of people in my ears, and the flow of exhibitors shuttled back and forth. Although it is only three days, Tianhong Tianda's booth has always been a gathering place for popularity, with crowds and enthusiasm. Received friends from all over the world to visit and exchange. Although the exhibition is over, we believe this is also the beginning of our meeting and the future is promising. In the future, we will, as always, go all out to provide our customers with better quality products. We have never stopped, Do not forget your initiative mind, honed our way forward and looked forward to seeing you next time!


The new rules, the brand side to completely "disappear" from the label?

Today (July 20), the State Drug Administration issued a (V) of answers to frequently asked questions on the supervision and management of cosmetics (hereinafter referred to as answers), in which related questions such as cosmetics labels and labels that are of concern to the industry are answered one by one in accordance with China's current cosmetics laws and regulations and relevant technical specifications.