Friday 09 Jun 2023
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KUALA LUMPUR (Aug 4): Esthetics International Group Bhd (EIG)'s wholly-owned unit EIG Dermal Wellness (HK) Ltd (EDW) and Kate Somerville Skincare LLC have signed a distribution agreement allowing EDW exclusive rights to distribute and sell the skincare products in Hong Kong and Macau.

In a filing with Bursa Malaysia, EIG said the agreement signed yesterday (Aug 3) also grants EDW a first right of refusal for Malaysia, Singapore, Brunei, Indonesia, Thailand, Philippines, Vietnam, Cambodia, Myanmar, Laos and Taiwan.

"The agreement will enable EIG to further leverage and expand its distribution of premium skin care products through departmental stores and select retail stores in Hong Kong and Macau.

"The initial term of the agreement is for a five-year period beginning Aug 1, 2016 to July 31, 2021, which would renew automatically for another five years until July 2026," EIG said.

Kate Somerville, which was founded in 2004, is one of the US's leading dermocosmetic skincare brands currently distributed through over 900 premium retail stores in the US.

It is part of the Anglo-Dutch Unilever Plc and Unilever NV's prestige division that is exclusively dedicated to select distribution and premium personal care brands.

Unilever is one of the world's leading suppliers of food, home and personal care products with sales in over 190 countries and a consumer reach-out of two billion a day, it said.

EIG said its directors, who have considered all relevant factors, are of the view that it is in the interest of the group for EDW to enter into the agreement, which will not have any effect on the share capital and substantial shareholdings structure of EIG.

"With focused and prudent sales and marketing efforts and barring unforeseen circumstances, the agreement is expected to positively contribute to future profits, earnings per share and net assets of EIG," it said.

EIG's securities were not traded this morning.


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