Business: Unilever's "Beauty Buys" Paying Off

-Glossy

Unilever, which has been on an acquisition tear since 2015, reported impressive fourth-quarter earnings for 2017 on Thursday. Its profits rose 17 percent to roughly $8 billion, while its sales increased 2 percent to $67 billion.

In the last year alone, the company added 11 new companies to its portfolio, many of which fall into the personal care category. That includes Hourglass Cosmetics, Living Proof and Carver Korea, as well as Sundial Brands’ four hair and skin-care properties: Nubian Heritage, Shea Moisture, MCJW Beauty Culture and Nyakio.

So far, this expansion is paying off: all together, its personal care category grew 3 percent to $26 billion in 2017.Add to that the company’s increasing speed of innovation, said CEO Paul Polman, and Unilever is on track to be “[more] competitive, in light of fast-changing consumer and technology trends.”

Although Unilever’s largest personal care brand is the mass-market Dove, the juggernaut is quickly becoming a more formidable competitor in the prestige space. Kate Somerville, the skin-care line it acquired in 2015, grew in double digits, as did some of its newest acquisitions: Hourglass Cosmetics and Living Proof hair care. Dermalogica, another acquisition from 2015, was also said to perform well, according to CFO Graeme Pitkethly.