L'Oréal: News Release: "First Quarter 2022 Sales"
NEWS
RELEASE
Clichy,
19 April 2022 at 6.00
p.m.
First Quarter
2022 Sales
Sustained growth pace at +13.5%
1 in an unstable context
Very strong reported
growth: +19.0%
- Sales:
9.06
billion euros
- +13.5% like-for-like 1
- +13.9% at constant exchange rates
- +19.0% based on reported figures
- Significantly outperforming the
market
- Balanced growth, by Division
and Zone
- Strong
upswing in
brick-and-mortar
sales: +15.5%
1
Commenting on the figures, Nicolas Hieronimus, CEO of L'Oréal,
said:
“ Against the backdrop of the invasion of
Ukraine and strengthened sanitary measures in China, L’Oréal had a
strong first quarter, with strong growth in sales, at +13.5%
like-for-like and +19.0% reported.
In the first three months of the year, the
growth trend continued in the global beauty market, with consumer
purchasing behaviour unaffected by inflation. L’Oréal pursued its
premiumisation and innovation strategy and continued to outpace the
beauty market across all Zones and Divisions, recording strong
growth by volume and value. L’Oréal Luxe, Professional Products and
Active Cosmetics all achieved double-digit growth, and our Consumer
Products Division again outperformed the market despite
supply-chain challenges. We made the most of our omnichannel
strategy, with a clear revival in offline sales
while e-commerce 2 continued to grow, representing 25.8% of
sales.
Our growth was balanced across all geographic
Zones, with continued outstanding momentum in North America,
double-digit growth in mainland China, and an acceleration in
emerging markets as well as in Europe, where growth was muted by a
number of lockdowns in early 2021.
In these challenging times following the
invasion of Ukraine, I would like to express our support for all
our Ukrainian employees, whose protection remains our absolute
priority.
Thanks to the unrelenting efforts of our teams
across the world, we will pursue our strategy of harnessing
cutting-edge innovation and investment to drive the growth of our
brands and enhance their desirability going forward.
While mindful of volatility and uncertainty, we
remain optimistic about the outlook for the beauty market and
confident in our ability to outperform the market in 2022 and
achieve another year of growth in sales and profits.”
FIRST QUARTER
2022 SALES
Like-for-like, i.e. based on a
comparable scope of consolidation and constant exchange rates, the
growth of L’Oréal group sales was +13.5%.The net impact of
changes in the scope of consolidation was
+0.4%.Growth at constant exchange
rates amounted to +13.9%.Currency
fluctuations had a positive impact of +5.1%. By
extrapolating the exchange rates as of 31 March 2022, i.e. with €1
= $1.109 up until 31 December, the impact of currency fluctuations
on 2022 full-year sales would be around +4.4%.Based on
reported figures, the Group’s sales, at 31 March 2022,
amounted to 9.06 billion euros, an increase of +19.0%.
Sales by Division and Geographic
Zone
|
Quarterly
sales |
Evolution |
€m |
1st quarter 2021 |
1st quarter 2022 |
Like-for-like |
Reported |
By Division |
|
|
|
|
Professional Products |
848.3 |
1,041.3 |
+17.6% |
+22.7% |
Consumer Products |
2,973.3 |
3,302.9 |
+6.9% |
+11.1% |
L’Oréal Luxe |
2,769.7 |
3,463.7 |
+17.5% |
+25.1% |
Active Cosmetics |
1,023.3 |
1,252.7 |
+18.0% |
+22.4% |
|
|
|
|
|
Group Total |
7,614.5 |
9,060.5 |
+13.5% |
+19.0% |
By geographic Zone |
|
|
|
|
Europe |
2,465.0 |
2,854.5 |
+16.4% |
+15.8% |
North America |
1,813.6 |
2,203.9 |
+12.6% |
+21.5% |
North Asia |
2,374.4 |
2,801.8 |
+9.4% |
+18.0% |
SAPMENA – SSA 3 |
573.8 |
681.1 |
+15.8% |
+18.7% |
Latin America |
387.8 |
519.2 |
+22.2% |
+33.9% |
|
|
|
|
|
Group Total |
7,614.5 |
9,060.5 |
+13.5% |
+19.0% |
Summary by Division
PROFESSIONAL
PRODUCTS
At the end of March, Professional
Products recorded strong growth, at +17.6% like-for-like and +22.7%
reported. The Division maintained solid momentum in all
geographic Zones, with outstanding performance in the United
States, Germany, India and mainland China. It successfully
capitalised on its omnichannel strategy, with an acceleration of
in-salon sales, sustained growth across the SalonCentric network in
the United States, and a sharp increase in e-commerce
sales.Haircare was still the main growth driver, largely thanks to
Serie Expert by L’Oréal Professionnel and Prescriptions by Redken.
Kérastase continued its impressive upward trend, with the
successful launch of Chroma Absolu one of the main highlights. The
outstanding performance in hair colour was largely due to the
sustained growth of Shades EQ by Redken, and
Inoa and Dialight by L’Oréal Professionnel.
CONSUMER PRODUCTS
The Consumer Products Division
continued to grow
in the first quarter, at
+6.9% like-for-like and +11.1% reported. The
Division recorded a very positive start to the year in Europe and
in the United States, despite supply difficulties. In Latin America
and SAPMENA – SSA, the Division achieved standout performance,
while in North Asia it was penalised by the slowdown of some
e-commerce players in mainland China. By channel, the acceleration
of the Division was driven by the strong upswing in
brick-and-mortar sales, while e-commerce continued to grow. Thanks
to a strong focus on successful innovations and the premiumisation
strategy put in place, all major brands continued to grow. L’Oréal
Paris enjoyed strong momentum in haircare, with the outstanding
success of Hyaluron Plump, and in makeup, with True Match serum.
The brand also gained more ground in emerging markets and
especially in South Asia, with the launch of Glycolic Bright.
Garnier showed a significant acceleration in skincare, buoyed
by the global success of Fast Bright and its Vitamin C Brightening
Serum. Both Maybelline New York and NYX Professional Makeup
revitalised the makeup category, with highly successful launches
for Colossal Curl Bounce mascara and Bare With Me Concealer
Serum.
L’ORÉAL LUXE
Posting a strong first
quarter, with like-for-like growth of +17.5%
like-for-like and +25.1%
reported, L’Oréal
Luxe
outperformed the global
luxury beauty market.L’Oréal Luxe
achieved balanced growth across geographic Zones. At the end of
March, the Division held a historic market share in North Asia and,
moreover, outperformed a dynamic market in North America. L’Oréal
Luxe also recorded an excellent first quarter in Europe.The
Division gained market share thanks to the strength and
complementarity of its brand portfolio. The couture brands Yves
Saint Laurent, Giorgio Armani, Prada and Valentino grew
significantly faster than their markets. Lancôme consolidated its
leadership in mainland China and its position among the Top 3 in
the Western world.In a very dynamic fragrance market, L’Oréal Luxe
reinforced its lead with the success of ‘blockbuster’ prestige
products for women and men, as well as rapid growth in collection
fragrances such as Maison Margiela Replica and Armani Privé. In
skincare, the Division’s performance was driven by the
ultra-premium segment, including Lancôme Absolue and Helena
Rubinstein, with newly acquired brands Takami and Youth to the
People showing real promise. Shu Uemura and Urban Decay recorded
strong growth in makeup.
ACTIVE
COSMETICS
At the end of March, the Division
recorded strong growth of +18.0% like-for-like and +22.4%
reported. The Active Cosmetics Division outpaced the
global dermocosmetics market, gaining market share in each Zone.
All Zones achieved double-digit growth, with an exceptional
performance in North America and in SAPMENA – SSA. Online sales
growth continued while brick-and-mortar outlets saw a sharp
upswing, driven by professional channels.The brands continued to
build on their partnership with healthcare professionals. La
Roche-Posay’s strong performance was fuelled by the ongoing success
of Cicaplast and Effaclar and boosted by the launch of its
breakthrough innovation: UVmune sun protection. Underpinned by a
solid performance last year, CeraVe maintained outstanding momentum
in all Zones. Growth at Vichy was fuelled by Dercos and a solid
performance in sunscreens.
Summary by
geographic Zone
EUROPE
The Zone achieved growth of +16.4%
like-for-like and +15.8% reported.The
European market was buoyant in the first quarter, returning to
pre-pandemic levels, driven by strong growth in the fragrance and
makeup categories. The online sales channel was slightly down
compared with a high baseline a year earlier, however showing a
clear improvement over a two-year period. L’Oréal continued to
outperform the market in this channel in the first quarter.There
was sustained sales growth in most countries, and especially in the
United Kingdom, Spain and Italy.The Consumer Products Division
continued to grow thanks to market-share gains in makeup. L’Oréal
Luxe took full advantage of its leading position in fragrances. The
Active Cosmetics Division significantly outperformed the market.
The Professional Products Division maintained momentum across all
major brands. The Group's activities in Ukraine
were put on hold on 24 February, following the invasion. In Russia,
the Group has temporarily closed all its own stores and e-commerce
sites and suspended all industrial and media investments. In
accordance with European and American sanctions, it has temporarily
suspended the sales of all products except essential daily
products.
NORTH
AMERICA
The Zone grew by +12.6% like-for-like
and 21.5% reported. Acceleration continued despite the
persistence of supply chain constraints. The ongoing focus on
innovations, investment in growth drivers and improvement in
valorisation across all Divisions also boosted quarterly
performance. By channel, e-commerce continued to grow and
brick-and-mortar sales bounced back strongly.The Consumer Products
Division continued to grow with the success of consumer-centric
innovation pillars across all categories. Makeup was back as the
top growth contributor, gaining market share. A strong fragrance
portfolio continued to drive L’Oréal Luxe share gains. The
Professional Products Division grew in salons and in the
SalonCentric channel, and experienced tremendous growth online. The
Active Cosmetics Division continued to grow strongly.
NORTH ASIA
At the end of March, the Zone was up
+9.4% like-for-like and
+18.0%
reported. L’Oréal significantly
outperformed the market despite several headwinds due to the
Covid-19 pandemic. In February, Hong Kong experienced significant
disruption due to a new wave of infections. In March, several
Chinese cities were in strict lockdown and travel restricted, which
weighed on the market.L’Oréal Luxe achieved strong market-share
gains, thanks to the success of premium skincare and a spectacular
performance in fragrance, an emerging category in the Zone. The
rebound of makeup and the breakthrough in premium haircare
contributed to the performance of the Consumer Products Division.
Active Cosmetics recorded strong growth underpinned by its
scientific and medical roots. The Professional Products Division
grew strongly, both in salons and online. With double-digit growth
in mainland China, L’Oréal continued to outperform the beauty
market thanks to successful campaigns for Chinese New Year,
Valentine’s Day and Women’s Day. The Group further strengthened its
lead in the country, gaining market share online and offline. In
Hainan, L’Oréal outperformed the Travel Retail market, which
remained very dynamic.Performance in South Korea was driven by
strong beauty market growth while Takami, L’Oréal’s latest Japanese
acquisition, fuelled sales growth in Japan.
SAPMENA – SSA 4
The SAPMENA Zone grew by
+15.8% like-for-like and
+18.7% reported.As
markets reopened international borders and relaxed public health
measures, L’Oréal achieved an outstanding quarterly performance in
SAPMENA, with a strong recovery in South-East Asia and in South
Asia, and strong performance in India and Gulf countries. There was
also a solid upswing for brick-and-mortar outlets and ongoing
growth in online sales. The Consumer Products Division saw a
recovery in the makeup category. L’Oréal Luxe accelerated in
fragrances, which became the biggest category for the Division.
Professional Products growth was led by salon reopenings, driving
sales in both haircare and colour. Active Cosmetics achieved strong
double-digit growth in all markets.In Sub-Saharan Africa (SSA),
L’Oréal recorded notable performance in South Africa and Kenya.
Active Cosmetics achieved exceptional growth. L’Oréal Luxe posted
outstanding growth, driven by ongoing momentum in both women’s and
men’s fragrances. The Consumer Products Division experienced a
clear recovery in makeup.
LATIN
AMERICA
The Zone recorded very strong growth of
+22.2% like-for-like and
+33.9% based on reported
figures. In the first quarter of 2022, the beauty market
continued to expand in all major countries, with a particularly
strong recovery in Mexico compared with the first quarter of
2021.In this context, L’Oréal achieved an outstanding performance
in Mexico and Chile, while Brazil saw strong growth. The Consumer
Products Division made significant market share gains. L’Oréal Luxe
and Active Cosmetics reaffirmed their No.1 position. The
Professional Products Division also recorded a solid performance as
consumers are returning to salons.L’Oréal enjoyed strong growth in
all major categories, most notably in haircare, skincare and
fragrances, driven by its superior innovations as well as the
appeal of its iconic brands and products. Brick-and-mortar sales
grew strongly while e-commerce sales continued to be very dynamic,
thanks to the ongoing focus on digital consumer connection and
online activation.
IMPORTANT EVENTS DURING THE PERIOD
1/1/22
TO
31/3/22
- On 9 February 2022, the Board of
Directors of L’Oréal cancelled, effective as of 10 February 2022,
the 22,260,000 L’Oréal shares repurchased from Nestlé, in
accordance with the Board’s decisions on 7 December 2021. As of 10
February 2022, L’Oréal’s capital is formed by
535,412,372 shares with equivalent voting rights.
- On 22 February, L’Oréal joined
forces with more than 30 personal care companies and professional
associations to form the EcoBeautyScore
Consortium. The goal is to develop an industry-wide
environmental impact assessment and scoring system for cosmetics
products.
- On 25 February, David
Greenberg was appointed CEO of L’Oréal USA, President of
North America Zone, and member of the Executive Committee.
- On 3 March, for the fifth year in a
row, L’Oréal was among the top 20 most gender-equitable companies
in the world in Equileap’s Global Gender Equality
Ranking. The Group is again No.1 in France. The research
examined 3,895 companies, representing 102 million employees
globally, on gender equality across 23 countries based on 19
in-depth criteria.
- On 11 March, L'Oréal received a
Long-Term Issuer credit rating from Standard and
Poor’s, and an Issuer Rating of Aa1 from Moody’s. The outlooks
assigned to the ratings by both agencies are “Stable”. On 22 March,
L'Oréal announced that it had successfully priced its inaugural
public bond offering5,
including a sustainability-linked tranche, for an
aggregate nominal value of 3 billion euros. The new issuance was
very well received by the market, with total demand of 10.7 billion
euros, just over 3.5 times the combined total of the
offering.
- On 17 March, the 2021
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 21 March,
L’Oréal marked International Fragrance Day by
announcing a strategic partnership in beauty with
leading neurotech company EMOTIV.
The initiative aims to help consumers find the perfect fragrance,
personalised to fit their preferences, by combining an EMOTIV
neurotech device with proprietary L’Oréal scents and algorithms.
Created in conjunction with EMOTIV by L’Oréal’s Technology
Incubator, luxury brand Yves Saint Laurent and a team of fragrance
experts, the unique fragrance consultation experience connects
neuro responses to fragrance preferences through a multi-sensor
EEG-based headset.
“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
Internet site 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
news release issued in the French language and is provided solely
for the convenience of English-speaking readers. In case of
discrepancy, the French version prevails.
About
L’OréalFor over
110 years, L’Oréal, the world’s leading beauty player, has devoted
itself to one thing only: fulfilling the beauty aspirations of
consumers around the world. Our purpose, to create the beauty that
moves the world, defines our approach to beauty as inclusive,
ethical, generous and committed to social and environmental
sustainability. With our broad portfolio of 35 international brands
and ambitious sustainability commitments in our L’Oréal for the
Future programme, we offer each and every person around the world
the best in terms of quality, efficacy, safety, sincerity and
responsibility, while celebrating beauty in its infinite
plurality.
With 85,400 committed employees, a balanced
geographical footprint and sales across all distribution networks
(e-commerce, mass market, department stores, pharmacies, hair
salons, branded and travel retail), in 2021 the Group generated
sales amounting to 32.28 billion euros. With 20 research centers
across 11 countries around the world and a dedicated Research and
Innovation team of over 4,000 scientists and 3,000 tech
professionals, L’Oréal is focused on inventing the future of beauty
and becoming a Beauty Tech powerhouse. More information
on https://www.loreal.com/en/mediaroom
L’ORÉAL
CONTACTS
Switchboard+33
(0) 1 47 56 70 00 |
Individual
Shareholders and
Market
Authorities Mr Christian
Munich+33 (0)1 47 56 72 06christian.munich2@loreal.com |
Investor
relations Ms Françoise Lauvin+33 (0)1 47 56 86
82francoise.lauvin@loreal.com |
Journalists Ms Noëlle Camilleri+33 (0)6 79 92
99 39noelle.camilleri@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 Internet site for shareholders
and investors, www.loreal-finance.com or the L’Oréal Finance app,
alternatively, call +33 1 40 14 80 50.
This press release has been secured and authenticated with
the blockchain technology. You can verify its
authenticity on the website www.wiztrust.com
Appendix
L’Oréal group sales
2021/2022
(€ million)
|
2021 |
2022 |
First quarter |
7,614.5 |
9,060.5 |
Second quarter |
7,582.1 |
|
First half total |
15,196.6 |
|
Third quarter |
7,996.6 |
|
Nine months total |
23,193.1 |
|
Fourth quarter |
9,094.4 |
|
Full year total |
32,287.6 |
|
1 Like-for-like: based on a comparable structure
and identical exchange rates.2 Sales achieved on our brands’ own
websites and with e-commerce pure players + estimated sales
achieved by our brands corresponding to sales through our
retailers’ websites (non-audited data).3 SAPMENA – SSA: South Asia
Pacific, Middle East, North Africa, Sub-Saharan Africa4 SAPMENA –
SSA: South Asia Pacific, Middle East, North Africa, Sub-Saharan
Africa 5 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION,
DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN
OR AUSTRALIA
LOreal (EU:OR)
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De Mar 2024 à Avr 2024
LOreal (EU:OR)
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