L'Oréal Sales Looking Good In Q3

FMCG
September 17, 2021

L'Oréal has reported a return to growth in its fiscal third quarter, which it said has highlighted the evidence of their customers showing their appetite for beauty products and other innovations.

For the three months period from the end of June to 30 September, sales were up 1.6% to 7.04billion EUROS on a like-for-like basis (reported sales were down 2%), driven by growth at its Active Cosmetics and Professional Products units.

'The group reported strong results for key brands such as Garnier and L'Oréal Paris. ' 

Sales at Active Cosmetics surged up 29.9% on a LFL (like-for-like) basis to 737.7 million EUROS (+21.7% reported), Professional Products posted its best quarter in many years with an 11% rise in LFL sales to 861.7million EUROS (+5% reported), while sales at its Consumer Products unit edged up 0.8% to 2.86billion EUROS (-4.7% reported). However, the group continued to see weakness at its Luxe unit, where sales slid by 6.2% to 2.58 billion EUROS on a LFL basis (-6.4% reported).The results were helped by growth in its New Markets, where LFL sales rose by 4.2% (-2.8% reported), and in North America, where LFL sales were up 1.3% (-2.1% reported). However, results in Western Europe continued to be weak, with LFL sales edging down 2.5% (-0.7% reported).The group reported strong results for key brands such as Garnier and L'Oréal Paris. The launch of three new perfumes were well received, with the Luxe division gaining market share in nearly all Zones. The Active Cosmetics unit also reported market share growth, helped by a ˜dynamic activation strategy' for both online and offline channels. L'Oreal has been struggling, however, to counter more sluggish growth in its consumer products division, with sales coming in a little below forecasts and matching the lacklustre 2.3 percent like-for-like growth of the second quarter.

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