Clichy,
Sales at
L’Oréal returns to growth
- Sales:
20.11 billion euros - -7,4% like-for-like 1
- -6,9% at constant exchange rates
- -8,6% based on reported figures
- Growth in the third quarter: +1.6% like-for-like 1
- Exceptional growth of the Active Cosmetics Division: +15.2% like-for-like 1
- Power and growth in e-commerce 2: 23.7% of sales, +61.6% 1
- Strong growth in mainland
China : +20.8% like-for-like 1
Commenting on the figures,
“In the context of the ongoing epidemic crisis, L’Oréal’s absolute priority continues to be to protect the health of all its employees worldwide.
The Group was able to return to growth as soon as this third quarter thanks to the determination and the relevance of the strategic choices taken in all Divisions and geographic Zones.
After a first half marked by a crisis of supply, linked to the closure of points of sale around the world, L’Oréal put everything in place, as early as June, to stimulate demand for its brands and products and to re-engage all its business drivers. All of the launches initially planned went ahead, business drivers and media investments were strengthened, and “Back to Beauty” plans were deployed with our distribution partners everywhere, in brick-and-mortar and e-commerce, to stimulate the return to consumption. This return to growth is evidence of consumers’ robust appetite for beauty products and our innovations. It is also the fruit of the remarkable commitment of all the teams, who were mobilised in all areas of the Group and in all countries.
All these initiatives enabled us to significantly outperform a beauty market which is still on the road to recovery. The Professional Products Division posted its best quarter in many years, thanks to the reopening of salons and the acceleration of e-commerce. Despite its extensive exposure to the makeup category, the Consumer Products Division returned to growth thanks to a number of commercial operations. L’Oréal Luxe significantly outperformed its market thanks to a very strong launch plan and its unique portfolio of complementary brands. Finally, the Active Cosmetics Division achieved a record quarterly growth, driven by the remarkable success of all its brands. All Divisions were able to seize market opportunities, particularly in the skincare category, where our brands are on the offensive. The teams also harnessed the power of e-commerce 2, which grew at a rate of +61.6% 1.
In geographic terms,
As a result, in a sanitary environment which remains difficult and uncertain, our performance in the third quarter strengthens our ambition to achieve like-for-like growth for the second half, and to deliver solid profitability.”
Sales at
Like-for-like, i.e. based on a comparable structure and identical exchange rates, L’Oréal group sales came out at -7.4%.
The net impact of changes in the scope of consolidation was +0.5%.
Growth at constant exchange rates came out at -6.9%.
Currency fluctuations had a negative impact of -1.7%. If the exchange rates at
Based on reported figures, the Group's sales, at
Sales by Division and geographic Zone
3rd quarter 2020 | At | |||||
Growth | Growth | |||||
€m | Like-for-like | Reported | €m | Like-for-like | Reported | |
By Division | ||||||
Professional Products | 861.7 | +11.0% | +5.0% | 2,203.4 | -10.9% | -13.1% |
Consumer Products | 2,861.8 | +0.8% | -4.7% | 8,712.5 | -6.2% | -8.6% |
L’Oréal Luxe | 2,575.6 | -6.2% | -6.4% | 6,957.8 | -13.1% | -11.9% |
Active Cosmetics | 737.7 | +29.9% | +21.7% | 2,239.6 | +15.2% | +10.7% |
Group total | 7,036.8 | +1.6% | -2.0% | 20,113.3 | -7.4% | -8.6% |
By geographic Zone | ||||||
1,915.4 | -2.5% | -0.7% | 5,468.9 | -11.8% | -10.9% | |
1,854.3 | +1.3% | -2.1% | 5,162.0 | -9.7% | -9.4% | |
New Markets, of which: | 3,267.0 | +4.2% | -2.8% | 9,482.4 | -3.2% | -6.6% |
- Asia Pacific | 2,236.2 | +2.4% | -1.9% | 6,704.7 | -1.8% | -2.9% |
- Latin America | 408.1 | +8.7% | -8.1% | 1,067.3 | -6.0% | -19.3% |
- Eastern Europe | 455.4 | +7.7% | -2.6% | 1,254.3 | -5.5% | -10.3% |
- Africa, | 167.3 | +8.6% | 0.0% | 456.0 | -9.2% | -13.0% |
Group total | 7,036.8 | +1.6% | -2.0% | 20,113.3 | -7.4% | -8.6% |
PROFESSIONAL PRODUCTS
At the end of September, the Professional Products Division was at -10.9% like-for-like and -13.1% reported.
In the third quarter, the Division recorded its best quarterly growth for 20 years at +11.0% like-for-like. Thanks to its far-reaching transformation, which has already led to significant market share gains, and to its solidarity initiatives to support hairdressers, the Division has emerged from the health crisis with an even greater advantage over competitors and a stronger leadership position in the industry.
The Division’s performance was driven by an acceleration on e-commerce and a return to growth in brick-and-mortar points of sale. Its performance was particularly strong in
CONSUMER PRODUCTS
At the end of September, the Consumer Products Division was at -6.2% like-for-like and -8.6% reported.
The Division returned to growth in the third quarter at +0.8% like-for-like. During the quarter, Garnier achieved double-digit growth and L’Oréal
In the third quarter, in hair colour, the Division gained market share in a particularly dynamic category; in haircare, it achieved double-digit growth thanks to the successful launches of Fructis Hair Food and Elvive Dream Lengths; and also accelerated in face care thanks to the launch of concentrated serums rich in active dermatological ingredients by L’Oréal
All regions, except for
Finally, our digital advance enabled us to accelerate our e-commerce 2 conquest, growing sales in the channel by +49.2% 1.
L’ORÉAL LUXE
At the end of September, L’Oréal Luxe was at -13.1% like-for-like and -11.9% reported in a global luxury beauty market down approximately 19%.
L’Oréal Luxe outperformed the market in all three of its categories. In skincare, it made significant strides driven by its powerful, complementary brands Lancôme, Kiehl’s,
At the end of September, L’Oréal Luxe had gained market shares in almost all Zones. Strong performances were recorded in
The Division continued to accelerate strongly in e-commerce 2, with global growth of +60.5% 1.
ACTIVE COSMETICS
At the end of September, Active Cosmetics was at +15.2% like-for-like and +10.7% reported, despite the slow dermocosmetics market.
The Division accelerated in the third quarter to reach record growth of +29.9%. The major brands and all geographic Zones grew, and the Division recorded market share gains.
Growth was driven by a major acceleration plan based on a dynamic activation strategy with prescribers, retailers and consumers, both online and offline. The Division’s investments in digital platforms and e-commerce in recent years helped to make the online distribution channel its biggest growth contributor. At the same time, focused post-confinement initiatives at points of sale enabled the sector to return to growth in the third quarter.
Summary by geographic Zone
At the end of September, the Zone was at -11.8% like-for-like and -10.9% reported. Most countries returned to growth in the third quarter, with
During the third quarter, the consumption of beauty products recovered gradually, though the makeup category remains depressed. All Divisions rolled out major recovery plans to enhance brand visibility during the period. At the same time, e-commerce growth 2 remained buoyant. The Consumer Products Division grew steadily, significantly outperforming the market in the third quarter. Garnier continued to gain market shares, particularly in haircare with the success of its new Fructis Hair Food range, and in hair colour. L’Oréal
At the end of September, the Zone recorded -9.7% like-for-like and -9.4% reported.
It made progress in the third quarter. All Divisions maintained growth in the e-commerce channel. The Consumer Products Division is back to growth, despite a sluggish makeup market. It achieved triple-digit growth in e-commerce, has strengthened its leadership position in hair colour, and has improved in the skincare category thanks in particular to Revitalift Glycolic Acid and 10% Pure Hyaluronic Acid by L’Oréal
NEW MARKETS
Mainland
L’Oréal Luxe outperformed the market, particularly in skincare with Lancôme, Kiehl’s and
All Divisions posted growth in the third quarter with particularly strong performances by Active Cosmetics and Professional Products; in terms of countries, the
E-commerce contributed significantly to growth, accounting for 16% of sales.
Important events during the period
- On 31 August, L’Oréal announced the launch of its second Employee Share Ownership Plan. The plan, rolled out in 57 countries, gives L’Oréal employees, in
France and internationally, the possibility to be even more closely linked to the Group’s development.
- On 16 September, L’Oréal announced that it had been named one of the world’s top 10 companies by the 2020 Refinitiv Diversity & Inclusion Index that ranks the top 100 organisations globally on a wideranging set of Diversity & Inclusion metrics among the over 9,000 international organisations it assesses.
- On 1 October,
L'Oréal announced that it took 10th place in theUniversum 2020 global rankings of business students’ and graduates’ favourite companies, moving up two spots from 2019. L’Oréal is the only French and European company in the top 10 of this prestigious ranking.
- On 8 October, L’Oréal announced the appointment of Barbara Lavernos as President, Research, Innovation and Technologies.
Antoine Vanlaeys is appointed Chief Operations Officer. These nominations will be effective as of1 February 2021 .
- On 14 October, L’Oréal announced the succession of Jean-Paul Agon as Chief Executive Officer from
1 May 2021 . L’Oréal’s Board of Directors met under the chairmanship of Jean-Paul Agon. Following the recommendations of theAppointments and Governance Committee , the Board decided on new governance and a succession plan at the head of the Group. As the Company's articles of association do not provide for any exception to the legal retirement age of 65 years, Jean-Paul Agon must hand over his duties as Chief Executive Officer beforeJuly 2021 . In this context, the Board of Directors announced its intention to dissociate the functions of Chairman and Chief Executive Officer. The Board announced its intention to renew Jean-Paul Agon’s mandate as Chairman, a position he has held since 2011, and to appointNicolas Hieronimus as Chief Executive Officer.
Furthermore, in his exchanges with theAppointments and Governance Committee , Jean-Paul Agon, with the agreement of the Board of Directors and the full support ofNicolas Hieronimus , wished to maintain the role of Deputy CEO, a position held byNicolas Hieronimus at his side since 2017. Barbara Lavernos, who will lead Research, Innovation, Technology fromFebruary 2021 , will be appointed Deputy CEO on1 May 2021 .
”This news release does not constitute an offer to sell, or a solicitation of an offer to buy L’Oréal shares. If you wish to obtain more comprehensive information about L’Oréal, please refer to the public documents registered in
This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements.”
This a free translation into English of the Sales at
L'ORÉAL CONTACTS
Individual Shareholders and Market Regulators
Mr
Tel.: +33 (0)1 47 56 72 06
christian.munich2@loreal.com
Financial Analysts and
Ms Françoise LAUVIN
Tel.: +33 (0)1 47 56 86 82
francoise.lauvin@loreal.com
Media
Ms Domitille FAFIN
Tel.: +33 (0)1 47 56 76 71
domitille.fafin@loreal.com
Switchboard: +33 (0)1 47 56 70 00
For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, and the Internet site for shareholders and investors, www.loreal-finance.com or the L’Oréal Finance app, alternatively, call +33 1 40 14 80 50.
Appendix
L’Oréal group sales 2019/2020 (€ million)
2019 | 2020 | |
First quarter | 7,550.5 | 7,225.2 |
Second quarter | 7,261.0 | 5,851.3 |
First half total | 14,811.5 | 13,076.5 |
Third quarter | 7,182.8 | 7,036.8 |
Nine months total | 21,994.3 | 20,113.3 |
Fourth quarter | 7,879.3 | |
Full year total | 29,873.6 |
www.loreal-finance.com - Follow us on Twitter @loreal
1 Like-for-like: based on a comparable structure and identical exchange rates.
2 Sales achieved on our brands’ own websites + estimated sales achieved by our brands corresponding to sales through our retailers’ e-commerce websites (non-audited data).
Attachment
- LOREAL_Q3_SALES_2020_EN
© OMX, source