L'Oreal Posts 11% Sales Growth in 2023

China and travel retail remained weak points, while dermatological beauty boomed.
China and travel retail remained weak points, while dermatological beauty boomed.
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L’Oréal posted sales of 10,605.3 million euros in Q4 fiscal 2023, a 6.9% like-for-like gain year-over-year, and 2.8% as reported; for the full year, the company posted sales of 41,182.5 million euros, a like-for-like and reported gain of 11.0% and 7.6%, respectively.

Professional product sales for the year totaled 4,653.9 million euros, a like-for-like and reported gain of 7.6% and 4.0%, respectively, while consumer products sales jumped 12.6% like-for-like, totaling 15,172.7 million euros.

L’Oréal's luxe sector sales increased 4.5% like-for-like for the year, totaling 14,924.0 million euros, while dermatological beauty boomed with a 28.4% like-for-like gain totaling 6,432.0 million euros.

Furthermore, the company reported double-digit like-for-like growth all regions except North Asia, which was hampered by conditions in travel retail and China.

Operating margin improvement for the year increased 30 basis points to 19.8%, while operating profit totaled 8,143.3 million euros.

Net cash flow totaled 6.1 billion euros, up 23.9%.

“2023 was a very successful year for the group," said Nicolas Hieronimus, CEO of L'Oréal. "I am immensely grateful to our teams. Their creativity, entrepreneurship and passion enabled us to report a third consecutive year of double-digit like-for-like growth, once again outperforming a dynamic beauty market. We set a new operating margin record and delivered +7.3% EPS3 growth. In a challenging environment of geopolitical tensions, inflationary pressures, and a stagnating beauty market in China, we delivered our best like-for-like growth in more than 20 years (excluding 2021). This is a clear vindication of the power of our multi-polar model, and I am particularly pleased with the strong acceleration in emerging markets. As we head into 2024, we remain 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 profits. More than ever, L’Oréal is looking to the future–a future that will have beauty tech at its very core. Beauty tech will shape our industry and enable us to further strengthen our leadership. It will allow us to know our consumers ever-better, to bring them ever-more impactful and sustainable products and services and to become ever-sharper in our execution.”

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