L’Oréal hits €20B sales with record double-digit growth across categories
31 Jul 2023 --- The beauty giant L’Oréal is experiencing “continued strong growth” with €20.57 billion (US$22.69 billion) in sales in the year’s first half. Its Consumer Products Division had a record half-year performance, growing +15.0% like-for-like, and increased sales of €1 billion (US$1.1 billion).
“In a beauty market that is more dynamic than ever, L’Oréal delivered a remarkable performance and further strengthened its global leadership in the first half. Growth was broad-based across all divisions, regions, categories and channels, once again vindicating our balanced, multi-polar model,” says Nicolas Hieronimus, CEO at L’Oréal.
“Growth continued to be driven by the dual cylinders of volume and value – a testament to the success of our innovations and the desirability of our brands. In keeping with our virtuous circle, we improved our profitability, all while significantly increasing investment in our brands.”
Specifically, Consumer Products Division division had an “exceptional performance” in Europe, Mexico, Brazil and India, where large brands grew in double digits, shares L’Oréal.
Makeup and hair care’s success is attributed to Falsies Surreal Mascara by Maybelline New York, Telescopic Lift Mascara by L’Oréal Paris and Fat Oil Gloss by NYX Professional Makeup.
Hair care benefited from its “premiumization strategy,” where Elvive Bond Repair is presented as an example. Good by Garnier stood out in hair color.
Additionally, skin care had a double-digit growth, boosted by L’Oréal Paris’ new Revitalift Clinical Vitamin C SPF50+ fluid and Garnier’s new AHA BHA anti-acne line.
The Consumer Products Division had a record half-year performance with increased sales of €1 billion (US$1.1 billion).
Professional products boosted by hair care
L’Oréal’s Professional Products division experienced a growth of 7.6% like-for-like. It was noted to have a remarkable rise in mainland China, India and the UK while also growling across all distribution channels, such as salons, in its SalonCentric network (in North America) and e-commerce, among others.
Kérastase is spotlighted for driving the growth in the hair care market. Symbiose’s anti-dandruff range had an “excellent” start and Metal Detox experienced success.
Hair color performed well, thanks to Shades EQ by Redken and Inoa by L’Oréal Professionnel. The company’s hair innovations in the past year are part of its “Hairstylists for the Future” program.
Luxury segment recovers across markets
L’Oréal’s Luxe division grew 7.6% like-for-like, driven by double-digit increases in Europe, North America and other emerging markets.
The division had a “remarkable” recovery in mainland China with record sales and market share in the second quarter. Yves Saint Laurent, Prada and Valentino led the growth in the luxury fragrance market.
Within its luxury skin care segment, Helena Rubinstein is spotlighted for its success while Lancôme recovered in North America while Takami was “successful” in Japan and China.
Yves Saint Laurent boosted the makeup segment with “encouraging performances” from Urban Decay and Shu Uemura. “The Aēsop brand will be integrated into the second half once the necessary regulatory approvals have been obtained,” shares the company.
Dermatology brands remain popular
L’Oréal’s dermatological division experienced a growth of 29% like-for-like. This was driven by its brands, which grew double-digits, along with “medical and prescription leadership.”
“La Roche-Posay, the Division’s number one growth contributor, maintained its strong momentum, driven by Effaclar, Cicaplast and UVmune 400,” shares L’Oréal.
“CeraVe remained extremely dynamic in North America and accelerated strongly in the rest of the world. Vichy was spurred by the success of Dercos and solid momentum in sun care. SkinCeuticals continued to progress and the newly acquired SkinBetter Science was off to a promising start.”
The brands had a more notable performance in Europe, emerging markets and during mainland China’s recovery.
European market and category popularity
Business in Europe grew 18.2% like-for-like, driven by increased volume and value.
The company’s Luxe division grew 7.6% like-for-like.
L’Oréal highlights its best performance in critical countries such as the Germany-Austria-Switzerland cluster, France, and the UK. This includes “dynamic countries Poland, Turkey and the Nordics. “In e-commerce, growth accelerated significantly in the second quarter,” shares the beauty company.
Within the Consumer Products Division, makeup and skin care drove momentum, while La Roche-Posay and CeraVe drove the “very strong growth” of the Dermatological Beauty Division.
“L’Oréal Luxe strengthened its leadership in fragrances, the largest segment in the European selective beauty market, driven by the ongoing success of Paradoxe by Prada and Libre by Yves Saint Laurent,” continues the company.
US drives hair and skin care markets
L’Oréal North America grew by 13% like-for-like, driven by “price and mix.” Hair and skin care were leading markets in the US, growing in double digits.
“L’Oréal Luxe continued to outperform the market in fragrances, driven by couture brands including Valentino and Prada; in makeup, Yves Saint Laurent and Armani grew in double digits, driven by recent launches,” details the company.
“Growth in e-commerce remained dynamic with strong momentum on Amazon, where the introduction of new brands, including Lancôme, redefines luxury beauty on the platform.”
Hair care brands Redken and Kérastase were notable brands within the Professional Products Division, while CeraVe’s continued success and the “outstanding momentum” of La Roche-Posay drove Dermatological Beauty’s growth.
Expansion in North Asia
Business in North Asia grew by 3.9% like-for-like, attributed to introducing new brands like Valentino, Prada and Takami and expanding into new cities. In Q1, skin care was leading and in Q2, “makeup recovered significantly”
L’Oréal’s business in China recovered in Q2, thanks to offline and online channels. During the 6.18 shopping festival, eight of the company’s brands were in the Top 20. L’Oréal Paris and Lancôme ranked first and second across all categories.
“The region’s growth in the first half was driven by hair care, notably Kérastase and L’Oréal Professionnel skin care, including Helena Rubinstein, SkinCeuticals and Takami; and fragrance with Maison Margiela and the Prada and Valentino launches,” shares L’Oréal.
Growth in Hong Kong SAR benefited from the opening of travel from mainland China, while in Japan, its Maybelline New York and L’Oréal Luxe performed with exceptional performance from Takami and Shu Uemura.
L’Oréal’s dermatological division experienced a growth of 29% like-for-like.
Balanced growth across SAPMENA-SSA regions
A 23.6% like-for-like was experienced in South Asia Pacific, Middle East, North Africa and Sub-Saharan Africa (SAPMENA-SSA), where skincare – CeraVe and La Roche-Posay sun care – was the main driver. There was balanced growth across the regions.
This was followed by makeup – “the fastest-growing category” – attributed to Maybelline New York. Drug store retail channel was popular in the Pacific region, and hair care and color drove growth in India.
“In Southeast Asia, L’Oréal recorded strong sales and outperformed in Thailand, Malaysia and Singapore, while the Consumer Products Division in Vietnam benefited from the expansion of e-commerce. The Gulf States recorded excellent growth over the religious holidays,” details L’Oréal.
“In Sub-Saharan Africa (SSA), all countries saw double-digit growth, with particularly strong momentum in South Africa and Kenya.”
Double-digit growth across Latin America
Business in Latin America grew 23.6% like-for-like, led by Mexico and Brazil, while all countries grew in double-digits.
Makeup drove the growth with a triumphant performance from Maybelline New York innovations. La Roche-Posay, CeraVe, L’Oréal Paris and Garnier propelled skin care growth. In hair care, the Elvive franchise boosted sales.
Meanwhile, E-commerce sales continued to display fast growth.
By Venya Patel
