L'Oréal: News release: "First Quarter 2021 Sales"
Clichy, 15 April 2021 at 6.00 p.m.
First quarter 2021 sales
Strong return to growth at
+10.2% 1
- Sales: 7.61 billion euros
- +10.2% like-for-like 1
- +11.5% at constant exchange rates
- +5.4% based on reported figures
- Significantly outperforming the
market
- Three Divisions in double-digit growth
- Remarkable growth in Asia Pacific at +23.8 % 1, driven
by mainland China at +37.9% 1
- Strong recovery in North America
- E-commerce growth at +47.2% 2
Commenting on the figures, Mr Jean-Paul Agon,
Chairman and Chief Executive Officer of L'Oréal, 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 1 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.
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% 1, 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.
E-commerce growth is at +47.2% 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.”
First quarter 2021 sales
Like-for-like, i.e. based on a
comparable scope of consolidation and constant exchange rates,
L’Oréal group sales saw a return to growth at +10.2%.The
net impact of changes in the scope of consolidation
amounted to +1.3%.Growth at constant exchange
rates was +11.5%. Currency fluctuations
had a negative impact of -6.1%. By extrapolating the exchange rates
as of 13 April 2021, i.e. with €1 = $1.194 up until 31 December,
the impact of currency fluctuations will be around -2.7% on 2021
full-year sales.Based on reported figures, the
Group’s sales, at 31 March 2021, amounted to 7.61 billion euros, an
increase of +5.4%.
Sales by Division and geographic
Zone
|
Quarterly sales |
Evolution |
€m |
1st quarter 2020 |
1st quarter 2021 |
Like-for-like |
Reported |
By Division |
|
|
|
|
Professional Products |
751.1 |
848.3 |
+21.0% |
+12.9% |
Consumer Products |
3,169.8 |
2,973.3 |
-0.7% |
-6.2% |
L’Oréal Luxe |
2,464.4 |
2,769.7 |
+14.6% |
+12.4% |
Active Cosmetics |
839.9 |
1,023.3 |
+28.7% |
+21.8% |
Group total |
7,225.2 |
7,614.5 |
+10.2% |
+5.4% |
By geographic Zone |
|
|
|
|
Western Europe |
1,997.7 |
1,995.8 |
-2.4% |
-0.1% |
North America |
1,847.2 |
1,813.6 |
+6.3% |
-1.8% |
New Markets, of which: |
3,380.3 |
3,805.1 |
+20.6% |
+12.6% |
- Asia Pacific |
2,335.1 |
2,780.0 |
+23.8% |
+19.1% |
- Latin
America |
394.8 |
387.8 |
+15.1% |
-1.8% |
- Eastern
Europe |
479.6 |
469.1 |
+10.7% |
-2.2% |
- Africa, Middle
East |
170.7 |
168.1 |
+12.7% |
-1.5% |
Group total |
7,225.2 |
7,614.5 |
+10.2% |
+5.4% |
Summary by Division
PROFESSIONAL PRODUCTS
At the end of March, the Professional
Products Division was at +21.0% like-for-like and +12.9% reported,
in a market still impacted by the health crisis.The
Division has again strengthened its leadership in the industry,
taking advantage of the underlying trends in the sector: the
digitalisation of salons, the development of independent stylists,
and the explosion of e‑commerce.All geographic Zones achieved sales
growth, with record performance in the United States, driven by the
power of the SalonCentric distribution channel. The Division also
confirmed its success in mainland China with very strong growth in
e-commerce and in salons. Western Europe maintained its growth
momentum, particularly in Germany and France. Haircare remains
the highest growth contributor, led by a particularly dynamic
Kérastase, the success of Genesis and Blond
Absolu, and good performance from Acidic Bonding
Concentrate by Redken. In hair colour, Shades EQ by
Redken recorded another quarter of strong growth.
CONSUMER PRODUCTS
The Division recorded a first quarter at
-0.7% like-for-like and -6.2% reported.The extension of
public health measures continued to impact the makeup market and
hence the Division’s business as the global market leader in this
category. The Division accelerated in all other major categories,
maintaining double-digit growth in hair colour. Haircare posted a
very dynamic quarter thanks to the innovative Elvive Dream Lengths
Wonder Water, Elvive Full Resist and the strong start for Ultra
Doux solid shampoo by Garnier. Face care also accelerated, with
L’Oréal Paris Revitalift Filler hyaluronic acid serum which is the
top-selling serum in many countries, as well as the Pure Active
anti-imperfections franchise and tissue masks by Garnier. In
makeup, the brands are gaining significant market share,
particularly in Europe and the United States, thanks to the
spectacular beginning of innovations such as Sky High by Maybelline
New York, Infallible powder by L’Oréal Paris and Shine Loud by NYX
Professional Makeup. The Division outperformed the market in all
major Western European countries, Brazil and mainland China. In the
United States, despite the weight of makeup and temporary logistics
problems, consumption picked up sharply at the end of the quarter,
and our brands are recording a lively recovery.
L’ORÉAL LUXE
L’Oréal Luxe closed the quarter at
+14.6% like-for-like and +12.4% reported,
significantly outperforming the market.In a gradually
improving context, L’Oréal Luxe gained market share in almost all
geographic Zones. Note that 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. The recently acquired Japanese brand
Takami has also had a very good start to the year. In the fragrance
category, Giorgio Armani, Valentino and Yves Saint Laurent all
performed extremely well. The Prada licence was integrated on 1
January. The makeup category recovered and was stable, with clear
signs of recovery emerging in Asia and the United States.
ACTIVE COSMETICS
In an improving market, the Active
Cosmetics Division recorded strong growth at +28.7% like-for-like
and +21.8% reported and continued
to gain significant market share.The Division
continues to build on the strong momentum recorded in the second
half of 2020, which lies on solid foundations including close
relationships with healthcare professionals, a portfolio of brands
that are perfectly aligned with the health aspirations of
consumers, and strong positions in skincare. E-commerce continued
to post exceptional results and remains the main growth driver.
Offline sales also accelerated strongly, recording double-digit
growth.The Division gained market share in all Zones, with
exceptional performance in North America, Asia and Latin America,
and a notable confirmation of robust growth in Western Europe. All
major brands recorded growth in the period, with CeraVe doubling in
size while SkinCeuticals and La Roche-Posay continued to register
extremely dynamic growth, in particular in North America and Asia.
Vichy maintains its leadership in the anti-ageing segment in
Europe, building on the successful acceleration of its Liftactiv
franchise.
Summary by geographic Zone
WESTERN EUROPE
The Zone was at -2.4% like-for-like and -0.1%
reported. Sales were again impacted by the closure of perfumeries,
department stores and hair salons in several countries and the
restrictions aiming to limit social interaction. L’Oréal
outperformed the market in the vast majority of countries and
significantly strengthened its leadership in Germany, the United
Kingdom, France and Italy, thanks in particular to very strong
growth in online sales.The Consumer Products Division gained market
share, especially in makeup, and also in haircare, with significant
growth for Garnier, a brand that is highly attuned to consumer
expectations in terms of naturalness and sustainability. Although
adversely affected by the health situation and the sharp downturn
in Travel Retail, L’Oréal Luxe continued to gain market share in
fragrances and saw an improvement in makeup and skincare thanks to
Biotherm. The Active Cosmetics Division accelerated its growth,
driven by the rapid development of CeraVe in the United Kingdom in
particular, and by the dynamism of La Roche-Posay. The Professional
Products Division recorded solid growth despite the closure of
salons in several countries, thanks to the buoyancy of online sales
and the Kérastase and Redken brands.
NORTH AMERICA
The Zone was at +6.3% like-for-like and -1.8%
reported. The quarter started under pandemic restrictions, followed
by record snowstorms disrupting the supply chain. In March,
business was boosted by economic stimulus checks and the start of
the vaccination programme, giving consumers the confidence to
return to brick-and-mortar stores. E-commerce was still dynamic and
now accounts for more than 20% of the business. The strongest
recovery was in makeup, driven by powerful innovations and
increased socialisation. March was a turning point for the Consumer
Products Division, which gained market share thanks to makeup, with
the rebound driven by the recovery of NYX Professional Makeup and
successful innovations such as Sky High Mascara by Maybelline New
York and Infallible Powder by L’Oréal Paris. L'Oréal Luxe grew
thanks to e-commerce, the recovery of makeup and very strong growth
in fragrances, with Lancôme, Kiehl’s and IT Cosmetics performing
particularly well. The Professional Products Division delivered an
excellent quarter, driven by haircare and hair colour, with the
successful launch of Redken Acidic Bonding Concentrate and market
share captured by SalonCentric as independent stylists gain
traction and salons begin to reopen. The Active Cosmetics Division
continued to perform extremely well online and offline, increasing
market share.
NEW MARKETS
Asia Pacific: the Zone was at
+23.8% like-for-like and +19.1% reported. In this first quarter,
the situation still varies considerably from one country to
another. While in Australia, New Zealand and Vietnam the effects of
the pandemic are lessening and sales are increasing, other
countries such as Japan and Indonesia are being hit by new waves of
Covid. The absence of tourism continues to impact Thailand and Hong
Kong, while the situation in India remains volatile in some states.
The Active Cosmetics Division saw strong growth across the Zone.
The Professional Products and L’Oréal Luxe Divisions also recorded
solid growth. The Consumer Products Division, still affected by the
decline of the makeup market, posted growth in haircare and
skincare, buoyed by the strong performance of Garnier in South
Asia. The Japanese brand Takami, acquired in the first quarter,
made a strong start in Japan and China. Travel Retail began to
recover largely thanks to Hainan.
Mainland ChinaIn a very dynamic
market, with a strong recovery offline, L’Oréal China achieved very
strong growth at +37.9% like-for-like, with all Divisions gaining
market share. L’Oréal accelerated in bricks-and-mortar largely
thanks to in‑store Chinese New Year and International Women’s Day
campaigns, further strengthening its position in both the selective
and mass distribution markets. L’Oréal also reinforced its
positions in e-commerce, with L’Oréal Paris and Lancôme recording
strong growth, ranking number 1 and number 2 respectively on Tmall
on International Women’s Day. Kiehl’s and Helena Rubinstein also
performed very well, as did Yves Saint Laurent and Giorgio Armani,
which topped the Tmall Selective makeup brand rankings for
Valentine’s Day and International Women’s Day. The Consumer
Products Division performed well thanks to L'Oréal Paris in
skincare and haircare, while 3CE Stylenanda continued to recruit
consumers and post strong growth in the online makeup market. The
Active Cosmetics Division recorded significant market share gains,
driven by SkinCeuticals and La Roche-Posay. The Professional
Products Division almost doubled sales, thanks to a successful
online activation and offline recovery. Latin
America: the Zone was at +15.1% like-for-like and -1.8%
reported. With the entire continent still heavily impacted by the
pandemic and store closures, all Divisions and countries continued
to grow, especially Brazil, Mexico, Chile and Argentina. E-commerce
more than doubled. This growth was driven by our superior
innovations as well as our iconic brands and products, most notably
in haircare and skincare. L’Oréal gained market share in makeup,
although the category remains negative in a challenging market
context.
Eastern Europe: the Zone was at
+10.7% like-for-like and -2.2% reported, in spite of the pandemic,
which continues to mostly affect Central European countries. In a
slightly negative market overall, all Divisions gained market
share, both online and offline, with the Professional Products,
L’Oréal Luxe and Active Cosmetics Divisions achieving double-digit
growth. The vast majority of countries reported growth, especially
Turkey, the Czech Republic/Slovakia/Hungary hub and
Israel.
Africa, Middle East: the Zone
was at +12.7% like-for-like and -1.5% reported. In the Middle East
and North Africa, the health situation varies from one country to
another. The beauty market is still negative across the Zone. All
Divisions grew and gained market share overall. The performance was
driven by Morocco, Pakistan, Egypt and South Africa.
Important events during the
period 01/01/21 to 31/03/21
- On 29 January, for the fourth consecutive year, L’Oréal was
recognised by the 2021 Bloomberg Gender-Equality Index for its
commitment to female leadership, talent diversity and gender pay
parity.
- On 1 February, L’Oréal finalised the acquisition of Takami Co
announced on 23 December 2020.
- On 4 March, for the fourth consecutive year, L’Oréal ranked
among the top five companies in the Equileap Global Gender Equality
Ranking 2021, which assessed almost 4,000 companies in 23
countries. L’Oréal is ranked fourth overall, first in the consumer
goods sector and first in France.
- On 5 March, L’Oréal announced two changes within the Group’s
Executive Committee. Omar Hajeri has been appointed President of
the Professional Products Division and joins the Executive
Committee. He succeeds Nathalie Roos, who has chosen to take her
career in a new direction. Ersi Pirishi will be appointed President
of the Latin America Zone and will join the Executive Committee in
autumn 2021. She will take over from Javier San Juan, who has
decided to retire.
- On 16 March, the 2020 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.
- On 16 March, L’Oréal announced that its Annual General Meeting
would take place behind closed doors, without the physical presence
of the shareholders and other persons entitled to attend, at
10.00am on Tuesday 20 April 2021. The convening notice was
published in the Bulletin des Annonces Légales Obligatoires (BALO)
on Monday 15 March 2021 and includes the agenda, draft resolutions
and main terms of participation and voting at the Annual General
Meeting.
- On 23 March, L’Oréal’s venture capital fund Business
Opportunities for L’Oréal Development (BOLD) announced that it had
taken a minority stake in the Swiss environmental tech startup
Gjosa.
“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. Although the Company considers that
these statements are based on reasonable hypotheses at the date of
publication of this release, they are by their nature subject to
risks and uncertainties which could cause actual results to differ
materially from those indicated or projected in these
statements.”
This is a free translation into English of the
2021 quarterly results news release issued in the French language
and is provided solely for the convenience of English-speaking
readers.
Contacts at L’Oréal
(Switchboard: +33 1 47 56 70 00)
Individual
Shareholders
Financial Analysts
and and
Market Authorities
Institutional Investors
Journalists
Mr Christian
MUNICH
Ms Françoise
LAUVIN
Ms Domitille FAFINTel: +33 1 47 56 72
06
Tel: +33 1 47 56 86 82
Tel:
+33 1 47 56 76 71christian.munich2@loreal.com
francoise.lauvin@loreal.com
domitille.fafin@loreal.com
For more information, please contact your bank,
broker or financial institution (I.S.I.N. code: FR0000120321) and
consult your usual newspapers, the website for shareholders and
investors, www.loreal-finance.com or the L’Oréal Finance app;
alternatively, call: +33 1 40 14 80 50.
Appendix
L’Oréal group sales 2020/2021 (€ million)
|
2020 |
2021 |
First quarter |
7,225.2 |
7,614.5 |
Second quarter |
5,851.3 |
|
First half total |
13,076.5 |
|
Third quarter |
7,036.8 |
|
Nine months total |
20,113.3 |
|
Fourth quarter |
7,878.8 |
|
Full year total |
27,992.1 |
|
1 Like-for-like: based on comparable structure
and identical exchange rates.
2 Sales achieved on our brands’ own websites + estimated sales
achieved by our brands corresponding to sales through our
retailers’ websites (non-audited data). Like-for-like.
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