Intercos (ICOS) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 net sales reached €775.1 million, up 6% year-over-year, with Q3 sales at €275.2 million, up 12% year-over-year, despite operational disruptions from a Q1 cyberattack and a slowing global beauty market.

• Adjusted EBITDA for Q3 was €39.2 million, up 12.3%, with a margin of 14.3%; nine-month Adjusted EBITDA reached €103.2 million (+0.9% YoY).

• The group fully recovered from the Q1 cyberattack by Q3, reducing net debt to €117.7 million and leverage ratio to 0.85x EBITDA.

• Outperformed the decelerating global beauty market, gaining share through innovation and a diversified business model, with exceptional growth in Asia.

Financial highlights

• Q3 sales grew 12% year-over-year to €275.2 million; nine-month sales up 6% to €775.1 million.

• Q3 Adjusted EBITDA was €39.2 million (+12.3% YoY), with a margin of 14.3%; nine-month Adjusted EBITDA reached €103.2 million (+0.9% YoY).

• Net debt as of September 30, 2024, was €117.7 million, down €5.8 million year-over-year; net debt excluding IFRS 16 at €74.4 million.

• Financial leverage improved to 0.85x Adjusted EBITDA.

Outlook and guidance

• Q4 2024 sales growth expected between 10% and 14%, with margin pressure from increased full-service product mix.

• Order intake for Make-up and Skincare in September-October up 10% year-over-year, with Make-up order intake up 15%.

• Order book at end of October 2024 at €303 million, up 4% year-over-year.

• Expects to continue outperforming the market in 2025, with long-term growth at twice the market pace.