SIMPLE REPORTS ELEVEN PERCENT SALES GROWTH AND INCREASED PROFIT
Simple Health & Beauty (formerly Accantia), which owns the UK’s number one skincare brand (by volume), has reported an eleven percent increase in net sales – to £61.4m - with operating profit of £21m (up from £19m) for the year to 31.12.081. This is the company’s eighth year of independent trading and consecutive growth.
As of the beginning of April, the company changed its name from Accantia to Simple Health & Beauty to reflect the business’s focus on its lead brand.
Simple is the UK’s largest skincare brand by volume and the third biggest brand by value. It continues to grow ahead of the UK market; in value Simple is growing at +12.7% (vs +1.3%) and in volume Simple is growing at +15.4% (vs +5.6%)2.
Simple Cleansing Facial Wipes are the biggest selling facial skincare product in the UK retail trade – consumers purchase one pack every 3.5 seconds. Simple holds the number one position in four out of nine categories within the UK facial skincare market.
In the past 12 months Simple has closed the gap with L’Oreal, the No. 2 value player in the skincare market, by more than 50%, and currently holds a 12.2% value share of the market.
Private Equity ownership has allowed Simple Health & Beauty to evolve from a successful manufacturer to entrepreneurial brand owner. It is now a highly focused consumer products business.
Its rapid growth and the exceptional in-market performance of the company’s flagship brand can be attributed to clear differentiation in the marketplace, cost effective product development and above all consistency of message.
CEO, Geoff Percy, comments; “Simple has two great strengths, which have stood it well, unchanged for nearly fifty years. The first is value, and that is more relevant to consumers now than ever. The second is implicit in the brand name. A clear, uncompromising and uncomplicated promise, which resonates with consumers who are increasingly bombarded by information in a crowded marketplace.”
Editor’s notes:
1 Net sales for the year ending 31.12.08 were £61.4m, up 11.4% over 2007 at £55.1m. Turnover for the year ending 31.12.08 was £72m, up 9% over 2007 at £66m.
2 52 weeks ended 21st Feb 2009 value growth 12.7% (vs 1.3%), volume 15.4% (vs 5.6%).
- The then named, Accantia was formed as a result of an MBO from Smith and Nephew in July 2000. The management team, headed by CEO Geoff Percy and FD Peter Hatherly conducted a leveraged buy-out of the business, backed by ABN Amro Capital, for £140m
- In January 2004, a secondary buyout was completed. Following an unsolicited approach, the Board of Accantia sold the company to Duke Street for £225m. Accantia's existing senior management team remains in place.
- As of the beginning of April 2009 Accantia will be renamed Simple Health & Beauty to reflect the focus of its business.
- The company's core businesses are skincare, toiletries and soap. Its flagship brand, Simple is the UK's pre-eminent range of skincare and toiletries products, developed especially for sensitive skin.
- Simple Health & Beauty is based in Solihull and has distributorships in the Republic of Ireland, Denmark, Norway, Australia, New Zealand, South East Asia and The People’s Republic of China.
