Nicolas Hieronimus, CEO of L’Oréal, said,
“We delivered solid, broad-based growth of +5.1%, once again outperforming the global beauty market. Excluding North Asia, where the Chinese ecosystem remained challenging, sales advanced in high single digits. I am particularly proud of the quality of the P&L management as the Group achieved record gross and operating margins. At 20%, the latter increased 20 basis points. On a comparable basis, excluding Aesop, our operating margin grew 40 basis points, and that after a 10 basis points increase in our brand fuel.”
Results by Division
The Professional Products Division reported a growth of 5.3% like-for-like, and 5.0% reported growth.
The Professional Products Division outperformed in the professional beauty market, supported by its strong momentum in premium haircare and its winning omnichannel strategy, with growth in e-commerce and selective distribution channels.
The Consumer Products Division reported a growth of 5.4% like-for-like and 5.3% reported. Momentum was well balanced across volume, price, and mix, as the Consumer Products Division pursued its strategy to democratize and premiumize the mass beauty market.
L’Oréal Luxe grew by 2.7% like-for-like and increased by 4.5%, as reported.
Results by Region
Sales in Europe advanced by 8.2 % like-for-like, and 9.3% reported. The European region was the largest contributor to growth.
Sales in North America grew by 5.5% like-for-like and increased by 5.9% as reported. In the USA, growth was driven by continued channel expansion and valorization.
Sales in Latin America advanced by 11.0% like-for-like and 13.3% as reported. Growth was fueled by well-balanced contributions from value and volume.
Sales in North Asia decreased by 3.2% like-for-like and 3.4% as reported. In mainland China, beauty market growth was negative, strongly impacted by the softness in the selective segment. L’Oréal Luxe, Dermatological Beauty, and Professional Products outpaced their respective markets; Consumer Products slightly underperformed in the mass market.
Sales in SAPMENA-SSA grew by 12.3% like-for-like and by 12.0% as reported. In SAPMENA, growth was broad-based, with all contributing categories and divisions; it was driven by price and volume.
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