Sales: $31.4 billion
Key Personnel: Jean-Paul Agnon, chairman and chief executive officer; Laurent Attal, executive vice president, research and innovation; Jean-Philippe Blanpain, executive vice president, operations; Nicolas Hieronimus, president, selective divisions; Brigitte Liberman, president, active cosmetics division; Marc Menesguen, president, consumer products division; Christian Mulliez, executive vice president, administration and finance; Alexis Perakis-Valat, executive vice president, Asia Pacific; Alexandre Popoff, executive vice president, eastern Europe; Sara Ravella, executive vice president, communication, sustainability and public affairs; Lubomira Rochet, chief digital officer; Frédéric Rozé, executive vice president, Americas; Geoff Skingsly, executive vice president, Africa-Middle East.
Major Products: Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under many brand names in different channels. Consumer—Garnier, L’Oréal Paris, Le Club des Créateurs, Maybelline, SoftSheen-Carson. Professional—L’Oréal Professional, Kerastase, Redken, Matrix, Mizano, Shu Uemura Art of Hair, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, Innerve, SkinCeuticals, Sanoflore. Personal care—The Body Shop.
New Products: Lancôme Lip Lover cosmetics, Advanced Génifique, Dreamtone, Garnier Miracle Skin Cream, Vichy Neovadiol Elixir, Biolage from Matrix, Redken Fashion Waves 07, Hairchalk, SkinCeuticals Revesratrol BE, L’Oréal Paris Mega Volume Miss Manga mascara, Maybelline SuperStay Better Skin; Essie Gel. Carita and Decléor skin care and Nyx Cosmetics (acquisitions).
Comments: Sales rose 2.3% last year as gains were tempered by currency fluctuations. By region, New Markets (including Asia, Latin America, Eastern Europe and Africa, Middle East), posted a 3.3% increase in sales to $11.6 billion. Sales in Western Europe were up 1.1% to $10.2 billion and North American sales totaled $7.3 billion, up 2.8%.
By division, professional product sales fell 1% due to declining salon visits in mature consumer markets. Some of the best gains came from New Markets, specifically Brazil, Russia and India. Brand-wise, Kérastase had a good year. Consumer product division sales were up 1.5%, helped along gains from L’Oréal Paris, Garnier and Maybelline. The division posted good results in Western Europe, as well as Brazil, India, Indonesia, Turkey and the Gulf states. In North America, business was impacted by a market slowdown and inventory adjustments. Sales jumped 5.3% within L’Oréal Luxe, as Lancôme fragrance and skin care sales were strong. The company noted that sales of Giorgio Armani, Yves Saint Laurent, Kiehl’s, Clarisonic and Urban Decay all advanced as well. Sales of active cosmetics increased 4.9%, driven by the Vichy brand and its recent introduction of Néovadiol Magistral. The company noted that La Roche-Posay posted another year of double-digit gains as well. Galderma sales increased 3.9%, as demand for self-medication products continues to grow around the world, especially in Asia, Russia and Latin America. However, The Body Shop posted a 2.3% decline in sales.
For the first quarter of 2014, a slowing market in North America, coupled with a high comparison to a year ago, resulted in L’Oréal reporting a 2.2% decline in sales to $7.8 billion. However, on a like-for-like basis, sales rose 3.5% and 2.8% at constant exchange rates. The company noted that while the L’Oréal Luxe and the Active Cosmetics divisions maintained good momentum, and the Professional Products division has returned to growth in Western Europe and the US, it was a different outcome in the Consumer Products Division, which was held back by North America, because of a high comparison base in the first quarter of 2013, linked to two major launches, and a sluggish trend in the mass-market channel over the first few months of the year.
By division, professional product sales fell 2.3% to $1.0 billion. Consumer product sales fell 5.5% to $3.9 billion. L’Oréal Luxe sales rose 2.7% to $1.9 billion and sales of Active Cosmetics rose 3.9% to $668 million.
L’Oréal may be the world’s biggest beauty company, but it wants to be even bigger. Last month, L’Oréal acquired Nyx Cosmetics for an undisclosed amount. The color cosmetics company had sales of $72 million last year, an increase of 46%. Sales continued to record strong growth this year, amounting to $93 million for the 12 months ended May 31, up 57% over the comparable year-over-year period.
That deal followed the February acquisition of Carita and Decléor brands from Shiseido. The brands have been integrated into the professional products division, enabling L’Oréal to now offer face and body care products through this channel.