Beauty demand has played a crucial role in helping Creightons offset the decline in sales of its hygiene-based products, which were in high demand during the pandemic. Despite facing challenges such as a significant drop of £11.54 million in hygiene sales and ongoing supply chain issues, the health and beauty consumer goods producer has made significant progress in its turnaround efforts. In the first half of the year, Creightons experienced a decrease in overall net sales by £2.4 million to £30 million. Additionally, profits as a percentage of revenues were reduced to 6.6%, with pre-tax profit falling by 22% to £2.3 million.

The decline in sales of hygiene goods can be attributed to the fact that demand for items like hand sanitizers surged during the previous year due to the pandemic. However, Creightons managed to offset this decline with a 40% increase in core sales, ensuring that total revenues remained at levels higher than pre-pandemic times. Notably, the Feather & Down and Balance Active brands performed exceptionally well, with revenues climbing by 47% to over £8 million. Moreover, the reopening of high street stores and the company’s significant new contract with a key grocer contributed to an increase in private-label sales by £2.3 million, totaling £13.1 million.

Despite ongoing supply chain challenges expected in the second half of the year, Creightons is dedicated to proactively addressing these issues. The company has outlined several strategies to overcome these challenges, including exploring new opportunities, implementing price recovery tactics, reengineering products, seeking alternative sourcing options, and controlling costs. Additionally, Creightons is optimistic that its recent acquisitions of cruelty-free skincare brand Emma Hardie and personal care company Brodie & Stone will contribute to its future performance and drive overall growth.

In conclusion, Creightons has effectively adapted to changing market demands and is successfully capitalizing on the expanding beauty industry. Despite the decline in hygiene sales, the company’s strong underlying business momentum and strategic initiatives have positioned it well for future growth. Through continued efforts to address supply chain challenges and the recent acquisitions, Creightons is poised to continue its success in the beauty consumer goods market.

Useful links:
1. Creightons Careers
2. Creightons Official Website