Cosnova has released record breaking performance and is confident in 2023

The German group, which focuses on low-priced cosmetics, will experience exceptional growth in 2022, with global sales exceeding the 500 million euro mark for the first time since its inception. Despite the challenges ahead in 2023, the company remains optimistic.

In fiscal year 2022, the Cosnova Group will have a global growth rate of 31% and a turnover of 617 million euros, a record high. After two years of restrictions due to the global pandemic, sales of nail polish, lipstick and other cosmetics proposed by the group's two flagship brands, Essence and Catrice, have largely benefited from consumers' renewed appetite for everyday pampering. own desires.

The group achieved double-digit growth rates in all geographic regions in which it operates: 24% in the Middle East and North Africa, 33% in Latin America and 29% in North America, excluding currency effects.

In North America, sales increased in both online and offline channels, and Ulta Beauty achieved very good results in the United States. However, Amazon remained the most important sales channel, with sales up 22%.

In Europe, the group's historical stronghold, the growth rate reached 36% (excluding Germany, its home market). "With a growth rate of 34% in 2022 compared to 2021 amid the downturn in the French market, Cosnova France is following the same strong momentum as the group's overall performance," said Soazig Le Prince, managing director of Cosnova France.

Despite the global trend in 2022 of a massive return to in-store shopping and a relative slowdown in e-commerce, Cosnova's online sales in Europe grew by +31%, in line with offline growth.

After approaching China through cross-border e-commerce, Cosnova opened its own Essence and Catrice online sales sites in China in 2022, taking advantage of the removal of import restrictions on non-animal test products in 2021.

Supply chains are under enormous pressure

The sharp rise in sales was a challenge for Cosnova against a backdrop of rising raw material costs and difficulties obtaining certain resources. To improve its responsiveness, the group wants to move large parts of its supply chain to Europe and strengthen ties with partners and suppliers, two main axes of its 2023 strategy.

Cosnova also wants to reduce its environmental footprint by reducing and offsetting carbon emissions, as well as reducing the use of plastic and microplastic particles across its entire product portfolio. "In 2022, a major reduction milestone has been achieved. By April, microplastics will no longer be used in any of the group's products. In addition, the use of non-recycled plastics has been reduced by 300 tons compared to the previous year, with a target of 2025 Reach 80% recycled packaging every year," the group said.

Hopeful 2023

Christina Oster Daum, CEO and founder of Cosnova, explains: "It is fantastic to break the €500 million mark and achieve such growth. However, we are aware of the market situation and the economic problems ahead, which will be a Very challenging." "Nevertheless, we have a strong position in both domestic and global markets and we are confident we can maintain our strong performance. We still expect strong sales growth in 2023."

For this, Cosnova intends to rely on an enhanced digital communication strategy. In 2022, the group will merge the creation and digital marketing of its brands into its production studio (studio C), which creates more than 12,000 pieces of content in a year. Effective January 1, 2023, Cosnova has appointed Thorsten Mühl as the new Chief Digital Marketing and Experience Officer, responsible for driving external and internal digitalization, promoting innovation, technology development and trend experimentation, and developing the B2B online retail sector.