The BWX Limited (ASX: BWX) share price rose an impressive 5.3% today after management presented at the Macquarie Group Ltd (ASX: MQG) investor conference.
BWX is Australia's leading natural skincare company with a range of natural brands to attract consumers such as its leading line, Sukin.
One of the key statistics from BWX's presentation was that the global natural beauty and personal care market is projected to be a $50 billion industry by 2019 and it's growing at a 14% CAGR since 2015.
BWX has gone on an acquisition spree over the past year, adding US brands Mineral Fusion and Andalou Naturals to its stable. Mineral Fusion is the number one cosmetics brand in the US Natural channel and Andalou Naturals is the number one facial skincare brand in the US Natural channel.
These could be important acquisitions because Sukin's FY17 revenue was $62 million, whilst Mineral Fusion and Andalou Natural's revenue in the 2017 calendar year combined was $75 million, meaning that BWX has more than doubled the size of its business' revenue.
According to recent Nielsen Pharmacy Scan Data, Sukin has actually continued to take market share in recent periods, as at 17 January 2018.
Some investors may believe that BWX is suffering from acquisition indigestion at the moment, but its strategy could turn fruitful if it can succeed with its geographical expansion into the US and other international markets.
The US, UK, Canada and Asia are all exciting markets for BWX and over the long-term the business could generate pleasing revenue growth, which should hopefully lead to rising profit margins.
Foolish takeaway
BWX is currently trading at 24x FY18's estimated earnings. It's not trading at a bargain price, but the compounding growth over the coming years could make today's price a very reasonable entry point.
