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L’Oréal Chief Executive Officer Jean-Paul Agon: “The strong first-half sales growth reflects a return to a good like-for-like sales trend.” |
FRANCE. L’Oréal has reported strong sales growth for first-half 2010. For the period ended 30 June turnover grew +10.2% to €9.67 billion (+6.3% on a like-for-like basis).
The performance was attributed to dynamism across all four L’Oréal divisions, a good performance in North America, breakthroughs in new markets and the positive impact of currency fluctuations.
Commenting on the figures, L’Oréal CEO Jean-Paul Agon noted: “The strong first-half sales growth reflects a return to a good like-for-like sales trend, and a very positive exchange rate impact, which might increase in the course of this year.
“All divisions are recording dynamic trends, thanks to major innovations which are proving very successful: the roll-out of the new Inoa hair colorant from L’Oréal Professionnel is continuing in salons all over the world, Yves Saint Laurent is experiencing a complete renaissance with one of the highest growth rates amongst major luxury brands, and Maybelline, the world leader in make-up, is growing strongly across all continents.”
He continued: “L’Oréal has once again strengthened its geographic positions, thanks to the group’s good performance in North America, and major breakthroughs in the New Markets, particularly in China, Brazil, Russia, India and Indonesia. These results bear out our major strategic choices, and mean that we can tackle the second half with confidence.”
LUXURY PRODUCTS
The first-half sales of the Luxury Products Division grew by +9.7% on a like-for-like basis, and by +12.0% to €2.1 billion based on reported figures. “The strategy of concentrating on the division’s major brands and iconic products is paying off,” the group noted, adding that the division was achieving good sell-out in stores, particularly in the skincare category, in a selective market showing a clear upturn.
In geographic terms, all zones recorded significant growth up to the end of June. Western Europe, France, the UK and Germany posted good growth rates, thanks in particular to the dynamism of Lancôme. In North America, Yves Saint Laurent, Kiehl’s and Viktor & Rolf are winning market share, according to L’Oréal.
The New Markets zone is also growing fast, thanks largely to strong performances in Asia, Latin America and Travel Retail. In addition, The Eastern Europe zone is proving highly dynamic.
