L’Oréal’s sales climbed 13% like-for-like in Q1 2023, marking another quarter of market outperformance for the beauty giant.
The French conglomerate reported sales of €10.38bn in the three months ended 31 March 2023, with “outstanding” performances in its Consumer Products and Dermatological Beauty Divisions.
Consumer Products sales were up 14.7% due to the company’s ongoing “premiumisation strategy” and “significant volume growth”.
Make-up was the fastest growing category for this period, driven by hotly-anticipated launches.
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 were among the top sellers.
The Dermatological Beauty Division, formerly known as Active Cosmetics, also grew 30.6% due to “an acceleration in Europe and emerging markets”.
Skin care brand La Roche-Posay was the biggest contributor to its growth thanks to sun care product Anthelios UVmune 400 and the relaunch of Cicaplast.
Dermatologist recommended skin care brand CeraVe reported increased sales across the globe, while L’Oréal’s recently acquired US physician-dispensed brand SkinBetter Science had an “excellent” quarter.
L’Oréal CEO Nicolas Hieronimus said: “Boosted by valorised innovations in all divisions, and the engagement of our teams around the world, L’Oréal has outperformed the market 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.
“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.”
The Professional Products Division also reported a 9.8% sales increase as a result of strong performances in regions such as India and the UK.
Kérastase’s Symbiose anti-dandruff range and L’Oréal Professionnel Metal Detox were cited as key drivers behind the growth.
Although the Luxe Division grew 6.5% like-for-like across all geographical zones, sales in North Asia were reported as “flat” due to a reduction of stock-in-trade in mainland China at the beginning of the year.
L’Oréal’s strong Q1 2023 comes weeks after the company announced its acquisition of Australian beauty brand Aesop from Natura & Co for US$2.5bn, which Hieronimus said will “reinforce L’Oréal Luxe”.
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