Consumer Care
We develop innovative and sustainable ingredients that provide vital functionality to consumer care formulations, enabling customers to differentiate their products, build strong brands, meet their sustainability commitments and satisfy changing consumer requirements.
We are positioned as the leading innovator in consumer care markets, delivering cutting-edge technology and new ideas with proven substantiated claims. Our sustainability-lead innovation supports the shift in buying habits of consumers as they think more carefully about the products they buy and prefer those that are good for them and the planet, as well as highly effective. We are complementing our sector-leading range of sustainable ingredients with assured information about their impacts and an R&D programme focused on improving the sustainability of our ingredients and delivering sustainability benefits in use to our customers.
Science and sustainability are driving consumers and our customers, with customers also wanting more intimate relationships with key suppliers to reduce time to market. Our portfolio remains the foundation of our success and is constantly evolving. The breadth of our portfolio of speciality and active ingredients is unrivalled in consumer care markets. In all we have more than 40,000 different product/customer combinations across Beauty Actives, Beauty Care and Home Care, augmented by over 70,000 combinations in F&F. In future, our broad portfolio, customer insights, and formulation expertise will enable us to become the complete provider of sustainable solutions to the premium end of consumer care markets.
Business summary
Consumer Care
- Sales increased to £920.0m (2023: £886.1m), up 4% on a reported basis or 7% at constant currency
- This comprised an 11% increase in sales volumes, with price/mix 5% lower, a 1% acquisition contribution from sales of ceramides and a 3% headwind from foreign currency translation
- Sales to L&R customers increased 11% at constant currency
- IFRS operating profit was £128.4m (2023: £127.8m). Adjusted operating profit was flat at £160.2m (2023: £160.3m), increasing 4% at constant currency. The adjusted operating margin was 17.4% (2023: 18.1%)
In Consumer Care, we aim to be the most sustainable and responsive supplier of innovative ingredients:
- NPP sales grew 11% at constant currency and improved to 43% of total sales (2023: 42%)
- We provide carbon footprint data for over 2,000 product codes, a leading position in this sector
By business unit (in constant currency):
- F&F led the way, growing 18%, with continued momentum in the second half year, reflecting its leading position with higher-growth L&R customers
- Beauty Actives grew 6%, led by Asia (+16%, excluding acquired ceramides) and sales to L&R customers
- Beauty Care sales were flat with all regions growing other than EMEA, with a 6% increase in NPP sales as we accelerate innovation, and growth in North America aided by market share regains
- Home Care grew 13% due to its focus on innovative ingredients differentiated by sustainability
Consumer Care business review
