11.08.11
Slow and steady. That's the best way to describe L'Oréal's third quarter results. Driven by gains in Asia as well as improvement within the luxury goods division, the world's largest beauty company said sales rose 1.8% in the period to more than 4.94 billion euros or $6.99 billion.
“Looking toward the year’s end, we are conscious of the uncertainties in a number of economies. But we are also confident that the worldwide cosmetics market should remain favorable,” said chairman and chief executive officer Jean-Paul Agon during a conference call with analysts.
“All in all, we believe that the fourth quarter should be more or less in the same vein as the third.”
On the year, L’Oréal’s sales increased 3.9% to 15.09 billion euros, or $21.23 billion.
“Clearly, it is led by luxury, driven by Asia, the Middle East, travel retail and North America,” he said. “The mass market is dynamic, too; the active cosmetics channel records moderate growth, but we still do not see any improvement in the professional products market.”
He credited the gain in Q3 sales to the successful launch of products such as Lancôme’s Visionnaire, Garnier’s B.B. Cream and Diesel’s Loverdose.
By operational division for the nine months, L’Oréal Luxury’s sales rose 6.2%to $4.85 billion; Active Cosmetics division’s sales grew 3.3% to $1.57 billion; Professional Products division and Consumer Products division’s revenues each rose 3% to $2.97 billion and $10.45 billion, respectively. The Body Shop's sales fell 0.6% to $708.1 million, and revenues from L’Oréal’s dermatology activity grew 13.7% to $674.1 million.
Agon said there was also little change on a regional basis versus in the first half. He noted a “small deceleration” in certain Latin American countries that was offset by some recovery in Japan.
“The new markets contributed two-thirds of the growth,” continued Agon, referring to the zone that registered sales of 5.32 billion euros, or $7.49 billion, up 8.3% against the first nine months of 2010. “It is the very dynamic markets of Asia in which L’Oréal achieved the most significant share gains, driven by luxury in [China] and Korea, as well by the Consumer Products division across almost all markets — China, India and Southeast Asia.”
“Even in Western Europe we are achieving some growth — even if it’s modest — in a difficult and very contrasted market,” said Agon, of the region that notched up a 1.3% sales gain to $7.74 billion. “It is worth noting that we have managed to reinforce our positions in key markets, such as France or Germany, which helped offset some of the weaknesses that we have in Southern European countries.”
“Looking toward the year’s end, we are conscious of the uncertainties in a number of economies. But we are also confident that the worldwide cosmetics market should remain favorable,” said chairman and chief executive officer Jean-Paul Agon during a conference call with analysts.
“All in all, we believe that the fourth quarter should be more or less in the same vein as the third.”
On the year, L’Oréal’s sales increased 3.9% to 15.09 billion euros, or $21.23 billion.
“Clearly, it is led by luxury, driven by Asia, the Middle East, travel retail and North America,” he said. “The mass market is dynamic, too; the active cosmetics channel records moderate growth, but we still do not see any improvement in the professional products market.”
He credited the gain in Q3 sales to the successful launch of products such as Lancôme’s Visionnaire, Garnier’s B.B. Cream and Diesel’s Loverdose.
By operational division for the nine months, L’Oréal Luxury’s sales rose 6.2%to $4.85 billion; Active Cosmetics division’s sales grew 3.3% to $1.57 billion; Professional Products division and Consumer Products division’s revenues each rose 3% to $2.97 billion and $10.45 billion, respectively. The Body Shop's sales fell 0.6% to $708.1 million, and revenues from L’Oréal’s dermatology activity grew 13.7% to $674.1 million.
Agon said there was also little change on a regional basis versus in the first half. He noted a “small deceleration” in certain Latin American countries that was offset by some recovery in Japan.
“The new markets contributed two-thirds of the growth,” continued Agon, referring to the zone that registered sales of 5.32 billion euros, or $7.49 billion, up 8.3% against the first nine months of 2010. “It is the very dynamic markets of Asia in which L’Oréal achieved the most significant share gains, driven by luxury in [China] and Korea, as well by the Consumer Products division across almost all markets — China, India and Southeast Asia.”
Agon described L’Oréal’s operations in North America, where revenues increased 1.1% to $4.62 billion, as being on a “dynamic path, thanks to luxury and market-share gains in mass.” Positions were reinforced by well-received initiatives from Maybelline and Garnier plus the successful launch of Essie.
“Even in Western Europe we are achieving some growth — even if it’s modest — in a difficult and very contrasted market,” said Agon, of the region that notched up a 1.3% sales gain to $7.74 billion. “It is worth noting that we have managed to reinforce our positions in key markets, such as France or Germany, which helped offset some of the weaknesses that we have in Southern European countries.”