Beyond The Headlines: Procter & Gamble, Symrise and Evonik publish 2024 financials
02 Aug 2024 --- In industry news this week, Procter & Gamble, Symrise and Evonik reported their fourth quarter and fiscal year 2024 results. Core Industrial Partners invested in Winky Lux and YSL Beauty unveiled the artistic expression of its new floral fragrance with Dua Lipa and Hailey Bieber.
Financial news
Procter & Gamble reported fiscal year 2024 net sales of US$84 billion, a 2% increase versus the prior year. Organic sales, excluding the impacts of foreign exchange, acquisitions and divestitures, increased by 4%. Higher pricing contributed four points of growth to organic sales. The Beauty segment organic sales increased by 3% and Skin and Personal Care organic sales were unchanged. Growth from increased pricing was offset by lower sales of the super-premium SK-II brand in Greater China. Hair Care organic sales increased by single digits, driven by increased pricing and a “favorable” product mix due to the growth of premium products.
Symrise increased sales by 6.3% to €2.56 billion (US$2.77 billion). Excluding portfolio and exchange rate effects, sales increased organically by 11.5%. Profitability measured by the EBITDA margin of 20.7% was “significantly higher” than the previous year’s adjusted figure of 19.7%. Sales by the Cosmetic Ingredients division achieved double-digit percentage organic growth. The Sun Protection business and the Micro Protection business unit posted the strongest growth. The segment generated EBITDA of €182 million (US$196.9 million), a “significant” increase of €42 million (US$45.4 million) compared to the previous year. The segment’s EBITDA margin was 18.3%, 2.5 percentage points higher than the prior year’s adjusted figure of 15.8%.
Hailey Bieber shows the Libre Flowers and Flames perfume from YSL.Evonik increased its earnings in the second quarter of 2024 despite a “persistently difficult economic environment.” Its adjusted EBITDA rose 28% to €578 million (US$625.4 million) compared to the previous year. Free cash flow was positive at €217 million (US$234.8 million), following a cash outflow of €203 million (US$219.7 million) a year earlier. The company reported a positive volume development in Specialty Additives, boasting double-digit growth rates. Alongside cost discipline, lower production costs also contributed to the improvements.
Acquisitions and partnerships
Core Industrial Partners made a major investment in the clean makeup and skin care brand Winky Lux. The private equity firm has more than US$1.58 billion in capital commitments. The partnership provides additional resources to accelerate growth and expand the beauty brand’s market reach. Terms of the transaction were not disclosed.
Surfachem announced a partnership with Sensient Beauty as its exclusive personal care distributor. The expansion builds on its “successful” alliance with Sensient Industrial Colors. Surfachem says it will bring its customers Sensient Beauty’s “innovative and vibrant” portfolio of ingredients and will represent the cosmetic portfolio across the UK and Ireland.
Facility incident
A leak of an organic solvent led to an explosion and subsequent fire in the southern part of BASF’s site in Ludwigshafen, Germany. The company reports no contamination of air, water or soil. BASF’s environmental monitoring vehicles were underway inside and outside the site and did not detect any product residues. The plant was shut down and is in a safe condition. Fifteen employees were slightly injured in the incident. The cause of the incident is still being investigated.
Product launches
YSL Beauty unveiled its artistic expression for Libre Flowers and Flames — the new floral fragrance. This digital project echoed the fragrance’s global campaign, a story of femininity starring the singer and global ambassador Dua Lipa. This US initiative focuses on a group of trailblazers, starting with Hailey Bieber and three other talents to be revealed.
Chipotle releases Lipotle in collaboration with Wonderskin.
Chipotle Mexican Grill and Wonderskin introduced a “guacamole-proof” lip stain called Lipotle. The brand known for its TikTok-viral lip stain created a peelable green colorway, which is peeled off to reveal a new nude-pink lip stain. It was made exclusively for Chipotle in celebration of National Avocado Day. Lipotle marks Wonderskin’s first significant brand collaboration.
Blake Lively introduced a new hair care brand created and inspired by her routine, Blake Brown. Created in partnership with Give Back Beauty, Blake Brown has eight hair care products built on a system that alternates between strengthening and nourishing formulas. The line includes shampoos, masks, a styler and mousse, without a traditional conditioner but nourishing and strengthening masks.
Calvin Klein and Calvin Klein Fragrances launched CK One Essence, an intensified take on the original scent, CK One, launched 30 years ago. Calvin Klein asked perfumer Alberto Morillas of dsm-firmenich — the perfumer behind the iconic original CK One fragrance — to formulate the new iteration. It doubles the concentration of the original eau de toilette for long-lasting, powerful freshness.
By Sabine Waldeck
