Driven by strong growth in Asia, L’Oréal Paris posted revenues of €21.99 billion in the third quarter of 2019, up 11% on a reported basis. These results are driven by the Luxury division and the Asia Pacific market.
By Luxus Plus
”L’Oréal achieved an excellent third quarter at +7.8% like-for-like 1, the highest level of growth in more than a decade, and continues to outperform the beauty market, which is still proving highly dynamic. The high growth rate was maintained in an environment which remains contrasted”, says Jean-Paul Agon, Chairman and Chief Executive Officer of L’Oréal Paris.
The Division outperformed the market and its top four brands – Lancôme, Yves Saint Laurent, Kiehl’s, Giorgio Armani – maintained their strong rhythm of growth. At the end of September, L’Oréal Luxe posted growth of +13.4% like-for-like and +17.7% based on reported figures.
L’Oréal Luxe skincare continues to be successful, with the launches of new-formula Génifique by Lancôme and Calendula Serum-Infused Water Cream by Kiehl’s. Helena Rubinstein continues to accelerate in the ultra-premium skincare market.
In fragrances, the highlight of the period was the excellent start made by two new women’s fragrances, Idôle by Lancôme and Libre by Yves Saint Laurent, complementing the established success of La Vie est Belle and Black Opium. Sì Passione by Giorgio Armani continues to win market share.
Growth at L’Oréal Luxe is still being driven by Asia Pacific, Travel Retail and e-commerce, but the very good performances in Europe and Latin America are also worth noting. The market in North America however remains difficult.
The L’Oréal Luxe division, driven by the Asia-Pacific market
Growth in this Zone was +23.7% like-for-like and +29.3% based on reported figures. China, as well as India, Malaysia and Indonesia, continue to achieve strong growth. All Divisions are posting double-digit increases. In the L’Oréal Luxe Division, the brands Lancôme, Yves Saint Laurent, Kiehl’s, Giorgio Armani and Helena Rubinstein maintained their strong growth rates.
L’Oréal Paris and 3CE by Stylenanda, whose roll-out is ongoing, are driving the pace of growth at the Consumer Products Division. Growth in the Active Cosmetics Division is being boosted by the strong development of SkinCeuticals and La Roche-Posay across the whole Zone. Meanwhile, the performance of Kérastase in China is contributing to the success of the Professional Products Division in this Zone.
Western Europe recorded solid growth
This Zone posted solid growth at +1.7% like-for-like and +2.5% based on reported figures, and accelerated in the third quarter. It is benefiting from the introduction of the fragrances Idôle by Lancôme and Libre by Yves Saint Laurent, whose initial results are highly promising.
The growth of Kiehl’s and Giorgio Armani is also contributing to the excellent third-quarter dynamism of L’Oréal Luxe.
The Active Cosmetics Division has also accelerated, driven by La Roche-Posay which is continuing to win market share.
The Consumer Products Division continues to record market share gains in makeup and skincare.
Contrasting growth for North America
The Zone is at -0.4% like-for-like and +5.9% based on reported figures. In a difficult market context, the Consumer Products Division is still very much impacted by its wide exposure to the makeup market currently flat, but is posting good growth in skincare thanks to L’Oréal Paris with Revitalift Triple Power.
L’Oréal Luxe, also adversely affected by makeup, is however taking advantage of a dynamic fragrance market, with Yves Saint Laurent and Lancôme significantly outperforming the category, thanks in particular to the Libre and Idôle launches.
The Professional Products Division is outperforming the market, driven by the Redken and Pulp Riot hair colour brands, and by the double-digit growth Kérastase is still maintaining.
The Active Cosmetics Division ended the quarter with double-digit growth, and expanded its footprint in the North American market thanks to all its brands.
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