L’Oréal’s first quarter sales rise 13% to $11.37B on strong US, Europe business

French cosmetics giant L’Oreal posted $11.37 billion (€10.38 billion) in first-quarter sales, a 13% year-on-year rise, buoyed by strong business in the US and Europe.

Key facts

L’Oreal recorded 7.6% growth in its professional products segment, with the division displaying “outstanding performance” across China, India, and the UK, the company said Wednesday.

The consumer products division grew by 14.7%, marked by “remarkable performance” across Europe and North America, with strong momentum in emerging markets, including Mexico, India, Brazil, and Thailand.

The Luxe division grew by 6.5%, with sales growth across all geographical areas except North Asia over the reduction in stock-in-trade in China at the start of the year.

L’Oréal’s dermatological beauty division grew by 30% while demonstrating strong growth in all geographical zones and acceleration in emerging markets and Europe.

Region-wise sales grew by 16% for Europe, 16.6% for North America, 1.9% for North Asia, 26.7% for South Asia, Pacific, Middle East and North Africa (SAPMENA) region, and 22.3% for Latin America.

Crucial quote

“Boosted by valorized innovations in all divisions and the engagement of our teams around the world, L’Oréal has outperformed the market in all geographic zones and strengthened its leadership position. This performance, which has yet to benefit from China’s reopening, demonstrates the strength of L’Oréal’s balanced multipolar model,” said Nicolas Hieronimus, CEO of L’Oréal.

Big number

$41.92 billion (€38.26 billion). This is the net sales posted by L’Oreal in 2022.

Key background

L’Oréal announced a $2.5 billion agreement for the acquisition of the Australian luxury beauty brand Aēsop two weeks back. It had also announced its 10-year sustainability goals under its “L’Oreal for the Future” program in 2020, aiming to use 100% renewable energy by 2025 while shifting to bio-based or entirely recycled plastic for packaging by 2030.

The cosmetics giant was ranked 261st on Forbes Canada’s Best Employers 2023 list and 1st on Forbes Mexico’s Best Employers 2022 list.