- Sales: 10.38 billion euros, +13.0% like-for-like1, +14.6% based on reported figures.
- Another quarter of market outperformance, further strengthening L’Oréal’s position as the global leader in beauty.
- Growth in all Divisions, with outstanding performance from the Dermatological Beauty and Consumer Products Divisions.
- Growth in all geographic Zones, with a spectacular performance in emerging markets.
- Strong double-digit growth in every Zone, except for North Asia due to a reduction of stock-in-trade in mainland China at the very beginning of the year.
- Growth in both value and volume.
- Named one of the world’s most ethical companies by Ethisphere, for the 14th time.
- Equileap Gender Equality Ranking: 11th worldwide and number one in France, among 3,500 companies in 23 countries.
- Agreement with Natura &Co to acquire Aēsop, the Australian luxury beauty brand.
According to the company’s website press release on April 19, 2023:
Commenting on the figures, Nicolas Hieronimus, CEO of L'Oréal, said:
“In a beauty market that remains very dynamic, L’Oréal has maintained strong growth momentum and posted an excellent first quarter, with sales up +13.0% like-for-like1 and +14.6% reported. Boosted by valorised innovations in all Divisions and the engagement of our teams around the world, L’Oréal has outperformed the maket in all geographic Zones and strengthened its leadership position. This performance, which has yet to benefit from China’s reopening, demonstrates the strength of L’Oréal’s balanced multipolar model.
I am thrilled to soon welcome the magnificent Aēsop brand and its teams, which will reinforce L’Oréal Luxe.
Mindful of the current uncertainties, we remain optimistic about the outlook for the beauty market, ambitious for the future and confident in our ability to keep outperforming the market and achieve another year of growth in sales and profits in 2023.”
FIRST QUARTER 2023 SALES
- Like-for-like, i.e. based on a comparable scope of consolidation and constant exchange rates, Group sales increased by +13.0%.
- The net impact of changes in the scope of consolidation was +1.0%.
- Growth at constant exchange rates amounted to +14.0%.
- Currency fluctuations had a positive impact of +0.6%. Extrapolating the exchange rates of 31 March 2023, (i.e. €1 = $1.0893) until 31 December, would lead to a negative currency impact of around -4.0% on 2023 full-year sales.
- On a reported basis, Group sales increased by +14.6% to 10.38 billion euros.
Summary by Division
PROFESSIONAL PRODUCTS
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.
CONSUMER PRODUCTS
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.
LUXE
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.
DERMATOLOGICAL BEAUTY
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
EUROPE
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.
NORTH AMERICA
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.
NORTH ASIA
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.
LATIN AMERICA
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.
