Second quarter 2010 financials for L'Oréal showed strong sales growth: +10.2% based on reported figures and +6.3% like-for-like. Dynamism was shown in all four divisions, with good performance in North America and breakthroughs continuing in new markets, as well as a positive impact of currency fluctuations.
Commenting on the figures, Jean-Paul Agon, CEO of L'Oréal, said, “The strong first-half sales growth reflects a return to a good like-for-like sales trend, and a very positive exchange rate impact, which might increase in the course of this year. All divisions are recording dynamic trends, thanks to major innovations which are proving very successful: the roll-out of the new Inoa hair colorant from L’Oréal Professionnel is continuing in salons all over the world, Yves Saint Laurent is experiencing a complete renaissance with one of the highest growth rates amongst major luxury brands, and Maybelline, the world leader in makeup, is growing strongly across all continents. L'Oréal has once again strengthened its geographic positions, thanks to the group's good performance in North America, and major breakthroughs in the new markets, particularly in China, Brazil, Russia, India and Indonesia. These results bear out our major strategic choices, and mean that we can tackle the second half with confidence”.
The Professional Products division recorded first-half sales growth of +5.3% like-for-like and +11.9% based on reported data, after taking into account the impact of currency fluctuations and of changes in consolidation due to the acquisition of distributors in the United States. The division’s worldwide leadership is increasing.
The Consumer Products division achieved sales growth of +5.6% like-for-like at the end of June. All major brands have increased sales, particularly Maybelline. The division is winning market share worldwide.
The first-half sales of the Luxury Products division grew by +9.7% like-for-like and +12.0% based on reported figures. The strategy of concentrating on the division’s major brands and iconic products is paying off. The division is achieving good sell-out in stores, particularly in the skin care category, in a selective market showing a clear upturn.
The sales of the Active Cosmetics division grew by +4.7% like-for-like in the first half and +7.9% based on reported figures. There was a clear acceleration in the second quarter, particularly in Western Europe. In a worldwide market, which estimates suggest has grown slightly, the division is confirming its number one position.
At the end of June, the like-for-like sales of The Body Shop increased by +0.2%. Retail sales fell by -2.1%, but on a comparable store base, the sales trend was -2.4%.
There are sharp contrasts in retail sales trends, with on one hand very dynamic countries such as India, Russia, Indonesia and Saudi Arabia, together with on-line sales which are growing strongly, and on the other a more difficult situation in the United Kingdom, North America and Japan.
Galderma extended its leadership position in dermatology, with like-for-like sales increasing by +14.1%, reflecting balanced growth and market share gains throughout the world.