Creighton’s, a prominent beauty and personal care company, confronts unprecedented challenges in its trading landscape, impacting first-half sales. The departure of Managing Director Bernard Johnson in November added to the complexity, with Philippa Clark and Martin Stevens leading the business during this transitional period.
For the first half to September 30, Creighton’s reported a 7.1% YoY decline in sales to £27.5 million. The Contract division suffered a significant sales drop of over 37% to £4.8 million, while the Branded division also experienced a 3.3% decrease to £10.4 million. In contrast, the core Private Label segment recorded a robust 9.8% sales increase to £12.2 million.
Challenges in the Branded division were exacerbated by a significant decline in a key export market due to economic downturn, while the Contract division faced a reduction in orders, primarily linked to overstocking. Despite these challenges, Creighton’s remains optimistic about the recovery of the Private Label and Branded divisions in the second half.
Supply chain disruptions and inflation contributed to higher costs, impacting profitability. However, a strategic six-point program focused on restoring margins, reducing costs, and improving efficiency resulted in a notable increase in gross profit margin to 42.2% and a reduction in administrative costs to £9.3 million.
Operating profit before exceptional costs increased to £0.5 million, and EBITDA (excluding exceptional) for the first half of the financial year 2024 rose to £1.4 million, reflecting positive earnings from core business operations.
As Creighton’s aims for financial stability, the company is poised to explore new growth opportunities. This includes investments in research and development, manufacturing efficiencies, and expansion into new markets. Sales priorities center on its Private Label and Branded divisions, with resources shifting from the Contract business to capitalize on opportunities in digital platforms, websites, and social sites.
Key sales efforts will focus on developing markets in the US and China, with leading brands Emma Hardie and Feather & Down taking precedence. Significant investments have already been made in China, with the Emma Hardie brand launching on platforms like Tmall and Douyin. Simultaneously, the Feather and Down brand is set to launch on Amazon in the US and German markets, paving the way for mainstream retail listings. The Emma Hardie brand plans to extend its presence in these strategic areas.
In the face of challenges, Creighton’s strategic initiatives position the company for resilience and growth in the evolving beauty and personal care landscape.
