PARIS — L’Oréal’s third-quarter sales increased 0.5 percent on a reported basis, bolstered by growth in all divisions and regions, and ongoing recovery in North America and mainland China.
Group sales in the three months ended Sept. 30 amounted to 10.33 billion euros, up 4.2 percent on a like-for-like basis and 4.9 percent adjusted for IT transformation.
The adjusted sales growth has accelerated sequentially at the maker of Lancôme, Kérastase, Miu Miu and Garnier products, with gains in the second quarter of this year at 3.7 percent and 2.6 percent in the first quarter.
In the first nine months, L’Oréal sales reached 32.81 billion euros, advancing 1.2 percent in reported terms and 3.4 percent like-for-like.
“Progress was broad-based,” said Nicolas Hieronimus, chief executive officer of L’Oréal in a statement released after trading hours Tuesday. “All regions contributed: The recovery of our two largest markets — the U.S. and mainland China — continued; in a solid market, Europe remained robust, and ongoing strength in [the South Asia Pacific, Middle East and North Africa business] more than offset the softness in Latin America.”
The executive said growth also accelerated across L’Oréal’s divisions, after launches increased in the third quarter.
Kérastase Elixir Ultime Original Oil
Courtesy Kérastase
“The global beauty market remains dynamic with progressive improvement in luxury,” said Hieronimus. “Our strength online allows us to outperform what is today the most dynamic channel.”
The release of L’Oréal’s results came less than two days after news broke of the group’s acquisition of Kering Beauty in a 4 billion euro deal.
“The acquisition of Creed will make us one of the leading players in niche fragrances, and I see enormous potential for growth for the beauty and fragrance licenses of Gucci, Bottega Veneta and Balenciaga, all truly exceptional couture bands,” Hieronimus said. “This partnership will further solidify our position as the world’s leading luxury beauty company.”
He expressed confidence that L’Oréal will continue to outperform the beauty market and achieve another year of sales and profit growth.
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