As our lives begin to take shape once more, we are all holding our breath in the hope that an economic recovery will follow. In the meantime, International Beauty Companies have suffered a significant decrease in the value of their stocks. Only some Fragrance Companies have built on their pre-crisis stock values.
2019 was a year to remember for most beauty companies listed on the stock exchange: performances were astonishing with double-digit increases across the main international markets.
The scenario has changed dramatically from January 2020 onwards, with the Covid-19 pandemic sending shockwaves through the world.
From the beginning of January to mid-May 2020, most companies suffered sharp falls: some stocks plummeting by over 50%, as confirmed in the lists published by Pambianco.
Surprisingly, the only three that showed any kind of growth were perfume and fragrance manufacturers. Givaudan, world number one in this sector, achieved a 10.5% growth in stock value. The Swiss group said in a statement that it was able to maintain its operations and the global supply chain with minimal interruptions during the pandemic; therefore, for the entire fiscal year they confirm a growth target of around 4 – 5% and an increase in sales of between 12 – 17%.
Symrise also enjoyed positive results over the same period. Listed on the Frankfurt Stock Exchange, it recorded a 2.2% growth The German manufacturer of fragrances and active ingredients for cosmetics closed the 2019 financial year with sales up 5.7% to 3.4 billion Euros and a 12.2% increase in profit to 707.2 million Euros.
In third place we find International Flavours & Fragrances which continues to show good results. In fact, its stocks rose by 1.3% in value on the New York exchange, However, the American company has not as confirmed its forecast for 2020. IFF president and CEO, Andreas Fibig, said that as the CoVid19 pandemic continues, its final impact appears highly uncertain and therefore the financial results for the entire year cannot be reasonably estimated at this time.
| Beauty Company Stock Quotations Jan-May 2020 | |||||
| Rank | Company | Stock Exchange |
Stock Price Jan 2020 | Stock price May 2020 | Difference % |
| 1 | GIVAUDAN | SWITZERLAND | 2992 | 3306 | 10,5 |
| 2 | SYMRISE | GERMANY | 92,6 | 94,66 | 2,2 |
| 3 | INT FLAVOURS | USA | 126,6 | 128,22 | 1,3 |
| 4 | KAO CORP | JAPAN | 8941 | 8739 | -2,3 |
| 5 | L’ORÉAL | FRANCE | 259,64 | 253,3 | -2,4 |
| 6 | BEIERSDORF | GERMANY | 104,87 | 92,48 | -11,8 |
| 7 | NU SKIN ENTERPRISES | USA | 39,84 | 33,93 | -14,8 |
| 8 | NATURA | BRAZIL | 38,33 | 32,18 | -16 |
| 9 | SHISEIDO | JAPAN | 7714 | 6475 | -16,1 |
| 10 | EDGEWELL PC | USA | 30,62 | 25,64 | -16,3 |
| 11 | ESTEE LAUDER | USA | 205,74 | 169,41 | -17,7 |
| 12 | AMORE PACIFIC | S KOREA | 207,5 | 170 | -18,1 |
| 13 | L’OCCITANE | HONG KONG | 18,02 | 13,34 | -26 |
| 14 | JACQUES BOGART | FRANCE | 11,3 | 6,9 | -38,9 |
| 15 | INTERPARFUM | USA | 72,01 | 39,33 | -45,4 |
| 16 | SH KELKAR | INDIA | 109,77 | 52,85 | -51,9 |
| 17 | REVLON | USA | 21,25 | 10,02 | 52,8 |
| 18 | ALES GROUPE | FRANCE | 2,68 | 1,26 | -53 |
| 19 | COTY INC | USA | 10,93 | 3,29 | -69,9 |
At the bottom of this list we see some well-known global brand that have suffered losses reaching 50% to 70%. Variations of this magnitude do not seem linked to the geographic area or the size of the company. Nevertheless, observers agree that the future won’t be easy, but markets have a great chance not only to recover and survive, but also to prosper.
