Buy these 2 shares for beautiful returns

The natural beauty industry is an exciting market.

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I'm always on the lookout for new investment ideas with changing consumer trends. One growing trend that I'm interested in is the natural beauty industry.

Consumers are making a conscious choice to move away from 'unnatural' products that are supposedly bad for the body or the environment in some way.

There are a few companies that have listed onto the ASX in recent years that are taking advantage of this growing movement, such as these two:

BWX Limited (ASX: BWX)

The BWX share price has grown by 58% over the last year from $4.29 to $6.78.

It's the owner of natural beauty brands Sukin, Uspa, Edward Beale and Renew Skincare. It also recently acquired Fusion Minerals and Andalou Naturals, which expands the natural brands it owns in the USA.

BWX had a great FY17 with total revenue growing by 34%, normalised earnings before interest, tax, depreciation and amortisation (EBITDA) growing by 30.7% and normalised net profit after tax (NPAT) growing by 41.9%.

Before the USA acquisitions the most exciting thing to me was that Sukin had such large overseas growth potential. In FY17 Sukin export revenue grew by 103.2%, which is a great sign of how strongly the business is growing overseas.

With the new USA business acquisitions it's quite easy to see how the next stage of growth can really take off with Sukin entering the USA market and BWX taking its other brands into countries like Canada.

BWX is currently trading at 25x FY18's estimated earnings with a grossed-up dividend yield of 1.41%.

TRILOGYINT FPO NZX (ASX: TIL)

Trilogy is a New Zealand based company which trades on the ASX. It also has a few different businesses including consumer brands Trilogy, Ecoya and Goodness. It also owns manufacturing business Lanocorp and distribution business CS&Co.

It hasn't quite gone as global as BWX yet, which means that it has more areas to grow into. Management have got a clear focus to grow into China with its relationship with QBID which sees Triology products now sold on Tmall, Weibo, JD, VIP, Kaola and WeChat.

Trilogy is currently trading at 13x FY17's earnings.

Foolish takeaway

I'm quite excited by both businesses, particularly BWX. I think they have long-term growth potential as long as more consumers make the switch to natural products. I think both are long-term buys at the current prices.

Motley Fool contributor Tristan Harrison owns shares of BWX Limited and Trilogy International Limited. The Motley Fool Australia owns shares of BWX Limited and Trilogy International Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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