French cosmetics giant L’Oreal reported a year-on-year increase in first-quarter sales on Thursday as activity in Europe and emerging markets offset “sluggish” conditions for beauty in China.
Sales in the first three months of the year climbed by 8.3 percent to 11.24 billion euros (around USD 12 billion), despite its North Asia market falling by almost four percent to 2.7 billion euros.
The figures surpassed analyst expectations for the group, which includes brands Garnier, Maybelline, Prada and Yves Saint Laurent.
“2024 is off to a very good start… Continued double-digit growth in Europe, coupled with ongoing strength in emerging markets, more than offset the only gradual recovery in North Asia,” said L’Oréal chief executive Nicolas Hieronimus.
Double digit growth in Europe and North America
According to a company statement, “the beauty market remained sluggish” in mainland China, where sales only rose by 6.2 percent, although Japan and Hong Kong posted double-digit growth.
Revenue in Europe jumped by more than 12 percent, while sales in North America increased by 11.9 percent notably thanks to a new IT system.
“In an environment that continues to be marked by economic and geopolitical tensions, we are optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming it,” said Hieronimus.
Garnier, Maybelline La Roche-Posay and CeraVe
“The outstanding performances of dermatology and mass compensated the short-term challenges in luxury,” added Hieronimus.
The Consumer Products Division Garnier, Maybelline, L’Oréal Paris, NYX Professional Makeup) grew +9.2%, exceeding four billion in sales. “Each of the four major brands achieved double-digit growth,” said the group in a statement.
Dermatological Beauty (La Roche-Posay, Vichy…) reported spectacular growth of +19.6%, exceed two billion euros in sales. La Roche-Posay remained the number one growth contributor, while CeraVe advanced strongly in both, the US and internationally
The luxury division suffered from a “sluggish” beauty market in North Asia. The division grew +2.2% to 3.8 euros. Fragrances (Yves Saint Laurent, Valentino, Prada ..) were, once again, the division’s most dynamic category.
Eventually, the Professional Products Division also achieved robust growth of +8.7% to 1.2 billion euros.
“In an environment that continues to be marked by economic and geopolitical tensions, we are optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profit,” concluded Hieronimus
