Financial focus: LG H&H, Amorepacific, HUL and more in our beauty business update

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A beauty business updates in the APAC cosmetics industry. [Physiogel]

In this round-up of beauty business updates in the APAC cosmetics industry, we highlight the developments from LG H&H, Amorepacific, HUL and more.

LG H&H outlines derma beauty and makeup focus as it targets 2024 to be ‘inflection point for growth’

LG Household and Health Care (LGH&H) has laid out plans to reinforce its competitiveness in 2024 after seeing a significant profit slump in the last year.

The company said that despite the lacklustre figures, 2023 “laid a foundation for building domestic and global competitiveness”.

It added that it sees 2024 as an “inflection point for growth” which it will achieve by strengthening its core competitiveness.

CJ Olive Young establishes $74m fund to support K-beauty SMEs

CJ Olive Young has collaborated with the Industrial Bank of Korea (IBK) to establish a KRW100bn (USD74.3m) fund to support the growth of small and medium-sized (SME) beauty companies.

The Olive Young Mutual Growth Fund would allow eligible companies to benefit from a reduced interest rate of 2.39%.

The retailer said the aim was to help alleviate the financial burdens of its local SMEs by facilitating more flexible access to funds and giving them reduced interest rates.

Amorepacific growth in Japan, Americas, EMEA not enough to offset China decline

Amorepacific’s latest full-year results show that growth across multiple markets including the US were not enough to offset the slump in China, leaving its overseas business unit in the red.

The company reported an operating profit loss of KRW43.2bn (USD32.5m) while revenue decreased by 6% overall to KRW1.39tn (USD1.04bn).

The declines were mainly attributed to China, where revenues reported a decline of “mid-20%”, said the firm.

Hindustan Unilever expects ‘decades of massive growth’ with refocused beauty division

Unilever’s Indian subsidiary anticipates exponential growth in beauty touting its robust portfolio of brands that will include mass, premium, and prestige brands.

HUL first announced the decision to split its beauty and personal care (BPC) business last December. Effective April 1, 2024, it would have two dedicated businesses: beauty and wellbeing (B&W) and personal care (PC).

“The transition will allow us to bring more focus and leverage our strong portfolio in both businesses,” said HUL chief executive and managing director, Rohit Jawa.

Shiseido acquisition of Dr. Dennis Gross enables it tap into ‘medicalisation’ of beauty

Shiseido’s decision to add cosmeceutical brand Dr. Dennis Gross to its portfolio could have been influenced by the increasing ‘medicalisation’ of beauty, says one analyst.

The medicalisation of beauty refers to the increasing demand for proof behind claims and creating value through ingredient-led products.

These trends could have influenced Shiseido’s decision to acquire the US skin care brand.