Commenting on the figures, Mr Jean-Paul Agon, Chairman and CEO of L’Oréal, said:
“L’Oréal recorded a good first half. In a market which reflects contrasting trends but is favourable overall, all branches, divisions and geographic zones achieved growth.
L’Oréal Luxe is confirming its very good performance, thanks to the major successes of Lancôme, Yves Saint Laurent, Kiehl’s and the Designer Fragrances. Active Cosmetics is accelerating significantly, driven by its international dynamics. The Consumer Products Division has achieved solid growth. The rejuvenation of The Body Shop is generating more substantial growth.
The rise of the New Markets, now our number one geographic zone, is continuing, driven by the dynamism of Asia and Africa, Middle East. North America is growing fast, with large market share gains and the strategic acquisition of Clarisonic. Eastern Europe is continuing its recovery, and the group is improving its positions in the major countries of Western Europe.
The first half confirms the relevance of our strategic thrusts, and the innovative power of L’Oréal. Our initiatives plan is solid.
Despite the uncertain economic environment, we are confident in the group’s ability to outperform the market in 2012, and to achieve another year of solid growth in both sales and profits.”
Like-for-like, i.e. based on a comparable structure and identical exchange rates, the sales growth of the L’Oréal group was +6.0%. The net impact of changes in consolidation was +0.7%. Currency fluctuations had a positive impact of 3.8%. If the exchange rates at June 29th, 2012, i.e. €1 = $1.2683, are extrapolated up to December 31st, the impact of currency fluctuations on sales would be approximately +4.2% for the whole of 2012. Growth at constant exchange rates was +6.7%. Based on reported figures, the group’s sales at June 30th, 2012 amounted to 11.21 billion euros, an increase of +10.5%.
Sales of the L’Oréal Luxe Division increased by +10.4% like-for-like. Growth based on reported figures came out at +17.9%, reflecting the impact of the acquisition of Clarisonic. L’Oréal Luxe is growing in all categories, and is making substantial market share gains.
The Professional Products Division posted growth of +2.9% like-for-like and +7.3% based on reported figures. The first-half highlight was the division’s good performance in the New Markets, particularly in Asia and Eastern Europe.
In the first half, the Active Cosmetics Division delivered growth of +5.4% like-for-like and +6.6% based on reported figures. The division’s sales are accelerating in North America and the New Markets.
At end-June, The Body Shop recorded like-for-like growth at +5.4% and +10.8% based on reported figures.
Multi-division summary by geographic zone
In a flat to slightly negative market, L’Oréal recorded positive sales growth at +0.8% like-for-like and +1.9% based on reported figures. This figure reflects contrasting trends, with good scores in the United Kingdom, France, Germany and Travel Retail and negative trends in the countries of Southern Europe.
In North America, L’Oréal achieved growth of +7.3% like-for-like and +17.8% based on reported figures in the first half of 2012. L’Oréal Luxe made a very good start to the year, thanks to Yves Saint Laurent, the launch of The Big Pony Fragrance Collection for Women by Ralph Lauren and the integration of Clarisonic. The Consumer Products Division continued to make market share gains, particularly with Maybelline, L’Oréal Paris and Essie in make-up, and Garnier in facial skincare. The Professional Products Division is growing faster than the market, thanks to the good scores of Kérastase and the relaunch of Pureology. The Active Cosmetics Division is continuing its breakthrough in the United States, driven by SkinCeuticals.
At end-June 2012, the New Markets recorded growth of +10.2% like-for-like and +14.2% based on reported figures.
L’Oréal recorded growth figures of +12.5% like-for-like and +21.9% based on reported figures. Despite a slowdown in South Korea and Taiwan, and to a lesser extent China, the group’s sales trend remains lively, particularly in China, Hong Kong, Indonesia and Thailand. Japan meanwhile is recovering, following the disaster which hit the country in the spring of 2011. Overall, L’Oréal is continuing to outperform its market, strengthening its positions in this zone. All the divisions are growing, particularly L’Oréal Luxe, with Kiehl’s, Lancôme and Yves Saint Laurent. At Consumer Products, Maybelline is performing very well in China, in India and the ASEAN countries.
With sales growth of +3.1% like-for-like at end-June, L’Oréal has returned to growth, particularly in Russia and Ukraine. Kazakhstan is still extremely dynamic. The Professional Products Division is continuing to win over new hair salons. The Consumer Products Division has introduced winning initiatives: the new hair colourant Color Sensation and BB Cream by Garnier; and Elvive Triple Resist enriched with Arginine haircare by L’Oréal Paris.
Latin America recorded first half growth of +8.2% like-for-like, driven by L’Oréal Luxe and Active Cosmetics. Trends were favourable in all the countries in this zone, particularly in Central America, Argentina and Mexico, thanks in particular to the dynamic sales trends of Maybelline and the success of Elvive Triple Resist enriched with Arginine by L’Oréal Paris. The trend in Brazil is still suffering from a very high comparison base, and stiffer competition in haircare.
Africa, Middle East:
In the first half, the zone recorded growth of +17.2% like-for-like, and +18.2% based on reported figures, boosted by the Consumer Products and L’Oréal Luxe divisions, and by the good dynamics in the Middle East. Several countries in this zone are growing very strongly, particularly the United Arab Emirates, Saudi Arabia, Egypt, Turkey and Pakistan. The new L’Oréal subsidiary based in Kenya is beginning its expansion in East Africa.
The Consumer Products Division achieved sales growth of +4.7% like-for-like, and +8.1% based on reported figures, and made substantial market share gains in Western Europe and North America.