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L'Oréal Announces Growth Post Acquisitions

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L'Oréal's e-commerce sales rose 33% in the first half of the year, now accounting for some 6% of total sales.

It has been a busy time at L'Oréal, which recently acquired Atelier Cologne, purchased IT Cosmetics, and announced its intention to buy the Société des Thermes de Saint-Gervais-les-Bains and Saint-Gervais Mont-Blanc license.

Now, the company has announced that its first-half sales totaled 12.89 billion euros, up 4.2% year-over-year on a like-for-like basis. L'Oréal reported that sales grew in all divisions and geographic zones, as well as in the consumer products division, L'Oréal Luxe and Active Cosmetics.

North American growth was driven by new markets. Western Europe was challenged by France's "difficult market."

E-commerce sales, meanwhile, rose 33% in the first half of the year, now accounting for some 6% of total sales.

The Active Cosmetics Division, in a dermocosmetics market that has slowed due to an unfavorable season, is developing its major product ranges and continues to increase its market share.

Strong performers included:

  • Professional products division (up 2.2% year-over-year)
  • Consumer products division (up 4.7%)
  • Maybelline and L'Oréal Makeup Designer Paris
  • Essie
  • NYX Professional Makeup
  • Urban Decay
  • Niely
  • Hair color (iShades Eq at Redken, SoColor Beauty at Matrix, Inoa and Dia at L'Oréal Professionnel, and Blond Studio and Hair Touch Up at L'Oréal Professionnel)
  • Hair care (Redken and Matrix, Ultra Doux and Elvive Extraordinary Clay)
  • Skin care (Micellar Cleansing Waters by Garnier and Age Perfect Golden Age by L'Oréal)
  • Professional skin care (Decléor)
  • Western Europe
  • Eastern Europe
  • Africa
  • Middle East Zone
  • India
  • Russia
  • United Kingdom
  • Spain

Areas of weakness included:

  • Magic
  • Clarisonic
  • SalonCentric

"At the end of June, the group is confirming its growth momentum, with an increase in sales across all divisions and all geographic zones," said Jean-Paul Agon, chairman and CEO of L'Oréal. "As announced, the Consumer Products Division is accelerating and outperforming its market, driven by its conquest initiatives in make-up and hair care. L'Oréal Luxe, in a market that remains solid, is continuing to deliver sustained growth by capitalizing on its unique brand portfolio and by maintaining its innovation drive. The Active Cosmetics Division, in a dermocosmetics market that has slowed due to an unfavorable season, is developing its major product ranges and continues to increase its market share. The Professional Products Division is pursuing its initiatives to actively promote all professional beauty segments, in a sector that is gradually improving."

The company has appointed Alexis Perakis-Valat, who previously served as the head of the China business, as president of the consumer products division, replacing the retiring Marc Menesguen.

Jochen Zaumseil will replace Perakis-Valat as executive vice president, Asia-Pacific. Vianney Derville will replace Zaumseil as executive vice president, Western Europe.

The appointments are effective from September 1.

 

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