Latest news with #RM901mil
The Star
3 days ago
- Business
- The Star
Why Elf Beauty is banking big on Rhode, Hailey Bieber's fan-favourite brand
A Rhode pop-up sells products from the beauty brand founded by Hailey Bieber, the fashion model, entrepreneur and wife of pop star Justin Bieber, in New York. Photo: The New York Times Rhode, the upstart beauty brand founded by fashion model and entrepreneur Hailey Bieber, has been acquired by Elf Beauty for US$800mil (approximately RM3.4bil) in cash and stock, an eye-popping sum for a line of blushes and lip glosses that's not yet three years old. In an industry crowded with other celebrity-fronted beauty brands, Rhode has experienced rapid growth, which many attribute to Hailey's considerable influence on social media. Hailey, a daughter of actor Stephen Baldwin and the wife of pop star Justin Bieber, has 55 million followers on Instagram and 15 million on TikTok. 'Rhode has seen exponential growth over the past three years because of deliberate decisions and best-in-class marketing and community building,' Hailey said in a statement. 'To continue to grow strategically, we need the partnership of Elf. Beauty to fuel innovation and global expansion.' On top of the guaranteed US$800mil (RM3.4bil) payout, the Elf deal, which was announced Wednesday (May 28), includes the potential for an additional US$200mil (RM850mil), contingent on Rhode's growth over the next three years. Rhode, which Hailey founded with Lauren and Michael D Ratner, reported net sales of US$212mil (RM901mil) in the year that ended March 31. Read more: Hailey Bieber, known for setting beauty trends, may sell her makeup brand Rhode According to Tarang Amin, the CEO of Elf Beauty, the acquisition had been in the works since October. Amin said he was eager to close on it to marry the Generation Alpha fans Hailey has pulled in with the Millennials and Gen Z consumers whom Elf has traditionally relied on. The expansion includes a partnership with Sephora that will bring Rhode products to physical stores for the first time since the brand's debut. But even without a consistent presence in brick-and-mortar shops, Rhode had built a fan base that Amin found impressive. 'I have not seen another brand where there are communities waiting, or a pop-up event in LA (Los Angeles), willing to camp out overnight for 14 hours in line – not just for product, but to buy into the entire lifestyle,' Amin said in a video interview Thursday (May 29). Last summer, hundreds waited in line in New York to experience the Rhode pop-up – and possibly get a glimpse of Hailey – in a SoHo storefront. Amin said he admired Rhode's ability to 'engage and entertain' its customer base. Compared with Elf, he added: 'They skew younger, but their level of engagement is what really appeals to me.' As part of the deal, Hailey will stay on at Rhode as the brand's chief creative officer, and she will serve as a strategic adviser to both companies. Korinne Wolfmeyer, a senior research analyst at investment bank Piper Sandler who specialises in the beauty and wellness markets, believes that Hailey's ability to translate her connection with her fans into sales is what most aligns with Elf's strategic priorities. Read more: 'I want to be everywhere possible': Hailey Bieber plans on beauty world takeover 'It seems like they really appreciate the way Hailey connects with her followers and her community,' Wolfmeyer said. 'They view it as a similar path as Elf, using that consumer connection to really drive the performance.' While celebrity brands like Kylie Jenner's Kylie Cosmetics and Selena Gomez's Rare Beauty have proved to be significant players in the cosmetics industry, Hailey's fame may not be the biggest attraction for Elf Beauty. Celebrities bring a lot of reputational and trend risk, and companies are usually wary of how much they invest in their brands, Wolfmeyer said. But unlike other beauty companies, Rhode also veers into wellness, marketing many of its products with claims that they promote skin health. 'Rhode was maybe one of the earlier movers in that category,' Wolfmeyer said. 'There is obviously a lot of white-space potential, and it does resonate with the younger consumers. I think that's very appealing.' – ©2025 The New York Times Company This article originally appeared in The New York Times.
The Star
7 days ago
- Business
- The Star
Sime Darby's 9M25 net profit rises 10% to RM1.3bil
PETALING JAYA: Sime Darby Bhd reported a net profit from continuing operations of RM1.29bil for its nine-month period ended March 31, 2025 (9M25), reflecting a growth of 9.9% from the previous corresponding period. In a statement, the conglomerate said the improved performance was mainly attributable to the higher contribution from UMW Holdings Bhd and a higher one-off gain on disposal of Malaysia Vision Valley land, despite lower profits from the industrial and motors divisions. 'The group's revenue for the nine months increased by 8.2% to RM52.3bil, compared with RM48.3bil in the previous financial year.' In a filing with Bursa Malaysia, Sime Darby said the higher profit before interest and tax (PBIT) from UMW during the nine-month period was mainly due to the consolidation of its result for the full three quarters in the current financial year, compared with less than five months in the previous corresponding period. UMW's businesses include automotive, equipment, manufacturing and engineering, as well as other segments. Meanwhile, the PBIT of the industrial division was lower by 15.6% at RM901mil, largely due to the lower profits from Australasia. Sime Darby said PBIT for the motors division decreased by 26.6% to RM422mil, primarily due to lower results from Malaysia, Hong Kong, Australia and New Zealand. 'These markets have been impacted by weaker demand, especially in the luxury segment, and fierce competition.' As for its discontinued operations, Sime Darby said the previous corresponding period included the gain on disposal of Ramsay Sime Darby Health Care of RM2bil. For the third quarter ended March 31, 2025 (3Q25), net profit saw a decrease to RM193mil, while revenue was down by 13.4% at RM16.3bil. During the quarter under review, Sime Darby said the industrial division recorded a lower PBIT of RM221mil, mainly due to reduced profits from the division's operations in Australasia. 'In Australasia, profits were impacted by a currency-related parts price adjustment, unfavourable weather conditions and a weaker Australian dollar against the ringgit.' It added that the motors division reported a reduced PBIT of RM114mil in 3Q25. This is attributed to the lower vehicle sales in most markets, as well as increased competition. For the UMW division, the group said PBIT for the quarter under review was largely contributed by the division's automotive business, particularly higher Perodua sales. 'However, the division saw a decline in PBIT to RM194mil as a result of competitive market conditions.' In the same statement, Sime Darby group chief executive officer Datuk Jeffri Salim Davidson said he expects the group to continue facing external headwinds. He said this is particularly in the motors division with ongoing economic uncertainty and the rise of Chinese automotive brands increasingly dominating the market. 'The consumer segment remains challenging amid the continuing price war and industry overproduction in China. 'For the UMW division, Toyota and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) continue to perform well in Malaysia.' Perodua's sales in 2024 scaled to a record level of 358,102 units, on the back of its highest-ever production volume of 368,100. The national carmaker's 2024 sales were 8.4% higher than its previous historical high of 330,325 in 2023, while production rose 7.2% over its 2023 level of 343,400. Perodua said it captured 44% of the country's estimated total industry volume of 814,000 units last year, and was the main growth driver of Malaysian car sales in 2024. UMW announced earlier this year that its subsidiary, UMW Toyota Motor Sdn Bhd (UMWT), had concluded 2024 with a steady sales momentum, recording over 12,800 units sold in December 2024. This brought the total annual units sold to more than 102,300, marking the year 2024 as the third consecutive year for UMWT to surpass the 100,000 annual goal. Separately, Jeffri Salim said the long-term prospects for the group's industrial division remains positive on the back of robust mining demand, despite the impact of the currency-related parts price adjustment. 'Across the group, we remain focused on cost discipline, efficient inventory management and operational agility to navigate the current environment. 'As a result of our efforts, the reduction in inventories has resulted in a RM1.7bil improvement to our operating cash flow for the nine months ended March 31, 2025.' Jeffri Salim noted that while the current landscape is undoubtedly tough, he said the group's operating cash flow is positive and that its balance sheet is strong, underpinned by sustained revenue. 'These are fundamentals that will see us through during these choppy waters,' he said.
