L’Oréal released its first-quarter performance for 24 years, reporting a sales figure of €11.24 billion for the first three months of this year, representing a like-for-like 9.4% year-on-year increase. According to the report, growth stood at 8.3%. Incomparable structure and at constant exchange rates, sales grew by +9.4%. The growth rate calculated at fixed exchange rates is +11.8%.
The Professional Products Division recorded significant growth of +10.7% on a comparable basis and +8.7% in reported figures. A portion of this growth stemmed from a positive impact before the introduction of new IT systems in North America, contributing to almost half of the division’s total growth.
The haircare category experienced notable dynamism primarily due to consumers’ high interest in premium products. This was fueled by the successful launch of Première by Kérastase and Acidic Colour Gloss by Redken, alongside the continued popularity of Absolute Repair Molecular and Metal Detox by L’Oréal Professionnel. In hair color, growth was propelled by the strong performance of Shades EQ by Redken and the promising reintroduction of Diacolor by L’Oréal Professionnel.
The Consumer Products Division experienced an impressive growth of +11.1% on a comparable basis and +9.2% in reported figures, with each category showing double-digit advancement. Makeup saw significant growth, driven by popular products such as L’Oréal Paris Panorama mascara, Maybelline New York Superstay Lumi Matte foundation, and NYX Professional Makeup Duck Plump lip gloss, the latter benefitting from a viral Super Bowl commercial. Haircare emerged as the fastest-growing category, propelled by the success of L’Oréal Paris Elvive, particularly due to the early success of Glycolic Gloss. Skincare witnessed a significant acceleration, supported by the strong performance of L’Oréal Paris Bright Reveal, Garnier’s anti-acne innovations, and Vitamin C Daily UV fluid, further bolstered by the success of Mixa, a mass medical brand, in Europe.
L’Oréal Luxe achieved a growth of +1.8% on a comparable basis and +2.2% in reported figures.
While Europe and North America saw strong growth, there was a slight setback in North Asia. The Division faced challenges in this region due to tough comparisons in Travel Retail and slower market growth in mainland China, although L’Oréal Luxe continued to outpace the market in China.
Fragrances remained the standout category, with Couture brands like Yves Saint Laurent, Valentino, and Prada driving exceptional performance. Makeup returned to double-digit growth, fueled by the continued success of Yves Saint Laurent, especially with its new Loveshine lipstick, the introduction of Prada makeup, and the promising debut of Urban Decay’s Face Bond. Skincare also saw notable achievements, particularly from Yves Saint Laurent and Takami, which is gradually expanding across North Asia.
Dermatological Beauty achieved remarkable growth of +21.9% on a comparable basis and +19.6% in reported figures.
La Roche-Posay continued to lead in contributing to growth, while CeraVe made significant strides in both the US and international markets, fueled by its highly effective Super Bowl campaign. Vichy had a promising start to the year, driven by its Dercos franchise, and Skinbetter Science maintained its impressive momentum in the US while also launching successfully in Canada.
Sales in Europe surged with a notable growth of +12.6% on a comparable basis and +12.2% in reported figures. Similarly, North America experienced robust growth, recording a +12.3% increase on a comparable basis and +11.9% in reported figures. However, North Asian sales declined, showing a -1.1% decrease on a comparable basis and a -3.9% decrease in reported figures.
Although Travel Retail showed signs of improvement compared to previous periods, it continued to impact overall growth in the region due to comparisons with the previous year and ongoing sell-out trends. In mainland China, despite the sluggish beauty market, L’Oréal demonstrated significant outperformance with a growth rate of +6.2%, supported by its diversified product offerings across various categories, channels, and price points, as well as its innovation initiatives. Japan and Hong Kong SAR experienced substantial growth fueled by the resurgence of tourism, both posting double-digit increases.
Nicolas Hieronimus, CEO of L’Oréal, said: “2024 is off to a very good start with like-for-like growth of +9.4%, perfectly illustrating the power of our unique model. We are a pure player in beauty, a category that has once again proven its relentless growth capacity. Our multipolar approach to beauty – from luxury to mass, professional to dermatological, in all channels, all price points, and all geographies – allows us to seize all growth opportunities and offset temporary points of softness.”
