MILAN — Intercos SpA, the Italian color cosmetics manufacturer, said Friday its shareholders have committed up to 50 million euros, or $69.8 million at current exchange, of additional funding to finance the company’s future development.
“The next five years are really dedicated to growth and innovation,” said Dario Ferrari, Intercos’ founder and president, during a telephone interview with WWD. “We don’t intend to use this capital increase to pay off existing debts.”
Lending banks had extended the company’s debt maturities to 2016.
In the first nine months of this year, Intercos posted a sales uptick of 12 percent to 177 million euros, or $233.1 million at average exchange for the period. Ferrari credited the strong gain to retailers restocking. He explained 2009 “was a tough year because of destocking; now, it’s finally over. Brands are ready to launch new products, too.”
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Intercos’ order volumes for the first nine months were up 35 percent year-over-year.
Emerging markets and the U.S. are driving the company’s growth.
“The U.S. is our biggest market. More than 50 percent of our orders come from there,” said Ferrari, who revealed plans to move the production of emulsion products, including mascara, foundation and skin care, to its U.S. plant from Italy. “U.S. customers want deliveries from a U.S. facility, and we plan to be operative in early 2011.”
In January, Intercos mapped out a business plan focusing on organic growth and gains through acquisitions. It is to run through 2014 and includes expansion into new markets, including Brazil, as well as ramping up share in Europe and the U.S.
Ferrari said Intercos is eyeing buys in Europe and Brazil. He also confirmed a new 70,000- to 90,000-square-foot plant is set to open in 2011 in São Paulo. To date, Intercos has nine production centers operating in Europe, North America and Asia.
On the research and development front, Intercos will be making investments. It has already invested in cutting-edge manufacturing technologies to produce powders for products such as eye shadows and blush, said Ferrari. The company is additionally developing a new polymer for use in the manufacturing of long-lasting finishes for items like lipsticks.
“Long-lasting makes a lot of sense for the U.S. and mass market segment,” said Ferrari.
A recent venture with an Italian skin care lab to develop active ingredients is intended to boost innovation in Intercos’ treatment category, said Ferrari. He confirmed the company’s skin care business grew 30 percent in the first nine months and its pencil business, around 35 percent.