L’Oreal Q1 sales increase by 14.1 percent

L’Oreal Q1 sales increase by 14.1 percent

L’Oreal sales grew by 14.1 percent during the first quarter of this year compared to the same period during 2014. In total, L’Oreal posted sales of 6.44bn euros.

Sales across North America increased by 2.4 percent like-for-like and 25.2 percent based on reported figures, but of particular note were sales in new markets such as Africa and the Middle East, where sales grew by 11.3 percent like-for-like and 31.8 percent based on reported figures.

Growth in Africa and the Middle East was driven primarily by the haircare segment, with Elvive by L’Oréal Paris and Ultra Doux by Garnier, which is currently being launched in the Gulf States. Kérastase has also built up good momentum.

In Asia, Pacific, L’Oréal recorded growth of 5.8 percent like-for-like and 26.6 percent based on reported figures. Excluding Japan, like-for-like growth reached 6.5 percent, driven by the performance of brands such as Kiehl’s, Yves Saint Laurent, Giorgio Armani and La Roche-Posay.

In Latin America, L’Oréal achieved substantial growth of 10 percent like-for-like and 12 percent based on reported figures due to the popularity of major brands such as L’Oréal Professionnel, Lancôme, Giorgio Armani, Vichy and La Roche-Posay.

Eastern Europe sales grew by 9.2 percent like-for-like and decreased by 7.1 percent based on reported figures.

Globally, of all product divisions, L’Oreal Luxe posted the highest sales increase at 20.1 percent due to the success of products such as Yves Saint Laurent women’s fragrance Black Opium and Giorgio Armani’s increasingly popular beauty range. Kiehl’s and Urban Decay are also continuing their strong international expansion.

L’Oreal’s Professional Products division, with ranges such as L’Oréal Professionnel, Chronologiste at Kérastase,  posted sales growth of 16 percent. Consumer Products grew by 11.6 percent thanks to the success of products such as Lash Sensational mascara by Maybelline, Micellar Cleansing Waters by Garnier and Revitalift Filler by L’Oréal Paris.

Finally, Active Cosmetics increased by 10.2 percent, thanks to the popularity of brands such as Vichy, La Roche-Posay and SkinCeuticals.

Commenting on the figures, Mr Jean-Paul Agon, Chairman and Chief Executive Officer of L’Oréal, said, “As announced, first quarter sales grew very strongly by +14.1%, in a very favourable monetary environment. With like-for-like growth of +4%, the Group has made an encouraging start to the year, with performances remaining contrasted by Division.”

“The Group has finalised the acquisition of Niely in Brazil and is integrating Magic, NYX, Decléor and Carita, the strategic brands acquired in 2014, which complement and strengthen its international portfolio in key regions and categories.

“L’Oréal is also accelerating its digital transformation, especially in terms of brand activation and e-commerce development. In an economic context that is still volatile, we confirm that we are confident in our ability to outperform the market this year once again, and to achieve growth in sales and profit.”