L'Oreal: L'Oréal: News Release: "Sales at September 30th, 2013"
Clichy, October 30^th, 2013 at 6 p.m.
Sales at September 30^th, 2013
L'Oréal continues to improveits worldwide positions
*Sales: 17.21 billion euros
*+6.0% at constant exchange rates
*+2.9% based on reported figures
*Dynamics maintained in the New Markets
*Solid growth in Western Europe
*North America impacted by market slowdown and inventory reduction in
*Confidence in a further year of growth in sales, results and
Commenting on these figures, Mr Jean-Paul Agon, Chairman and Chief Executive
Officer of L'Oréal, said:
"Since the start of the year, L'Oréal has been winning market share across all
divisions and geographic zones, thus strengthening its world number one
In the 3^rd quarter, demand for the Group's products remained strong, driven
by major product initiatives and their global roll-out: Olia by Garnier and
Elvive by L'Oréal Paris in the Consumer Products Division, Sì by Giorgio
Armani and Dreamtone by Lancôme at L'Oréal Luxe, and Idéalia by Vichy in the
Active Cosmetics Division.
In Western Europe, the Group recorded solid growth, particularly in France and
Germany. In North America, Consumer Products Division sales were affected by
market slowdown and inventory reductions in distribution that exceeded our
expectations. The Group is maintaining its good dynamics across all the New
Markets, particularly in China, India, Brazil and Russia.
The economic context remains subject to some uncertainties about the market
trend, and to the negative impact of currencies. But our growth prospects,
supported by the innovations and the globalisation of our major brands,
combined with a strategy of targeted and complementary acquisitions, enable us
to look to the future with confidence.
We confirm our targets for 2013 and our ambition of achieving a further year
of growth in sales, results and profitability."
A - Sales at September 30^th, 2013
Like-for-like, i.e. based on a comparable structure and identical exchange
rates, L'Oréal Group's sales rose +4.9%.
The net impact of changes in consolidation was +1.1%.
Currency fluctuations had a negative impact of -3.1% at September 30^th, 2013
and -6.0% in the 3^rd quarter, due to the depreciation of a number of
currencies including: the US dollar, the Brazilian real, the Japanese yen, the
Indian rupee and the Argentinian peso.
Growth at constant exchange rates was +6.0%. If current exchange rates (i.e.
€1=$1.38) are extrapolated up to December 31^st, the impact of currency
fluctuations would be -3.8% for the whole of 2013.
Based on reported figures, the group's sales, at September 30^th, 2013,
amounted to 17.213 billion euros, an increase of +2.9%.
Sales by operational division and geographic zone
3^rd quarter 2013 At September 30^th, 2013
€m Growth €m Growth
Like-for-like Reported Like-for-like Reported
Professional 715.8 2.9% -2.9% 2,247.7 1.8% -0.6%
Consumer 2,600.2 3.4% -2.0% 8,323.2 5.3% 2.8%
L'Oréal Luxe 1,438.2 5.9% 2.7% 4,265.0 6.2% 5.3%
Active 356.0 8.5% 3.1% 1,263.1 8.0% 5.6%
Cosmetics total 5,110.3 4.4% -0.5% 16,099.0 5.3% 3.1%
Western Europe 1,781.2 2.6% 1.4% 5,680.1 2.0% 1.5%
North America 1,313.6 0.6% -2.7% 4,056.8 3.8% 3.4%
New Markets, of 2,015.5 8.6% -0.7% 6,362.1 9.4% 4.4%
-Asia, 1,053.8 8.2% -1.2% 3,294.0 8.0% 3.0%
-Latin 455.6 8.5% -3.1% 1,421.9 11.8% 5.2%
-Eastern 380.9 7.6% 1.1% 1,260.8 9.3% 6.3%
-Africa, 125.1 15.4% 8.1% 385.3 13.1% 8.2%
Cosmetics total 5,110.3 4.4% -0.5% 16,099.0 5.3% 3.1%
The Body Shop 179.9 0.1% -5.8% 548.7 0.4% -2.9%
Dermatology^(2) 184.9 0.0% -3.1% 565.4 0.2% 1.1%
Group total 5,475.1 4.1% -0.8% 17,213.2 4.9% 2.9%
(1) As of July 1^st, 2013, Turkey and Israel, which had previously been
recorded under the Africa, Middle East zone, were transferred to the Eastern
Europe zone. All figures for earlier periods have been restated to allow for
(2) Group share, i.e. 50%.
1) Cosmetics sales
At September 30^th, the Professional Products Division reported +1.8%
like-for-like and -0.6% based on reported figures. The mature markets are
still difficult, particularly Southern Europe. The Division is maintaining its
dynamics in the New Markets.
*In the luxury haircare segment, Kérastase recorded another quarter of
growth. The new Couture Styling range is confirming its success.
The good development of the haircare category is continuing, thanks to the
successful hair oils and the roll-out of the Biolage Advanced range by
Matrix in the United States.
In hair colourants, ODS2 technology - used in three of the Division's
brands (L'Oréal Professionnel, Matrix and Redken) - is continuing its
development. Essie, which is growing strongly, is strengthening its
professional nailcare expert positioning thanks to the launch of Essie Gel
in the United States.
*In geographic terms, the Division is consolidating its positions in
Western Europe and in the United States, in markets still affected by the
lower number of salon visits. In the New Markets excluding Japan, all
zones are continuing to grow, with particularly good figures in Russia,
Brazil, South Korea, India, Indonesia and Africa, Middle East.
The Consumer Products Division achieved sales growth at end-September of +5.3%
like-for-like, and +2.8% based on reported figures. The Division is continuing
to win market share worldwide.
*The trends of all the Division's brands are favourable. L'Oréal Paris is
maintaining its dynamics with its successful globalisation of Elvive. In
facial skincare, the brand is accelerating its growth thanks to Revitalift
Laser, Revitalift Miracle Blur and Age Perfect Cell Renewal.
Garnier is significantly reinforcing its positions in hair colourants,
thanks to the success of Olia, now in the global roll-out phase, while in
facial skincare the BB creams are continuing to recruit new consumers.
Maybelline is posting strong performances in the lipstick and nail varnish
*In Western Europe, the 3^rd quarter was good for the Division. In North
America, activity was affected by inventory adjustments by distributors,
but the Division is continuing to improve its market shares, thanks in
particular to L'Oréal Paris Advanced Haircare.
Brazil, China, Turkey and the Middle East all performed well.
With a solid 3^rd quarter, L'Oréal Luxe posted sales growth at end-September
of +6.2% like-for-like and +5.3% based on reported figures. L'Oréal Luxe is
gaining market share in all regions.
*One year after its launch, Lancôme is continuing to enjoy worldwide
success with La Vie est Belle, and is strengthening its skincare sales
with the renewal of AdvancedGénifique and the launch in September of a
particularly innovative product: Dreamtone, a pigmentation corrector.
Giorgio Armani is maintaining its growth dynamics thanks to the launch of
its new women's fragrance, Sì. Yves Saint Laurent is accelerating in Asia
with Vernis à LèvresRebel Nudes, and its new mascara, Volume Effet Faux
The three American brands Kiehl's, Clarisonic and Urban Decay are growing
very strongly across all continents. Amongst the designer fragrance
brands, Viktor&Rolf is performing strongly worldwide thanks to the success
of Flowerbomb and Spicebomb. Diesel is launching Loverdose Tattoo, and
Polo Red by Ralph Lauren is a success.
*Business remains lively in North America, in the New Markets, and in the
Travel Retail channel, where L'Oréal Luxe is gaining market share.
At end-September,the Active Cosmetics Division is continuing its strong
growth, with scores of +8.0% like-for-like and +5.6% based on reported
*Trends for the major brands are favourable: La Roche-Posay is recording
double-digit growth, with good performances across all continents. Vichy
is continuing its recovery, with the further development of its Idéalia
franchise, boosted by the launch of Idéalia Life Serum. SkinCeuticals is
continuing its global roll-out.
*Overall, the Division is continuing to gain market shares worldwide. The
dynamics are particularly strong in Western Europe and Latin America.
Multi-division summary by geographic zone
In a flat market, L'Oréal posted growth of +2.0% like-for-like and +1.5% based
on reported figures at end-September. There were sharp contrasts in
performances, as figures were good in Northern Europe, while Southern Europe
is still proving difficult.
The Consumer Products Division is continuing to gain market shares in haircare
and hair colourants. The Active Cosmetics Division recorded very good
performances with its major brands, particularly
La Roche-Posay. At L'Oréal Luxe, the successes of Kiehl's and Urban Decay are
At September 30^th, L'Oréal recorded growth of +3.8% like-for-like and +3.4%
based on reported figures.
The Consumer Products Division is continuing to grow faster than the market,
thanks to the successful launch of Advanced Hair Care by L'Oréal Paris, Olia
by Garnier and Big Eyes by Maybelline. Nevertheless, the Division's
performances have been affected by the slowdown in the market and by the
increase in inventory reductions by some distributors. At L'Oréal Luxe, the
trends of Kiehl's, Urban Decay and Clarisonic are favourable, and Red by Ralph
Lauren has become one of the Top 3 men's fragrances. In the Active Cosmetics
Division, SkinCeuticals is confirming its success.
*Asia, Pacific: At end-September, L'Oréal posted growth of +8.0%
like-for-like and 3.0% based on reported figures. Excluding Japan,
like-for-like growth reached +9.2%. The market is still declining in South
Korea and is slowing, although still dynamic, in China, India and
The Group is strengthening its positions thanks to the performances in the
Consumer Products Division of Maybelline and L'Oréal Paris, which is
accelerating in the facial skincare and haircare categories, particularly
in China. At L'Oréal Luxe, growth is being driven by Lancôme, Kiehl's,
Giorgio Armani and the roll-out of Yves Saint Laurent and Clarisonic.
Amongst the countries, Indonesia, Hong Kong, India and China are
contributing to the good performance in this zone.
*Latin America: This zone posted growth of +11.8% like-for-like and +5.2%
based on reported figures. Brazil's good dynamics are continuing, thanks
to all the Divisions and the Garnier, Vichy and La Roche-Posay brands in
particular. The zone's sales dynamics remain positive, despite the impact
of a slowdown in Mexico.
*Eastern Europe: The zone recorded scores of +9.3% like-for-like and +6.3%
based on reported figures. In the Consumer Products Division, the hair
colourants category is growing, thanks to the launch of Olia, along with
make-up, thanks to Volume Million Lashes Excess mascara by Maybelline. The
Professional Products Division is continuing to grow thanks to the
conquest of new salons, the innovations of L'Oréal Professionnel and the
success of Matrix in more affordable salons. L'Oréal Luxe meanwhile is
benefitting from the good performances of Lancôme,
Yves Saint Laurent and Giorgio Armani. Turkey, Russia and Ukraine are
major contributors to growth in this zone.
*Africa, Middle East: At end-September, sales in this zone grew by +13.1%
like-for-like and +8.2% based on reported figures. This increase was
achieved thanks to the good performances of the Consumer Products
Division, of L'Oréal Luxe and to the acceleration of the Active Cosmetics
Division. The countries of the Middle East (Egypt, Pakistan, the countries
of the Levant and Saudi Arabia) recorded strong growth rates and market
share gains. The acquisition of the hygiene-beauty business of
Interconsumer Products in Kenya led to a good acceleration of sales in the
markets of Eastern Africa.
2) The Body Shop sales
At the end of September, The Body Shop recorded +0.4% like-for-like and -2.9%
based on reported figures. The Body Shop is performing well in Indonesia,
India, Malaysia, Eastern Europe and is affected by the countries of Southern
Europe and the United States.
New launches will take place in the 4^th quarter, with the new bodycare range
Honeymania, featuring community fair trade honey from Ethiopia, and the
fragrance White Musk Smoky Rose.
The brand is continuing the global roll-out of its new "Pulse" store concept,
and the development of its digital offering. The brand now has 22 e-commerce
At September 30^th, 2013, The Body Shop had a total of 2,849 stores.
3) Galderma sales
Galderma's sales rose +0.2% like-for-like and +1.1% based on reported figures,
with continuing sharp contrasts between performances in the geographic zones.
Growth remains particularly solid in the New Markets, especially in Asia,
Pacific, Latin America and Russia. In the United States, where the market
remains extremely competitive, sales of prescription products are still
impacted by more intense competition from generics. Epiduo (acne) is however
recording good growth figures, while the FDA has approved Mirvaso for the
treatment of the erythema associated with rosacea. The product was immediately
launched on the market.
Cetaphil (a hydrating and cleansing skincare range) and Loceryl (onchymycosis)
are continuing to grow strongly in the over-the-counter market.
The aesthetic and corrective medical solutions are also recording solid
advances, driven by the strong growth of Azzalure (muscle relaxant) and
Restylane (dermal filler).
B - Important events during the period 7/1/13 to 9/30/13
*On August 15^th, 2013, L'Oréal announced its intention to acquire all the
shares of Magic Holdings Limited, a Chinese company listed on the Hong
Kong Stock Exchange, specialising in cosmetic facial masks.*
*On September 20^th, 2013, L'Oréal India announced the acquisition of
Cheryl's Cosmeceuticals, a Mumbai-based company operating in professional
haircare products for beauty salons.
C - Post-closing events
*On October 15^th, 2013, L'Oréal announced the acquisition by The Body Shop
of a majority stake in Emporio Body Store in Brazil.
*On October 17^th, 2013, L'Oréal announced that the Japanese group Shiseido
had granted it exclusive negotiation rights for the acquisition of the
Decléor and Carita brands.
*On October 23^rd, 2013, L'Oréal announced the sustainability commitments
the Group has set itself for 2020: "Sharing Beauty with All".
* This paragraph is not intended to and does not constitute, or form part of,
any offer to sell or subscribe for or an invitation to purchase or subscribe
for any securities or the solicitation of any vote or approval in any
jurisdiction pursuant to the above mentioned proposal or otherwise, nor shall
there be any sale, issuance or transfer of securities of Magic Holdings
International Limited in any jurisdiction in contravention of applicable law.
The proposal, if made, will be made solely through the Scheme Document, which
will contain the full terms and conditions of the proposal, including details
of how to vote in favour of the proposal and restrictions applicable to the
proposal. Any response to the proposal, acceptance included, should be made
only on the basis of information in the Scheme Document or any other document
by which the Proposal is made, as the case may be.
"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."
This is a free translation into English of the press release of the Sales at
September 30^th, 2013 issued in the French language and is provided solely for
the convenience of English speaking readers. In case of discrepancy, the
French version prevails.
Contacts at L'Oréal (switchboard: +33147567000)
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, or call +33 1 40 14 80 50.
D - 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
Cosmetics 5,162 5,396
The Body Shop 194 187
Dermatology 215 224
Second quarter total 5,570 5,806
Cosmetics 10,471 10,989
The Body Shop 374 369
Dermatology 368 381
First half total 11,213 11,738
Cosmetics 5,137 5,110
The Body Shop 191 180
Dermatology 191 185
Third quarter total 5,519 5,475
Cosmetics 15,608 16,099
The Body Shop 565 549
Dermatology 559 565
Nine months total 16,732 17,213
The Body Shop 290
Fourth quarter total 5,730
The Body Shop 855
Full year total 22,463
Read the News Release of October 30th, 2013
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Source: L'Oreal via Thomson Reuters ONE
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