L’Oréal Group has reported €7.61 billion in first-quarter sales to 31 March, up by +5.4% on a reported basis and +10% like-for-like compared to a year ago.
The company highlighted a strong performance in Asia Pacific, where the business posted a +23.8% surge in sales, led by Mainland China at +37.9%. North America also contributed to the recovery, with ecommerce also key (+47.2%).
In Asia Pacific, travel retail “began to recover largely thanks to Hainan” said the group.
Among the key divisions, L’Oréal Luxe reported +12.4% growth in sales (+14.6% like-for-like) reaching almost €2.8 billion.
L’Oréal Luxe gained market share in almost all regions, said the company. “Asia Pacific is off to a very good start notably in Mainland China – which remains particularly buoyant – Europe is robust, and North America is confirming its recovery. The division significantly outperformed the market in its three categories, especially in skincare, driven by the power of its Lancôme, Kiehl’s and Helena Rubinstein brands and the performance of Biotherm.”
Recently acquired Japanese brand Takami has enjoyed good start to the year while in the fragrance category, Giorgio Armani, Valentino and Yves Saint Laurent all performed well. The makeup category recovered and was stable, with signs of recovery emerging in Asia and the US.
Among other divisions, Active Cosmetics recorded +28.7% growth like-for-like and +21.8% reported; Consumer Products recorded a first quarter at -0.7% like-for-like and -6.2% reported; sales in the Professional Products Division rose +21% like-for-like and +12.9% reported. In the latter, haircare remained the highest growth contributor, led by the “dynamic” Kérastase brand.
L’Oréal Chairman and Chief Executive Officer Jean-Paul Agon said: “In spite of the health crisis and the ongoing associated measures in some countries, particularly in Western Europe, the beauty market continues to recover. Against this backdrop, L’Oréal has started the year with very strong growth at +10.2% like-for-like in the first quarter, significantly outperforming the market. The group is therefore continuing its acceleration, initiated in the third quarter of 2020, and is increasing by +5.0% like-for-like compared to the first quarter of 2019.
“The performance of the Professional Products, L’Oréal Luxe and Active Cosmetics Divisions is remarkable, all showing double-digit growth. The Professional Products Division is posting significant growth all over the world. The growth of L’Oréal Luxe is driven by the success of its skincare brands, particularly Lancôme, Kiehl’s and Helena Rubinstein. Active Cosmetics continues to build on the strong momentum already seen in 2020. The Consumer Products Division is stable, still held back by its high exposure to the makeup category which remains lacklustre.”
Agon added: “All geographic zones are growing, with the exception of Western Europe still impacted by the measures associated with the health crisis. North America is performing well both online and offline. All Zones in the New Markets are growing above +10%, especially the Asia Pacific Zone which is returning to the extremely dynamic pre-pandemic growth rates, driven most notably by a fast-growing Mainland China. Ecommerce growth is at +47.2% and accounts for 26.8% of sales.
“In an environment that is improving progressively due to the vaccination programmes, and thanks to the commitment and determination of the teams all over the world, L’Oréal is in a fighting spirit mode, focused on product launches and investments in growth drivers to support growth of its brands. We are therefore confident in our ability to outperform the market and achieve a year of growth in both sales and profits.”
