Sales: $31.9 billion
Nicolas Hieronimus, chief executive officer; Barbara Lavernos, deputy chief executive officer, in charge of research, innovation and technology; Christophe Babule, chief financial officer; Vincent Boinay, president, travel retail; Cyril Chapuy, president, luxe; Myriam Cohen-Welgryn, president, active cosmetics; Vianney Derville, president, Europe zone; Asmita Dubey, chief digital and marketing officer; Omar Hajeri, president, professional products; Blanca Juti, chief corporate affairs and engagement officer; Jean-Claude Le Grand, chief human relations officer; Fabrice Megarbane, president, North Asia Zone & chief executive officer, L’Oréal China; Alexandra Palt, chief corporate responsibility officer and executive vice president of the Fondation L’Oréal; Alexis Perakis-Valat, president, consumer products; Stéphane Rinderknech, president, North America & chief executive officer, L’Oréal USA; Frédéric Rozé, chief global growth officer; Vismay Sharma, president, South Asia Pacific, Middle East, North Africa zones; Antoine Vanlaeys, chief operations officer
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
Consumer—Sky High by Maybelline New York, Infallible powder by L’Oréal Paris, L’Oréal Paris Sublime Bronze Self-Tanning Facial Drops and Shine Loud by NY Professional Makeup; Luxury—Takami, Prada, My Way by Giorgio Armani, Voce Viva by Valentino and Libre by Yves Saint Laurent; Professional—Pro Longer, Redken Volume Maximizer Thickening Spray; Active Cosmetics—Liftactiv Supreme H.A. Epidermic Filler
Comments: Three of four divisions reported lower sales. As a result, L’Oréal reported a 6.3% decline in sales.
The pandemic hammered L’Oréal’s professional division. Sales fell 10% as lockdowns caused salons around the world to shut down. Yet, the division achieved historic market share gains in all zones, thanks to a big recovery in the second half of the year. The division posted strong growth in China, especially on Tmall. The No. 1 category for growth was hair care, led by Kérastase, which registered double-digit growth due to the popularity of Genesis and Blond Absolu, along with the launch of Pro Longer by L’Oréal Professionnel.
Consumer product sales fell 8.2%, but L’Oréal said things started to return to normal in the second half, led by Garnier and L’Oréal Paris. Mask mandates mangled the makeup market. Still, the division grew faster than competitors in the second half of the year and gained market share in its other major categories. Hair color saw double-digit growth. Hair care was driven by the success of Fructis Hair Food and Elseve Dream Long, and the strong start of Elseve Full Resist and Ultra Doux shampoo bars. Skin care rose due to the success of L’Oréal Paris serums and the Fast Bright range by Garnier, rolled out in emerging countries. In makeup, the division strengthened its position, thanks to NYX Professional Makeup and 3CE Stylenanda which benefited from their mastery of digital. The division saw a significant improvement in performance in all zones in the second half of the year, and notably recorded growth in China, Brazil and Germany.
L’Oreal Luxe sales fell 7.6% as masks made makeup unnecessary. But the company said the division outperformed the market with a clear acceleration in the second half and a return to growth in the last quarter all driven by e-commerce, particularly in direct-to-consumer. The division outperformed the market in its three categories, especially in skin care, driven by the power of its brands, notably Lancôme, Kiehl’s and Helena Rubinstein. Successful fragrance launches included My Way by Giorgio Armani, Voce Viva by Valentino and Libre by Yves Saint Laurent . L’Oréal Luxe gained market share in nearly all geographic zones, led by gains in Asia Pacific, especially mainland China, as well as many Western European countries.
The lone bright spot? Active cosmetics sales jumped 13.0%. L’Oréal credited the unique relationship that the brands have with healthcare professionals, combined with the growing consumer preoccupation with health. E-commerce remains the main growth driver, supported by a dynamic digital activation strategy. In-store initiatives also drove growth. Sales grew faster than the market in all zones, with exceptional performance in North America and Asia. L’Oréal said CeraVe is now one of the top five dermocosmetics brands and almost doubled in size, driven by exceptional growth in North America. Furthermore, sales of SkinCeuticals and La Roche-Posay outpaced the market in all zones.
Beauty rebounded in 2021. Overall sales jumped 5.4% as three divisions posted double-digit gains, led by a 47.2% surge in e-commerce sales. Big gains in China (up nearly 38%), helped Asia-Pacific sales rise 23.8%. Western Europe were nearly flat and North America sales fell 1.8%. By division, L’Oréal Luxe sales increased 12.4%, professional products rose 12.9% and active cosmetics sales soared 21.8%. Only consumer products fell, declining 6.2%. By region, Western Europe sales fell 9.2% and North America dropped 8.8%. New Markets fell 3.2% in 2020, but sales in Asia Pacific rose 1.5%.
In June, following the retirement of Alexandre Popoff, president, L’Oréal Eastern Europe Zone, L’Oréal created a new Europe Zone to be led by Vianney Derville, who was president of L’Oréal Western Europe Zone. Under his leadership, the two former zones of Western Europe and Eastern Europe will come together as one single zone. This organizational change has been designed to put in place the optimum conditions to help drive future growth and represents the last stage in the reorganization of L’Oréal’s zone structure, according to the company.
Vianney joined the Group in 1992, as a product manager in the consumer products division in France for Lascad. In 1999, he was appointed general manager for the CPD division in Japan, a position he held for four years. Following his success in Japan, Vianney was subsequently appointed as general manager for L’Oréal Spain in 2004.