Intercos Group Full-Year Report 2024
1Q24 Net Sales amounted to €221.1m, slightly down compared to 1Q23 (-5.8%, or -4.8% at c.FX). The performance was affected by the Cyber-attack and the consequent slowdown of the production and invoicing processes. This extraordinary event mainly affected the make-up production plants based in Italy and US. Sales lost are expected to be fully recovered already in 2Q24. In the absence of the Cyber event and considering the order book, 1Q24 net sales would have been once again higher than LY.
1Q24 Adjusted EBITDA stood at €20.8m, down by -€9m compared to 1Q23. The reduction was caused by the decrease in sales and the extra operations costs incurred following the Cyber- attack. The full closure of all the Group’s information systems took place on the 18th of February and after some days the processes gradually restarted. The issue was solved after approximately a month and the ordinary activity was then completely restored. This resulted in (i) higher product transformation costs (manual interventions needed as systems were totally o partially not available) and (ii) variable costs that could not decrease
proportionally to the turnover due to the sudden interruption of the business.
1Q24, which already had high 1Q23 comps to beat, was heavily marked by the Cyber-attack impacts. As a matter of fact, sales trend varied according to the different magnitude of the Cyber impact, which has not been homogeneous in all Group’s production plants. In this regard, Make-up production sites located in Italy and US have been the ones affected the most.
- Make-up reported revenues of €127.9m (-13.5% compared to 1Q23). As anticipated the BU was the most affected one, due to the high complexity that characterizes the production process. However, the good trends reported in Asia allowed to offset part of the impact, with the mass segment benefitting from the high volumes of orders collected in 2023.
- Skincare closed 1Q24 with revenues of €39.5m, up by +22.8% compared to last year. Unlike the plants dedicated to make-up, the Swiss and Korean ones were less affected by the cyber-attack, being able to recover normal operations much more quickly. The excellent performance of the business unit was mainly achieved thanks to the good performances of Asian and North American customers.
- Hair & Body recorded revenues of €53.7m, substantially in line with those of 1Q23 (€54.7m), despite the Polish and Italian plants reported performances below expectations due to the cyber- attack. Fragrance business continued to report excellent performances.
