L’Oréal announced its financial results for the first nine months of 2013. Sales were €17.21 billion, a 6% at constant exchange rates and a 4.9% like-for-like increase.
Commenting on these figures, Jean-Paul Agon, chairman and CEO of L’Oréal, said, “Since the start of the year, L’Oréal has been winning market share across all divisions and geographic zones, thus strengthening its world number one position. In the third quarter, demand for the group’s products remained strong, driven by major product initiatives and their global rollout: Olia by Garnier and Elvive by L'Oréal Paris in the Consumer Products Division, Sì by Giorgio Armani and Dreamtone by Lancôme at L'Oréal Luxe, and Idealia by Vichy in the Active Cosmetics division. In Western Europe, the group recorded solid growth, particularly in France and Germany. In North America, Consumer Products division sales were affected by market slowdown and inventory reductions in distribution that exceeded our expectations. The group is maintaining its good dynamics across all the new markets, particularly in China, India, Brazil and Russia. The economic context remains subject to some uncertainties about the market trend, and to the negative impact of currencies. But our growth prospects, supported by the innovations and the globalization of our major brands, combined with a strategy of targeted and complementary acquisitions, enable us to look to the future with confidence. We confirm our targets for 2013 and our ambition of achieving a further year of growth in sales, results and profitability.”
At September 30, the Professional Products division of L'Oréal reported 1.8% like-for-like and -0.6% based on reported figures. The mature markets are still difficult, particularly Southern Europe. The division is maintaining its dynamics in the New Markets. In the luxury hair care segment, Kérastase recorded another quarter of growth, and the new Couture Styling range is confirming its success. The good development of the hair care category is continuing however, thanks to the successful hair oils and the rollout of the Biolage Advanced range by Matrix in the U.S. In hair colorants, ODS2 technology—used in three of the division's brands (L’Oréal Professionnel, Matrix and Redken)&mdsah;is continuing its development. Essie, which is growing strongly, is strengthening its professional nail care expert positioning thanks to the launch of Essie Gel in the U.S.
In geographic terms, the division is consolidating its positions in Western Europe and in the U.S. in markets still affected by the lower number of salon visits. In the new markets excluding Japan, all zones are continuing to grow, with particularly good figures in Russia, Brazil, South Korea, India, Indonesia and Africa, Middle East.
The Consumer Products division achieved sales growth at end-September of 5.3% like-for-like, and 2.8% based on reported figures. The division is continuing to win market share worldwide. The trends of all the division's brands are favorable. L’Oréal Paris is maintaining its dynamics with its successful globalization of Elvive. In facial skin care, the brand is accelerating its growth thanks to Revitalift Laser, Revitalift Miracle Blur and Age Perfect Cell Renewal. Garnier is significantly reinforcing its positions in hair colorants, thanks to the success of Olia, now in the global rollout phase, while in facial skin care the BB creams are continuing to recruit new consumers. Maybelline is posting strong performances in the lipstick and nail varnish segments.
Geographically, in Western Europe, the third quarter was good for the division. In North America, activity was affected by inventory adjustments by distributors, but the division is continuing to improve its market shares, thanks in particular to L’Oréal Paris Advanced Haircare. nd Brazil, China, Turkey and the Middle East all performed well.
With a solid third quarter, L’Oréal Luxe posted sales growth at end-September of 6.2% like-for-like and 5.3% based on reported figures. L’Oréal Luxe is gaining market share in all regions. One year after its launch, Lancôme is continuing to enjoy worldwide success with La Vie est Belle, and is strengthening its skin care sales with the renewal of Advanced Génifique and the launch in September of a particularly innovative product: Dreamtone, a pigmentation corrector. Giorgio Armani is maintaining its growth dynamics thanks to the launch of its new women's fragrance, Sì. Yves Saint Laurent is accelerating in Asia with Vernis à Lèvres Rebel Nudes, and its new mascara, Volume Effet Faux Cils Baby Doll. The three American brands of Kiehl’s, Clarisonic and Urban Decay are growing very strongly across all continents. Among the designer fragrance brands, Viktor&Rolf is performing strongly worldwide thanks to the success of Flowerbomb and Spicebomb. Diesel is launching Loverdose Tattoo, and Polo Red by Ralph Lauren is a success.
Business remains lively in North America, in the new markets, and in the travel retail channel, where L’Oréal Luxe is gaining market share.
At September's end, the Active Cosmetics division is continuing its strong growth, with scores of 8% like-for-like and 5.6% based on reported figures. Trends for the major brands are favorable: La Roche-Posay is recording double-digit growth, with good performances across all continents. Vichy is continuing its recovery, with the further development of its Idéalia franchise, boosted by the launch of Idéalia Life Serum. SkinCeuticals is continuing its global rollout. Overall, the division is continuing to gain market shares worldwide. The dynamics are particularly strong in Western Europe and Latin America.
At the end of September, The Body Shop recorded 0.4% like-for-like and -2.9% based on reported figures. The Body Shop is performing well in Indonesia, India, Malaysia, Eastern Europe and is affected by the countries of Southern Europe and the U.S. New launches will take place in the 4th quarter, with the new body care range Honeymania, featuring community fair trade honey from Ethiopia, and the fragrance White Musk Smoky Rose. The brand is continuing the global rollout of its new "Pulse" store concept, and the development of its digital offering. The brand also now has 22 e-commerce websites, and at September 30, 2013, The Body Shop had a total of 2,849 stores.
Galderma's sales rose 0.2% like-for-like and 1.1% based on reported figures, with continuing sharp contrasts between performances in the geographic zones. Growth remains particularly solid in the new markets, especially in Asia Pacific, Latin America and Russia. In the U.S., where the market remains extremely competitive, sales of prescription products are still impacted by more intense competition from generics. Epiduo (acne) is however recording good growth figures, while the FDA has approved Mirvaso for the treatment of the erythema associated with rosacea. The product was immediately launched on the market. Cetaphil (a hydrating and cleansing skin care range) and Loceryl (onchymycosis) are continuing to grow strongly in the over-the-counter market. The aesthetic and corrective medical solutions are also recording solid advances, driven by the strong growth of Azzalure (muscle relaxant) and Restylane (dermal filler).