L’Oréal 1H2021: booming sales see French beauty behemoth return to pre-covid growth rate

THE WHAT? L’Oréal has reported its outcomes for the primary half of the present fiscal yr. The French beauty big noticed sales soar 33.5 p.c within the second quarter to push first half growth to +20.7 p.c like-for-like (+16.2 p.c reported).THE DETAILS The rise was most notable within the skilled merchandise division, which noticed sales rise 65.9 p.c within the second quarter as restrictions had been lifted throughout the globe. L’Oréal Luxe and Active Cosmetics additionally noticed meteoric growth, at +45.7 p.c and + 48.4 p.c respectively, whereas client merchandise placed on a decent 14.2 p.c.In phrases of geographic zone, second quarter recoveries from Europe, North America, SAPMENA and Latin America noticed all areas report double-digit growth within the first half, whereas North Asia continued its growth trajectory to be topped the group’s best-performing area, with sales up 23.2 p.c LFL within the first six months of the yr.E‑commerce continued to develop, the French beauty big reported, at a extra reasonable rate due to the reopening of retail channels, and now accounts for 27.3 p.c of sales. Benefiting from a slight restoration in worldwide journey and the success of Hainan, Travel Retail has bounced again too, regardless of ongoing restrictions on motion.THE WHY? New CEO, Nicolas Hieronimus, commented, “With the well being state of affairs nonetheless unsure, the beauty market is regularly recovering and has recorded double-digit growth. As a results of the willpower and continued dedication of our groups, L’Oréal is considerably outperforming the market, with an distinctive second quarter. By the tip of June, the Group posted a really sturdy enhance and returned to its pre‑Covid growth rate, up +6.6 p.c like-for-like in contrast to the primary half of 2019, with an acceleration of +8.4 p.c within the second quarter in contrast to 2019.“L’Oréal recorded market share positive aspects in all Divisions and all geographic Zones. This outstanding efficiency displays the relevance and wholesome stability of our multi-faceted mannequin when it comes to geographic footprint, manufacturers and classes. The Professional Products Division has efficiently reworked its enterprise mannequin and achieved document efficiency. The Consumer Products Division recorded double-digit growth within the second quarter, thanks specifically to the restoration of make-up. L’Oréal Luxe additionally noticed a pointy rise in perfume sales and considerably outperformed the market. The Active Cosmetics Division achieved document growth, demonstrating that its model portfolio is completely tailored to shoppers’ well being and beauty aspirations.“L’Oréal has once more gained energy within the early a part of the yr and is properly positioned to proceed to develop at its pre-crisis tempo, leveraging on expertise, knowledge and Artificial Intelligence to turn into the Beauty Tech firm. In the second half of 2021, we’ll pursue our offensive product launch technique whereas on the similar time investing in related growth drivers to spur the long run growth and the desirability of our manufacturers. We are extra assured than ever in our capability to outperform the market and obtain a yr of growth in each sales and outcomes.”


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