First quarter 2023 sales
VERY STRONG START:
+13.0% LIKE-FOR-LIKE1 , +14.6%
REPORTED
- Sales: 10.38 billion euros, +13.0%
like-for-like1, +14.6% based on reported figures.
- Another quarter of market outperformance,
further strengthening L’Oréal’s position as the global leader in
beauty.
- Growth in all Divisions, with outstanding
performance from the Dermatological Beauty and Consumer Products
Divisions.
- Growth in all geographic Zones, with a
spectacular performance in emerging markets. Strong double-digit
growth in every Zone, except for North Asia due to a reduction of
stock-in-trade in mainland China at the very beginning of the
year.
- Growth in both value and volume.
- Named one of the world’s most ethical companies by
Ethisphere, for the 14th time.
- Equileap Gender Equality Ranking: 11th
worldwide and number one in France, among 3,500 companies in 23
countries.
- Agreement with Natura &Co to acquire
Aēsop, the Australian luxury beauty brand.
Commenting on the figures, Nicolas Hieronimus, CEO of L'Oréal,
said:
“In a beauty market that remains very dynamic, L’Oréal has
maintained strong growth momentum and posted an excellent first
quarter, with sales up +13.0% like-for-like1 and
+14.6% reported. Boosted by valorised innovations in all Divisions
and the engagement of our teams around the world, L’Oréal has
outperformed the maket in all geographic Zones and strengthened its
leadership position. This performance, which has yet to benefit
from China’s reopening, demonstrates the strength of L’Oréal’s
balanced multipolar model.
I am thrilled to soon welcome the magnificent Aēsop brand and
its teams, which will reinforce L’Oréal Luxe.
Mindful of the current uncertainties, we remain optimistic about
the outlook for the beauty market, ambitious for the future and
confident in our ability to keep outperforming the market and
achieve another year of growth in sales and profits in 2023.”
FIRST QUARTER 2023 SALES
Like-for-like,
i.e. based on a comparable scope of consolidation and constant
exchange rates, Group sales increased by +13.0%.
The net impact of changes in the scope of
consolidation was +1.0%.
Growth at constant exchange
rates amounted to +14.0%.
Currency fluctuations had a
positive impact of +0.6%. Extrapolating the exchange rates of
31 March 2023, (i.e. €1 = $1.0893) until 31 December, would lead to
a negative currency impact of around -4.0% on 2023 full-year
sales.
On a reported basis, Group sales increased by
+14.6% to 10.38 billion euros.
Sales by Division and Geographic
Zone
|
Quarterly sales |
Evolution |
€m |
1st quarter 2022 |
1st quarter 2023 |
Like-for-like |
Reported |
By Division |
|
|
|
|
Professional Products |
1,041.3 |
1,143.6 |
+7.6% |
+9.8% |
Consumer Products |
3,302.9 |
3,821.5 |
+14.7% |
+15.7% |
Luxe |
3,463.7 |
3,729.6 |
+6.5% |
+7.7% |
Dermatological Beauty 1 |
1,252.7 |
1,685.7 |
+30.6% |
+34.6% |
|
|
|
|
|
Group Total |
9,060.5 |
10,380.4 |
+13.0% |
+14.6% |
By Geographic Zone |
|
|
|
|
Europe |
2,854.5 |
3,327.6 |
+16.0% |
+16.6% |
North America |
2,203.9 |
2,693.8 |
+16.6% |
+22.2% |
North Asia |
2,801.8 |
2,833.8 |
+1.9% |
+1.1% |
SAPMENA – SSA 2 |
681.1 |
840.8 |
+26.7% |
+23.5% |
Latin America |
519.2 |
684.4 |
+22.3% |
+31.8% |
|
|
|
|
|
Group Total |
9,060.5 |
10,380.4 |
+13.0% |
+14.6% |
Summary by Division
PROFESSIONAL PRODUCTS
At the end of March, the Professional
Products Division recorded strong growth, at +7.6% like-for-like
and +9.8% reported.
Professional Products continued to grow across all
geographic Zones, with outstanding performance in mainland China,
India and the United Kingdom. The Division continued to perform in
all distribution channels: in salons, in its SalonCentric network
in the United States, in e-commerce and in the selective
channel.
Growth in the dynamic haircare market was primarily
driven by Kérastase, with its Symbiose anti-dandruff range off
to an excellent start, and the great success of Série Expert by
L’Oréal Professionnel, with Metal Detox. The Division continued to
grow in hair colour, with its iconic lines Shades EQ Gloss by
Redken and Inoa by L’Oréal Professionnel.
As the industry leader, the Division continues the
rollout of its “Hairstylists for the Future” programme, encouraging
all partner hairstylists to commit to a sustainable
transformation.
CONSUMER PRODUCTS
The Consumer Products Division was off to a
very strong start, growing at +14.7% like-for-like and +15.7%
reported.
The Division outperformed the market, successfully
pursuing its premiumisation strategy while delivering significant
volume growth.
The Division achieved remarkable performances in
Europe and North America, and continued its strong growth momentum
in emerging markets, notably in India, Mexico, Brazil and
Thailand.
Each of the Division’s global brands recorded
double-digit growth and outperformed the market, powered by
successful innovations across all categories. Makeup was the
fastest growing category, with new launches including Telescopic
Lift Mascara by L’Oréal Paris, Bare With Me Blur Tint foundation by
NYX Professional Makeup, and the “nude” extension of Maybelline New
York’s lipstick Superstay Vinyl Ink. In haircare, Elvive Bond
Repair by L’Oréal Paris had a spectacular start, allowing the
Division to achieve exceptional growth in the category. Skincare
was also very dynamic, driven by the combined success of L’Oréal
Paris’ new Revitalift Clinical Vitamin C Serum and Garnier’s new
anti-acne innovations. Hair colour achieved significant growth.
LUXE
L’Oréal Luxe recorded growth of +6.5%
like-for-like and +7.7% reported in the first quarter.
The Division's growth accelerated compared with the
previous quarters. Sales grew strongly in all geographic Zones
except North Asia, where they were flat due to a reduction of
stock-in-trade in mainland China at the very beginning of the
year.
In fragrances - the most dynamic category in the
luxury beauty market - the Division further expanded its lead,
driven by the success of Yves Saint Laurent and its three main
pillars Libre, Y and Black Opium. The couture brands’ initiatives
also confirmed their very strong potential, in particular
Valentino's Born In Roma, Mugler's Angel Elixir and Prada's Luna
Rossa Ocean and Paradoxe. The performance of L'Oréal Luxe in
skincare was driven in particular by the remarkable success of
Helena Rubinstein and Takami. The Division saw an acceleration in
makeup in North America.
DERMATOLOGICAL BEAUTY4
At the end of March, the Division posted
outstanding growth of +30.6% like-for-like and +34.6%
reported.
The Division grew significantly faster than the
global dermocosmetics market, which continued to expand. The
Division built on its close collaboration with healthcare
professionals and a brand portfolio perfectly aligned with
consumers’ quest for health.
The Division posted high growth in all geographic
Zones, with an acceleration in Europe and in emerging markets.
La Roche-Posay, the primary contributor to the
Division’s growth, achieved an outstanding performance, fuelled by
the ongoing success of the breakthrough suncare innovation
Anthelios UVmune 400 and the successful relaunch of Cicaplast,
powered by the most advanced microbiome science. CeraVe continued
its outstanding growth in both North America and the rest of the
world. SkinCeuticals accelerated and the recently acquired brand
SkinBetter Science had an excellent quarter.
Summary by geographic Zone
EUROPE
The Zone accelerated and recorded growth of
+16.0% like-for-like and +16.6% reported.
The European beauty market remained dynamic in the
first quarter, driven by the makeup, fragrance and skincare
categories, again demonstrating consumers’ appetite for beauty.
Growth was solid in both volume and value, with
remarkable performances in Germany, the United Kingdom, France,
Spain, Italy, Scandinavia and Poland. L’Oréal outperformed the
market in all segments. The Consumer Products Division achieved
outstanding growth, fuelled by the success of the makeup brands
Maybelline New York and NYX Professional Make Up, as well as very
promising launches by L’Oréal Paris and Garnier. The Dermatological
Beauty Division grew significantly faster than its market, driven
by La Roche-Posay, which strengthened its leadership, and CeraVe.
L’Oréal Luxe benefited from strong growth in fragrances. Growth in
the Professional Products Division was driven by valorisation in
both hair colour and haircare.
NORTH AMERICA
The Zone grew by +16.6% like-for-like and
+22.2% reported.
L’Oréal’s growth continued to accelerate thanks to
its innovation capacity and valorisation strategy. The Consumer
Products Division benefited from successful innovations by
Maybelline New York and L’Oréal Paris in makeup, Garnier in
skincare and L'Oréal Paris in haircare. L’Oréal Luxe achieved
strong growth, fuelled by its unique fragrance portfolio, including
the remarkable success of Prada Paradoxe. Growth continued in the
Professional Products Division, driven by haircare – especially
among selective retailers and online – and the successful
innovations of L'Oréal Professionnel and Redken. The Dermatological
Beauty Division continued its outstanding growth, outperforming its
market thanks to the success of CeraVe, La Roche-Posay and the
recently acquired brand Skinbetter Science.
NORTH ASIA
In a contrasted environment, the Zone
recorded growth of +1.9% like-for-like and +1.1%
reported.
The beauty market remained dynamic in Japan and
South Korea but declined in continental China at the very beginning
of the year as a result of the evolution of the health situation,
which led to destocking in January.
From February, Chinese consumer demand for beauty
resumed, as did footfall in brick-and-mortar. Its unrivalled brand
portfolio coupled with its omnichannel strategy allowed L’Oréal to
outperform the Chinese market, demonstrating once again its ability
to navigate uncertainty with agility.
The gradual resumption of travel allowed Hong Kong,
Macau and Hainan to welcome an increasing number of tourists: an
opportunity that L’Oréal was ready to seize.
In Japan and South Korea, L’Oréal significantly
outperformed the market and maintained strong momentum, led by the
remarkable performance of the Consumer Products Division and strong
growth of L’Oréal Luxe.
The Dermatological Beauty and Professional Products
Divisions recorded very strong performance in the Zone.
SAPMENA – SSA5
The Zone achieved remarkable growth of
+26.7% like-for-like and +23.5% reported.
In SAPMENA, L’Oréal saw remarkable growth in all
Divisions and categories. The Consumer Products Division, in
particular, achieved exceptional growth across the entire Zone,
benefiting from the recovery of makeup sales. Momentum in the
Dermatological Beauty Division was fuelled by the success of La
Roche-Posay and CeraVe in all markets while fragrances boosted
L’Oréal Luxe growth.
Sales growth in SAPMENA was notably driven by
Australia and the rebound in tourism in Thailand; in India,
performance was boosted by the dynamism of e-commerce and the
skincare and haircare categories in both consumer and professional
channels. The Gulf States and Egypt recorded outstanding
performance.
In Sub-Saharan Africa (SSA), L’Oréal continued to
post very strong growth, driven in particular by the Consumer
Products and Dermatological Beauty Divisions.
LATIN AMERICA
The Zone recorded very strong growth of
+22.3% like-for-like and +31.8% reported in a beauty
market that continued to expand in key markets.
All countries and all Divisions achieved strong
growth, with Brazil and Mexico being the biggest contributors, and
the Consumer Products and Dermatological Beauty Divisions
performing strongly. Makeup sales accelerated significantly, driven
by the outstanding performance of Maybelline New York. In skincare,
the innovations from La Roche-Posay and CeraVe enjoyed great
success; other strong contributors were L'Oréal Paris and Garnier.
Haircare sales increased significantly, driven by the solid
performance of Elvive.
E-commerce was very dynamic, thanks to a successful
omnichannel activation strategy.
⁎⁎⁎
IMPORTANT EVENTS DURING THE PERIOD 1/1/23 TO
31/3/23 AND POST-CLOSING EVENTS
STRATEGY
- On 3 April, L’Oréal announced that it had signed an
agreement with Natura &Co to acquire Aēsop, the
Australian luxury beauty brand. Created in 1987, Aēsop is a global
super brand known for its skin, hair and body products, available
across luxury retail, beauty and hospitality locations around the
world. Aēsop operates online and in around 400 exclusive points of
sale across the Americas, Europe, Australia and Asia, with a
nascent footprint in China where the first store opened in 2022.
The closing is subject to certain regulatory approvals and other
customary conditions.
RESEARCH, BEAUTY TECH AND DIGITAL
- In March, the venture capital fund BOLD (Business
Opportunities for L'Oréal Development) invested in a biotechnology
venture led by Geno. The investment will contribute to the
development of new sustainable ingredients derived from living
organisms: harnessing Geno’s biotechnology expertise, L'Oréal will
replace traditional ingredients with biosourced alternatives, such
as those produced from plant sugars. These new ingredients will be
used in a range of L’Oréal’s products, marking an essential step
towards the Group’s goals of 100% eco-designed products and 95% of
ingredients in its formulas biosourced, derived from abundant
minerals or circular processes by 2030.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
PERFORMANCE
- In March, L’Oréal was again ranked among the world’s
most gender-equitable companies by Equileap. L’Oréal was
ranked number one in France in Equileap’s 2023 Gender Equality
Ranking and placed 11th globally among 3,500 companies in 23
countries. Since Equileap’s launch six years ago, L’Oréal has been
recognised in every ranking published.
- L'Oréal has been recognised by the international
organisation Ethisphere as one of the World’s Most Ethical
Companies for the 14th time. The award recognises the
Group’s long-term commitment and its role as a leader in applying
ethical principles to its sales practices, business and corporate
culture.
- The rating agency Sustainalytics granted “Industry Top
Rated” status to L'Oréal in its 2023 ESG Risk Ratings.
With a score of 19.1, the Group is classified as a “Low Risk"
company and a top-rated performer within the industry, ranking 5th
out of 105 in the Household Products group.
- The Fragrance Foundation has announced that it
will honour Nicolas Hieronimus, L’Oréal’s Chief Executive
Officer, with its prestigious Hall of Fame Award in New York in
June 2023. The award seeks to honour the extraordinary
contribution of Nicolas Hieronimus to the fragrance industry for
more than a decade, as well as his leadership and vision,
reflecting the values of environmental responsibility, diversity,
equity and inclusion promoted by the Foundation.
FINANCIAL INFORMATION
- On 16 March, the 2022 Universal Registration
Document was filed with the Autorité des Marchés
Financiers. It is made available to the public according to the
terms of the regulations in force and may be viewed on the
www.loreal-finance.com website.
“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
website www.loreal-finance.com.
This news release may contain some forward-looking
statements. While the Company believes that these statements are
based on reasonable assumptions as of the date of publication of
this press release, they are by nature subject to risks and
uncertainties which may lead to a discrepancy between the actual
figures and those indicated or suggested in these statements.”
This is a free translation into English of the 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 Groupe
For over 110 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 36
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 87,400 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 2022 the Group generated
sales amounting to 38.26 billion euros. With 20
research centres across 11 countries around the world and a
dedicated Research and Innovation team of over 4,000 scientists and
5,500 tech and digital 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
Pascale Guerin +33 (0)1 49 64 18 89
pascale.guerin@loreal.com
Investor relations
Françoise Lauvin +33 (0)1 47 56 86 82
francoise.lauvin@loreal.com
Journalists
Noëlle Camilleri +33 (0)6 79 92 99 39
noelle.camilleri@loreal.com
Christine Burke +33 (0)6 75 54 38 15
christine.burke@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 website for shareholders and investors,
www.loreal-finance.com or the L’Oréal Finance app; alternatively,
call +33 (0)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 2022/2023 (€
million)
|
2022 |
2023 |
First quarter |
9,060.5 |
10,380.4 |
Second quarter |
9,305.8 |
|
First half total |
18,366.3 |
|
Third quarter |
9,575.2 |
|
Nine months total |
27,941.5 |
|
Fourth quarter |
10,319.1 |
|
Full year total |
38,260.6 |
|
1 Like-for-like: based on a comparable structure
and identical exchange rates.
2 Formerly known as the Active Cosmetics
Division.
3 SAPMENA – SSA: South Asia Pacific, Middle East,
North Africa, Sub-Saharan Africa.
4 Formerly known as the Active Cosmetics
Division.
5 SAPMENA – SSA: South Asia Pacific, Middle East,
North Africa, Sub-Saharan Africa
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