Dive Brief:
- E.l.f. Beauty reformulated over 300 SKUs in fiscal year 2023, according to the company’s 2023 Impact Report released Thursday. The reformulations were enacted to exclude “several additional ingredients beyond the Food and Drug Administration (FDA) and European Union Cosmetic Regulation (EUCR) restrictions,” per the report.
- The company — which operates brands including E.l.f., Well People and Keys Soulcare — has set a new goal to reach a 20% reduction in packaging intensity by fiscal year 2030. Packaging intensity is defined as the average packaging weight per measure of formula versus a 2019 baseline, E.l.f. Beauty's Vice President of Sustainability Ellen Leung said via email. E.l.f. Beauty also introduced a new goal to have 100% of its wood brush handles be Forest Stewardship Council-certified by the end of fiscal 2025.
- The beauty company reported that it ranks as one of only four public companies in the U.S. with a board of directors that is at least two-thirds women and one-third “diverse,” which Leung said E.l.f. defines as non-White.
Dive Insight:
E.l.f Beauty’s new impact report indicates the company is eager to expand its sustainability goals.
“Our new commitments signal a step change in our sustainability ambitions and our intent to continue to drive positive impact in the world around us,” Leung said in a statement. “By continuing to be intentional in how we live our purpose and values, we hope to inspire our employees, communities and partners to join our journey to create a more inclusive and accessible beauty industry.”
Other new commitments announced by the company include achieving 100% Roundtable for Sustainable Palm Oil Sourcing-certified palm oil procurement by fiscal 2027, as well as setting up science-based targets for its Scope 3 emissions. E.l.f Beauty met its target for reducing its Scope 1 and 2 emissions in fiscal 2023. The company has also eliminated more than 2.5 million pounds of excess packaging since the inception of the product assortment initiative “Project Unicorn” in 2019.
Furthering its commitment to diversity and inclusion, the company on Wednesday hosted a drone show with People and Billie Jean King in Houston, marking the 50th anniversary of the tennis player’s “Battle of the Sexes” victory game. E.l.f. will donate $50,000 to the Billie Jean King Leadership Initiative, which “aims to create a world where workplaces are free of discrimination and inequality.”
The latest report comes after E.l.f. Beauty in August reported that its first-quarter net sales jumped 76% year over year to $216.3 million and its net income increased from $14.5 million last year to nearly $53 million. The company updated its fiscal 2024 guidance, now expecting net sales ranging from $792 million to $802 million instead of the previously forecasted $705 million to $720 million.
E.l.f. Beauty in August also announced it would acquire skin care brand Naturium for $355 million. The transaction is likely to close around Sept. 30 and is expected to double E.l.f. Beauty’s skin care presence to about 18% of retail sales. Naturium anticipates generating about $90 million in net sales this year.
