L'Oreal : L'Oréal: News Release: "First quarter 2013 sales"
Clichy, April 18th, 2013 at 6 p.m.
First quarter 2013 sales
A very solid first quarter
*Sales: 5.93 billion euros
+6.5% excluding currency fluctuations
+5.1% based on reported figures
*Strong growth in the Consumer Products, L'Oréal Luxe and Active Cosmetics
*Weakness of the Professional Products market
*New records for market shares in Western Europe and North America
*Sustained dynamics in the New Markets
*Confidence in another year of sales and profit growth
Commenting on these figures, Mr Jean-Paul Agon, Chairman and CEO of L'Oréal,
"L'Oréal has made a solid start to the year, with good organic growth, along
with really significant market share gains.
The Consumer Products, L'Oréal Luxe and Active Cosmetics divisions are growing
strongly, driven by major innovations such as Olia by Garnier, L'Oréal Paris
Advanced Haircare, La Vie est Belle by Lancôme, or Idéalia by Vichy. All our
brands are on the offensive, and this has enabled the group to post new
records for market shares, especially in Western Europe and North America.
Growth trends in the New Markets are homogeneous and sustained. The
Professional Products Division meanwhile is still being held back by the very
difficult market context, particularly in Southern Europe.
These strategic advances, together with the quality of initiatives across all
divisions, both in developed countries and the New Markets, make us confident
in our ability to outperform the market in 2013, and to achieve another year
of growth in both sales and profits."
A - First quarter 2013 sales
Like-for-like, i.e. based on a comparable structure and identical exchange
rates, the sales growth of the L'Oréal group was +5.5%.
The net impact of changes in consolidation was +1.0%.
Currency fluctuations had a negative impact of -1.4%.
Growth at constant exchange rates was +6.5%. If end of March current exchange
rates (€1 at $1.2813) are extrapolated up to December 31^st, the impact of
currency fluctuations would be -1.0% for the whole of 2013.
Based on reported figures, the group's sales at March 31^st, 2013 amounted to
5.932 billion euros, an increase of +5.1%.
Sales by operational division and geographic zone
Quarterly sales Growth
€ million 1^st quarter 1^st quarter Like-for-like Reported
Professional Products 755.6 752.6 0.0% -0.4%
Consumer Products 2,769.5 2,920.8 6.5% 5.5%
L'Oréal Luxe 1,315.5 1,422.0 7.2% 8.1%
Active Cosmetics 468.6 497.6 7.2% 6.2%
Cosmetics total 5,309.1 5,593.0 5.8% 5.3%
By geographic zone
Western Europe 1,953.9 1,990.4 1.7% 1.9%
North America 1,263.4 1,371.4 6.3% 8.5%
New Markets, of which: 2,091.7 2,231.1 9.4% 6.7%
-Asia, Pacific 1,124.3 1,188.4 7.7% 5.7%
-Latin America 433.5 458.7 11.8% 5.8%
-Eastern Europe 360.0 389.7 9.2% 8.2%
-Africa, Middle East 173.8 194.3 15.0% 11.8%
Cosmetics total 5,309.1 5,593.0 5.8% 5.3%
The Body Shop 180.4 181.9 1.8% 0.8%
Dermatology^(1) 153.5 156.7 -0.4% 2.1%
Group total 5,643.0 5,931.6 5.5% 5.1%
(1) Group share, i.e. 50%.
1) Cosmetics sales
At end-March, the Professional Products Division is stable in like-for-like
terms, posting -0.4% based on reported figures. Markets in mature countries
remain difficult, particularly in Southern Europe, and salon visits in the
United States have contracted. The dynamic trend of the New Markets is
The luxury haircare segment remains buoyant, and is reflected by the growth at
Kérastase, bolstered by the launches of Densifique, the hair density activator
with Stemoxydine®, and Initialiste hair beauty serum.
In the hair colourant category, the worldwide roll-out of ODS technology is
continuing with INOA Suprême by L'Oréal Professionnel, ColorInsiderby Matrix
and ChromaticsBeyond Cover by Redken. The accessibly priced hair colourant
Socolor by Matrix is being rolled out in Asia.
The division, historically exposed to mature markets, is above all feeling the
effects of economic sluggishness in Italy, Spain and Portugal, with a very
sharp fall in salon visits. In the New Markets, the division is strengthening
its positions in Russia, and is growing strongly in India, Indonesia and
In the first quarter, the Consumer Products Division achieved growth of +6.5%
like-for-like and +5.5% based on reported figures, driven by the success of
its major product initiatives and significant market share gains in key
The L'Oréal Paris brand made a good start to the year, boosted by major
launches such as Préférence Mousse Absolue hair colourant, Age Perfect
Renaissance Cellulaire skincare, and - in the United States - the L'Oréal
Advanced Haircare range. Garnier has made a real breakthrough thanks to Olia
hair colourant with ODS, and its worldwide roll-out is under way. Maybelline
meanwhile has launched Volume Express Rocket mascara.
All these innovations enabled the division to make historic breakthroughs in
haircare, hair colourants and facial skincare, both in Western Europe and
North America. In the New Markets, growth is improving, thanks especially to
the new dynamism in Brazil and Russia.
At end-March, L'Oréal Luxe has advanced by +7.2% like-for-like and +8.1% based
on reported figures, including the first time consolidation of the Urban Decay
brand. L'Oréal Luxe is growing faster than the market, thanks to good growth
trends for the major brands in the portfolio, and its performances in the New
Markets and in North America.
The division's four top brands - Lancôme, Giorgio Armani, Yves Saint Laurent
and Kiehl's - have been highly dynamic at the start of this year. In addition
to the resounding success of La Vie est Belle, Manifesto,Rouge Pur Couture
lipstick and Maestro foundation, the quarter was marked by new initiatives
such as Rénergie Multi-lift Reviva-Plasma and Teint Visionnaire by Lancôme,
Eau pour Homme and Eau de Nuit by Giorgio Armani, along with Rouge Volupté
Shine and Forever Light Creator by Yves Saint Laurent. Urban Decay and
Clarisonic posted very good growth over the quarter.
While Western Europe remains lacklustre, the United States, China and the Gulf
States are growing strongly.
In the first quarter, the sales of the Active Cosmetics Division clearly
accelerated at +7.2% like-for-like (+6.2% based on reported figures), thanks
to the recovery of Vichy and the continuing strong growth of La Roche-Posay.
Vichy started the year with very good performances, especially in haircare
(Neogénic) and anti-ageing (LiftActiv Eyes and Lashes Serum, and Néovadiol
Magistral). La Roche-Posay continues to record double-digit growth, even in
Europe. In addition, SkinCeuticals is continuing its international roll-out
with a strong focus on the bodycare segment.
The first part of the year has been marked by a very good start in Western
Europe, where the division wins market share, even in Southern Europe. Trends
in North America and South America remain robust.
Multi-division summary by geographic zone
The European context is still adversely affected by declining markets in the
Southern countries, especially in hair salons and the selective market. Thanks
to strong market share gains by the Consumer Products and Active Cosmetics
divisions, good growth in Germany and France, and a turnaround in Spain,
L'Oréal recorded growth of +1.7% like-for-like and +1.9% based on reported
L'Oréal posted growth of +6.3% like-for-like and +8.5% based on reported
figures. The good results are continuing in the Consumer Products Division,
thanks to the launches of Advanced Haircare and Miracle Blur by L'Oréal Paris,
and Olia by Garnier. L'Oréal Luxe also produced a solid performance, thanks to
Clarisonic, Kiehl's, Yves Saint Laurent and Viktor&Rolf, together with Urban
Decay, which was consolidated for the first time. Vichy and SkinCeuticals made
a good start to the year in Active Cosmetics.
Asia-Pacific: L'Oréal recorded growth of +7.7% like-for-like and +5.7% based
on reported figures. If Japan is excluded, like-for-like growth came out at
The group is continuing to gain market share, thanks especially to L'Oréal
Luxe. There are contrasting trends in markets in this region: South Korea is
strongly negative, but China, India and the ASEAN countries remain buoyant.
At L'Oréal Luxe the first quarter reflected continuing strong growth in China.
The Consumer Products Division posted, with L'Oréal Paris, good performances
in China and India, and proved dynamic in Indonesia and Thailand.
Eastern Europe: The zone posted growth of +9.2% like-for-like and +8.2% based
on reported figures. Growth in this zone is driven by Russia and Ukraine,
while the other countries, such as Poland, are still sluggish. The Consumer
Products Division's turnaround is continuing, the Professional Products
Division is actively pursuing its conquest of hair salons, and L'Oréal Luxe
has made a good start to the year.
Latin America: L'Oréal has started the year with an increase in sales of
+11.8% like-for-like and +5.8% based on reported figures. Brazil is
accelerating, driven by market share gains in haircare, thanks to Elsève at
L'Oréal Paris, and in hair colourants, thanks to Mini Kit Nutrisse Cor Intensa
by Garnier. Market share is also increasing in Mexico and Chile. The Active
Cosmetics division is continuing to grow very strongly in this zone.
Africa-Middle East: This zone made a solid start to 2013 with growth of +15.0%
like-for-like and +11.8% based on reported figures. Saudi Arabia and Egypt are
growing strongly, and the same is true of Turkey. In Sub-Saharan Africa, the
group is strengthening its positions with the acquisition of the Hygiene and
Beauty business of Interconsumer Products Limited (ICP) in Kenya.
2) The Body Shop sales
At end-March, The Body Shop recorded sales growth of +1.8% like-for-like, and
+0.8% based on reported figures. The Middle East and South-East Asia posted
good growth while sales in mature markets are being affected by the depressed
Internet sales are clearly proving to be a strategic channel for recruiting
The Body Shop is launching Absinthe, a range of handcare products.
3) Galderma sales
Galderma sales decreased by -0.4% like-for-like, and +2.1% based on reported
The first quarter was affected by a combination of negative factors,
especially pressure from generics in Europe which, as announced, is impacting
Tetralysal (acne). Loceryl (fungal nail infections) is also experiencing
stiffer competition in Germany and Russia.
Sales of prescription products are increasing. Epiduo, the world's first
prescription treatment in the topical acne market, and Clobex (psoriaris) are
growing strongly, especially in North America. Medical solutions in aesthetic
and corrective dermatology are continuing to advance, driven by the strong
growth of Azzalure (muscle relaxant), particularly in Asia-Pacific.
Spirig has been consolidated since 1^st March, 2013.
B - Important events during the period 01/01/13 to 03/31/13
*On January 10^th, L'Oréal inaugurated its new Research and Innovation
centre in India, in Mumbai and Bangalore,
*On January 31^st, L'Oréal completed the acquisition of the Vogue brand in
*On February 11^th, the Board of Directors decided to set up a share
buyback program amounting to €500 million in the 1^st half of 2013,
*On February 27^th, Galderma completed the acquisition of Spirig in
*And further, on April 15^th, L'Oréal announced the acquisition of the
Hygiene and Beauty business of Interconsumer Products Limited (ICP) in
"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."
Contacts at L'Oréal (switchboard: +33 1 47 56 70 00)
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
For more information, please contact your bank, broker or financial
institution (I.S.I.N. code: FR0000120321), and consult your usual newspapers,
and the Internet site for shareholders and investors,
http://www.loreal-finance.com; alternatively, call +33 1 40 14 80 50.
C - Appendix
L'Oréal group sales 2012/2013 (€ millions)
Cosmetics 5,309 5,593
The Body Shop 180 182
Dermatology 154 157
First quarter total 5,643 5,932
The Body Shop 194
Second quarter total 5,570
The Body Shop 374
First half total 11,213
The Body Shop 191
Third quarter total 5,519
The Body Shop 565
Nine months total 16,732
The Body Shop 290
Fourth quarter total 5,730
The Body Shop 855
Full year total 22,463
Read the News Release of April 18th, 2013
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Source: L'Oreal via Thomson Reuters ONE
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