L’Oréal first-half 2013 sales. Commenting on the figures, Mr Jean-Paul Agon, Chairman and CEO of L’Oréal, said: “Although market growth has been slightly slowing down, L’Oréal continued to demonstrate its good dynamics and recorded a solid first half. Each division and zone is growing and outperforming its market.
The Consumer Products Division and L’Oréal Luxe are growing strongly, driven by L’Oréal Paris, Garnier, Lancôme, Giorgio Armani and Kiehl’s. The Professional Products Division, still held back by a difficult market, is picking up slightly. The Active Cosmetics Division is performing very well, particularly in Western Europe, while accelerating its international roll-out.
The trends of the Group’s flagship brands are favourable, and more than ever before, our major product initiatives are really making a difference. They are enabling significant breakthroughs in Western Europe and North America. And in the New Markets, the four regions are achieving strong growth and are contributing to improve our positions.
In view of these dynamics, we remain confident in our ability to achieve another year of growth in both sales and profits.”
The Professional Products Division recorded growth of +1.4% like-for-like and +0.6% based on reported figures. The mature markets are still proving difficult, particularly in southern Europe, while the Division continues to be dynamic in the New Markets and is actively pursuing its policy of recruiting new salons.
- In the luxury haircare segment, Kérastase, which is growing strongly, is introducing a new category – “Couture Styling” – with Kate Moss as its ambassador. Haircare sales are growing, driven by hair oils and the launch of Biolage Advanced by Matrix in the United States. In hair colourants, the revolutionary ODS2 technology is now being rolled out across the Division’s three major brands (L’Oréal Professionnel, Matrix and Redken).
Essie professional nail care products are continuing their development.
- The Division, which remains strongly exposed to mature markets, did however improve its positions in the second quarter. In the New Markets excluding Japan, all the zones are continuing to grow strongly, particularly in Russia, Brazil, India, Indonesia and Africa, Middle East.
The Consumer Products Division posted sales growth of +6.3% like-for-like and +5.1% based on reported figures, and is continuing to gain market share thanks to the substantial progress achieved by its major brands and major product initiatives.
- L’Oréal Paris is gaining momentum, thanks in particular to the successful globalisation of Elvive. In facial skincare, Revitalift Laser is building on its success, while the hair colourants category is receiving a boost from Préférence Mousse Absolue and Préférence les Ombrés.At Garnier, the success of Olia, now being rolled out worldwide, is contributing to the strong growth of the hair colourant category. In haircare, Fructis is returning to positive growth and Ultra-Doux is continuing its very solid sales growth.Maybelline is confirming its appeal among the younger generation with the worldwide success of Baby Lips, and the launch of Color Show in the nail varnish segment.
- The Division is well oriented and records particularly significant market share gains in Western Europe, North America, and Latin America.
At end-June, L’Oréal Luxe sales increased by +6.4% like-for-like and +6.6% based on reported figures. The Division is growing significantly faster than the market, thanks to the advances of all its core brands, the success of its recent acquisitions, and a remarkable performance in women’s fragrances.
- Continuing their trends from the start of the year, Lancôme, Giorgio Armani and Kiehl’s are maintaining their growth dynamics. In addition to the ongoing success of La Vie est Belle, Teint Touche Eclat and Rouge Pur Couture lipstick by Yves Saint Laurent, the Division is enhancing its offering with major innovations such as Advanced Génifique and Teint Visionnaire by Lancôme, and Powerful Wrinkle Reducing Cream by Kiehl’s.Clarisonic is continuing its global roll-out. Urban Decay, the new make-up brand of L’Oréal Luxe, is growing strongly and is launching Naked BB Cream.
- In Western Europe, a stagnant market, the Division is improving its positions, and in North America it is achieving solid growth. Although the South Korean market remains depressed, dynamic sales trends are continuing in China, Russia, the Middle East and Travel Retail.
In the first half, the Active Cosmetics Division continued to build momentum, with sales increasing by +7.8% like-for-like (+6.6% based on reported figures), driven by the recovery of Vichy and the strong and sustained growth of La Roche-Posay.
- Vichy is continuing to perform well, particularly in Western Europe and in skincare, with the launch of Idealia BB Cream. La Roche-Posay is once again posting very strong growth in Western Europe and across all the New Markets.
- In Western Europe, the Division is growing significantly faster than the market. All the geographic zones are growing, with an outstanding performance in Latin America, driven by Brazil in particular.
The Body Shop sales
At end-June, The Body Shop recorded like-for-like growth of +0.5% and -1.4% based on reported figures. Dynamic sales trends are continuing in Southern Asia, the Middle East and Eastern Europe, while western countries are facing a more difficult environment.
In the first half, The Body Shop was impacted by the phasing of launches, which will occur in the second half. The brand is continuing the international roll-out of “Pulse”, its innovative store concept, and the expansion of its development in e-commerce, now with 21 online sales sites.
At June 30th, 2013, The Body Shop has a total of 2,840 stores.
Galderma’s sales trends were +0.3% like-for-like, and +3.3% based on reported figures, with strongly contrasting performances in the geographic zones.
Growth remains solid in the New Markets, particularly in Asia, Pacific, in Latin America and in Russia.
Metrogel 1% (rosacea) in the United States, along with Loceryl (nail mycosis) and Tetralysal (acne) in Western Europe, are facing competition from generics.
Epiduo (acne) and Clobex Spray (psoriasis) are performing very well.
In the over-the-counter market, the dynamism of Loceryl and Cetaphil (a hydrating and cleansing skincare range) is continuing.
Aesthetic and corrective medical solutions are being driven by the good performances in Asia, Pacific of Azzalure (muscle relaxant) and of Restylane (a hyaluronic acid-based dermal filler).