Perfume retailer Douglas and drugmaker J&J see stronger profits and sales
19 Jul 2024 --- Months after going public on the Frankfurt Stock Exchange, Douglas Group reports solid third-quarter results, with revenue rising 7.3% thanks to in-store and online sales. Drugmaker Johnson & Johnson (J&J) also saw higher profits and sales in its second quarter.
Douglas says it will focus more on its core business of premium cosmetics and raised its sales forecast for the financial year 2023/24 by 1.5% to 8%. CEO Sander van der Laan is optimistic about the company’s outlook:
“We will continue to build on this success by consistently implementing our ‘Let it Bloom’ strategy with various initiatives that have already started this year. Douglas is well on track to maintain its growth trajectory and achieve the sales target of 5 billion euros by 2026.”
The German retailer also disclosed that it will offload its online pharmacy business, Disapo, to Mya Health. The deal was made earlier this week and is expected to close at the end of the month.
“Let it Bloom” growth strategy
Douglas plans to boost long-term growth as part of its “Let it Bloom” strategy, which entails four pillars: beauty destination, range of brands, omnichannel experience and the efficient operating model. It expects business development to be driven by actions that include:
- Store network expansion: The company is ramping up its pace and activities in Central Eastern Europe (CEE), a key growth region. In 2022/23, 39 new stores opened, 26 of which were in CEE.
- E-Commerce business boost: Its omnichannel model proves a “key differentiating factor” with e-commerce as a continuous growth driver. It points to the “good performance” of its online stores and e-commerce-focused segment Parfumdreams/Niche Beauty.
- ESG commitments: Douglas defined three focus areas: people, planet and product with goals that include climate protection, energy and waste. More details on its ESG strategy will be revealed in the next quarter.
J&J sees sales of psoriasis treatment Stelara rise 3.1% to US$2.89 billion.J&J’s “moving parts”
J&J beat earnings expectations thanks, in part, to strength from its Innovative Medicine business, where sales grew 5.5% to US$14.49 billion. Among the company’s best-selling drugs, sales of psoriasis treatment Stelara rose 3.1% to US$2.89 billion, higher than analysts’ estimates of US$2.85 billion.
While total revenue of US$22.4 billion trumped the consensus estimate of US$22.3 billion, the drugmaker’s outlook for the future is mixed due to “moving parts.”
The company raised full-year sales guidance thanks to an “improved performance” but lowered its outlook for adjusted earnings because of acquisitions such as the US$13 billion purchase of Shockwave Medical, completed during the quarter.
Talc troubles
Personal Care Insights recently reported ongoing legal issues concerning its talc powder-based products. The company is trying to employ a series of maneuvers that include the “Texas two-step” to work around the tens of thousands of lawsuits that allege J&J talc products caused cancer.
By Anita Sharma
