L’Oréal has confounded analysts by reporting an increase in sales of 1.8 percent (4.2 percent like-for-like) to €6.55 billion for the first quarter of 2016.
The French beauty giant’s largest unit, Consumer Products, was among the strongest performers, with sales jumping 3.9 percent like-for-like, the fastest quarterly increase in nearly three years, driven by the strong momentum of make-up, particularly the NYX brand, which boosted sales in the US.
L’Oréal Luxe, meanwhile, overcame a difficult market in Hong Kong to grow 5.5 percent like-for-like – helped by its performance in China where the division grew twice as fast as the market.
“The Group made a solid start in the first quarter, with growth in all our divisions and geographic zones: the Consumer Products Division accelerated at the start of the year, recording its best quarter for almost three years. L’Oréal Luxe started the year well in line with expectations, despite a difficult comparison base in Hong Kong and in the Travel Retail channel, and is continuing to roll out its brand portfolio worldwide. Sales in the Professional Products and Active Cosmetics Divisions should strengthen over the coming quarters,” commented L’Oréal Chairman and CEO Jean-Paul Agon.
“Across the geographic zones, North America is confirming its dynamism, Western Europe remains solid and the New Markets are proving resilient. The Group’s digital acceleration is continuing, with growth of 35 percent in e-commerce, which is expanding strongly in each division.
“To conclude, in an economic and monetary environment that remains volatile, we are confident that the power of our innovations, the international roll-out of our brands and the commitment of our teams will lead us to outperform the cosmetics market in 2016. We are confirming our ambition of achieving another year of sales and profit growth.”