Cosmetics group L’Oréal said its first-quarter sales grew by 15.8% on a like-for-like basis to $735.8 million (€681.1 million) in the South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa (SAPMENA – SSA) region, from $619.8 million for the same period a year earlier. It grew by 18.7% on a reported basis amid the relaxation in public health measures and the reopening of international borders.
The group’s overall sales increased by 13.5% on a like-for-like basis to $9.8 billion in the three months ended March 31, 2022, despite headwinds from Russia’s invasion of Ukraine and strengthened sanitary measures in China.
SAP MENA – SSA performance
The French cosmetics giant said that the company had achieved an “outstanding quarterly performance” in the geographic zone, witnessing a strong performance in India and Gulf countries and a strong recovery in Southeast Asia and South Asia.
Brick-and-mortar outlets witnessed an upswing and ongoing e-commerce sales growth during the quarter.
The Consumer Products Division, which includes Maybelline New York, Essie, and NYX Professional Makeup, has achieved “standout performance” in Latin America and SAPMENA – SSA regions. It also recovered in the makeup category in the latter region.
All markets have achieved double-digit growth in the Active Cosmetics Division, with sales up 18% to a record $1.4 billion. North America and SAP MENA – SSA were the regions that have achieved an “exceptional performance.”
Fragrances accelerated in the L’Oréal Luxe, which comprises 26 brands that include Giorgio Armani, Valentoni, Diesel, and Lancôme products. It was the biggest category for the division, added L’Oréal. Growth in Professional Products was due to salon reopenings, which in turn drove sales in both haircare and color.
Specifically, in Sub-Saharan Africa (SSA), the French giant recorded “notable” performance in South Africa and Kenya. Active Cosmetics and L’Oréal Luxe, posted growth while the Consumer Products Division recovered in makeup.
Key quote
“L’Oréal pursued its premiumization and innovation strategy and continued to outpace the beauty market across all Zones and Divisions, recording strong growth by volume and value. L’Oréal Luxe, Professional Products, and Active Cosmetics all achieved double-digit growth, and our Consumer Products Division again outperformed the market despite supply-chain challenges,” L’Oréal CEO Nicolas Hieronimus said in the statement.
Tangent
Several beauty brands have donated to help war-hit Ukraine and suspended businesses in Russia following the country’s invasion on February 24, 2022. L’Oréal temporarily shuttered all its stores and e-commerce sites and suspended industrial and media investments in the country. It has temporarily suspended the sales of all products, barring essential daily products, in accordance with American and European sanctions.
The company donated up to $5.4 million to non-governmental organizations (NGOs) and United Nations agencies providing humanitarian aid, besides distributing 250,000 essential care and hygiene products so far.
Surprising fact
Francoise Bettencourt Meyers, the granddaughter of L’Oréal founder, is the world’s richest woman. The L’Oréal heiress and her family have a real-time net worth of $76.4 billion as of April 24, 2022, as per Forbes estimates.