Clichy, 30 October 2018 at 6:00 p.m.
Sales at 30 September 2018 Strong growth: +6.8% over the first nine months
[1]
-
Sales: 19.86 billion
euros
-
Strong growth at L'Oréal Luxe
and Active Cosmetics
-
Performance remains contrasted
by Division and by geographic Zone
-
Reduced impact of exchange rate
effects
Commenting on the figures, Mr Jean-Paul Agon, Chairman and Chief
Executive Officer of L'Oréal, said:
"After an
acceleration in the third quarter, with the highest quarterly
growth rate for 10 years, L'Oréal's sales have shown strong growth
over the first nine months of the year.
In a beauty
market that continues to accelerate, driven by robust growth in
skincare, the Group maintains its strong momentum, with contrasted
performances between the Divisions. L'Oréal Luxe is showing dynamic
growth, underpinned in particular by its four biggest brands,
Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl's. The Active
Cosmetics Division, which continues to post double-digit growth, is
being driven worldwide by consumer aspirations for dermocosmetics
and the quality of its brand portfolio. The Consumer Products
Division is held back by persistent difficulties in some countries.
The L'Oréal Paris and Maybelline New York brands are however
maintaining their good momentum. The performance of the
Professional Products Division, which is continuing its
transformation, is stable.
This quarter also confirms the power of our major
global brands, which are delivering an excellent performance at a
time when the offer in beauty products is particularly
rich.
Across the
geographic Zones, the New Markets are accelerating once again. The
Group is growing rapidly in Asia, especially in China where the
boom in luxury products continues. The pace of growth remains
moderate in North America, while the situation of sales in Western
Europe is still difficult, particularly in the United
Kingdom.
Travel Retail is also posting rapid growth at
+29.9% 1.
The acceleration
in the growth of the Group, combined with that of the market, is
also the result of L'Oréal's lead in digital beauty, particularly
in e-commerce [2], which has
grown by +38.3% 1
and represents 9.7% of sales.
Overall,
L'Oréal's good performance during the quarter and in the first nine
months reinforces our confidence in the dynamism of the cosmetics
market and in our ability to outperform it, in order to achieve
significant like-for-like sales growth 1 this year,
together with an increase in our profitability."
Sales at 30 September 2018
Like-for-like, i.e. based on
a comparable structure and identical exchange rates, sales growth
was +6.8%.
The net impact of changes in the scope of
consolidation was +0.6%.
Growth at constant exchange rates
was +7.4%.
Currency fluctuations had a negative
impact of -5.6%. If the exchange rates at 28 September 2018, i.e.
€1 = $1.158, are extrapolated up to 31 December 2018, the impact of
currency fluctuations on sales would be approximately -4.7% for the
whole of 2018.
Based on reported figures, the Group's sales,
at 30 September 2018, amounted to 19.86 billion euros, an increase
of +1.8%.
Sales by operational Division and geographic
Zone
|
3rd quarter
2018 |
At 30 September 2018 |
|
|
Growth |
|
Growth |
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
By operational Division |
|
|
|
|
|
|
Professional Products |
773.7 |
+1.5% |
-0.7% |
2,405.2 |
+1.6% |
-4.5% |
Consumer
Products |
2,853.7 |
+2.3% |
+1.2% |
8,990.5 |
+2.4% |
-2.4% |
L'Oréal
Luxe |
2,324.3 |
+15.6% |
+14.8% |
6,715.7 |
+14.2% |
+8.8% |
Active
Cosmetics |
521.6 |
+13.1% |
+9.7% |
1,752.5 |
+11.9% |
+8.8% |
Group total |
6,473.3 |
+7.5% |
+6.2% |
19,864.0 |
+6.8% |
+1.8% |
By geographic Zone |
|
|
|
|
|
|
Western
Europe |
1,855.9 |
-0.7% |
-1.0% |
5,989.9 |
-0.8% |
-1.4% |
North
America |
1,820.7 |
+2.7% |
+3.2% |
5,385.1 |
+2.9% |
-3.6% |
New
Markets, of which: |
2,796.7 |
+17.1% |
+13.7% |
8,489.0 |
+15.9% |
+8.2% |
- Asia Pacific |
1,794.2 |
+25.8% |
+26.2% |
5,342.3 |
+23.3% |
+17.2% |
- Latin America [3] |
438.7 |
+1.3% |
-8.5% |
1,321.3 |
+0.6% |
-9.8% |
- Eastern Europe |
400.6 |
+11.7% |
+2.1% |
1,300.0 |
+9.2% |
-0.1% |
- Africa, Middle East [4] |
163.2 |
-1.6% |
-2.2% |
525.3 |
+7.6% |
+0.6% |
Group total |
6,473.3 |
+7.5% |
+6.2% |
19,864.0 |
+6.8% |
+1.8% |
PROFESSIONAL PRODUCTS
At the end of
September, the Professional Products Division posted +1.6%
like-for-like growth and -4.5% based on reported
figures.
All the geographic Zones are growing, except for Western Europe,
still impacted by the sluggishness of some markets. The United
States and the Asia Pacific Zone, driven by India and China,
continue to grow.
Hair colour is benefiting from the strong growth of Shades EQ by Redken, the dynamic
contribution of SoColor Cult by Matrix and the launch of Botanéa,
the plant-based hair colour by L'Oréal
Professionnel. Haircare is driven by Kérastase, boosted by the success of Resistance Extentioniste and the robust performance of
Fusio-Dose, the customised in-salon haircare
treatment. At L'Oréal Professionnel, the
Source Essentielle natural haircare range
roll-out continues.
CONSUMER PRODUCTS
The Consumer
Products Division achieved a growth rate of +2.4% like-for-like at
the end of September, and -2.4% based on reported
figures.
The L'Oréal Paris and Maybelline New York brands are very dynamic. Facial
skincare is accelerating, thanks to the success of L'Oréal Paris in anti-ageing with the Revitalift Filler and Laser
launches, and the successful expansion of Garnier in facial cleansing with Micellar Cleansing Waters and the Pure
Active range. The success of Men Expert by
L'Oréal Paris is also contributing to the
acceleration of men's facial skincare. Makeup is being driven by
the good momentum of L'Oréal Paris and
Maybelline New York, whose Superstay Matte Ink lipstick is very successful all
over the world. In haircare, Elseve is
accelerating thanks to Dream Lengths and
Fructis is speeding up thanks to the Hair Foods launch.
The Division is still facing challenges in Western Europe, although
there was an improvement in the third quarter. It continues to face
a tough market in Brazil. It is growing in the other geographic
Zones, thanks to good performances in China, India and Turkey in
particular.
E-commerce sales are growing strongly.
L'ORÉAL LUXE
L'Oréal Luxe
posted growth of +14.2% like-for-like and +8.8% based on reported
figures at the end of September, after excellent third quarter
growth of +15.6% like-for-like.
The Division is outperforming the market and continuing to
accelerate strongly in facial skincare.
Lancôme is setting new records thanks to its
successes in skincare, with the Génifique and
Absolue franchises, and in makeup with
Teint Idole Ultra. Kiehl's is accelerating in skincare, with an excellent
performance from Line-Reducing Concentrate.
Yves Saint Laurent and Giorgio Armani are posting double-digit growth thanks
to their success in fragrances, with Black
Opium, Sì Passione and Acqua di Giò Absolu, and in foundations. IT Cosmetics continues to expand with the launch of the
brand in France and Germany. The good start made by Atelier Cologne in Asia is continuing.
L'Oréal Luxe is growing strongly in Asia Pacific [5],
especially in China and Hong Kong, and in Travel Retail. Eastern
Europe and Latin America are both performing well. Furthermore, the
e-commerce acceleration is continuing, thanks in particular to our
brands' successes on Tmall.
ACTIVE COSMETICS
The Active
Cosmetics Division continued to accelerate for the fourth
consecutive quarter, and at the end of September posted growth of
+11.9% like-for-like and +8.8% based on reported
figures.
The Division is winning market share in all geographic Zones, with
particularly dynamic growth in North America and Asia.
All the major brands are contributing to the Division's growth.
La Roche-Posay posted solid double-digit
growth at the end of September, and its Hyalu
B5, Anthélios, Tolériane and Effaclar franchises
are among the top contributors to the Division's growth. At
Vichy, growth is still being driven by the
success of Minéral 89 and the promising launch
of its Liftactiv Collagen Specialist range.
SkinCeuticals continues to post spectacular
growth, especially in Asia. CeraVe is now
available in 30 countries outside North America and is maintaining
its sustained growth in the United States.
Summary by geographic
Zone
WESTERN EUROPE
The Zone posted growth of -0.8%
like-for-like and -1.4% based on reported figures. It is still
being held back by the market slowdown in the United
Kingdom.
L'Oréal Luxe is winning market share in fragrances and skincare,
thanks to the dynamic growth of the Giorgio
Armani, Kiehl's and Lancôme brands in particular. Growth in the Active
Cosmetics Division has accelerated thanks to La
Roche-Posay and the roll-out of the CeraVe
brand. The Consumer Products Division has been winning back market
share in France since the summer and strengthening its leadership
in makeup with the Maybelline New York and
Essie brands. Its skincare market share
however dropped slightly. The launches of Elseve
Dream Lengths by L'Oréal Paris and
Fructis Hair Food by Garnier are continuing to prove successful.
NORTH AMERICA
The Zone recorded growth of +2.9%
like-for-like and -3.6% based on reported figures. The Consumer
Products Division is winning market share thanks to L'Oréal Paris, Maybelline New York and Essie, and performing very strongly in makeup and hair
colour. L'Oréal Luxe is maintaining its impetus thanks to
strong growth at Kiehl's. Growth is also being
driven by fragrance sales with the Giorgio
Armani and Yves Saint Laurent brands. In
the Professional Products Division, Redken and
Matrix are posting good growth rates,
particularly in hair colour, and the new acquisition, Pulp Riot, is growing rapidly. The
Active Cosmetics Division is matching its strong first-half
performance with the CeraVe, SkinCeuticals,
La Roche-Posay and Vichy
brands.
NEW MARKETS
Asia Pacific:
Growth in this Zone was +23.3% like-for-like and +17.2% based on
reported figures. This acceleration in growth is boosted by strong
demand from Chinese consumers, and the dynamic sales of the
Lancôme, Kiehl's,
Giorgio Armani, Yves Saint
Laurent and L'Oréal Paris brands. In
Northern Asia, the key factor remains the strong growth in China
and Hong Kong, and in Travel Retail. In
Southern Asia, sustained growth is continuing, particularly in
India and Malaysia.
Latin
America: In this Zone, growth amounted to +0.6% like-for-like
and -9.8% based on reported figures. The situation in Brazil is
gradually improving. The adjustment for hyperinflation from 1 July
in Argentina had a negative impact of 3.6% on Latin America Zone
like-for-like growth in the third quarter. The L'Oréal Luxe and
Active Cosmetics Divisions are winning market share and posting
double-digit growth. The launch of CeraVe
enabled the Active Cosmetics Division to report quarterly growth of
+17.1% like-for-like. Professional Products Division sales are
increasing sharply in Brazil.
Eastern
Europe: The Zone recorded growth of +9.2% like-for-like and
-0.1% based on reported figures. Growth is being driven by
Central Europe and Turkey. The Active Cosmetics, L'Oréal Luxe and
Consumer Products Divisions are all posting good growth and
increasing their market share. E-commerce is contributing strongly
to growth.
Africa, Middle
East: This Zone posted growth of +7.6% like-for-like and +0.6%
based on reported figures. Saudi Arabia, Egypt and Morocco are
driving growth in the Maghreb/Middle East region, and South Africa
in Sub-Saharan Africa. The Active Cosmetics and Consumer
Products Divisions are delivering good growth, and all the
Divisions are winning market share.
Important events during the period 1/7/18 to
30/9/18 and post-closing event
-
On 1 August, L'Oréal announced the project of
acquisition for Société des Thermes de La Roche-Posay. This
acquisition sustains and reinforces the dermatological positioning
of the La Roche-Posay brand.
-
On 1 August, L'Oréal announced the signing of an
agreement to acquire the German beauty company Logocos
Naturkosmetik AG, a pioneer in natural and organic cosmetics with
brands including Logona and Sante. The acquisition was finalised on
17 October.
-
On 21 September, L'Oréal announced an investment
in the fund Partech Africa. This investment is an addition to the
Group's previous investments in venture capital funds (Partech
International Ventures, Founders Factory, Raise
Investissement).
-
On 24 September, L'Oréal was recognised as
Global Compact Lead. This award, made by the United Nations Global
Compact, rewards the Group's ongoing commitment to the world's
largest corporate sustainability initiative.
-
On 4 October, L'Oréal received the First Prize
for Europe from Equileap as the top gender-balanced company. This
award recognises the Group's efforts to promote gender equality all
over the world.
"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 a free
translation into English of the Sales at 30 September 2018 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.
Contacts at L'Oréal (switchboard:
+33 1 47 56 70 00)
Individual shareholders and
market authorities
Mr Jean Régis CAROF
Tel: +33 1 47 56 83 02
jean-regis.carof@loreal.com
Financial analysts and
Institutional investors
Mrs Françoise LAUVIN
Tel: +33 1 47 56 86 82
francoise.lauvin@loreal.com
Journalists
Mrs Stephanie CARSON-PARKER
Tel: +33 1 47 56 76 71
stephanie.carsonparker@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.
Appendix
L'Oréal group sales 2017/2018 (€
million)
|
2017 [6] |
2018 |
First
quarter: |
|
|
Operational Divisions |
6,847.8 |
6,778.6 |
The Body
Shop |
197.2 |
|
First quarter total |
7,045.0 |
6,778.6 |
Second
quarter: |
|
|
Operational Divisions |
6,564.2 |
6,612.1 |
The Body
Shop |
|
|
Second quarter total |
6,564.2 |
6,612.1 |
First
half: |
|
|
Operational Divisions |
13,411.9 |
13,390.7 |
The Body
Shop |
|
|
First half total |
13,411.9 |
13,390.7 |
Third
quarter: |
|
|
Operational Divisions |
6,097.9 |
6,473.3 |
The Body
Shop |
|
|
Third quarter total |
6,097.9 |
6,473.3 |
Nine
months: |
|
|
Operational Divisions |
19,509.9 |
19,864.0 |
The Body
Shop |
|
|
Nine months total |
19,509.9 |
19,864.0 |
Fourth
quarter: |
|
|
Operational Divisions |
6,513.8 |
|
The Body
Shop |
|
|
Fourth quarter total |
6,513.8 |
|
Full
year: |
|
|
Operational Divisions |
26,023.7 |
|
The Body
Shop |
|
|
Full year total |
26,023.7 |
|
www.loreal-finance.com -
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[1] Like-for-like: based on a comparable structure and
identical exchange rates.
[2] Sales achieved on our brands' websites + estimated sales
achieved by our brands corresponding to sales through our
retailers' websites (non-audited data).
[3] The Group has applied the IAS 29 accounting rule (Financial
Reporting in Hyperinflationary Economies) to Argentina from 1 July
2018 onwards. The negative impact of this adjustment amounts to 360
basis points on like-for-like growth in Latin America and to 20
basis points on the growth of the whole L'Oréal group in the third
quarter of 2018.
[4] The application of the IFRS 15 accounting rule from 1
January 2018 has resulted in the restatement of sales with
distributors when they operate as agents and not on their own
behalf. The impact of this restatement amounted to 9.0 million
euros on the sales of the Africa, Middle East Zone in the third
quarter of 2018. The effect of this new accounting method on the
profit and loss account and the balance sheet is not
material.
[5] In view of the launch of the Travel Retail ERP system on 1
October 2018, advance billings of 30 million euros were recorded in
the third quarter.
[6] In the first quarter 2017, reported Group sales included
The Body Shop sales, which amounted to 197.2 million euros.
Read the News Release of 30 October
2018
This
announcement is distributed by West Corporation on behalf of West
Corporation clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: L'ORÉAL via Globenewswire
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