Product innovation, new acquisitions and its ambitious ESG Manifesto are driving Wella Company to exceed profit and growth expectations in a successful second year.
Despite the crisis continuing across different regions of the world, Wella Company, a global leader in the hair & beauty industry, is marking a successful second year as a standalone company, delivering year-over-year double-digit profit and growth ahead of expectations.
In Fiscal Year 22 – which closed at the end of June – Wella Company beat all targets on financial performance across the globe.
Thanks to its varied and rich portfolio, which includes iconic professional and retail hair, nail, and beauty tech brands, Wella Professionals, O·P·I, ghd, Briogeo, Nioxin, Sebastian Professional, and Clairol, the company has performed as one of the fastest-growing beauty enterprises in the sector.
Since its founding in December 2020, Wella Company has delivered continuous double-digit profit and growth ahead of expectations.
“Our first two years of business have shown the enduring potential of the Wella Company portfolio – we are re-establishing category excellence in both hair and nails, and both professionals and consumers are falling in love again with our beautiful brands,” said Annie Young-Scrivner, CEO of Wella Company. “Our continued strong financial performance, coupled with growth and gain in market share across all categories, even in the challenging global context, is proof that our business is just beginning to tap into its full potential.”
Portfolio Expansion and improvement
Wella Professionals continues to lead the company’s overall portfolio growth retaining its #1 share in Professional Color globally. The launch of Shinefinity, a professional glazing service and a new category entry for Wella Company, was the company’s strongest colour launch ever, delivering +4% above target.
Sebastian Professional is Wella Company’s second-largest pro-brand and achieved double-digit growth this year with gains across all key markets.
Nioxin continued to deliver strong performance with Net Revenue growing double-digit year-on-year in key regions like NA and EMEA.
The company’s Retail Hair segment grew Net Revenue by nearly +3% in FY22 while gaining share across most key markets.
The Briogeo acquisition (closed June 2022) improved the company’s eco-ethical haircare portfolio by adding the clean and green, natural hair care business, one of the fastest-growing brands today. Briogeo sells one of its award-winning Don’t Despair, Repair! Deep Conditioning Masks every minute.
London-based ghd (good hair day) is redefining beauty tech and continues to dominate with its digital-centric strategy. The brand has delivered on average a double-digit annual growth rate over the last 4 years.
O·P·I is the #1 professional nail brand worldwide and #3 in US retail.
eCommerce and Digital
The expansion of Wella Company is, in large part, due to its digital footprint and accelerating eCommerce. WellaStore B2B eCommerce platform continues to acquire customers globally, helping salon pros meet business needs. In FY22, WellaStore grew its sales volume by +30% and grew its customer base by +10%. In its consumer eCommerce channels, the company grew nearly 2.5x faster than the overall hair market, especially in EMEA and APAC.
Commitment to ESG
The company’s commitment to sustainability and social impact keeps growing via its three pillars: People, Planet and Products.
In June 2022, Wella Company announced its environmental targets and its participation in the UN Global Compact, the world’s largest initiative for sustainability in business. In tandem with its second anniversary, Wella Company issued its ESG Manifesto, the first formal publication of its commitment to environmental, social and governance (ESG), as well as a new Code of Conduct, WE Care. The Company’s first formal ESG report is expected in 2023.