Clean sweep for L'Oréal in first quarter 2015

Published: 21-Apr-2015

Beauty giant sees sales grow 14.1% with growth in all divisions

With L'Oréal Paris having just been named the Most Valuable Cosmetics Brand by Brand Finance in its 2015 league table, it comes as no surprise that parent company L'Oréal was the picture of health in its latest financial posting.

In Q1 2015, L'Oréal saw sales grow by 14.1% based on reported figures, with growth across all of its core divisions and geographic regions. Jean-Paul Agon, Chairman and Chief Executive Office of L'Oréal, said: “In an economic context that is still volatile, we confirm that we are confident in our ability to outperform the market this year once again, and to achieve growth in sales and profit.”

In the Professional Products Division, which includes brands such as Redken, Kérastase and Essie, there was growth of 3.5% like-for-like or 16% based on reported figures. Hair care was the primary driver for growth “boosted by the success of Serioxyl at L'Oréal Professionnel, Chronologiste at Kérastase, Cérafill at Redken and Biolage Cleansing Conditioner at Matrix”, according to L'Oréal. Meanwhile, nail polish brand Essie grew strongly in Western Europe and the US.

Over in the Consumer Products Division, which incorporates brands such as L'Oréal Paris, Garnier and NYX, there was like-for-like growth of 1.7% and reported growth of 11.6%. Growth in the colour category was put down in part to the launches of Infallible Matte foundation by L'Oréal Paris, Lash Sensational mascara by Maybelline and the powerful dynamism of its new brand NYX, noted L'Oréal. While in skin care, the continuing success of Revitalift Filler at L'Oréal Paris and the Micellar Cleansing Waters at Garnier, aided the good results.

When it came to the brand's high-end offering, under its L'Oréal Luxe banner, the division grew 7.5% like-for-like or 20% on reported figures. YSL recorded double-digit growth, bolstered by its Black Opium fragrance and some of its colour innovations such as Volupté Tint-in-Oil and Volume Effet Faux Cils mascara.

Finally, in L'Oréal's Active Cosmetics Division, which comprises brands including Vichy, La Roche-Posay and SkinCeuticals, sales rose 7.6% like-for-like and 10.2% based on reported figures. In particular La Roche-Posay put in a sterling performance with double-digit growth on all continents.

Looking at The Body Shop's performance separately, the brand saw growth of 4.2% like-for-like or 9.1% based on reported figures. It was important to note that earlier this year The Body Shop announced the acquisition of its Australian franchise Adidem Pty Ltd, which operates 91 stores in Australia. Although The Body Shop is taking great strides in certain areas such as Europe, the Middle East, North America and Latin America, L'Oréal did admit that some Asian countries are remaining more difficult to crack.

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