Paris (awp / afp) – The global cosmetics giant L’Oréal achieved net profit of 3.2 billion euros in the first half, up 36.5% over one year thanks to an increase in sales in all regions and in all product categories.
The group’s sales totaled between January and June 18.37 billion euros, up 20.9% over one year. Profitability is also up with an operating margin of 20.4%, compared to 19.7% in the first half of 2021, according to a press release published on Thursday.
“The beauty market is up 6% over six months and L’Oréal is more than twice the growth of the market (+13.5% like-for-like),” Nicolas Hieronimus, the manager, told AFP. group general manager. This performance is “linked to a very balanced performance regionally and between divisions”, he explained.
By branch of activity, all divisions are progressing. L’Oréal Luxe, dedicated to high-end products (Yves Saint Laurent, Lancôme, etc.), retains its position as the first division acquired in 2021, with half-yearly sales of 6.87 billion euros (+25. 6%).
Sales of the Consumer division (Garnier, Maybeline, Mixa…) reached 6.79 billion euros (+13.9%) and the Professional Products division (Redken, Kerastase…) increased by 21, 7% to 2.16 billion euros.
The Active Cosmetics division (Vichy, La Roche-Posay, etc.) made the best progress (+28%) at 2.54 billion euros.
Geographically, North Asia remains the largest market with 5.62 billion euros in sales (+20.3) ahead of Europe at 5.57 billion euros (+14.6).
The cosmetics market in China remained negative over the half-year due to multiple confinements to fight against Covid-19, but “L’Oréal achieved double-digit growth”, according to Nicolas Hieronimus, relying on e-commerce which now represents 60% of L’Oréal’s turnover in China (against 50% previously).
Nicolas Hieronimus said he was “convinced that China is going to have a good second half: they are getting better and better at controlling the Covid, they have no inflation, little unemployment, a policy of prosperity”.
In Europe, the group “is growing faster than the market, particularly in Spain, Portugal, Germany and Italy” and North America is up 23.5% to 4.65 billion euros in sales.
The group notes “exceptional growth in emerging countries” in Latin America (+39.1% to 1.12 billion euros) in South Asia, Pacific, Middle East, Africa (+28.3% to 1 .4 billion euros).
“Our acceleration in emerging countries – which I had called for when I took over the management of L’Oréal (Nicolas Hieronimus was appointed Chief Executive Officer in May 2021, editor’s note) – is materializing thanks to the consumer division”, emphasizes the managing director.
On the global economic situation, “we are very aware that the environment is more unstable and more uncertain than ever. We are very vigilant and we are very prepared for any recession, whether brief or not,” said Mr Hieronimus. which remains “globally optimistic because the appetite for beauty is there”. “The market, which is growing by 3 to 4% per year, will continue to develop,” he says.
afp/rp