L'Oreal reports Q3 revenue of €5.48B, down 0.8% from year-ago period amid slow sales in Asia

PARIS , October 30, 2013 (press release) – Sales: 17.21 billion euros

+6.0% at constant exchange rates

+4.9% like-for-like

+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 distribution

Confidence in a further year of growth in sales, results and profitability

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 position.

In the 3rd 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 Idealia 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.”


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, 2013 and -6.0% in the 3rd 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, 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, 2013, amounted to 17.213 billion euros, an increase of +2.9%.




At September 30, 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 segments.

In Western Europe, the 3rd 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 3rd 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 Advanced Génifique 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 Lèvres Rebel Nudes, and its new mascara, Volume Effet Faux Cils Baby Doll.

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 figures.

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.



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 worth noting.


At September 30, 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 South-East Asia.

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.


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 4th 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 websites.

At September 30, 2013, The Body Shop had a total of 2,849 stores.


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).


On August 15, 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, 2013, L’Oréal India announced the acquisition of Cheryl’s Cosmeceuticals, a Mumbai-based company operating in professional haircare products for beauty salons.


On October 15, 2013, L’Oréal announced the acquisition by The Body Shop of a majority stake in Emporio Body Store in Brazil.

On October 17, 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, 2013, L’Oréal announced the sustainability commitments the Group has set itself for 2020: "Sharing Beauty with All".

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