Why the BWX (ASX:BWX) share price is charging higher today

The BWX Ltd (ASX:BWX) share price is charging higher on Monday after providing an update on its European expansion plans…

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The BWX Ltd (ASX: BWX) share price is charging higher on Monday.

In morning trade the personal care products company's shares are up over 4% to $4.22.

An investor sits at her desk and stretches her arms above her head in delight.

Image source: Getty Images

What did BWX announce?

This morning BWX announced a strategic partnership with British ecommerce company THG Holdings.

According to the release, THG will provide a full-service solution, including localised digital capabilities for taking BWX brands direct to consumers across Europe and Asia.

THG Ingenuity, the technology services division of Manchester Airport-based THG Holdings, is a global proprietary technology platform. It specialises in taking brands direct to consumers.

Management notes that the agreement will provide BWX with an end-to-end e-commerce solution and access to THG's digital platform and full-service supply chain to build more meaningful scale for the company's brand portfolio across Europe and Asia.

What now?

BWX has advised that the collaboration will initially target five priority markets. After which, it is aiming to increase this to 14 markets by FY 2022.

Management expects this to play a key role in the company achieving its targeted revenues of between A$30 million and A$50 million from the European region by the end of FY 2023.

Also part of its strategy in the region is expanding the Sukin brand across all priority sales channels. This includes Supermarkets and Hypermarkets, European Drugstores, and E-Retailers. The Andalou Naturals brand is then expected to follow in FY 2022.

It is also aiming to drive brand activity via direct-to-consumer channels and re-position the Sukin brand for the European market. The latter includes maximising its Australian provenance and the A-Beauty trend across Europe.

BWX's Chief Operating Officer, Rory Gration, believes the partnership with THG is an important step for bringing its product innovation to more consumers at a time when the Natural beauty category is thriving.

He commented: "We are delighted to announce our partnership with THG, as we leverage the already-strong consumer connection to our brands Sukin and Andalou Naturals in the UK market over recent years."

"Combining BWX's house of Natural brands and insights with THG's digital brand services, cross-border expertise and sophisticated technology means we can build more meaningful brand footprints in what is a fast-evolving retail environment," Mr Gration concluded.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BWX 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 Scott Phillips.

More on Share Gainers

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a very unhappy hump day on the markets.

Read more »

A young woman holding her phone smiles broadly and looks excited, after receiving good news.
Share Gainers

Why Ampol, Meteoric Resources, Praemium, and Treasury Wine shares are storming higher

These shares are having a better day than most on hump day. But why?

Read more »

A close up of a casino card dealer's hands shuffling a deck of cards at a professional gambling table with the eager faces of casino patrons in the background.
Share Gainers

Why is everyone buying Tabcorp shares this week?

Here's what is driving the latest price momentum for Tabcorp shares, and what to expect next.

Read more »

A group of people clink wine glasses in an outdoor, late afternoon setting to celebrate the rising Treasury Wine share price
Consumer Staples & Discretionary Shares

Why are Treasury Wine shares rocketing 16% today?

Investors are piling into Treasury Wine shares on Wednesday. But why?

Read more »

A team of people giving the thumbs up sign.
Share Gainers

This ASX 200 stock has jumped 149% in a year, and brokers tip more upside to come

The business has experienced huge demand across both of its two core business segments.

Read more »

Woman sitting at a desk shrugs.
Share Gainers

Up over 70% in a month, is it too late to buy Zip shares?

Zip shares keep climbing higher, is there any more upside left?

Read more »

Girl with painted hands.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a disappointing Tuesday for investors.

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
Share Gainers

Why Artrya, Cleanaway, DroneShield, and Nuix shares are pushing higher today

These shares are outperforming on Tuesday. But why?

Read more »