L’Oréal saw strong sales growth during its third quarter, driven by brisk demand in Europe and the US as consumers continued to buy beauty products despite a squeeze on their spending power.
The owner of brands such as Maybelline, Lancome, and Garnier posted sales of €9.58bn in the period to 30 September, up 9.1% like-for-like. Its Consumer Products and Active Cosmetics divisions were the star performers, with sales growth of 10% and 26% respectively.
In the US, sales grew 9.3% despite a slow July, with a strong return of demand during the back-to-school period. Sales grew 10.5% in Europe, with L’Oreal flagging market share gains in key markets such as Germany, Spain and the UK.
The only disappointment was North Asia, where sales only grew 0.3% due to the disruption in China related to Covid restrictions. This weighed heavily on the company’s largest division, L’Oreal Luxe, which recorded a 4.6% sales increase.
“In a context of unprecedented volatility, marked by the public health restrictions in China and inflation in the Western world, L’Oréal achieved a very solid quarter, continuing at a steady pace of growth compared to 2019,” said CEO Nicolas Hieronimus.
“The global beauty market remained dynamic, and consumers’ appetite for beauty products is intact. The combination of a robust business model, agility and the commitment of its teams across the world allowed L’Oréal to again significantly outperform the market and strengthen its position as the world’s No.1 beauty company.”
Consumer goods and luxury companies have posted strong sales figures in recent months, buoyed by higher prices to offset surging costs. However, Nestlé and P&G revealed this week that their volumes are weakening amid signs that the inflation squeeze is pushing more consumers towards cheaper brands and own-label.
