L’Oréal's first quarter 2021 sales increased 5.4% to 7.61 billion euros, compared to 7.22 billion euros the prior year. According to the company, e-commerce grew 47.2% and accounted for 26.8% of sales.
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L’Oréal saw 10.2% like-for-like growth in the first quarter.
The net impact of changes in the scope of consolidation grew 1.3%. Growth at constant exchange rates was 11.5%.
Currency fluctuations had a negative impact with a decline of 6.1%.
The professional products division reported 848.3 billion euros, compared to 751.1 billion euros in Q1 2020. The division was negatively impacted by the continued weakness in the makeup market.
The consumer products division reported 2.97 billion euros, compared to 3.16 billion euros in Q1 2020.
L’Oréal Luxe reported 2.76 billion euros, an increase from 2.46 billion euros in Q1 2020.
Active cosmetics experienced growth at 1.02 billion euros, compared to 839.9 billion euros in Q1 2020.
Jean-Paul Agon, chairman and CEO of L'Oréal, said:
In spite of the health crisis and the ongoing associated measures in some countries, particularly in Western Europe, the beauty market continues to recover. Against this backdrop, L’Oréal has started the year with very strong growth at +10.2% like-for-like in the first quarter, significantly outperforming the market. The group is therefore continuing its acceleration, initiated in the third quarter of 2020, and is increasing by +5.0% like-for-like compared to the first quarter of 2019.
The performance of the professional products, L’Oréal Luxe and active cosmetics divisions is remarkable, all showing double-digit growth. The professional products division is posting significant growth all over the world. The growth of L’Oréal Luxe is driven by the success of its skin care brands, particularly Lancôme, Kiehl’s and Helena Rubinstein. Active cosmetics continues to build on the strong momentum already seen in 2020. The consumer products division is stable, still held back by its high exposure to the makeup category which remains lacklustre.
All geographic zones are growing, with the exception of Western Europe still impacted by the measures associated with the health crisis. North America is performing well both online and offline. All zones in the New Markets are growing above 10%, especially the Asia Pacific zone which is returning to the extremely dynamic pre-pandemic growth rates, driven most notably by a fast-growing mainland China.
E-commerce growth is at +47.2% and accounts for 26.8% of sales.
In an environment that is improving progressively due to the vaccination programs, and thanks to the commitment and determination of the teams all over the world, L’Oréal is in a fighting spirit mode, focused on product launches and investments in growth drivers to support growth of its brands. We are therefore confident in our ability to outperform the market and achieve a year of growth in both sales and profits.
