L'Oréal: News release: "Sales at 30 September 2022"
NEWS
RELEASE
Clichy,
20 October 2022 at 6.00
p.m.
Sales at 30 September
2022
Strong growth,
sustained
pace:+20.5%
reported, +12.0% like-for-like
1
- Sales:
27.94
billion euros
- +20.5% based on reported figures
- +12.4% at constant exchange rates
- +12.0% like-for-like 1
- Significantly outperforming the global beauty
market
- Growth in all Divisions and all Zones
- Very positive impact of foreign
exchange of +8.1%
- In the third quarter, growth pace still above +20%
compared to 2019
Commenting on the figures, Nicolas Hieronimus, CEO of L'Oréal,
said:
“In a context of unprecedented volatility,
marked by the public health restrictions in China and inflation in
the Western world, L’Oréal achieved a very solid quarter,
continuing at a steady pace of growth compared to 2019. Benefiting
from its rebalancing strategy, particularly in terms of geographic
footprint, at the end of September the Group reported strong growth
of +20.5%, with a significant positive impact of foreign exchange,
and +12.0% like-for-like.
The global beauty market remained dynamic, and
consumers’ appetite for beauty products is intact. The combination
of a robust business model, agility and the commitment of its teams
across the world allowed L'Oréal to again significantly outperform
the market and strengthen its position as the world’s No.1 beauty
company.
The figures show a rebalance in the Group's
geographic footprint. All Zones made progress, including North
Asia, despite the turbulence in the Chinese ecosystem. The other
Zones achieved double-digit growth, with a significant leap in
emerging markets (SAPMENA-SSA, Latin America) and remarkable
performance in Europe. Growth is also balanced across Divisions,
each of which outperformed its market. The Consumer Products
Division has continued to accelerate since the beginning of the
year and our three selective Divisions recorded double-digit growth
over the first nine months. The performance of L'Oréal Luxe was
temporarily impacted by a number of factors in the third quarter
(repeated lockdowns in China and Hainan, and anticipated Travel
Retail invoicing in the second quarter). Nevertheless, the Division
reaccelerated in September and reached record market share in
mainland China in the third quarter.
The Group is benefiting from its valorisation
strategy, rolled out at the start of the year, the effects of which
are accelerating particularly in Europe and North America.
In line with our dual ambition of achieving
economic and societal excellence, we are proud to have been awarded
the Platinum medal by EcoVadis, which ranked L’Oréal in the world’s
top 1% of best companies in terms of environmental and social
performance. Our efforts were also recognised by Refinitiv, with
L’Oréal again included in its global Diversity & Inclusion Top
100.
Despite the current uncertainties, we remain
confident in the outlook for the global beauty market, which has
again confirmed its resilience; confident in our power to innovate;
and confident in our ability to outperform the market and achieve
another year of growth in sales and profits in 2022.”
SALES AT 30 SEPTEMBER
2022
Like-for-like, i.e. based on a
comparable scope of consolidation and constant exchange rates,
sales of the L’Oréal group grew by +12.0%.
The net impact of changes in the scope
of consolidation was +0.4%.
Growth at constant
exchange rates came out at +12.4%.
Currency
fluctuations had a positive impact of +8.1%. If the
exchange rates at 30 September 2022, i.e. €1 = $0.977, are
extrapolated until 31 December, the impact of currency fluctuations
on sales would be around +8.1% for the whole of 2022.
Based on reported figures, the
Group’s sales at 30 September 2022 amounted to 27.94 billion euros,
an increase of +20.5%.
Sales by Division and Geographic
Zone
|
3rd quarter
2022 |
At 30 September 2022 |
|
|
Growth |
|
Growth |
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
By Division |
|
|
|
|
|
|
Professional Products |
1,094.3 |
+4.3% |
+15.7% |
3,258.2 |
+10.9% |
+19.6% |
Consumer Products |
3,548.3 |
+10.0% |
+19.1% |
10,342.6 |
+8.7% |
+15.7% |
L’Oréal Luxe |
3,612.3 |
+4.6% |
+15.8% |
10,483.9 |
+12.2% |
+22.0% |
Active Cosmetics |
1,320.2 |
+26.0% |
+38.8% |
3,856.9 |
+22.6% |
+31.5% |
|
|
|
|
|
|
|
Group Total |
9,575.2 |
+9.1% |
+19.7% |
27,941.5 |
+12.0% |
+20.5% |
By Geographic
Zone |
|
|
|
|
|
|
Europe |
2,878.7 |
+10.5% |
+12.1% |
8,445.9 |
+13.0% |
+13.7% |
North America |
2,822.7 |
+9.3% |
+27.7% |
7,473.2 |
+10.8% |
+25.0% |
North Asia |
2,410.4 |
+0.3% |
+11.3% |
8,030.5 |
+7.4% |
+17.5% |
SAPMENA–SSA 2 |
787.7 |
+30.0% |
+41.5% |
2,191.1 |
+25.4% |
+32.7% |
Latin America |
675.6 |
+16.2% |
+36.5% |
1,800.9 |
+20.0% |
+38.1% |
|
|
|
|
|
|
|
Group Total |
9,575.2 |
+9.1% |
+19.7% |
27,941.5 |
+12.0% |
+20.5% |
Third-quarter sales take into account an
insurance benefit of €94.7 million following a natural disaster
which severely disrupted operations at the L’Oréal plant in
Vichy.
As a reminder, the Asian Travel Retail business
unit was relocated on 1st July 2022, which generated anticipated
invoicing of €90 million in June. This had a neutral like-for-like
impact on growth at the end of September. The move had a positive
impact of 110 basis points on second quarter like-for-like growth,
which flipped to a negative like-for-like impact of 100 basis
points in the third quarter.
Summary by Division
PROFESSIONAL
PRODUCTS
At the end of September,
the Professional Products
Division recorded growth of +10.9%
like-for-like and +19.6% reported.Strengthening its
leadership in the professional beauty market, the Division grew in
all geographic Zones, with outstanding performance in India,
mainland China, Brazil and Germany. The Division continued to
perform in all distribution channels: in salons, in its
SalonCentric network in the United States and in e-commerce,
again confirming the success of its omnichannel strategy.In the
buoyant haircare market, the Division growth was largely driven by
the performance of Kérastase and the sustained growth of Serie
Expert by L’Oréal Professionnel with Metal Detox. The Division also
recorded growth in hair colour with its iconic lines Shades EQ
by Redken and Inoa by L’Oréal Professionnel.
CONSUMER PRODUCTS
Following a remarkable increase of +10% in the
third quarter, the Consumer Products Division posted strong
growth of +8.7% like-for-like and +15.7% reported over
the first nine months.The
Division’s premiumisation strategy and valorisation contributed to
the acceleration in growth. Overall performance was boosted by the
SAPMENA-SSA and Latin America Zones, with spectacular gains in
India and Mexico; the Division also recorded solid growth in the
United States and Europe.All major brands contributed to this
impressive performance, thanks to cutting-edge innovations across
key categories. Makeup spearheaded the Division’s success, with
powerful launches including Superstay Vinyl Ink lipstick by
Maybelline New York and Bare With Me concealer serum by NYX
Professional Makeup. Haircare was also a major source of growth for
the Division, led by L'Oréal Paris and the global rollout of Elvive
Hyaluron Plump. Hair colour accelerated, and skincare maintained
its steady momentum, driven by the success of Garnier, in
particular the new Vitamin C Brightening Serum.
L’ORÉAL LUXE
With growth of +12.2% like-for-like and
+22.0% reported at the end of September, L’Oréal Luxe outperformed
the global luxury beauty market.In the third quarter, the
Division was penalised by: repeated lockdowns in China and Hainan
in the summer, anticipated invoicing in the second quarter linked
to the relocation of the Asian Travel Retail business unit, as well
as sourcing difficulties (fragrance bottles in particular). Despite
these disruptions, the Division continued to make progress in
mainland China, where it reached record market share. L’Oréal Luxe
recorded strong sales growth in Europe and in emerging markets
(SAPMENA-SSA and Latin America). In North America, the growth of
the Division was driven by the performance in fragrance.The
Division relies on strong pillars and has continued to innovate in
all three categories. In the booming fragrance market, L’Oréal Luxe
confirmed its global leadership thanks to blockbusters such as
Libre by Yves Saint Laurent and La Vie est Belle by Lancôme, as
well as highly promising launches including Paradoxe by Prada and
Armani Code. The upsurge in collection fragrances continued with
Replica by Maison Margiela and Armani Privé. In skincare, the
Division capitalised on strong innovations, including Lancôme
Rénergie Triple Serum, and maintained its tremendous momentum in
the ultra-premium segment with the success of Helena Rubinstein and
Lancôme Absolue. In North Asia, Takami recorded significant
growth. Lastly, in makeup, Yves Saint Laurent, Lancôme and Shu
Uemura all reported solid performance.
ACTIVE
COSMETICS
At the end of September, the Division
continued to achieve outstanding growth, at
+22.6% like-for-like
and +31.5% based on reported
figures.Deepening its partnership with healthcare
professionals, the Active Cosmetics Division strengthened its
recommendation-based model and grew much faster than the
dermocosmetics market. The Division achieved double-digit growth in
all Zones, with remarkable performance in North America, Europe and
SAPMENA–SSA.La Roche-Posay remained the primary contributor to
growth, driven by its main pillars Cicaplast and Effaclar, the sun
protection gamechanger UVMune 400 and the successful launch of Pure
Niacinamide 10 serum. CeraVe remained the Division’s fastest
growing brand, with a contribution to growth balanced between North
America and the rest of the world. Vichy posted double-digit
growth, spurred by the success of the Dercos haircare franchise,
the anti-aging sunscreen innovation Capital Soleil UV AGE Daily,
and Neovadiol. Skinceuticals accelerated in the third quarter,
fuelled by the excellent performance of A.G.E Interrupter
anti-wrinkle cream, and by growth in the professional medical
channel.In October, the Division finalised the acquisition of
Skinbetter Science, a US physician-dispensed skincare brand backed
by cutting-edge dermatological research.NB: Third-quarter sales
take into account an insurance benefit of €94.7 million following a
natural disaster which severely disrupted operations at the L’Oréal
plant in Vichy.
Summary by
geographic Zone
EUROPE
At the end of September, the
Zone posted strong growth, at +13.0% like-for-like and
+13.7% reported. The beauty market maintained its momentum
during the summer and L’Oréal achieved solid growth in its key
markets, strengthening its position in the majority of countries,
particularly Germany, Spain and the United Kingdom. In a context of
rising inflation, L’Oréal has valorised its product offering,
building on its brands’ appeal.The Consumer Products Division
posted accelerated growth, with very strong performance in makeup,
haircare and skincare. The Active Cosmetics Division continued to
significantly outperform the dermocosmetics market, thanks in
particular to La Roche-Posay and CeraVe, whose blemish control line
has made an excellent debut. L’Oréal Luxe reaped the benefits of
its dynamic fragrance brand portfolio, with Paradoxe by Prada and
Armani Code making a very good start. The Professional Products
Division capitalised on the strength of its position in e-commerce
as well as a buoyant premium haircare market.
NORTH
AMERICA
At the end of
September, the Zone grew by +10.8% like-for-like
and +25.0%
reported.After a soft July, the market went back to solid
growth once consumers came back from holiday. The performance was
boosted in the third quarter by higher valorisation, improved
service and balanced growth between online and brick-and-mortar.The
Consumer Products Division accelerated significantly ahead of the
market in makeup. Innovations - like Maybelline Sky High mascara
and Superstay Vinyl Ink, Garnier Micellar water and L’Oréal Paris
Elvive Hyaluron Plump - drove growth in all categories. L’Oréal
Luxe outpaced the market in fragrance, thanks to its strong
portfolio and promising launches such as Paradoxe by Prada. The
Professional Products Division continued to grow in the salon
channel and SalonCentric, with the success of Redken and Kérastase
in hair care. Overcoming supply chain tensions, the Active
Cosmetics Division substantially outperformed the dermocosmetics
market, fuelled by La Roche-Posay and CeraVe.In line with L’Oréal
for the Future commitments, L'Oréal USA was recognised by Forbes in
its top 10 America’s Best Employers for Women 2022.
NORTH ASIA
At the end of September,
the Zone achieved growth of +7.4% like-for-like
and +17.5% reported.
In challenging market conditions, L’Oréal
achieved solid growth and outperformed the beauty market. The
Active Cosmetics and Professional Products Divisions recorded
double-digit growth and increased their market share, driven by
Skinceuticals and professional haircare with Kérastase and
L’Oréal Professionnel. L’Oréal Luxe saw solid market share
gains with the success of its fragrance portfolio and of Lancôme
Absolue and Helena Rubinstein ultra-premium skincare lines, as
well as Carita, newly introduced in mainland China. The Consumer
Products Division continued to innovate, driven by L’Oréal Paris in
haircare and skincare – including the new Revitalift Filler HA
Pro-Xylane PRO cream – and recent launches by Maybelline New
York. As a consequence of the sanitary restrictions
linked to the zero-Covid dynamic in China, the beauty market was
still negative in the third quarter. In this context, L’Oréal
achieved a remarkable sell-out performance and widened the gap with
its competitors. L’Oréal Luxe achieved new record market share. In
addition, the Group continued to strengthen its position in
e-commerce, topping the rankings on the emerging TikTok/Douyin
(ByteDance) platform, with L'Oréal Paris No.1 in skincare.The
lifting of public health restrictions in South Korea and Japan
boosted the beauty market and L’Oréal achieved double-digit growth
in the third quarter, strengthening its position in these
countries.
SAPMENA–SSA 3
At the end of September, the Zone posted
very strong growth of +25.4%
like-for-like and +32.7%
reported.L'Oréal continued to grow in the SAPMENA Zone,
significantly outperforming the market. The Consumer Products
Division and L'Oréal Luxe were major contributors to growth.In
Australia, growth accelerated; the Consumer Products Division
managed to overcome sourcing pressures in makeup. Offline sales in
South-East Asia recovered significantly. In India, sales continued
to increase with a strong performance of the Professional Products
and the Consumer Products Divisions. The Group recorded solid
performance in the Gulf states.In Sub-Saharan Africa (SSA), L’Oréal
also posted very strong growth. The Active Cosmetics Division
achieved spectacular growth, with the successful launch of CeraVe
in the different countries of the region.
LATIN
AMERICA
At the end of
September, the Zone achieved outstanding growth of
+20.0% like-for-like and +38.1% reported.As the beauty
market continued to expand in the Zone’s key countries, L'Oréal
achieved significant market share gains, propelled by the
outstanding performance of the Consumer Products Division across
the Zone. All countries and all Divisions recorded double-digit
sales growth, led by Mexico. Online sales increased sharply with
L’Oréal constantly prioritising omnichannel activation in the main
countries.
IMPORTANT EVENTS DURING THE
PERIOD
1/7/22
TO
30/9/22 AND
POST-CLOSING EVENTS
- On 23 August 2022,
L’Oréal was awarded the EcoVadis Platinum medal,
with a score of 83/100, for its environmental and social
performance. This puts L’Oréal in the world’s top 1%
highest-performing companies (out of 100,000 assessed) in these
areas. The Group has notably increased its score in ethics,
sustainable procurement and human rights.
- September 2022
marked the first year of the L’Oréal for Youth
programme, which aims to provide work opportunities for
young people and takes concrete action to increase their employment
potential, especially for those from disadvantaged backgrounds who
are struggling to enter the labour market. Since its launch, the
programme has created more than 18,300 work opportunities for
under-30s and L’Oréal aims to offer 25,000 work opportunities per
year from 2022 onwards.
- On 19 September,
the L’Oréal group Chairman, Jean-Paul Agon, received the
2022 Award from the Appeal of Conscience Foundation. This
prestigious award is presented to visionary business leaders with a
sense of social responsibility who use the worldwide reach and
resources of their company to better serve the global community.
Jean-Paul Agon was recognised for his innovative leadership,
committed to respecting human dignity, diversity and
inclusivity.
- On 22 September,
L’Oréal China Corporate Venture Capital (Shanghai Meicifang
Investment Co. Ltd) announced its first investment in China, taking
a minority stake in Chinese luxury fragrance brand
Documents, backed by the venture capital fund BOLD,
Business Opportunities for L’Oréal Development.
- On 29 September,
L’Oréal was ranked 14th in the 2022 Refinitiv Diversity
& Inclusion Index, which identifies the top 100 most
diverse and inclusive companies out of 12,000 global companies
assessed according to 24 separate metrics.
- In September, as
part of its European Energy Sobriety Plan, L’Oréal signed a
contract with EDF via a Power Purchase Agreement
(PPA) to supply green electricity for its
manufacturing plants and campuses in France. From 2025, two
exclusive, 30-hectare solar parks will provide 25% of L’Oréal’s
energy in France.
- On 29 September,
after two years of renovation, L’Oréal announced the
reopening of Carita’s renowned Maison
de Beauté, at 11 rue du Faubourg Saint-Honoré. A legendary
Parisian address well-known for attracting a clientele of
unparalleled prestige, this 1,800 square-metre Maison de
Beauté will offer an immersive beauty and wellness experience
including skincare, make-up and hairdressing services, as well as
an in-house gourmet restaurant, a private beauty “apartment” and a
concept store.
- On 11 October,
L’Oréal China inaugurated two pioneering projects in the
city of Suzhou by laying the foundation stone of its first
D2C intelligent fulfilment center and announcing the opening of its
new healthy beauty workshop in the Suzhou factory. These
initiatives set a brand new standard for sustainable,
data-empowered logistics management and industrial hygiene adapted
to green sciences.
- On 14 October,
L’Oréal finalised the acquisition
of Skinbetter Science, a US physician-dispensed
skincare brand backed by cutting-edge dermatological
research, available through a network of dermatology,
plastic surgery and medical aesthetics practices.
“This news release does not constitute an offer
to sell, or a solicitation of an offer to buy L’Oréal shares. If
you wish to obtain more comprehensive information about L’Oréal,
please refer to the public documents registered in France with the
Autorité des Marchés Financiers, also available in English on our
Internet site www.loreal-finance.com.
This news release may contain some
forward-looking statements. Although the Company considers that
these statements are based on reasonable hypotheses at the date of
publication of this release, they are by their nature subject to
risks and uncertainties which could cause actual results to differ
materially from those indicated or projected in these
statements.”
This is a free translation into English of the
Sales at 30 September 2022 news release issued in the French
language and is provided solely for the convenience of
English-speaking readers. In case of discrepancy, the French
version prevails.
About
L’Oréal
For over 100 years, L’Oréal the world’s leading
beauty player, has devoted itself to one thing only: fulfilling the
beauty aspirations of consumers around the world. Our purpose
- to create the beauty that moves the world - defines our approach
to beauty as inclusive, ethical, generous and committed to social
and environmental sustainability. With our broad portfolio of
35 international brands and ambitious sustainability commitments in
our L’Oréal For The Future programme, we offer each and every
person around the world the best in terms of quality, efficacy,
safety, sincerity and responsibility, while celebrating beauty in
its infinite plurality.
With 85,400 committed employees, a balanced
geographical footprint and sales across all distribution networks
(e-commerce, mass market, department stores, pharmacies, hair
salons, branded and travel retail) in 2021 the Group generated
sales amounting to 32.28 billion euros. With 20 research
centers across 11 countries around the world, a dedicated Research
and Innovation team of 4,000 scientists and over 3,000 tech
professionals, L’Oréal is focused on inventing the future of beauty
and becoming a Beauty Tech powerhouse.
More information
on https://www.loreal.com/en/mediaroom
L’ORÉAL
CONTACTS
Switchboard+33
(0) 1 47 56 70 00 |
Individual
Shareholders and
Market
Authorities Mr. Christian
Munich+33 (0)1 47 56 72 06christian.munich2@loreal.com |
Investor
relations Ms. Françoise Lauvin+33 (0)1 47 56 86
82francoise.lauvin@loreal.com |
Journalists Ms. Noëlle Camilleri+33 (0)6 79
92 99 39noelle.camilleri@loreal.com |
|
For more information, please contact your bank,
broker or financial institution (I.S.I.N. code: FR0000120321), and
consult your usual newspapers, the Internet site for shareholders
and investors, www.loreal-finance.com or the L’Oréal Finance app,
alternatively, call +33 1 40 14 80 50.
This
press release has been secured and authenticated with the
blockchain technology.You can verify its authenticity on the
website www.wiztrust.com
Appendix
L’Oréal group sales
2021/2022
(€ million)
|
2021 |
2022 |
First quarter |
7,614.5 |
9,060.5 |
Second quarter |
7,582.1 |
9,305.8 |
First half total |
15,196.6 |
18,366.3 |
Third quarter |
7,996.6 |
9,575.2 |
Nine months total |
23,193.1 |
27,941.5 |
Fourth quarter |
9,094.4 |
|
Full year total |
32,287.6 |
|
1 Like-for-like: based on a comparable structure
and identical exchange rates.2 SAPMENA–SSA: South Asia Pacific,
Middle East, North Africa, Sub-Saharan Africa3 SAPMENA – SSA: South
Asia Pacific, Middle East, North Africa, Sub-Saharan Africa
Grafico Azioni LOreal (EU:OR)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni LOreal (EU:OR)
Storico
Da Apr 2023 a Apr 2024