Cosmetics contract manufacturer lntercos President and Founder Dario Ferrari talks about the impact of current supply-chain problems and rising inflation on the market, and how he sees the future of make-up and skincare

How did lntercos perform for the first quarter 2022?

Growth carne in at 21.1 % with net revenues of €174.6m. Despite the currenc complex situation, the beaucy market in 2022 is expected to grow, with the make-up segment returning to pre-pandemic levels as well. The year 2021 saw good generai growth of net revenues above 11 %, but the year could have better if there had not been the problems linked to the supply-chain crisis.

How are you dealing with the supply-chain crisis and the rising cost of raw materials and energy, which has been worsened by lockdowns in China and war in Ukraine?

The situation in China has obviously affected the market. lt is not news that China is the main producer of packaging, silicones and other materials. As such, the China lockdowns, and particularly the Shanghai port’s partial closure, wili certainly worsen the current global supply-chain crisis. The closure of stores meant the end­consumer shifted shopping online, but in China, e-commerce was also impacted by lockdowns as no home deliveries were allowed. The war in Ukraine is adding another tension, especially in terms of energy prices. We stopped serving Russia, but it represents only 1 % of our sales. We expect such chalienges to persist and impact the global economy, but we are also convinced chat, starting in 2023, we wili fìnally witness a normalization of business activities.

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