STRONG SALES GROWTH: +13.2%
18.76 billion euros, i.e. +3.7% like-for-like
- Strengthening of the growth in the Consumer Products Division and North America
- Growth rate in Western Europe maintained
- Temporary slowdown in the third quarter of L’Oréal Luxe in Asia
- Strong increase of e-commerce sales*
- Confidence in achieving a year of significant sales and profit growth
"At the end of September, the Group’s reported growth is strong, at +13.2%, still supported by a very positive currency effect.
In the third quarter, the Consumer Products Division is confirming the gradual strengthening of its growth, notably through strong momentum in make-up with its three brands: Maybelline, L'Oréal Paris and NYX.
The Active Cosmetics Division continues to forge ahead and the Professional Products Division keeps outperforming a lacklustre market.
L’Oréal Luxe experienced a temporary slowdown as a result of market turbulence over the summer in Asia, in Hong Kong and in Travel Retail.
By geographic zone, North America’s growth is gradually increasing and Western Europe confirms its positive trend. In the third quarter, the New Markets have been hampered by the difficult Brazilian market, market turbulence in Asia and the taking over of agents’ contracts in the Middle East. In China, sales growth is in line with earlier quarters.
Despite a global context that is still volatile, we are confident for the year end.
We are confirming our ambition to outperform once again the beauty market in 2015 and to achieve significant growth in both sales and profits."
* Sales achieved on our brands’ own websites + estimated sales achieved by our brands corresponding to sales through our retailers’ websites (non-audited data); like-for-like growth.
A – Sales at September 30, 2015
Sales by Operational Division and Geographic Zone
|3rd quarter 2015||At September 30, 2015|
|By Operational Division|
|Cosmetics Divisions total||5,725.1||3.8%||10.1%||18,132.1||3.8%||13.2%|
|By Geographic Zone|
|New Markets. of which:||2,230.7||4.8%||7.1%||7,150.6||5.8%||13.7%|
|Africa, Middle East||164.8||4.4%||17.9%||543.6||9.8%||28.1%|
|Cosmetics Divisions total||5,725.1||3.8%||10.1%||18,132.1||3.8%||13.2%|
|The Body Shop||212.5||0.5%||11.6%||624.3||2.0%||12.6%|
At the end of September, the Professional Products Division posted growth of +3.2% like-for-like and +13.4% based on reported figures.
- Haircare is the largest contributor to growth, powerfully driven by the latest innovations, such as Thérapiste by Kérastase, Pro Fiber by L'Oréal Professionnel, and Frizz Dismiss by Redken. The dynamic trend in hair colour is continuing across all brands. Professional skincare with Carita is expanding rapidly in Western Europe.
- All the geographic Zones are growing. Eastern Europe is accelerating, while Brazil is slowing the growth rate in Latin America.
At the end of September, the Division recorded an increase of +2.3% like-for-like and +11.2% based on reported figures. The gradual improvement of its growth is continuing.
- Thanks to the new momentum of Maybelline, the strong expansion of NYX, and the success of L'Oréal Paris, with its franchise Infallible for example, the Division is strengthening its leadership in a make-up market it is helping to boost. Haircare is winning market share, thanks notably to L'Oréal Paris. For Garnier, the Ultimate Blends saga has continued with successful launches in many European countries.
- The Division is outperforming the market in Eastern Europe, in the Asia, Pacific and Africa, Middle East Zones. The strong make-up dynamic is accelerating the Division's growth in the United States.
E-commerce is growing fast across all Zones.
L'Oréal Luxe posted growth of +5.8% like-for-like and +17.9% based on reported figures.
- Yves Saint Laurent is expanding strongly, driven by make-up, men's fragrances with L'Homme and women's fragrances with Black Opium. Giorgio Armani has remained dynamic across all geographic Zones. Urban Decay is accelerating worldwide with the high-profile launch of the Naked Smoky palette, and is building a global beauty offering with initiatives in foundations and lipstick. Kiehl's is launching Daily Reviving Oil Concentrate and continuing its double-digit growth. Growth at Lancôme is being driven by market share gains in Europe, the success of the fragrances La vie est belle, Miracle and the newly released La Nuit Trésor; Grandiôse and Hypnôse Volume à Porter mascaras; and the acceleration of its Génifique facial skincare.
- In a market that slowed in the third quarter in Asia and in Travel Retail, L'Oréal Luxe is strengthening its worldwide position with significant gains in Western Europe, in Asia, Pacific, in the Middle East and in Latin America.
At the end of September, the Active Cosmetics Division further improved its performance with strong growth of +7.3% like-for-like and +9.7% based on reported figures.
- Vichy is innovating with Neovadiol Substitutive Complex Serum, a formula that acts on skin changes linked to menopause. La Roche-Posay is successfully renewing its expert franchise for oily skin with the launch of Effaclar K(+). The brand is continuing to post double-digit growth in all geographic Zones, with outstanding performances in France, Brazil and China. The successful international roll-out of SkinCeuticals is continuing.
- All geographic Zones are contributing to growth. In the third quarter, growth accelerated in Western Europe, and the New Markets are maintaining their growth at more than 10%.
Multi-division summary by Geographic Zone
Growth amounted to +2.1% like-for-like and +4.5% based on reported figures. L'Oréal Luxe is continuing to act as a growth driver in the Zone, reflecting the complementarity of the brands in its portfolio. In a mass-market channel that has remained lacklustre, the Garnier brand is winning market share in haircare and skincare. L'Oréal is continuing to outperform the market in Germany and the United Kingdom, notably thanks to the performances of L'Oréal Luxe.
L'Oréal posted growth of +3.0% like-for-like and +25.4% based on reported figures. The Active Cosmetics and Professional Products Divisions are driving growth, particularly thanks to the La Roche-Posay and Redken brands. Kiehl's and Urban Decay are contributing to the development of L'Oréal Luxe. The Consumer Products Division is accelerating, thanks in particular to the strengthening of its make-up positions with L'Oréal Paris, Maybelline and above all NYX, which is growing at a remarkable pace.
- Asia, Pacific: At the end of September, L'Oréal posted growth of +4.4% like-for-like and +21.9% based on reported figures. Kiehl's, Yves Saint Laurent and Giorgio Armani are contributing to the dynamism of L'Oréal Luxe, in a context of slower third-quarter growth in Hong Kong and Travel Retail Asia. The Consumer Products Division is performing well in India, Australia and Thailand. In China, growth at L'Oréal Paris is accelerating, while Magic is undergoing a transitional period. The Active Cosmetics Division is growing strongly, thanks to the success of La Roche-Posay.
- Latin America: Sales grew by +5.5% like-for-like and +4.7% based on reported figures. Excluding Brazil, sales achieved double-digit growth, thanks to L'Oréal Paris, Maybelline and Lancôme. The Brazilian market is being held back by a very difficult economic environment and by the reform of the IPI (Tax on Industrialised Products).
- Eastern Europe: The Zone posted figures of +9.5% like-for-like and -4.1% based on reported figures. The Consumer Products and Professional Products Divisions recorded double-digit growth, boosted by Russia, Turkey and Ukraine. All the Divisions are continuing to gain market share in their distribution channels.
- Africa, Middle East: Sales growth amounted to +9.8% like-for-like and +28.1% based on reported figures. The reorganisation of part of our distribution network in the Gulf States caused a temporary growth slowdown in the third quarter. The Group is strengthening its positions at a time when most markets in the Zone are seeing their growth rates decelerate. Egypt and Saudi Arabia are still posting strong performances. L'Oréal Paris and Garnier are gaining market share. Yves Saint Laurent, Giorgio Armani, Kérastase and La Roche-Posay are also recording solid growth rates.
THE BODY SHOP
The Body Shop recorded growth of +2.0% like-for-like and +12.6% based on reported figures. The launch of two premium lines - Spa in bodycare and Oils of Life in facial skincare - is underpinning the brand's strategy of refocusing on skincare. Growth is continuing in Europe and the Middle East. Asian countries have recorded mixed performances, while growth in Australia is solid.
B - Important events during the period 07/01/15 to 09/30/15
On September 3, three months ahead of COP 21, L'Oréal announced its ambition to become a "carbon balanced" company by 2020, reinforcing its commitment to fighting climate change. Through its sustainable sourcing projects, the Group aims to generate carbon gains equivalent to the amount of greenhouse gas emissions resulting from its activities.
"This news release does not constitute an offer to sell, or a solicitation of an offer to buy L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers, also available in English on our Internet site www.loreal-finance.com.
This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."
This is a free translation into English of the news release of the Sales at September 30, 2015 issued in the French language and is provided solely for the convenience of English speaking readers. In case of discrepancy, the French version prevails.
Contacts at L'Oréal
Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel.: +33 1 47 56 83 02
Financial analysts and institutional investors
Mrs Françoise LAUVIN
Tel.: +33 1 47 56 86 82
Mrs Stephanie CARSON-PARKER
Tel.: +33 1 47 56 76 71
Tel.: +33 1 47 56 70 00
For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers, the Internet site for shareholders and investors, www.loreal-finance.com, or the L'Oréal Finance mobile app, alternatively, call +33 1 40 14 80 50.
C – Appendix
L'Oréal Group sales 2014/2015 (€ millions)
|The Body Shop||176.4||192.4|
|First quarter total||5,638.6||6,436.3|
|The Body Shop||187.4||219.5|
|Second quarter total||5,536.0||6,382.6|
|The Body Shop||363.8||411.9|
|First half total||11,174.6||12,818.9|
|The Body Shop||190.4||212.5|
|Third quarter total||5,391.1||5,937.5|
|The Body Shop||554.2||624.3|
|Nine months total||16,565.7||18,756.4|
|The Body Shop||319.6|
|Fourth quarter total||5,966.4|
|The Body Shop||873.8|
|Full year total||22,532.0|