Luxury and actives continue to be a winners for L’Oréal
Sales for the quarter were €5.93bn, which represented an increase of 5.5 per cent on a like-for-like basis and 5.1 per cent on a reported basis. Currency fluctuations impacted the result by 1.1 per cent, which meant that the figure grew by 6.5 per cent in local currencies.
“The Consumer Products, L'Oréal Luxe and Active Cosmetics divisions are growing strongly, driven by major innovations such as Olia by Garnier, L'Oréal Paris Advanced Haircare, La Vie est Belle by Lancôme, or Idéalia by Vichy,” said Jean-Paul Agon, Chairman and CEO of L'Oréal.
"All our brands are on the offensive, and this has enabled the group to post new records for market shares, especially in Western Europe and North America. Growth trends in the New Markets are homogeneous and sustained.”
Proffesiional Products continues to be slow
However, Agon did point out that one of the few exceptions to the company’s strong performance has been its professional products division, which he said has been impacted by difficult market conditions, particularly in southern Europe.
Overall the company did say that its share of the European market is continuing to grow, despite the tough economic conditions in the Euro Zone, while in North America market share was also said to have grown.
Geographically the main drivers to the growth remains the new markets, which are continuing to deliver sales growth at well above global average market rates, mainly in upper single digit figures.
Body Shop and Galderma
Meanwhile, the Body Shop delivered sales growth of 1.8 per cent on a like-for-like basis, results that were held back by the performance in the mature markets, but boosted by growth in the Middle East and South East Asia.
Galderma sales fell by 0.4 per cent on a like-for-like basis, a figure that was negatively impacted by a series of factors, including, mainly in Europe, where competition in the medicated personal care segment remains tough.
The company is expected to announce its full first quarter results in the course of the the next few weeks, at which time the net profit for the period will be revealed.
