Q3 2024 Intercos SpA Earnings Call Transcript
Key Points
- Intercos SpA (LTS:0AAR) posted double-digit growth in both top-line and bottom-line, with a 12% increase in the third quarter, outperforming many competitors in a decelerating market.
- The company achieved a significant recovery from a cyber attack earlier in the year, with 9-month sales reaching EUR775 million, up 6% from the previous year.
- Asia was a standout performer, with a 30% growth in the third quarter, driven by strong performances in China and Korea.
- Make-up and Skincare segments both showed robust growth, with Make-up returning to double-digit growth and Skincare maintaining a strong pace.
- Intercos SpA (LTS:0AAR) reduced its net debt to EUR118 million, with a leverage ratio on EBITDA down to 0.85x, indicating improved financial health.
- The company's marginality improvement was below expectations due to a shift in client mix, particularly with prestige clients requiring full service packaging, which is less profitable.
- The American market showed a decline, with a 3% decrease in the third quarter and an 8% decrease year-to-date, driven by a downturn in volume and multinational clients struggling.
- Retailers remain a weak segment, with a 20% decline in sales over the 9 months, largely due to a major client entering Chapter 11 bankruptcy.
- The Hair and Body segment experienced a slowdown in growth, attributed to tough comparisons from the previous year's high growth rates.
- There is a noted decline in order intake for the Skincare business, raising concerns about future growth sustainability in this segment.
Good evening. This is the Chorus Call conference operator. Welcome, and thank you for joining the Intercos nine months 2024 Results Conference Call. (Operator Instructions) At this time, I would like to turn the conference over to Mr. Renato Semerari, CEO of Intercos Group.
Thank you very much. Good evening, everybody. We are presenting today our third quarter results and obviously the 9 months results, which are clearly against the current trend in a positive way, I would say. In a global market which is decelerating its growth pace and many beauty players publishing soft third quarter results, especially in Asia, Intercos is posting double-digit growth at top and bottom-line level, accelerating its pace and recording excellent performances in Asia. If you look at the first page, we clearly see the trend which is accelerating, starting from the first quarter, which was heavily impacted by the cyber attack, as we all know.
We posted the second quarter with a growth of plus 10%.
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