THE WHAT? L’Oréal has reported a 19 percent rise in sales to 9.06 billion euros (US $9.8 billion) in Q1, driven by strong sales for its Luxe division.
THE DETAILS Per category, L’Oréal Luxe rose 25.1 percent on a reported basis, followed by Professional Products at 22.7 percent, Active Cosmetics at 22.4 percent and Consumer Products at 11.1 percent.
Geographically, Latin America grew 33.9 percent, followed by North America, SAPMENA-SSA, North Asia and Europe at 21.5, 18.7, 18, and 15.8 percent respectively.
L’Oréal Luxe achieved balanced growth across geographic Zones. At the end of March, the Division held a historic market share in North Asia and, moreover, outperformed a dynamic market in North America. L’Oréal Luxe also recorded an excellent first quarter in Europe.
The Division gained market share thanks to the strength and complementarity of its brand portfolio.
THE WHY? L’Oréal has been working to evolve its product portfolio towards the premium sector, with Luxe posting the strongest sales.
Discussing the quarter growth, Nicolas Hieronimus, CEO of L’Oréal, said, “Against the backdrop of the invasion of Ukraine and strengthened sanitary measures in China, L’Oréal had a strong first quarter, with strong growth in sales, at +13.5% like-for-like and +19.0% reported.”
He continued, “In the first three months of the year, the growth trend continued in the global beauty market, with consumer purchasing behaviour unaffected by inflation. L’Oréal pursued its premiumisation and innovation strategy and continued to outpace the beauty market across all Zones and Divisions, recording strong growth by volume and value.
“L’Oréal Luxe, Professional Products and Active Cosmetics all achieved double-digit growth, and our Consumer Products Division again outperformed the market despite supply-chain challenges. We made the most of our omnichannel strategy, with a clear revival in offline sales while e-commerce 2 continued to grow, representing 25.8% of sales.”