Call up the name L’Oreal and under the “People Also Ask” heading there’s a question that’s barely credible to anyone in the beauty industry – Is L’Oréal doing well?
The multinational’s revenues in the fourth quarter surpassed the description robustly. Total sales in the last three months of 2022 to December 31st reached 10.32 billion euros (AUD$15.94 billion) – a 13.5 percent gain in reported terms compared to the same period a year earlier.
A final push that took revenues at the world’s number one beauty company to 38.26 billion euros (AUD$59.09 billion) for the calendar year – an increase of 23.4 per cent compared to pre-Covid 2019.
All of L’Oréal’s divisions were bullet performers. “Outstanding performances” in China, India and Brazil fuelled 10.1 per cent like-for-like gains for the Professional Products division, including L’Oréal Professionnel and Redken. Kerastase sales exceeded the magic one billion euros (AUD1.544 billion) for the year for the first time to take the division’s total sales for the year to 4.476 billion euros (AUD$6.91 billion).
L’Oréal’s Consumer Products division, the multinational’s biggest, enjoyed its best performance in 20 years in 2022 to reach revenues of 14,021 billion euros (AUD$21.65 billion). Major hits included the L’Oréal Paris Elvive Hyaluron Plump haircare range, Maybelline New York Vinyl Ink and Garnier Vitamin C Brightening Serum.
The L’Oréal Luxe division again outclassed the worldwide prestige beauty market with sales climbing 10.2 per cent to 14.638 billion euros (AUD$22.61 billion), driven by best-selling fragrances such as La Vie Est Belle by Lancôme, Libre by YSL Beauty and new launches like Prada Paradoxe. The division’s skincare offerings from brands such as Lancôme and Helena Rubinstein grew at three times the rate of the overall skincare market. Prestige makeup was also a winner, thanks to YSL Beauty and Urban Decay.
The Active Cosmetics division – La Roche-Posay, CeraVe, SkinCeuticals – turned in another powerful result with a growth rate for the year of 21.4 per cent to 5.124 billion euros (AUD$7.91 billion), as SkinCeuticals doubled sales and La Roche-Posay was the fastest-growing brand in the dermocosmetic category worldwide.
We achieved a remarkable performance this year, said Nicolas Hieronimus, CEO of L’Oréal. “Comparable growth vs 2019 accelerated quarter after quarter. Our balanced growth across divisions and regions once again demonstrates the relevance of our multipolar model. “We have emerged stronger from 2022 and reinforced our position as the world’s leading beauty company. Mindful of the current uncertainties, we remain ambitious for the future, optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming the market and achieve another year of growth in sales and profits in 2023.”
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