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L’Oréal said sales grew 9.1 per cent on a like-for-like basis to €9.58 billion in the third quarter ended 30 September, a 20 per cent increase above pre-pandemic levels due to strong performances in Europe and North America that offset disruptions in China.
“In a context of unprecedented volatility, marked by the public health restrictions in China and inflation in the Western world, L’Oréal achieved a very solid quarter,” said L’Oréal CEO Nicolas Hieronimus in a statement. “The global beauty market remained dynamic, and consumers’ appetite for beauty products is intact.”
Sales in the North Asia region, which includes China, rose 0.3 per cent in the third quarter to €2.41 billion, while all other regions saw double-digit increases on a like-for-like basis. He noted that emerging markets, including Latin America and the South Asia, Middle East and North Africa region, were standouts. The company beat analyst expectations of an 8.3 per cent gain.
Marketing spend and digital investments helped the beauty conglomerate beat expectations, with fragrance and skincare leading but makeup yet to return to pre-pandemic levels.
L’Oréal’s luxury division took a hit due to ongoing lockdowns in the key Chinese market across the first nine months. However, growth started to pick back up in September and “reached record market share in mainland China in the third quarter”, reporting 22 per cent growth at the end of September according to the company. The division grew 4.6 per cent in the third quarter and 12.2 per cent across the first nine months. The company’s fragrance division led the way, with brands such as Yves Saint Laurent, Prada and Lancôme driving momentum.
“Despite the current uncertainties, we remain confident in the outlook for the global beauty market, which has again confirmed its resilience; confident in our power to innovate; and confident in our ability to outperform the market and achieve another year of growth in sales and profits in 2022,” said Hieronimus.
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