Straight Up Scoop:
E.l.f. Beauty revised more than 300 product lines during fiscal year 2023
ELF Beauty’s latest moves are all about amping up their sustainability game. They've knuckled down to revamp over 300 products in the fiscal year 2023, according to their 2023 Impact Report released Thursday. This overhaul aims to boot out "even more restricted ingredients than the FDA and EU Cosmetic Regulation rules," as per the report.
The cosmetics conglomerate, which owns brands like ELF, WELL PEOPLE, and KEYS SOULCARE, has set its sights on a 20% reduction in packaging intensity by fiscal year 2030. Packaging intensity, defined as the average packaging weight per formula measure compared to a 2019 baseline, was the fancy talk from ELF Beauty’s Vice President of Sustainability, Ellen Leung, via email. ELF Beauty also rolled out a new goal to ensure that 100% of their wood brush handles are Forest Stewardship Council-certified by the end of fiscal 2025.
The company isn't just about scrubbing up its products; they’re also striving to leave a mark on the broader beauty landscape. They currently rank among only four US public companies with a board of directors that is at least two-thirds female and one-third "diverse". They define "diverse" as non-White.
The Real Deal:
ELF Beauty's 2023 Impact Report houses the company's intentions to extend its sustainability objectives.
"Our new commitments mark a significant leap in our sustainability aspirations and our mission to continue motivating our employees, communities, and partners to join our quest to foster a more inclusive and accessible beauty sector," Leung stated.
A few of the company's latest commitments include obtaining 100% Roundtable for Sustainable Palm Oil Sourcing-certified palm oil procurement by fiscal 2027, setting up science-based targets for Scope 3 emissions, and eliminating over 2.5 million pounds of excessive packaging since the kickoff of the product assortment initiative, "Project Unicorn," in 2019.
Diversity and inclusion are buzzwords for ELF Beauty. As evidence, they hosted a drone show with PEOPLE and Billie Jean King in Houston on Wednesday, celebrating the 50th anniversary of King’s "Battle of the Sexes" victory game. The event raised $50,000 for the BILLIE JEAN KING LEADERSHIP INITIATIVE, which aims to create workplaces devoid of discrimination and inequality.
In August, ELF Beauty reported that their first-quarter net sales surged 76% year over year to $216.3 million, with their net income climbing from $14.5 million last year to almost $53 million. They updated their fiscal 2024 guidance, anticipating net sales ranging from $792 million to $802 million (compared to the previously projected $705 million to $720 million).
In August, ELF Beauty also announced plans to acquire skin care brand Naturium for $355 million. The acquisition is expected to close around Sept. 30 and should double ELF Beauty’s skin care presence, accounting for about 18% of their retail sales. Naturium estimates generating approximately $90 million in net sales this year.
- The update in ELF Beauty's 2023 Impact Report showcases their intentions to significantly advance their sustainability objectives.
- In their product revamp, ELF Beauty aims to eliminate "even more restricted ingredients" than those required by the FDA and EU Cosmetic Regulation.
- The cosmetics company has set a goal to reduce packaging intensity by 20% by fiscal year 2030.
- AI may potentially find a place in ELF Beauty's future, as they strive to leave a mark on the broader beauty landscape.
- By the end of fiscal 2025, ELF Beauty plans to ensure that 100% of their wood brush handles are Forest Stewardship Council-certified.
- As part of their commitment to diversity and inclusion, ELF Beauty currently boasts a board of directors that is at least two-thirds female and one-third "diverse."
- In investing terms, ELF Beauty's first-quarter net sales surged 76% year over year to $216.3 million, with their net income almost quadrupling.
- In the realm of real-estate and finance, ELF Beauty anticipates net sales ranging from $792 million to $802 million for fiscal 2024, a notable increase from their previous projection.
