L'Oréal saw particularly strong performance in China, despite Covid-19 lockdowns imposed in mid-March impacting sales for luxury beauty brands
L’Oréal’s professional product division performed well during the period
L’Oréal has reported double-digit sales growth across all geographic regions in its half-year 2022 results.
The owner of Garnier and Giorgio Armani attributed the success to a swell in consumers wanting to socialise and purchase luxury beauty products following the Covid-19 pandemic.
This led to net profits increasing by 25.3% to €3.7bn during the period, with reported sales also jumping by 20.9% to €18.37bn.
“After two years of the pandemic, consumers confirm their desire to socialise and indulge themselves with innovative and superior beauty products, which in turn is fueling the growth of the beauty market,” said Nicolas Hieronimus, CEO of L'Oréal.
Reported sales in China also rose by 22.7% to €5.6bn in the first half of the year, despite Covid-19 lockdowns imposed in mid-March impacting sales for luxury beauty brands.
Hong Kong and Macau were particularly affected by the restrictions, which led to stifling growth for rival beauty owner LVMH during the second quarter.
L’Oréal said its current omnichannel strategy, driven by a strong focus on e-commerce, meant it was able to circumvent the Chinese Covid-19 lockdowns.
North America and Europe also reported sales increases of 25.3% and 13.4% respectively.
“Balanced between geographic zones, all of which posted double-digit growth, with strong performance in emerging markets and outstanding performance in mainland China in a very challenging context, thanks to our expertise in e-commerce,” added Hieronimus.
L’Oréal’s professional product division performed particularly well during the period, with a 21.7% increase in reported sales.
Hair colour was a key performer for the category, driven by sales of Shades EQ by Redken and Inoa by L’Oréal Professionnel.
NYX Professional Makeup, along with the launch of Vinyl Ink lipstick by Maybelline New York, boosted sales by 13.9% for the group’s consumer product arm.
The category was also bolstered by hair care sales and the global rollout of Elvive Hyaluron Plump.
Garnier’s Vitamin C Brightening Serum was a standout performer for L'Oréal’s skin care division.
“We remain optimistic about the outlook for the global beauty market and confident in our ability to outperform in 2022 and achieve another year of growth in sales and profits,” added Hieronimus.