L’Oreal, the leading French beauty products company, has surpassed expectations with its third-quarter sales and remains optimistic about the future, despite global economic uncertainty and widespread inflation. In the period from July to September, L’Oreal achieved a remarkable 19.7 percent increase in sales, reaching 9.58 billion euros, surpassing the analyst consensus of 9.29 billion compiled by Bloomberg.

Nicolas Hieronimus, the CEO of L’Oreal, commented that the company had performed strongly in a time of unprecedented volatility, marked by restrictions imposed due to the pandemic and inflation in the Western world. He added that the global beauty market continues to show dynamism, with consumers’ demand for beauty products remaining strong. In the nine-month period, L’Oreal’s sales increased by 20.5 percent, totaling 27.94 billion euros, thanks to the successful performance of well-known brands like Maybelline New York and Garnier.

Despite the prevailing uncertainties, Hieronimus expressed confidence in the outlook for the global beauty market and L’Oreal’s ability to outperform the market. The company aims to achieve another year of growth in sales and profits in 2022. This positive outlook is particularly significant as concerns about high inflation and potential economic recessions loom in Europe and the US. However, L’Oreal experienced solid double-digit growth in both regions, demonstrating its resilience.

The company’s performance in North Asia, specifically China, was not as robust due to the sanitary restrictions linked to the zero-Covid policy. Consequently, the beauty market in China remained negative in the third quarter. However, Japan and South Korea witnessed a significant rebound in their beauty markets after the lifting of Covid restrictions.

L’Oreal has strategically positioned itself towards the luxury market and has observed a substantial 15.8 percent increase in sales in this division. This comprises prestigious brands such as Lancome, Kiehl’s, Giorgio Armani, Prada, Ralph Lauren, and Yves Saint Laurent. Additionally, L’Oreal benefited from the weakening of the euro, which positively impacted its performance with an increase of 8.1 percent.

In conclusion, L’Oreal’s exceptional performance in the third quarter and its unwavering confidence in the future of the global beauty market demonstrate its strength in challenging economic conditions. Through its commitment to innovation, an impressive brand portfolio, and its ability to adapt to changing consumer preferences, L’Oreal is well-positioned to sustain its growth trajectory in the years to come.

Useful links:
L’Oreal Official Website
Bloomberg – Global Business, Financial & Economic News