Clichy, 29th October 2019 at 18h00
Sales as of September 30, 2019
Maintaining the strong pace of growth
- Turnover: 21.99 billion euros
- + 7.5% like-for-like 1
- + 8.5% at constant exchange rates
- + 10.7% on a reported basis
- Strong growth of L'Oréal Luxe and Active Cosmetics Divisions
- Continued momentum of key growth drivers: Asia Pacific, skin care, Travel Retail and e-commerce
Commenting on these figures, Mr. Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal, said:
"L'Oréal achieves an excellent third quarter at + 7.8% like-for-like 1, a record level for more than 10 years, and continues to outperform a beauty market that still displays strong momentum. This high rate of growth is maintained in an environment that remains mixed.
All Divisions are growing, in particular L'Oréal Luxe and the Active Cosmetics Division, which are growing strongly. The Consumer Products Division's performance is mixed, with a sharp rise in Asia, but on the other hand, as announced, a still difficult environment in the United States. The Professional Products Division continues to improve. By geographical area, the Asia Pacific Zone confirms its strong momentum, particularly in China, India, Southeast Asia and Japan. Eastern Europe is accelerating and Western Europe continues to improve.
The Group's other powerful growth drivers, skin care, e-commerce and Travel Retail, continue to drive performance. The e-trade 2 ata + 47.5% increase 1, accounting for 13.5% of sales. As for Travel Retail, it rose + 20.8% 1.
Overall, L'Oréal's strong performance in this quarter and the first nine months confirms our confidence in the dynamics of the cosmetics market, despite a volatile and contrasting environment, as well as our ability to outperform it, to achieve a new year of growth. growth of our turnover and our result. "
Éturnover up to 30 September 2019
Like-for-like, that is to say with identical structure and exchange rates, the L'Oréal Group's revenue growth came to + 7.5%.
The net effect of structural change is + 1.0%.
Growth at constant exchange rates + 8.5%.
Monetary effects had a positive impact of + 2.2%. By extrapolating the exchange rates of September 30, 2019, that is to say with € 1 = $ 1.0903 until December 31, the impact of monetary effects would be about + 2.2% on the exchange rate. turnover for the whole of 2019.
Published data, the Group's sales, at 30 September 2019, reached 21.99 billion euros, an increase of + 10.7%.
Sales by Division and Geographical area
|3e quarter 2019||As of September 30, 2019|
|Data growth||Data growth|
|M €||comparable||published||M €||comparable||published|
|Professional Products||821.1||+ 3.9%||+ 6.1%||2 535.3||+ 3.0%||+ 5.4%|
|Consumer Products||3 003.4||+ 2.7%||+ 5.2%||9 533.9||+ 3.0%||+ 6.0%|
|L'Oreal Luxury||2 751.9||+ 13.8%||+ 18.4%||7 902.0||+ 13.4%||+ 17.7%|
|Active Cosmetics||606.4||+ 14.2%||+ 16.3%||2 023.1||+ 13.8%||+ 15.4%|
|Total Group||7 182.8||+ 7.8%||+ 11.0%||21 994.3||+ 7.5%||+ 10.7%|
|By geographical area|
|Western Europe||1 928.7||+ 3.2%||+ 3.9%||6 141.4||+ 1.7%||+ 2.5%|
|North America||1 894.6||– 1.3%||+ 4.1%||5 700.3||– 0.4%||+ 5.9%|
|New Markets, including:||3,359.5||+ 16.7%||+ 20.1%||10 152.6||+ 16.7%||+ 19.6%|
|– Asia Pacific||2 280.5||+ 22.6%||+ 27.1%||6 906.9||+ 23.7%||+ 29.3%|
|– Latin America 3||443.9||+ 2.8%||+ 1.2%||1 322.5||+ 2.4%||+ 0.1%|
|– Eastern Europe||467.8||+ 12.8%||+ 16.8%||1 399.1||+ 9.2%||+ 7.6%|
|– Africa, Middle East||167.3||– 0.6%||+ 2.5%||524.0||– 4.0%||– 0.2%|
|Total Group||7 182.8||+ 7.8%||+ 11.0%||21 994.3||+ 7.5%||+ 10.7%|
At the end of September, the Professional Products Division was + 3.0% like-for-like and + 5.4% based on reported figures.
The Division is accelerating its growth driven by continued growth in the United States and Asia Pacific, where it continues to gain market share. Eastern Europe confirms its momentum while Latin America and Western Europe are still penalized by the inertia of certain markets.
First contributor to growth, hair care is driven by the very strong momentum of the brand Kérastase progress in all geographical areas and the robustness of the range Total Results in Matrix. The coloring again benefits from the performance of EQ Shades in Redken, still growing in double digits, and the success of iconic franchises Inoa and Dia, worn by Dialight, at L'Oréal Professionnel.
The Consumer Products Division recorded growth at the end of September of + 3.0% like-for-like and + 6.0% based on reported figures.
L'Oreal Paris is growing steadily and Garnier records good performance. Skin care is accelerating in all geographical areas thanks to the success of our innovations: ampoules and serum Revitalift Filler with hyaluronic acid for L'Oreal Paris, the successful launch of Organic Garnier, the worldwide success of fabric masks and Garnier Men in South Asia. In make-up, the Division gains market share through successful launches such as Signature Red of L'Oreal Paris and Superstay Matte Ink of Maybelline New York. In hair care, L'Oreal Paris builds on the global deployment of Elseve Dream Long and the excellent startup of Elseve Color-Vive Purple. innovation Hair Food is driving growth Garnier.
The Division is gaining market share in Europe and is experiencing strong growth in Asia, particularly in China, India, Korea and Indonesia, thanks in particular to the success of 3CE of Stylenanda. It is penalized by the United States, where the makeup market is still slow.
Travel Retail and e-commerce continue their strong growth.
At the end of September, L'Oréal Luxury grew by + 13.4% like-for-like and + 17.7% based on reported figures.
The Division is outperforming the market and its top four brands continue to grow strongly. L'Oréal Luxe reinforces its success in skincare with successful launches of the new formula Genifique of Lancome and of Calendula Serum-Infused Water Cream of Kiehl's. Helena Rubinstein confirms its acceleration in the ultra-premium care market. In perfume, the period was marked by the excellent start of two new feminine fragrances, Idol of Lancome and Free of Yves Saint Laurentwhich are complementary to the already established successes of Life is Beautiful and of Black Opium. Sì Passione of Giorgio Armani continues to gain market share.
The growth of L'Oréal Luxe is still driven by Asia Pacific and Travel Retail, although good performances in Europe and Latin America have been noted. North America, however, remains a difficult market.
In addition, the Division continues its strong growth in e-commerce.
The Active Cosmetics Division posted growth of + 13.8% like-for-like and + 15.4% based on reported figures.
All Zones are maintaining a rapid growth rate, and the Division is outperforming a very dynamic dermo-cosmetic market. La Roche-Posay, in double-digit growth, continues its strong acceleration on all continents, thanks in particular to its franchises Anthélios, Effaclar and Hyalu B5. SkinCeuticals achieved a record performance, with double-digit growth in all Zones. The brand innovates with the deployment of serum Discoloration Defense in Europe and Asia. CeraVe continues its rapid development with vigorous growth in all Zones including the United States. Thanks to its stars ranges, Liftactiv and Mineral 89 gingham continues to grow, particularly in Eastern Europe and Latin America.
Summary by geographical area
The Zone posted solid growth at + 1.7% like-for-like and + 2.5% based on reported figures, and accelerated in the third quarter. It benefits from the placement of perfumes Idol of Lancome and Free of Yves Saint Laurent whose first results are very promising. Brand growth Kiehl's and Giorgio Armani also contributes to the excellent momentum of L'Oréal Luxe in the third quarter. The Active Cosmetics Division also accelerated its growth, driven by La Roche-Posay which continues to gain market share. The Consumer Products Division confirms its market share gains in makeup and skincare.
The Zone is at – 0.4% like-for-like and + 5.9% based on reported figures. In a difficult market context, the Consumer Products Division remains very penalized by its strong exposure to the currently sluggish make-up market, but is enjoying good growth in skincare thanks to L'Oreal Paris with Revitalift Triple Power. L'Oréal Luxe, also penalized by make-up, also benefits from the dynamism of the fragrance market where Yves Saint Laurent and Lancome far outperform the category especially thanks to the launches of Free and Idol. The Professional Products Division outperforms the market, driven by branding Redken and Pulp Riot, and maintaining double-digit growth in Kérastase. The Active Cosmetics Division closed the quarter with a double-digit increase and strengthened its presence in the North American market thanks to all its brands.
Asia Pacific : the Zone stood at + 23.7% like-for-like and + 29.3% based on reported figures. China on the one hand, as well as India, Malaysia and Indonesia continue to grow strongly. All Divisions are growing at double digits. In the L'Oréal Luxury Division, brands Lancome, Yves Saint Laurent, Kiehl's, Giorgio Armani and Helena Rubinstein maintain their strong growth. L'Oreal Paris as well as 3CE of Stylenanda, which continues its rollout, is driving growth in the Consumer Products Division. The growth of the Active Cosmetics Division is boosted by the strong growth of SkinCeuticals and of La Roche-Posay throughout the Zone. Finally, the performance of Kérastase in China contributes to the success of the Professional Products Division in the Zone.
Latin America : the Zone is at + 2.4% like-for-like and + 0.1% based on reported figures. The performance of the Zone is mixed, with Mexico and Chile posting good growth, while Brazil and Argentina remain difficult. Marks Garnier from the Consumer Products Division, La Roche-Posay and gingham of the Active Cosmetics Division, Lancome and Kiehl's L'Oréal Luxe, have benefited from the dynamism of the skincare category in the different markets of the Zone.
Eastern Europe : the Zone grew by + 9.2% like-for-like and + 7.6% based on reported figures, driven by growth in Russia, Turkey and the Central European countries (Ukraine, Romania, Czech Republic). The Consumer Products Division is accelerating thanks to the momentum brought in hair care by the launch of Dream Long and the good health of Fructis. The Active Cosmetics Division continues its very good growth thanks to the dynamism of La Roche-Posay, stimulated by the launch of Hyalu B5.
Africa, Middle East: the Zone is at – 4.0% on a comparable basis and – 0.2% on a reported basis. Egypt, Morocco, Pakistan and Saudi Arabia are growing, while the market in the United Arab Emirates continues to be difficult. The Active Cosmetics Division continues its dynamism thanks to Anthélios and Effaclar of La Roche-Posay.
Highlights of the period from 01/07/19 to 30/09/19 and events subsequent to closing
- On July 2, L'Oréal announced that it had entered into exclusive negotiations with the Clarins Group for the acquisition of the iconic brands Mugler and Azzaro. On 21 October, L'Oréal and the Clarins Group signed, following the consultation of the employee representative bodies of both parties, the contract formalizing the sale of the Mugler brands and Azzaro perfumes. The acquisition is expected to be completed subject to standard conditions precedent and regulatory approval in the first quarter of 2020.
- On July 30, the Board of Directors decided, within the framework of the authorization voted by the General Meeting of April 18, 2019, to proceed in the second half of 2019 to L'Oréal share repurchases within the limit an amount of 750 million euros or a maximum number of shares to be acquired of 3 million. Pursuant to this decision, 3,000,000 L'Oréal shares were repurchased between August 28 and October 7, 2019. On October 15, the Board of Directors decided to cancel the shares so repurchased, as well as 771,125 shares. previously self-owned.
- On August 2nd, L'Oréal posted its 2019 Half Year Financial Report on its website www.loreal-finance.com.
- On September 20, L'Oréal announced the conclusion of constructive discussions with the French tax authorities to resolve a dispute over the taxable base of three of its subsidiaries, mainly concerning corporate income tax from 2014 to 2018, and this without penalties. The financial impact of this agreement represents a charge of 320 million euros which will be recognized as exceptional items in 2019. At Group level, there will be no significant impact on the future.
- On 24 September, on the occasion of the United Nations Climate Action Summit in New York, L'Oréal was named Global Compact LEAD for its contribution to the fight against climate change and its commitment to achieve the goal of zero net emissions by 2050.
- October 2, at the 10e Ceremony of the Grand Prix of Transparency, the group L'Oréal received the Grand Prix of the Transparency All Categories, for the quality of the regulated information and its practices of Financial and extra-financial Communication.
"This press release does not constitute an offer to sell or the solicitation of an offer to buy L'Oréal shares. If you wish to obtain more complete information about L'Oréal, we invite you to refer to the public documents filed in France with the Autorité des Marchés Financiers, also available in English on our website. www.loreal-finance.com.
This press release may contain certain forward-looking statements. Although the Company believes that these statements are based on reasonable assumptions as of the date of this press release, they are inherently subject to risks and uncertainties that could cause actual results to differ from those shown or implied in such statements. . "
Contacts L'ORÉAL (standard: 01.47.56.70.00)
Individual Shareholders and Market Authorities
Jean Régis CAROF
Financial Analysts and Institutional Investors
For more information, please consult banks, brokerage firms or financial institutions (Code I.S.I.N. FR0000120321), as well as your usual newspapers, the website dedicated to shareholders and investors, www.loreal-finance.com, or the mobile application L'Oréal Finance, or contact the toll free number: 0.800.66.66.66 (free call).
Revenues of L'Oréal Group 2018/2019 (in millions of euros)
|First trimester||6 778.6||7 550.5|
|Second trimester||6 612.1||7 261.0|
|Total first semester||13 390.7||14 811.5|
|Third trimester||6 473.3||7 182.8|
|Total nine months||19 864.0||21 994.3|
|Fourth trimester||7 073.4|
|Total year||26 937.4|
www.loreal-finance.com – Follow us on twitter @loreal
1 On a like-for-like basis: identical structure and exchange rates.
2 Turnover on our own sites + estimate of the turnover achieved by our brands corresponding to sales on the e-commerce sites of our distributors (unaudited data).
3 The Group applies IAS 29 (Financial Reporting in Hyperinflationary Economies) to Argentina since July 1, 2018. At the end of September 2019, the negative impact of this adjustment amounts to 360 basis points over comparable data for Latin America and 20 basis points for the entire L'Oréal group.