Global cosmetics manufacturer Intercos released its full-year 2025 financial results, revealing net sales of €1.047 billion (approximately RMB 8.37 billion), a decrease of 1.7% year-over-year. Adjusted EBITDA reached €156 million (approximately RMB 1.25 billion), marking an 8.8% increase from the previous year. This represents the first annual revenue decline for Intercos since its listing on the Italian stock exchange in 2021.
Despite earlier industry predictions that Intercos would achieve "10-billion-yuan" scale in 2025, the latest figures show it still falls short of this target. The slowdown in net sales growth throughout 2025 had early indicators: while first-quarter sales grew by 13% year-over-year, growth momentum weakened significantly starting in the second quarter, with a 1.7% decline. Sales continued to decrease in the third and fourth quarters.
Although sales dipped, profitability remained strong. The company's EBITDA rose to €148.8 million (approximately RMB 1.192 billion), up 11% from €133.8 million (approximately RMB 1.072 billion) in 2024. The EBITDA margin improved to 14.9%, up from 13.5% the previous year.
Renato Semerari, CEO of Intercos, attributed the 2025 performance to a complex macroeconomic environment, including geopolitical uncertainties and fluctuating market demand. He emphasized that the company focused on optimizing its business structure and improving operational efficiency, which supported profitability and margin improvement despite external challenges.
Makeup remained Intercos's core business, with net sales of €655 million (approximately RMB 5.25 billion) in 2025, a 6% increase. It was the only segment to achieve positive growth and continued to contribute the largest share of total revenue. Strong performance in Asia, Europe, the Middle East, and Africa, along with increased business from multinational clients, drove growth in the makeup division. However, sales in this segment declined by 3% in the fourth quarter.
In contrast, skincare sales fell by 4% to €161 million (approximately RMB 1.29 billion), impacted by regulatory changes and market volatility. Hair and body care sales dropped significantly by 17% to €231 million (approximately RMB 1.85 billion), partly due to a high comparison base from a successful perfume launch in 2024.
Regionally, Asia was the only market to achieve growth, with net sales up 6% to €225 million (approximately RMB 1.803 billion). Europe, the Middle East, and Africa remained the largest market, though sales there declined by 5% to €532 million (approximately RMB 4.25 billion). Sales in the Americas decreased by 1% to €290 million (approximately RMB 2.32 billion).
Multinational clients accounted for 48.8% of Intercos's revenue, with sales growing 9% to €510 million (approximately RMB 4.08 billion). Emerging brands saw a 12% decline in sales to €470 million (approximately RMB 3.76 billion), while retail clients grew 1.8% to €70.7 million (approximately RMB 570 million).
Looking ahead to 2026, Intercos anticipates a gradual recovery in the global beauty market, particularly from the second quarter onward. The company expects revenue growth of 5% to 6%, driven by a rebound in the U.S. market and continued recovery in Asia, especially China. December 2025 saw record monthly orders, suggesting stronger performance in the latter half of 2026.
Asia, particularly China, is central to Intercos's growth strategy. The company has increased production capacity in China and noted signs of market recovery in the second half of 2025. While specific revenue figures for China were not disclosed, the growing importance of the Chinese market is evident across the industry.
Competitors such as Cosmax and Kolmar have also reported growth in China. In 2025, Cosmax's revenue in China increased by 10.2% to 632.7 billion Korean won (approximately RMB 3 billion), while Kolmar's Chinese subsidiary saw a 1.7% rise in sales to 156.3 billion Korean won (approximately RMB 750 million).
The expansion of international manufacturers like Intercos in China, along with the growth of local competitors, highlights China's role as both a major consumer market and a key hub in the global beauty supply chain. The rapid rise of domestic Chinese brands has generated significant demand for contract manufacturing. However, intense competition, price pressures, and a mature supply chain pose challenges. To succeed, manufacturers must balance R&D capabilities, production efficiency, and cost control.
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