FRANCE. The L’Oréal group has confirmed first-half sales of €8.5 billion (US$11.7 billion), an increase of +9.4% based on reported figures. On a like-for-like basis, the increase was +7.7%.
The net impact of changes in consolidation, as a result of the acquisitions of The Body Shop, Sanoflore, Beauty Alliance and Pureology, amounted to + 5.2%. Currency fluctuations had a negative impact of – 3.5% (at the exchange rate of 30 June 2007 the impact would be – 2.6% for the whole of 2007).Growth excluding the exchange rate impact was + 12.9%.
Commenting on the results, L’Oréal CEO Jean-Paul Agon said: “After the good start to the year, the group continued to record very high sales growth in the second quarter with an increase of + 10.4% based on reported figures, and like-for-like growth at the upper end of our target range.
“This strong momentum reflects both very rapid growth in new markets as L’Oréal captures strategic positions, and sustained growth in Western Europe and North America. All our divisions are enjoying strong growth rates.
“Despite the negative impact of exchange rates, these good levels of performance mean that we are confident about the sales and results outlook for the full year 2007.”
COSMETICS SALES TRENDS BY DIVISION AND BY ZONE
The Professional Products Division recorded a like-for-like growth rate of +7.1%. All zones and all brands made a positive contribution to this figure, according to the group, particularly the emerging countries.
The Consumer Products Division achieved a like-for-like growth rate of +8.1%, confirming the good performance at the start of the year. Sales in Western Europe are continuing to accelerate, and the performance in the Rest of the World is very strong.
“This strong momentum reflects both very rapid growth in new markets as L’Oréal captures strategic positions, and sustained growth in Western Europe and North America. All our divisions are enjoying strong growth rates.“ |
Jean-Paul Agon, L’Oréal |
The Division’s three main brands (L’Oréal Paris, Garnier and Maybelline New York) are now reaping the benefits of their policy of innovation and focusing on flagship products.
The half-year sales of the Luxury Products Division grew by +6.8% on a like-for-like basis. Growth in the “Rest of the World” has been very substantial since the start of the year, and there was a clear improvement in the situation in North America during the second quarter.
In skincare, products such as Hydrazen Neurocalm, Absolue Premium Beta X from Lancôme, Multi-recharge by Biotherm, and Dermatologist Solutions from Kiehl’s have proved to be international successes. Growth in men’s skincare was particularly strong in the first half with Biotherm Homme and its new Power Bronze line, and with the arrival of the Lancôme Men range.
In the make-up segment, there has been confirmation of the international success of Color Fever lipstick and gloss, Color Ideal foundation by Lancôme, Rouge Unlimited by Shu Uemura, and Fluid Master from Giorgio Armani Cosmetics.
The fragrance business is still proving to be a strong driving force for the Division. The success of the most recent launches has been confirmed: in men’s fragrances with Attitude by Giorgio Armani, Hypnôse Homme from Lancôme, Antidote by Viktor & Rolf, and in women’s perfumes with Liberté by Cacharel, and Armani Code Donna. The Division is also actively preparing for the major launch of its new Diesel fragrances in the second half of 2007.
The strong like-for-like growth of Active Cosmetics is continuing at +10.1%, with positive contributions from all the geographic zones. Sales growth has been boosted by the Rest of the World and North America.
With like-for-like sales increasing by + 3.7%, growth was solid in Western Europe, with very sustained growth in Great Britain, Spain and Scandinavia. The situation is still mixed in both France and Germany.
In North America, like-for-like sales growth amounted to + 3.8%. With growth of +19.0%, the acceleration in new markets in the first quarter of 2007 is continuing.
Like-for-like sales growth in the Asia zone gathered pace in the second quarter, giving a half-year growth rate of + 13.8%, while sales in the Latin America zone grew strongly at +16.1% like-for-like.
Sales in Eastern Europe grew by +30.0%. In Other Countries, like-for-like sales growth amounted to +19.4%.
MORE STORIES ON THE L’OREAL GROUP
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Ethisphere recognises L’Oréal’s ethical credentials – 14/06/07
L’Oréal lets the sun shine on Cacharel’s Amor Amor – 04/04/07
