L’Oréal has announced nine month 2020 results that showed 20.11 billion euros in sales, representing a decline of 7.4% (all comparisons herein are like-for-like). The third quarter results rose 1.6% year-over-year, totaling 7,036.8 million euros.
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All geographic regions returned to growth in the third quarter, excepting Western Europe. Latin America led the way, with a rise of 8.7%. For the last nine months, all regions are down year-over-year, with Asia Pacific faring the best with a decline of 1.8%.
Its nine months results showed active cosmetics sales grew 15.2% (totaling 2,239.6 million euros), while the division accelerated in the third quarter to reach record growth of 29.9% (totaling 737.7 million euros).
L’Oréal Luxe nine month sales dropped 13.1% like-for-like, totaling 6,957.8 million euros, and dropped 6.2% in the latest quarter, totaling 2,575.6 million euros. The division continued to accelerate strongly in e-commerce, with global growth of 60.5%.
Nine month consumer products sales dropped 6.2%, totaling 6,957.8 million euros, and generated growth of 0.8% in the third quarter, totaling 2,575.6 million euros.
In the third quarter, the consumer products division gained market share in hair care where it achieved double-digit growth thanks to the successful launches of Fructis Hair Food and Elvive Dream Lengths. It also accelerated in face care thanks to the launch of concentrated serums by L’Oréal Paris and to the success of Garnier Tissue Masks.
The professional division's nine month sales fell 10.9%, totaling 2,203.4 million euros, and boomed 11% in the third quarter, totaling 861.7 million euros.
Mr Jean-Paul Agon, chairman and chief executive officer of L'Oréal, said:
In the context of the ongoing epidemic crisis, L’Oréal’s absolute priority continues to be to protect the health of all its employees worldwide.
The group was able to return to growth as soon as this third quarter thanks to the determination and the relevance of the strategic choices taken in all divisions and geographic zones.
After a first half marked by a crisis of supply, linked to the closure of points of sale around the world, L’Oréal put everything in place, as early as June, to stimulate demand for its brands and products and to re-engage all its business drivers. All of the launches initially planned went ahead, business drivers and media investments were strengthened, and “Back to Beauty” plans were deployed with our distribution partners everywhere, in brick-and-mortar and e-commerce, to stimulate the return to consumption. This return to growth is evidence of consumers’ robust appetite for beauty products and our innovations. It is also the fruit of the remarkable commitment of all the teams, who were mobilized in all areas of the group and in all countries.
All these initiatives enabled us to significantly outperform a beauty market which is still on the road to recovery. The professional products division posted its best quarter in many years, thanks to the reopening of salons and the acceleration of e-commerce. Despite its extensive exposure to the makeup category, the consumer products division returned to growth thanks to a number of commercial operations. L’Oréal Luxe significantly outperformed its market thanks to a very strong launch plan and its unique portfolio of complementary brands. Finally, the active cosmetics division achieved a record quarterly growth, driven by the remarkable success of all its brands. All divisions were able to seize market opportunities, particularly in the skin care category, where our brands are on the offensive. The teams also harnessed the power of e-commerce, which grew at a rate of +61.6%.
In geographic terms, North America and all of the new markets returned to growth in this quarter, with remarkable performances in certain countries, such as China and Brazil.
As a result, in a sanitary environment which remains difficult and uncertain, our performance in the third quarter strengthens our ambition to achieve like-for-like growth for the second half, and to deliver solid profitability.