(AFP / BERTRAND GUAY)
The French cosmetics giant L’Oréal announced on Thursday sales up 8.3% in the first quarter year-on-year, to 11.24 billion euros despite a decline in turnover in North Asia.
“2024 is off to a very good start,” said the general director, Nicolas Hieronimus, quoted in the press release. According to him, “the continuation of double-digit growth in Europe and the strength of emerging markets more than offset the only gradual recovery in North Asia”, where sales fell by 3.9% to 2.7 billion euros.
These sales are slightly higher than the expectations of analysts surveyed by Bloomberg and Factset, who expected 10.88 and 10.98 billion euros respectively.
“In mainland China, where the beauty market remained sluggish,” according to the press release, L’Oréal sales were up 6.2%. Japan and Hong Kong “are both benefiting from the recovery in tourism and showing double-digit growth.”
Turnover in Europe increased by 12.2% to 3.7 billion euros with “particularly remarkable performances” in Germany-Austria-Switzerland, Spain-Portugal and United Kingdom-Ireland. Sales in North America are up 11.9% to three billion euros thanks in particular to a new computer system.
“The exceptional performances in the dermo-cosmetics and general public segments have counterbalanced the short-term challenges in luxury,” estimates Nicolas Hieronimus.
The consumer products division (Garnier, Maybelline, L’Oréal Paris, NYX Professional Makeup) exceeds four billion in turnover (+9.2%). “Each of the four flagship brands is experiencing double-digit growth,” according to the press release.
Sales in the dermatological beauty section (La Roche-Posay, Vichy, etc.) jumped 19.6%, reaching two billion euros. La Roche-Posay remains “the leading contributor to growth”, according to L’Oréal.
The luxury division suffered from a “sluggish” beauty market in North Asia. Its turnover reached 3.8 billion euros (+2.2%) with strong growth in Europe and North America. Perfume (Yves Saint Laurent, Valentino, Prada, etc.) remains the most dynamic category in the division.
Sales of professional products increased by 8.7% to 1.2 billion euros, notably thanks to the new IT system in North America.
“In a context still marked by economic and geopolitical tensions, we are optimistic about the prospects of the beauty market,” declares Nicolas Hieronimus, “and confident in our ability” to do better than the market to achieve “a new year of growth turnover and results.