L’Oréal posted first half sales for 2013, with positive results across its various divisions, and market share gains seen in Western Europe and North America, stemming from the Active Cosmetics Division and L’Oréal Paris in Western Europe, and Garnier, Lancôme, Giorgio Armani and Kiehl’s in North America.
Sales for the time period were 11.7 billion Euros, or $15.42 billion, a 4.7 percent increase, with 5.4 percent increases like-for-like (based on a comparable structure and identical exchange rates).
Jean-Paul Agon, Chairman and CEO, said the company posted a “solid first half” despite the market’s slight slow down with “each division and zone growing and outperforming its market.”
By operational division, like-for-like, L’Oréal’s Professional Products Division saw a 1.4 percent increase as mature markets, including North America, still face challenges. Hair care sales are growing driven by hair oils and the launch of Biolage Advanced by Matrix.
Consumer Products grew 6.3 percent, with L’Oréal Paris gaining momentum thanks to the globalization of Elvive in hair care and Revitalift Laser in facial skincare. L’Oréal Luxe grew 6.4 percent, with Lancôme, Giorgio Armani and Kiehl’s maintaining growth. Clarisonic is continuing its global roll out, while Urban Decay is growing and has launched Naked BB Cream.
Active Cosmetics grew 7.8% driven by the “recovery” of Vichy and sustained growth of La Roche-Posay.
By geographic zone, North America grew 5.4 percent. Against a European market that’s slightly down, L’Oréal recorded a 1.7 percent like-for-like growth in Western Europe. Of L’Oréal’s new markets, Africa, Middle East grew the largest at 15.1 percent.
Sales at The Body Shop grew .5 percent. The division was affected by the phasing of launches in the first half, which will occur in the second half.
North America sales are growing nearly twice as fast as the market. L’Oréal Paris Advanced Hair Care, Olia hair colorant by Garnier and the ramp up of Essie.