L'Oréal: News release: Sales at 30 September 2021
Sales at 30 September 2021
Sales up
+18.0%1at
the end of September
Strengthened
growth dynamic
- Sales:
23.19 billion euros
- +18.0% like-for-like1
- +18.8% at constant exchange rates
- +15.3% based on reported figures
-
Growth
acceleration over two
years: +14.9%
like-for-like in the third quarter
compared with 2019
- Balanced growth: North America
at
+23.1%1,
North Asia at
+22.6%1
-
Powerful e-commerce, up
+29.7%2
Commenting on the figures, Mr Nicolas
Hieronimus, Chief Executive Officer of L'Oréal, said:
“The Group’s sales increased by +9.3%
like-for-like over two years, compared with the first nine months
of 2019, with a remarkable acceleration in the third quarter. All
Divisions increased their growth over two years quarter after
quarter.
As the public health situation has evolved, our
employees have been safely and enthusiastically returning to the
office in many countries over the last few months. As a result
of our agility, relevant strategic choices and strong investment in
our brands, L’Oréal continues to significantly outperform a beauty
market that is gradually returning to pre-crisis levels.
All Zones and all Divisions are growing and
contributing to the Group’s well-balanced growth. The US recovery
is confirmed, and mainland China has sustained strong quarterly
growth over two years, despite a few upheavals in the summer. We
have maintained an offensive product launch strategy, and our
performance is evidence of our brands’ desirability and of consumer
demand for cutting-edge innovations. While in-store sales have
recovered, e-commerce continues to grow rapidly and accounts for
26.6% of sales.
True to our dual goal for economic and corporate
excellence, we are proud that L’Oréal USA has reached carbon
neutrality3 for all 25 of its sites. Moreover, the Group has been
recognised as a Global Compact LEAD company by the United Nations
for the seventh consecutive year, and ranked in Fortune’s
Change the World list for 2021.
Since the start of the pandemic, L’Oréal has
been constantly gaining strength and is ideally positioned to
continue to grow at its pre-crisis pace. We are more confident than
ever in this growth momentum. In an environment which remains
uncertain, our performance in the third quarter strengthens our
ambition to outperform the market and achieve a year of growth in
both sales and profits.”
Sales at 30 September 2021
Like-for-like, i.e. based on a
comparable scope of consolidation and constant exchange rates,
L’Oréal group sales grew by +18.0%.The net impact of
changes in the scope of consolidation amounted to
+0.8%.Growth at constant exchange rates was
+18.8%. Currency fluctuations had a negative
impact of -3.5%. By extrapolating the exchange rates at 30
September 2021, i.e. with €1 = $1.158 up to 31 December, the impact
of currency fluctuations on sales would be around -1.9% for the
whole of 2021.Based on reported figures, the
Group’s sales at 30 September 2021 amounted to 23.19 billion euros,
an increase of +15.3%.
Sales by Division and geographic Zone
|
3rd quarter 2021 |
At 30 September 2021 |
|
|
Growth |
|
Growth |
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
By Division |
|
|
|
|
|
|
Professional Products |
945.6 |
+10.3% |
+9.7% |
2,724.3 |
+28.7% |
+23.6% |
Consumer Products |
2,979.5 |
+3.2% |
+4.1% |
8,942.9 |
+5.2% |
+2.6% |
L’Oréal Luxe |
3,120.1 |
+20.7% |
+21.1% |
8,592.2 |
+25.4% |
+23.5% |
Active Cosmetics |
951.3 |
+28.4% |
+29.0% |
2,933.7 |
+34.5% |
+31.0% |
Group total |
7,996.6 |
+13.1% |
+13.6% |
23,193.1 |
+18.0% |
+15.3% |
By geographic Zone |
|
|
|
|
|
|
Europe |
2,567.9 |
+7.5% |
+8.3% |
7,425.0 |
+10.3% |
+10.4% |
North America |
2,210.9 |
+22.9% |
+19.2% |
5,976.6 |
+23.1% |
+15.8% |
North Asia |
2,165.9 |
+13.2% |
+17.3% |
6,836.7 |
+22.6% |
+21.3% |
SAPMENA – SSA4 |
556.8 |
+3.2% |
-0.1% |
1,650.7 |
+13.6% |
+8.4% |
Latin America |
495.1 |
+15.7% |
+21.3% |
1,304.1 |
+25.8% |
+22.2% |
|
|
|
|
|
|
|
Group total |
7,996.6 |
+13.1% |
+13.6% |
23,193.1 |
+18.0% |
+15.3% |
Summary by Division
PROFESSIONAL PRODUCTS
At the end of
September, the Professional
Products Division recorded strong growth,
at +28.7% like-for-like
and +23.6% reported.The
Division continued to strengthen its leadership in the
industry and accelerated its growth over two years, with a +22.5%
increase compared with the third quarter of 2019. This dynamic is
driven by three market trends: the digitalisation of salons, the
development of independent stylists, and the boom in e-commerce. By
winning over new salons and offering innovations that are more
inclusive than ever, the Division continued its growth trend in all
geographic Zones, with record performance in the United States,
driven by the power of the SalonCentric distribution channel.
Haircare, the number one category in terms of growth, was led by
strong performance from Kérastase with the success of innovations
such as Curl Manifesto and Genesis, and the successful launch of
Metal Detox by L’Oréal Professionnel Paris and Acidic Bonding
Concentrate by Redken. In hair colour, Shades
EQ by Redken and Dialight by L’Oréal
Professionnel Paris recorded strong performance.As a long-standing
partner to hairstylists, L’Oréal is keen to engage the entire
industry in the green transition by 2030 and is launching its
in-salon sustainability programme, “Hairstylists for the Future by
L’Oréal”, with three priorities: reducing water consumption,
managing waste and using renewable energy.
CONSUMER PRODUCTS
At the end of September, the Consumer Products Division
was up +5.2% like-for-like and +2.6% reported.
The Division outperformed the global market and
in the third quarter exceeded its 2019 performance level,
like-for-like. E-commerce continues its strong growth
momentum.Haircare drove growth thanks to the worldwide success of
Elsève, which relies on key innovations such as Wonder Water Dream
Lengths, the successful launch of Hidra Hialuronico in Latin
America and a strong acceleration in mainland China. Makeup
continued to recover thanks to the buoyancy of NYX Professional
Makeup and Maybelline New York, which benefited from an exceptional
run of launches, including Sky High mascara and Ultimatte and Shine
Loud lipsticks. Finally, facial skincare grew thanks in particular
to L’Oréal Paris – with the worldwide success of the Revitalift
franchise, the successful launch of Bright Reveal in mainland China
and UV Defender in emerging countries – as well as Garnier with
Fast Bright Booster Serum in emerging countries and Micellar
Cleansing Water with Vitamin C in the United States. At-home hair
colour saw a decline with the reopening of salons, but nonetheless
performed well over a two-year period.
L’ORÉAL LUXE
L’Oréal Luxe posted strong growth at the
end of September: +25.4% like-for-like and +23.5%
reported. With an increase over two years of +13.3%,
compared with the third quarter of 2019, the Division significantly
outperformed an already dynamic market. It saw very strong growth
in North America and also consolidated its leadership in North
Asia, driven by mainland China and Travel Retail. With the
reopening of brick-and-mortar outlets all over the world, L’Oréal
Luxe accelerated its sales both online and offline, demonstrating
the strength of its selective distribution model.Thanks to a solid
launch plan, L’Oréal Luxe continued to gain market share in its
three categories. In fragrances, growth was driven by the success
of Yves Saint Laurent, Maison Margiela and Valentino, as well as
highly promising launches of Alien Goddess by Mugler, Ralph’s Club
by Ralph Lauren and Luna Rossa Ocean by Prada. Skincare benefited
from healthy sales of Yves Saint Laurent Pure Shots and Helena
Rubinstein, Shu Uemura and Takami in Asia, as well as the
exceptional worldwide growth of Absolue by Lancôme. Lastly, the
Division strengthened its position in makeup, driven by the
solidity of Lancôme and the confirmed success of Shu Uemura in
Asia.
ACTIVE COSMETICS
At the end of September, the Active
Cosmetics Division continued to grow very strongly, at
+34.5% like-for-like and +31.0% reported. The
Division maintained its strong momentum in the third quarter,
building on last year’s already high growth rate. Its portfolio of
dermatological brands is more relevant than ever to address
consumer aspirations in terms of health and efficacy, which
strengthened during the pandemic. Sales grew in all geographic
Zones. Boosted by its digital expertise, the Division maintained
very strong growth in e-commerce.The CeraVe brand continued its
excellent breakthrough. The performance of Skinceuticals was driven
by the revolutionary innovation Silymarin CF. Vichy continued to
grow while La Roche-Posay maintained its strong momentum thanks to
the outstanding performance of Effaclar and Cicaplast, while at the
same time strengthening its footing in the dermatological sector
with the launch of two products under medical device status:
Lipikar Eczema Med and Anthélios KA SPF 100.
Summary by geographic Zone
EUROPE
At the end of September, the Zone was up +10.3%
like-for-like and +10.4% reported.In the third quarter, the
European beauty market returned close to pre-pandemic levels with a
rebalancing of online and offline sales. Several European countries
saw a recovery in the makeup and fragrance categories. In this
Zone, L’Oréal continued to win market share in the majority of
countries – most notably in the United Kingdom and Germany – as
well as in e-commerce.L’Oréal Luxe again outperformed the market in
the fragrance category. The Consumer Products Division contributed
significantly to the recovery of makeup and continued to strengthen
its positions, in particular through Maybelline, NYX Professional
Makeup and Essie. The Active Cosmetics Division grew considerably
faster than the dermocosmetics market, thanks to the strong
performance of La Roche-Posay and CeraVe. Finally, the growth of
the Professional Products Division was supported by the rollout of
its digitalisation strategy, in close partnership with its
customers.
NORTH AMERICA
At the end of September, the Zone posted strong
growth: +23.1% like-for-like and +15.8% reported. With the increase
in vaccination rates and the easing of public health restrictions,
the beauty market recorded a solid growth dynamic. In the United
States, L’Oréal outperformed the market. Skincare and fragrances
far exceeded 2019 results while haircare and makeup continued to
improve. Offline sales saw a return to growth and e-commerce more
than doubled compared with 2019. The Consumer Products Division
gained market share, particularly in makeup, thanks to the
continued success of the innovations Sky High Mascara by Maybelline
New York and Infallible powder by L’Oréal Paris. L’Oréal Luxe
outperformed the market; its reorganisation has allowed a
rebalancing of the business drivers invested in online and offline
sales channels. The Division improved on its 2019 results thanks to
successes in the fragrance category, with promising pre-holiday
launches. The Professional Products Division took a significant
leap forward compared with 2019, driven by SalonCentric and its
successful transition from a retail sales model to a full-blown
omnichannel model. Lastly, the Active Cosmetics Division continued
to accelerate, driven by the renewed success of CeraVe, La
Roche-Posay and Skinceuticals. The Division doubled its sales in
two years in this region.In advance of Climate Week NYC 2021,
L'Oréal USA announced that it has reached carbon neutrality for
Scope 1 & 2 emissions for all 25 of its US sites across
twelve states, including its manufacturing and distribution
facilities, administrative sites, and research and innovation
sites.
NORTH ASIA
At the end of September, the Zone posted strong
growth, at +22.6% like-for-like and +21.3% reported. With a still
challenging public health situation, L’Oréal once again
outperformed the market in the third quarter thanks to the strength
of its omnichannel model. Japan and South Korea were confronted
with a major resurgence of Covid-19, which had an adverse effect on
offline sales while online sales increased significantly.In
mainland China, the market slowed down as a result of public health
restrictions that led to the closure of brick-and-mortar outlets
during the summer as well as restrictions on travel, particularly
to Hainan. L'Oréal China nonetheless continued to post double-digit
growth and significantly increased its leadership in the third
quarter, with dynamic growth in all categories, especially haircare
and skincare, and selective makeup making a good recovery. Over two
years, L’Oréal China sustained a very high rate of growth, with
third-quarter sales up +42.8% compared to 2019.In the Zone, L'Oréal
Luxe continued to outperform the market with double-digit growth,
driven by the success of Lancôme and Helena Rubinstein and couture
brands such as Yves Saint Laurent making a strong comeback. In the
third quarter, Valentino opened flagship stores in Hong Kong and
Shanghai. L'Oréal Paris and Stylenanda 3CE continued to drive
growth in the Consumer Products Division while Kérastase was the
force behind the Professional Products Division. The Active
Cosmetics Division gained market share thanks to the excellent
performance of Skinceuticals and La Roche-Posay.
SAPMENA – SSA
5
At the end of September, the SAPMENA – SSA Zone
grew by +13.6% like-for-like and +8.4% based on reported figures.
In the third quarter, the SAPMENA region saw a return to pre-Covid
levels, like-for-like. This performance reflects the rapid recovery
in India with the reopening of brick-and-mortar outlets and a
strong dynamic in the Middle East and North Africa. Countries in
the Pacific and South-East Asia had to contend with restrictions
due to fresh waves of Covid in the third quarter. The acceleration
of e-commerce in the region made up for the closure of
brick-and-mortar outlets. While the makeup category remained below
pre-pandemic levels, haircare, skincare and fragrances performed
well. Growth in the Professional Products Division was driven by
the acceleration of e-commerce and the haircare category, thanks to
the remarkable success of Kérastase. The Consumer Products Division
was driven by the success of products developed specifically for
the Zone, such as Bright Complete and Color Naturals by Garnier.
L’Oréal Luxe continued to post strong growth in fragrances, thanks
in particular to Yves Saint Laurent and Armani. The Active
Cosmetics Division recorded double-digit growth.In Sub-Saharan
Africa, market recovery was more moderate due to still low
vaccination levels. L’Oréal gained market share, driven by the
exceptionally dynamic performance of the Active Cosmetics
Division.
LATIN AMERICA
At the end of September, the Zone posted strong
growth: +25.8% like-for-like and +22.2% reported. Following
occasional store closures and travel restrictions in the first half
of the year, all distribution channels are now fully open. With the
easing of public health measures, the resumption of social
interaction and the continuation of stimulus packages, the beauty
market continued to grow in almost all countries, improving on 2019
levels. L’Oréal gained market share in the Zone and posted strong
double-digit growth in all Divisions and all countries, led by
Chile, Mexico and Brazil. All categories grew, thanks to the
quality of innovations and the success of iconic brands and
products, particularly in haircare, skincare and fragrances. Elsève
increased its market share gains in Brazil, Mexico and Chile,
thanks to the highly successful launch of Hidra Hialuronico. In
addition, CeraVe continued to grow rapidly and more than doubled
sales in the Zone.
Important events during the period
1/7/21 to 30/9/21 and post-closing events
- On 31 August, L’Oréal ranked first
across all categories in the Vigéo Eiris indices. The international
non-financial rating agency evaluates companies’ governance as well
as social and environmental performance, and lists L’Oréal in the
CAC 40 ESG index.
- On 20 September, for the seventh
consecutive year, L’Oréal was recognised as a Global Compact
LEAD company by the United Nations for its continued
commitment to the Ten Principles of the UN Global Compact and for
placing the UN Sustainable Development Goals at the centre of its
growth strategy.
- On 20 September, Henkel, L’Oréal,
LVMH, Natura &Co and Unilever announced a new global
collaboration to co-develop an industry-wide environmental impact
assessment and scoring system for cosmetics products. The aim is to
co-design an approach that is brand-agnostic, and which provides
consumers with clear, transparent and comparable environmental
impact information, based on a common science-based
methodology.
- On 27 September, L’Oréal joined
Expo 2020 Dubai as the official Beauty Products and Services
Partner to share its sustainability initiatives. L’Oréal is also a
partner of the World Green Economy Summit, hosted by Expo 2020 in
the lead-up to COP26, which will focus on global cooperation to
address the challenges facing our planet, step up sustainable
development and invest in the green economy.
- On 27 September, it was announced
that ADL is to honour Jean-Paul Agon, Chairman of the L’Oréal
group, with its prestigious Courage Against Hate award in
recognition of L'Oréal’s long-standing commitment to advancing
diversity, equity and inclusion within the company and to
respecting human rights and combating antisemitism in society. The
award will be presented during the “Never is Now” summit on 7
November.
- On 28 September, Jean-Paul Agon was
granted Honorary Citizenship of Shanghai, a distinction conferred
on international entrepreneurs and experts who have contributed the
most to the economic and social development of the city.
- On 30 September, L’Oréal received
the 2021 Grand Prix Award for Corporate Governance conferred by
L’Agefi, which (in partnership with CMS Francis
Lefebvre, EcoVadis and Ethics & Boards) conducts
an independent assessment of CAC 40 and SBF 120 companies to review
their corporate governance performance.
- On 6 October, L'Oréal announced
that it had taken 5th place in the Universum 2021 global rankings
of business students’ favourite companies, moving up five spots
from 2020. The Group is the highest-ranking EU multinational
company in this prestigious ranking.
- On 13 October, the L'Oréal group
ranked in Fortune magazine’s Change the World 2021 List, which
recognises companies that have a positive social impact through
activities that are part of their core business strategy. Fortune
identified L'Oréal as a company that is changing the world through
its sustainability programme, L'Oréal for the Future.
“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. 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
2021 Q3 Results news release issued in the French language and is
provided solely for the convenience of English-speaking
readers.
Contacts at L’ORÉAL
(Switchboard: +33 1 47 56 70 00)
Individual
shareholders Financial
analysts
and and
market authorities
Institutional
investors
Journalists
Christian MUNICH
Françoise LAUVIN
Noëlle
CAMILLERITel: +33 1 47 56 72 06
Tel: +33 1 47 56 86 82
Tel: +33 6 79 92 99
39christian.munich2@loreal.com
francoise.lauvin@loreal.com
noelle.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 website for shareholders and
investors, www.loreal-finance.com or the L’Oréal Finance app;
alternatively, call: +33 1 40 14 80 50.
Appendix
L’Oréal group sales 2020/2021 (€ million)
|
2020 |
2021 |
First quarter |
7,225.2 |
7,614.5 |
Second quarter |
5,851.3 |
7,582.1 |
First half total |
13,076.5 |
15,196.6 |
Third quarter |
7,036.8 |
7,996.6 |
Nine months total |
20,113.3 |
23,193.1 |
Fourth quarter |
7,878.8 |
|
Full year total |
27,992.1 |
|
1 Like-for-like: based on comparable structures
and identical exchange rates.2Sales achieved on our brands’ own
websites + estimated sales achieved by our brands corresponding to
sales through our retailers’ websites (non-audited data).
Like-for-like.3 For Scope 1 & 2 emissions.4 SAPMENA-SSA: South
Asia Pacific, Middle East, North Africa and Sub-Saharan Africa5
SAPMENA – SSA: South Asia Pacific, Middle East, North Africa and
Sub-Saharan Africa
Grafico Azioni LOreal (BIT:OR)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni LOreal (BIT:OR)
Storico
Da Apr 2023 a Apr 2024