L’Oréal Stays the Course of Double-Digit Growth for Q3 2023

Sales for L’Oréal continue to stay the course of double-digit growth for Q3 2023, the company reported. 

 

In Q3, net sales for the company were $32.2 billion.

 

Like-for-like, based on a comparable scope of consolidation and constant exchange rates, sales of the L’Oréal Group grew by +12.6%.

 

The company reported growth in all divisions with “very strong performance” of the L’Oréal Dermatological Beauty and Consumer Products Divisions.

 

Double-digit growth was achieved in all regions, except North Asia, where strong market outperformance in mainland China and Japan was offset by the reset in Travel Retail, with a particularly impressive performance in Europe and emerging markets.

 

“I am very proud of the performance of our teams in the first nine months,” said CEO Nicolas Hieronimus. “The beauty market remains exceptionally dynamic, and L’Oréal continues to outperform and reinforce its global leadership. Despite the slower than expected recovery of the beauty market in mainland China and the reset in Asian Travel Retail, L’Oréal kept its double-digit pace. We did so thanks to our broad-based regional footprint, our successful innovation pipeline, and our agility to rapidly allocate investment to the areas where we see the highest growth. In a context of continued economic and geopolitical uncertainty, we remain confident in our ability to keep outperforming the market and achieve in 2023 another year of growth in sales and profits. We are optimistic about the outlook for the beauty market and remain ambitious for the future.”

In the first nine months, the Professional Products Division recorded growth of +8.0% like-for-like and +5.1% reported.

 

The division delivered a steady acceleration in like-for-like growth quarter after quarter and continued to outperform the professional beauty market, with remarkable growth in mainland China, India and the United States. Consumer appetite for premium haircare and sophistication of routines remains; in line with this trend, Kérastase continued to go from strength to strength.

 

In a dynamic haircare market, the Division maintained its strong momentum, driven by its unique brand portfolio and successful innovations, notably the revamping of the iconic Nutritive range from Kérastase and the promising start of Absolut Repair Molecular from L’Oréal Professionnel. In hair colour, the performance was supported by key pillars Inoa from L’Oréal Professionnel and Shades EQ from Redken.

 

The division successfully pursued its omnichannel strategy and grew across all of its distribution channels: in salons, in its SalonCentric network (North America), in e-commerce and in the selective channel.

 

As an industry leader, the division continued to support its partner hairdressers in the ecological transition through its “Hairstylists for the Future” program.

The Consumer Products Division achieved its best nine months on record, growing +14.5% like-for-like and +10.8% reported.

 

The division outperformed a dynamic mass market and delivered a balanced progression between offline and online as well as between value and volume. By region, the key growth contributors were Europe, where momentum remained spectacular, as well as emerging markets with particularly strong performances in Mexico, Brazil, and India.

 

Disruptive and valorizing innovations coupled with winning activations, the company said, powered double digit growth across all major brands and categories. Makeup was boosted by new launches like Falsies Surreal Mascara by Maybelline New York, Infallible Matte Resistance lipstick by L’Oréal Paris, and Fat Oil gloss by NYX Professional Makeup, which also benefited from its great collaboration with Barbie the Movie. Skincare was driven by sustained strong momentum at Garnier, a successful innovation pipeline at L’Oréal Paris, including Revitalift Clinical and Glycolic Bright, as well as a good UV season. In hair, the Division significantly outperformed the market thanks to its premiumization strategy, embodied by the successful launches of Elvive Bond Repair in haircare and Garnier Good in hair color.

In the first nine months, L’Oréal Luxe achieved growth of +6.1% like-for-like and +2.9% reported.

 

In the third quarter, the division grew in double digits across all regions, excluding Travel Retail Asia. In mainland China, L'Oréal Luxe continued to significantly outperform a market that has been slower to recover than initially expected and to gain share.

 

The fragrance category was again the stand-out performer, driven by the ongoing success of Paradoxe by Prada and Born In Roma by Valentino as well as global pillars like Libre by Yves Saint Laurent and La Vie Est Belle by Lancôme. The recently launched Yves Saint Laurent men's fragrance MYSLF is off to a very strong start. In skincare, Helena Rubinstein maintained its stellar performance and new launches like Clarifique Double Essence and Rénergie H.P.N. 300-Peptide Cream by Lancôme had a good start. Makeup saw a solid recovery across all regions except Travel Retail Asia, driven by the likes of Yves Saint Laurent and the newly launched Prada Beauty.

 

The more recently acquired brands played their role as growth engines, delivering outstanding performance, notably Prada, Mugler and Takami. Aēsop joined L’Oréal Luxe’s brand portfolio on August 30.

L’Oréal Dermatological Beauty recorded outstanding growth of +28.7% like-for-like and +27.3% reported.

 

The division maintained its strong momentum, continuing to outperform a very dynamic dermocosmetics market – driven by its portfolio of highly complementary brands and its longstanding medical prescription leadership.

 

It posted “impressive” growth across all regions – remarkably well balanced between emerging and mature markets. In mainland China, the division significantly outperformed a market that remained resilient.

 

La Roche-Posay, the number one growth contributor, maintained its strong growth trend, driven by Effaclar, Cicaplast and UVmune 400. CeraVe achieved high double-digit growth in both North America as well as the rest of the world. Skinbetter Science continued its successful trajectory in the US. Vichy accelerated, boosted by the Dercos haircare franchise.

 

Third-quarter sales include the remaining $60.3 million insurance benefit following the natural disaster which has been severely disrupting operations at the plant in Vichy since last year.