Sales for L’Oréal in the first quarter of 2023
Sales: 10.38 billion euros, +13.0% like-for-like1, +14.6% reported.
Another quarter of market outperformance solidifies L’Oréal’s position as the global beauty leader.
Growth in all Divisions, with the Dermatological Beauty and Consumer Products Divisions excelling.
Growth in all geographic zones, with emerging markets performing spectacularly.
Strong double-digit increase in all Zones, with the exception of North Asia, which experienced a fall in stock-in-trade in mainland China at the start of the year.
Value and volume expansion.
Ethisphere has named us one of the world’s most ethical firms for the 14th time.
Equileap Gender Equality Ranking: 11th globally and first in France, out of 3,500 companies in 23 countries.
A deal has been reached with Natura &Co to acquire Asop, the Australian luxury beauty brand.
L’Oréal CEO Nicolas Hieronimus commented on the figures:
“In a highly dynamic beauty market, L’Oréal has maintained strong growth momentum and delivered an excellent first quarter, with sales up +13.0% like-for-like1 and +14.6% reported.
” L’Oréal has outpaced the market in all geographic Zones and strengthened its leadership position, thanks to valorized innovations in all Divisions and the participation of our colleagues throughout the world.
This performance underlines the strength of L’Oréal’s balanced multipolar business, which has yet to profit from China’s openness.
I am delighted to welcome the beautiful Asop brand and its personnel, who will strengthen L’Oréal Luxe.
Despite the current uncertainty, we remain enthusiastic about the beauty market’s outlook, ambitious for the future, and confident in our capacity to continue outperforming the market and achieve another year of sales and profit growth in 2023.”
SALES IN THE FIRST QUARTER OF 2023
Group sales climbed by +13.0% on a like-for-like basis, i.e. based on a comparable scope of consolidation and constant currency rates.
The net impact of modifications in consolidation scope was +1.0%.
At constant exchange rates, growth was 14.0%.
Currency changes had a +0.6% positive influence. Extrapolating the 31 March 2023 exchange rate (i.e. €1 = $1.0893) to 31 December would result in a negative currency impact of about -4.0% on 2023 full-year sales.
Group revenues climbed by 14.6% year on year to 10.38 billion euros.
Sales by Division and Geographic Zone
1st quarter 2022
1st quarter 2023
Dermatological Beauty 2
By Geographic Zone
SAPMENA – SSA 3
Summary by Division
At the end of March, the Professional Products Division recorded strong growth, at +7.6% like-for-like and +9.8% reported.
Professional Products continued to grow across all geographic Zones, with outstanding performance in mainland China, India and the United Kingdom.
The Division continued to perform in all distribution channels: in salons, in its SalonCentric network in the United States, in e-commerce and in the selective channel.
Growth in the dynamic haircare market was primarily driven by Kérastase, with its Symbiose anti-dandruff range off to an excellent start, and the great success of Série Expert by L’Oréal Professionnel, with Metal Detox.
The Division continued to grow in hair colour, with its iconic lines Shades EQ Gloss by Redken and Inoa by L’Oréal Professionnel.
As the industry leader, the Division continues the rollout of its “Hairstylists for the Future” programme, encouraging all partner hairstylists to commit to a sustainable transformation.
The Consumer Products Division was off to a very strong start, growing at +14.7% like-for-like and +15.7% reported.
The Division outperformed the market, successfully pursuing its premiumisation strategy while delivering significant volume growth.
The Division achieved remarkable performances in Europe and North America, and continued its strong growth momentum in emerging markets, notably in India, Mexico, Brazil and Thailand.
Each of the Division’s global brands recorded double-digit growth and outperformed the market, powered by successful innovations across all categories.
Makeup was the fastest growing category, with new launches including Telescopic Lift Mascara by L’Oréal Paris, Bare With Me Blur Tint foundation by NYX Professional Makeup, and the “nude” extension of Maybelline New York’s lipstick Superstay Vinyl Ink.
In haircare, Elvive Bond Repair by L’Oréal Paris had a spectacular start, allowing the Division to achieve exceptional growth in the category. Skincare was also very dynamic, driven by the combined success of L’Oréal Paris’ new Revitalift Clinical Vitamin C Serum and Garnier’s new anti-acne innovations. Hair colour achieved significant growth.
L’Oréal Luxe recorded growth of +6.5% like-for-like and +7.7% reported in the first quarter.
The Division’s growth accelerated compared with the previous quarters. Sales grew strongly in all geographic Zones except North Asia, where they were flat due to a reduction of stock-in-trade in mainland China at the very beginning of the year.
In fragrances – the most dynamic category in the luxury beauty market – the Division further expanded its lead, driven by the success of Yves Saint Laurent and its three main pillars Libre, Y and Black Opium.
The couture brands’ initiatives also confirmed their very strong potential, in particular Valentino‘s Born In Roma, Mugler‘s Angel Elixir and Prada‘s Luna Rossa Ocean and Paradoxe.
The performance of L’Oréal Luxe in skincare was driven in particular by the remarkable success of Helena Rubinstein and Takami. The Division saw an acceleration in makeup in North America.
At the end of March, the Division posted outstanding growth of +30.6% like-for-like and +34.6% reported.
The Division grew significantly faster than the global dermocosmetics market, which continued to expand. The Division built on its close collaboration with healthcare professionals and a brand portfolio perfectly aligned with consumers’ quest for health.
The Division posted high growth in all geographic Zones, with an acceleration in Europe and in emerging markets.
La Roche-Posay, the primary contributor to the Division’s growth, achieved an outstanding performance, fuelled by the ongoing success of the breakthrough suncare innovation Anthelios UVmune 400 and the successful relaunch of Cicaplast, powered by the most advanced microbiome science.
CeraVe continued its outstanding growth in both North America and the rest of the world. SkinCeuticals accelerated and the recently acquired brand SkinBetter Science had an excellent quarter.
Summary by geographic Zone
The Zone accelerated and recorded growth of +16.0% like-for-like and +16.6% reported.
The European beauty market remained dynamic in the first quarter, driven by the makeup, fragrance and skincare categories, again demonstrating consumers’ appetite for beauty.
Growth was solid in both volume and value, with remarkable performances in Germany, the United Kingdom, France, Spain, Italy, Scandinavia and Poland. L’Oréal outperformed the market in all segments.
The Consumer Products Division achieved outstanding growth, fuelled by the success of the makeup brands Maybelline New York and NYX Professional Make Up, as well as very promising launches by L’Oréal Paris and Garnier.
The Dermatological Beauty Division grew significantly faster than its market, driven by La Roche-Posay, which strengthened its leadership, and CeraVe. L’Oréal Luxe benefited from strong growth in fragrances. Growth in the Professional Products Division was driven by valorisation in both hair colour and haircare.
The Zone grew by +16.6% like-for-like and +22.2% reported.
L’Oréal’s growth continued to accelerate thanks to its innovation capacity and valorisation strategy.
The Consumer Products Division benefited from successful innovations by Maybelline New York and L’Oréal Paris in makeup, Garnier in skincare and L’Oréal Paris in haircare. L’Oréal Luxe achieved strong growth, fuelled by its unique fragrance portfolio, including the remarkable success of Prada Paradoxe.
Growth continued in the Professional Products Division, driven by haircare – especially among selective retailers and online – and the successful innovations of L’Oréal Professionnel and Redken.
The Dermatological Beauty Division continued its outstanding growth, outperforming its market thanks to the success of CeraVe, La Roche-Posay and the recently acquired brand Skinbetter Science.
In a contrasted environment, the Zone recorded growth of +1.9% like-for-like and +1.1% reported.
The beauty market remained dynamic in Japan and South Korea but declined in mainland China at the very beginning of the year as a result of the evolution of the health situation, which led to destocking in January.
From February, Chinese consumer demand for beauty resumed, as did footfall in brick-and-mortar. Its unrivalled brand portfolio coupled with its omnichannel strategy allowed L’Oréal to outperform the Chinese market, demonstrating once again its ability to navigate uncertainty with agility.
The gradual resumption of travel allowed Hong Kong, Macau and Hainan to welcome an increasing number of tourists: an opportunity that L’Oréal was ready to seize.
In Japan and South Korea, L’Oréal significantly outperformed the market and maintained strong momentum, led by the remarkable performance of the Consumer Products Division and strong growth of L’Oréal Luxe.
The Dermatological Beauty and Professional Products Divisions recorded very strong performance in the Zone.
SAPMENA – SSA5
The Zone achieved remarkable growth of +26.7% like-for-like and +23.5% reported.
In SAPMENA, L’Oréal saw remarkable growth in all Divisions and categories. The Consumer Products Division, in particular, achieved exceptional growth across the entire Zone, benefiting from the recovery of makeup sales.
Momentum in the Dermatological Beauty Division was fuelled by the success of La Roche-Posay and CeraVe in all markets while fragrances boosted L’Oréal Luxe growth.
Sales growth in SAPMENA was notably driven by Australia and the rebound in tourism in Thailand; in India, performance was boosted by the dynamism of e-commerce and the skincare and haircare categories in both consumer and professional channels. The Gulf States and Egypt recorded outstanding performance.
In Sub-Saharan Africa (SSA), L’Oréal continued to post very strong growth, driven in particular by the Consumer Products and Dermatological Beauty Divisions.
The Zone recorded very strong growth of +22.3% like-for-like and +31.8% reported in a beauty market that continued to expand in key markets.
All countries and all Divisions achieved strong growth, with Brazil and Mexico being the biggest contributors, and the Consumer Products and Dermatological Beauty Divisions performing strongly. Makeup sales accelerated significantly, driven by the outstanding performance of Maybelline New York.
In skincare, the innovations from La Roche-Posay and CeraVe enjoyed great success; other strong contributors were L’Oréal Paris and Garnier. Haircare sales increased significantly, driven by the solid performance of Elvive.
E-commerce was very dynamic, thanks to a successful omnichannel activation strategy.
IMPORTANT EVENTS DURING THE PERIOD 1/1/23 TO 31/3/23 AND POST-CLOSING EVENTS
- On 3 April, L’Oréal announced that it had signed an agreement with Natura &Co to acquire Aēsop, the Australian luxury beauty brand. Created in 1987, Aēsop is a global super brand known for its skin, hair and body products, available across luxury retail, beauty and hospitality locations around the world. Aēsop operates online and in around 400 exclusive points of sale across the Americas, Europe, Australia and Asia, with a nascent footprint in China where the first store opened in 2022. The closing is subject to certain regulatory approvals and other customary conditions.
RESEARCH, BEAUTY TECH AND DIGITAL
- In March, the venture capital fund BOLD (Business Opportunities for L’Oréal Development) invested in a biotechnology venture led by Geno. The investment will contribute to the development of new sustainable ingredients derived from living organisms: harnessing Geno’s biotechnology expertise, L’Oréal will replace traditional ingredients with biosourced alternatives, such as those produced from plant sugars. These new ingredients will be used in a range of L’Oréal’s products, marking an essential step towards the Group’s goals of 100% eco-designed products and 95% of ingredients in its formulas biosourced, derived from abundant minerals or circular processes by 2030.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE PERFORMANCE
- In March, L’Oréal was again ranked among the world’s most gender-equitable companies by Equileap. L’Oréal was ranked number one in France in Equileap’s 2023 Gender Equality Ranking and placed 11th globally among 3,500 companies in 23 countries. Since Equileap’s launch six years ago, L’Oréal has been recognised in every ranking published.
- L’Oréal has been recognised by the international organisation Ethisphere as one of the World’s Most Ethical Companies for the 14th time. The award recognises the Group’s long-term commitment and its role as a leader in applying ethical principles to its sales practices, business and corporate culture.
- The rating agency Sustainalytics granted “Industry Top Rated” status to L’Oréal in its 2023 ESG Risk Ratings. With a score of 19.1, the Group is classified as a “Low Risk” company and a top-rated performer within the industry, ranking 5th out of 105 in the Household Products group.
- The Fragrance Foundation has announced that it will honour Nicolas Hieronimus, L’Oréal’s Chief Executive Officer, with its prestigious Hall of Fame Award in New York in June 2023. The award seeks to honour the extraordinary contribution of Nicolas Hieronimus to the fragrance industry for more than a decade, as well as his leadership and vision, reflecting the values of environmental responsibility, diversity, equity and inclusion promoted by the Foundation.
- On 16 March, the 2022 Universal Registration Document was filed with the Autorité des Marchés Financiers. It is made available to the public according to the terms of the regulations in force and may be viewed on the www.loreal-finance.com website.
“This news release does not constitute an offer to sell, or a solicitation of an offer to buy L’Oréal shares. If you wish to obtain more comprehensive information about L’Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers, also available in English on our website www.loreal-finance.com.
This news release may contain some forward-looking statements. While the Company believes that these statements are based on reasonable assumptions as of the date of publication of this press release, they are by nature subject to risks and uncertainties which may lead to a discrepancy between the actual figures and those indicated or suggested in these statements.”
This is a free translation into English of the news release issued in the French language and is provided solely for the convenience of English-speaking readers. In case of discrepancy, the French version prevails.