L’Oréal Groupe has got off to a positive start in 2024 with first-quarter sales rising +9.4% like-for-like (+8.3% reported) to €11.24 billion (US$11.97 billion). This was despite the key North Asian travel retail market (notably Hainan and South Korea) suffering from unfavourable comparatives and well-documented structural changes in both locations relating to their respective reseller markets.
Total sales (all channels) in North Asia contracted -1.1% like-for-like and -3.9% reported.
“While sequentially improving, travel retail continued to weigh on growth in the region, given year-on-year comparisons and sell-out trends,” the company said.
North Asia is also key to the fortunes of L’Oréal Luxe, which grew +1.8% like-for-like and +2.2% reported.
“Strong growth in Europe and North America was partly offset by the softness in North Asia,” L’Oréal noted. “In this region, the division was penalised by an unfavourable comparison base in travel retail and sluggish market growth in Mainland China, where L’Oréal Luxe continued to grow ahead of the market.”
That growth (+6.2%) was driven by the breadth of the group’s offer, whether by category, channel or price point, as well as its innovation pipeline, L’Oréal said.
Japan and Hong Kong SAR both benefited from the resurgence of tourism, posting double-digit growth.
Taking into account a positive €130 million phasing impact ahead of the implementation of new IT systems in North America, adjusted like-for-like growth was +8.1%.
All divisions grew with “stellar” performances from the Consumer Products and Dermatological Beauty divisions while L’Oréal noted particularly remarkable growth in Europe and Emerging Markets.
L’Oréal CEO Nicolas Hieronimus 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.
“And the first quarter was perfect proof. Continued double-digit growth in Europe, coupled with ongoing strength in emerging markets more than offset the only gradual recovery in North Asia. The outstanding performances of dermatology and mass compensated the short-term challenges in luxury.
“All in all, adjusted for the favourable phasing in North America, our like-for-like growth was a strong +8.1%, not only maintaining our rhythm, but once again significantly outperforming the dynamic beauty market.
“This remarkable performance also reflected the strength of our innovation, the power of our brands, as well as the engagement of our teams around the world.
“In an environment that continues to be marked by economic and geopolitical tensions, we are optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profit.” ✈
