I'm sure you and your members who are interested in a sector insulated from macro events would also find the following sector-specific information interesting. The cosmetics industry is about to experience a shockwave. Why?
The recent article on L’Oréal captured my attention, as it resonates closely with our featured companies, Croda and SkinBioTherapeutics. The "smart partnership" established in December 2019 has culminated in the evolution of SkinBioTherapeutics’ SkinBiotix into Zenakine™, a development poised to redefine the skincare and cosmetics landscape.
Zenakine™: Neurocosmetics Redefined
Occupying a pioneering position at the forefront of neuroactive skincare, Zenakine™ represents more than a new active ingredient—it heralds a paradigm shift. Developed in collaboration with Croda, one of the sector’s most sophisticated operators, Zenakine™ has demonstrated clinically validated efficacy in mitigating cortisol-induced skin damage, resetting the skin’s circadian rhythm, and delivering significant anti-ageing benefits. These multifaceted attributes, bridging physical rejuvenation and emotional well-being, offer an especially compelling proposition for premium formulators seeking distinctiveness in an increasingly saturated market.
Croda’s early commercial mobilisation of Zenakine™, combined with its formidable global distribution capabilities, sets a strong foundation for rapid and widespread market penetration. Early indicators suggest that Zenakine™ could be integrated into major global cosmetic formulations within weeks of the launch at In-Cosmetics earlier this month, with a first mover advantage to the 12-VIPS that have had access to Zenakine™ for almost two years, potentially elevating annualised gross profits into the seven-figure range by the close of FY2026.
This development raises a broader strategic question: could L’Oréal pursue an acquisition of Croda to consolidate its leadership in the neurocosmetic sector, or would such a move encounter formidable antitrust scrutiny? For those interested in exploring M&A strategy dynamics further, I would recommend listening to a couple of open-source podcasts, particularly Episode 27, which features insights from a former IBM Board member with extensive expertise in M&A strategies: Investor Podcast #27. https://lemminginvestor.substack.com/p/investor-podcast-27
I enjoyed this one as well and got some insight on the company , that to be honest , hasn't come to my attention.
It seems that this company is the best in class in their sector.
It seems that by far from peers they execute the best in their business.
I have also took a look to their biggest direct competitors Shisheido and Estee lauder and it seems obvious who owns this market 😀.
My humble opinion, they own their market, they execute great , I would prefer some more margin of safety on their share price (really the dip around 330 early April was a nice opportunity)
Amazing investment case into a truly high quality company! I really want to do a deep dive into the business one day. I particularly like the fact that they drive significant innovation throughout their entire value chain, especially in natural ingredients (which are also great businesses to own imo) which benefits everyone!
Great post, Daan! As always!!!
Oustanding read, Daan.
I'm sure you and your members who are interested in a sector insulated from macro events would also find the following sector-specific information interesting. The cosmetics industry is about to experience a shockwave. Why?
The recent article on L’Oréal captured my attention, as it resonates closely with our featured companies, Croda and SkinBioTherapeutics. The "smart partnership" established in December 2019 has culminated in the evolution of SkinBioTherapeutics’ SkinBiotix into Zenakine™, a development poised to redefine the skincare and cosmetics landscape.
Zenakine™: Neurocosmetics Redefined
Occupying a pioneering position at the forefront of neuroactive skincare, Zenakine™ represents more than a new active ingredient—it heralds a paradigm shift. Developed in collaboration with Croda, one of the sector’s most sophisticated operators, Zenakine™ has demonstrated clinically validated efficacy in mitigating cortisol-induced skin damage, resetting the skin’s circadian rhythm, and delivering significant anti-ageing benefits. These multifaceted attributes, bridging physical rejuvenation and emotional well-being, offer an especially compelling proposition for premium formulators seeking distinctiveness in an increasingly saturated market.
Croda’s early commercial mobilisation of Zenakine™, combined with its formidable global distribution capabilities, sets a strong foundation for rapid and widespread market penetration. Early indicators suggest that Zenakine™ could be integrated into major global cosmetic formulations within weeks of the launch at In-Cosmetics earlier this month, with a first mover advantage to the 12-VIPS that have had access to Zenakine™ for almost two years, potentially elevating annualised gross profits into the seven-figure range by the close of FY2026.
This development raises a broader strategic question: could L’Oréal pursue an acquisition of Croda to consolidate its leadership in the neurocosmetic sector, or would such a move encounter formidable antitrust scrutiny? For those interested in exploring M&A strategy dynamics further, I would recommend listening to a couple of open-source podcasts, particularly Episode 27, which features insights from a former IBM Board member with extensive expertise in M&A strategies: Investor Podcast #27. https://lemminginvestor.substack.com/p/investor-podcast-27
Hello Daan
I enjoyed this one as well and got some insight on the company , that to be honest , hasn't come to my attention.
It seems that this company is the best in class in their sector.
It seems that by far from peers they execute the best in their business.
I have also took a look to their biggest direct competitors Shisheido and Estee lauder and it seems obvious who owns this market 😀.
My humble opinion, they own their market, they execute great , I would prefer some more margin of safety on their share price (really the dip around 330 early April was a nice opportunity)
Thank you for the time and effort on this one !
Kostis
Early April was a great opportunity indeed! Let's hope for some more weakness in the weeks ahead.
Amazing investment case into a truly high quality company! I really want to do a deep dive into the business one day. I particularly like the fact that they drive significant innovation throughout their entire value chain, especially in natural ingredients (which are also great businesses to own imo) which benefits everyone!
Agreed! Looking forward to your version, hopefully soon!