L'Oréal: News release: "Sales at 30 September 2020"
Clichy, 22 October 2020 at 6.00 p.m.
Sales at 30 September 2020
L’Oréal returns to growth
- Sales: 20.11 billion euros
- -7,4% like-for-like 1
- -6,9% at constant exchange rates
- -8,6% based on reported figures
- Growth in the third quarter: +1.6%
like-for-like 1
- Exceptional growth of the Active Cosmetics Division:
+15.2% like-for-like 1
- Power and growth in e-commerce
2: 23.7% of sales, +61.6% 1
- Strong growth in mainland China: +20.8%
like-for-like 1
Commenting on the figures, Mr Jean-Paul Agon,
Chairman and Chief Executive Officer of L'Oréal,
said:
“In the context of the ongoing epidemic crisis, L’Oréal’s absolute
priority continues to be to protect the health of all its employees
worldwide.
The Group was able to return to growth as soon
as this third quarter thanks to the determination and the relevance
of the strategic choices taken in all Divisions and geographic
Zones. After a first half marked by a crisis of supply,
linked to the closure of points of sale around the world, L’Oréal
put everything in place, as early as June, to stimulate demand for
its brands and products and to re-engage all its business drivers.
All of the launches initially planned went ahead, business drivers
and media investments were strengthened, and “Back to Beauty” plans
were deployed with our distribution partners everywhere, in
brick-and-mortar and e-commerce, to stimulate the return to
consumption. This return to growth is evidence of consumers’ robust
appetite for beauty products and our innovations. It is also the
fruit of the remarkable commitment of all the teams, who were
mobilised in all areas of the Group and in all countries.
All these initiatives enabled us to
significantly outperform a beauty market which is still on the road
to recovery. The Professional Products Division posted its best
quarter in many years, thanks to the reopening of salons and the
acceleration of e-commerce. Despite its extensive exposure to the
makeup category, the Consumer Products Division returned to growth
thanks to a number of commercial operations. L’Oréal Luxe
significantly outperformed its market thanks to a very strong
launch plan and its unique portfolio of complementary brands.
Finally, the Active Cosmetics Division achieved a record quarterly
growth, driven by the remarkable success of all its brands. All
Divisions were able to seize market opportunities, particularly in
the skincare category, where our brands are on the offensive. The
teams also harnessed the power of e-commerce 2, which grew at a
rate of +61.6% 1.
In geographic terms, North America and all of
the new markets returned to growth in this quarter, with remarkable
performances in certain countries, such as China and Brazil.
As a result, in a sanitary environment which
remains difficult and uncertain, our performance in the third
quarter strengthens our ambition to achieve like-for-like growth
for the second half, and to deliver solid profitability.”
Sales at 30 September 2020
Like-for-like, i.e. based on a
comparable structure and identical exchange rates, L’Oréal group
sales came out at -7.4%.The net impact of changes in the
scope of consolidation was +0.5%.Growth at
constant exchange rates came out at -6.9%.Currency
fluctuations had a negative impact of -1.7%. If the
exchange rates at 30 September 2020, i.e. €1 = $1.17, are
extrapolated to 31 December, the impact of currency fluctuations on
sales would be approximately -2.6% for the whole of
2020.Based on reported figures, the Group's sales,
at 30 September 2020, amounted to 20.11 billion euros, i.e.
-8.6%.
Sales by Division and geographic
Zone
|
3rd quarter 2020 |
At 30 September 2020 |
|
|
Growth |
|
Growth |
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
By Division |
|
|
|
|
|
|
Professional Products |
861.7 |
+11.0% |
+5.0% |
2,203.4 |
-10.9% |
-13.1% |
Consumer Products |
2,861.8 |
+0.8% |
-4.7% |
8,712.5 |
-6.2% |
-8.6% |
L’Oréal Luxe |
2,575.6 |
-6.2% |
-6.4% |
6,957.8 |
-13.1% |
-11.9% |
Active Cosmetics |
737.7 |
+29.9% |
+21.7% |
2,239.6 |
+15.2% |
+10.7% |
Group total |
7,036.8 |
+1.6% |
-2.0% |
20,113.3 |
-7.4% |
-8.6% |
By geographic Zone |
|
|
|
|
|
|
Western Europe |
1,915.4 |
-2.5% |
-0.7% |
5,468.9 |
-11.8% |
-10.9% |
North America |
1,854.3 |
+1.3% |
-2.1% |
5,162.0 |
-9.7% |
-9.4% |
New Markets, of which: |
3,267.0 |
+4.2% |
-2.8% |
9,482.4 |
-3.2% |
-6.6% |
- Asia Pacific |
2,236.2 |
+2.4% |
-1.9% |
6,704.7 |
-1.8% |
-2.9% |
- Latin America |
408.1 |
+8.7% |
-8.1% |
1,067.3 |
-6.0% |
-19.3% |
- Eastern Europe |
455.4 |
+7.7% |
-2.6% |
1,254.3 |
-5.5% |
-10.3% |
- Africa, Middle East |
167.3 |
+8.6% |
0.0% |
456.0 |
-9.2% |
-13.0% |
Group total |
7,036.8 |
+1.6% |
-2.0% |
20,113.3 |
-7.4% |
-8.6% |
PROFESSIONAL PRODUCTS
At the end of September, the
Professional Products Division was at -10.9% like-for-like and
-13.1% reported. In the third quarter, the Division
recorded its best quarterly growth for 20 years at +11.0%
like-for-like. Thanks to its far-reaching transformation, which has
already led to significant market share gains, and to its
solidarity initiatives to support hairdressers, the Division has
emerged from the health crisis with an even greater advantage over
competitors and a stronger leadership position in the industry. The
Division’s performance was driven by an acceleration on e-commerce
and a return to growth in brick-and-mortar points of sale. Its
performance was particularly strong in North America and Europe,
with double-digit growth in the third quarter, and in China, which
continued to accelerate following an excellent first half. The
number one category for growth was haircare, spearheaded by a
particularly buoyant Kérastase and by the successful launch of
Genesis, as well as by the success of Pro Longer by L’Oréal
Professionnel. Hair colour grew significantly in the third quarter,
driven by Blond Studio by L’Oréal Professionnel and Shades
EQ by Redken.
CONSUMER PRODUCTSAt
the end of September, the Consumer Products Division was at -6.2%
like-for-like and -8.6% reported.The Division returned to
growth in the third quarter at +0.8% like-for-like. During the
quarter, Garnier achieved double-digit growth and L’Oréal Paris
returned to growth despite its exposure to the sluggish makeup
market. The Division capitalised on its “Back to Beauty” plans and
on innovations to accelerate in the third quarter in all major
categories.In the third quarter, in hair colour, the Division
gained market share in a particularly dynamic category; in
haircare, it achieved double-digit growth thanks to the successful
launches of Fructis Hair Food and Elvive Dream Lengths; and also
accelerated in face care thanks to the launch of concentrated
serums rich in active dermatological ingredients by L’Oréal Paris
and to the success of Garnier Tissue Masks —an increasingly
accessible home beauty ritual. Though the global makeup category
remains sluggish, NYX Professional Makeup gained market shares and
Maybelline New York successfully launched several products,
including Lifter Gloss, in a market where demand is picking up
among younger consumers. In the nail colour category, Essie grew
strongly, riding the wave of the home manicure trend.All regions,
except for South Asia, returned to growth with particularly
encouraging results in mainland China, Brazil, the United Kingdom,
Germany and France.Finally, our digital advance enabled us to
accelerate our e-commerce 2 conquest, growing sales in the channel
by +49.2% 1.
L’ORÉAL LUXEAt the end
of September, L’Oréal Luxe was at -13.1% like-for-like and -11.9%
reported in a global luxury beauty market down approximately
19%. L’Oréal Luxe outperformed the market in all
three of its categories. In skincare, it made significant strides
driven by its powerful, complementary brands Lancôme, Kiehl’s,
Helena Rubinstein and Biotherm. In fragrances, excellent initial
sales of three new women’s perfumes, Angel Nova by Mugler, Voce
Viva by Valentino and My Way by Giorgio Armani, were major
highlights, alongside the continued success of Libre by Yves Saint
Laurent and Idôle by Lancôme.At the end of September, L’Oréal Luxe
had gained market shares in almost all Zones. Strong performances
were recorded in Asia Pacific, driven by mainland China, which once
again posted remarkable growth, as well as in Western Europe,
Eastern Europe and Latin America. North America confirmed its
progressive recovery. Travel Retail remained heavily impacted by
the limited air traffic.The Division continued to accelerate
strongly in e-commerce 2, with global growth of +60.5% 1.
ACTIVE COSMETICSAt the
end of September, Active Cosmetics was at +15.2% like-for-like and
+10.7% reported, despite the slow dermocosmetics
market.The Division accelerated in the third quarter to
reach record growth of +29.9%. The major brands and all geographic
Zones grew, and the Division recorded market share gains.Growth was
driven by a major acceleration plan based on a dynamic activation
strategy with prescribers, retailers and consumers, both online and
offline. The Division’s investments in digital platforms and
e-commerce in recent years helped to make the online distribution
channel its biggest growth contributor. At the same time, focused
post-confinement initiatives at points of sale enabled the sector
to return to growth in the third quarter.Asia and North America
continue to be the main growth engines of the Division. The brands
CeraVe, SkinCeuticals and La Roche-Posay posted double-digit
growth, as well as market shares gains. CeraVe, in particular, is
the first contributor to growth with market share gains all over
the world and in the major markets.
Summary by geographic Zone
WESTERN EUROPE
At the end of September, the Zone was at -11.8%
like-for-like and -10.9% reported. Most countries returned to
growth in the third quarter, with France, Germany and the United
Kingdom leading the way. On the other hand, Spain was negatively
impacted by the drop in summer tourism, and Travel Retail has
suffered from the decrease in air travel. During the third quarter,
the consumption of beauty products recovered gradually, though the
makeup category remains depressed. All Divisions rolled out major
recovery plans to enhance brand visibility during the period. At
the same time, e-commerce growth 2 remained buoyant. The Consumer
Products Division grew steadily, significantly outperforming the
market in the third quarter. Garnier continued to gain market
shares, particularly in haircare with the success of its new
Fructis Hair Food range, and in hair colour. L’Oréal Paris
strengthened its positions in face care, thanks in particular to
the excellent start made by its Revitalift Filler serum. L’Oréal
Luxe also gained market shares, especially in the fragrance
category with the very encouraging launches of Angel Nova by Mugler
and My Way by Giorgio Armani. The dynamic La Roche-Posay and CeraVe
brands enabled the Division to return to balance at the end of
September. Finally, the Professional Products Division saw very
dynamic growth in the quarter.
NORTH AMERICA
At the end of September, the Zone recorded -9.7%
like-for-like and -9.4% reported.It made progress in the third
quarter. All Divisions maintained growth in the e-commerce channel.
The Consumer Products Division is back to growth, despite a
sluggish makeup market. It achieved triple-digit growth in
e-commerce, has strengthened its leadership position in hair
colour, and has improved in the skincare category thanks in
particular to Revitalift Glycolic Acid and 10% Pure Hyaluronic Acid
by L’Oréal Paris, and to the Garnier Micellar Waters range. Despite
the challenges linked to brick-and-mortar distribution, L’Oréal
Luxe outpaced its competitors in e-commerce, and outperformed the
market in the fragrance category. With double-digit growth in the
third quarter, the Professional Products Division confirmed the
first signs of recovery noted in June. SalonCentric proved to be a
key asset in this robust performance. The Division boosted its
digital footprint with Kérastase and more than doubled its sales on
Amazon with Matrix and Redken. The Active Cosmetics Division
recorded extraordinary growth of over 50% in the third quarter
thanks to CeraVe, La Roche-Posay and SkinCeuticals, and to
triple-digit growth in e-commerce.
NEW MARKETS
Asia Pacific:
The Zone was at -1.8% like-for-like and -2.9% reported, with a
return to growth in the third quarter. All Divisions improved their
performance. L’Oréal continued to improve and gain market shares
during the third quarter outside of mainland China, despite the
impact of the pandemic. This improvement was led by skincare, which
is the first category of the market. La Roche-Posay and CeraVe
gained market share. The major luxury brands recorded strong
e-commerce growth. Garnier outperformed the market with new
launches in emerging markets. E-commerce continued to accelerate.
Offline sales also showed some improvement. Australia, New Zealand
and Vietnam all returned to growth by the end of the nine months.
Despite a significant increase in the number of Covid-19 cases in
India, the country showed signs of improvement with an increase in
sales in the third quarter. Hong Kong continues to suffer due to
the absence of tourists.
Mainland China recorded +20.8%
like-for-like and +18.1% reported at the end of September,
significantly outperforming the market, which continued to recover
with growth in the third quarter. The speed of recovery varied
significantly depending on the distribution channel and category,
but the increase in sales in offline stores and in the selective
makeup market was particularly encouraging. L’Oréal China
outperformed the market and strengthened its position as the
e-commerce and selective distribution leader. All Divisions gained
market share. L’Oréal Luxe outperformed the market,
particularly in skincare with Lancôme, Kiehl’s and Helena
Rubinstein, but also in makeup thanks to the Chinese Valentine’s
Day, during which Yves Saint Laurent became the leading selective
brand. The Consumer Products Division performed well in
haircare thanks to the launch of the Hyaluronic Acid range by
L’Oréal Paris, as well as in skincare. The Active Cosmetics
Division recorded strong growth driven by SkinCeuticals and La
Roche-Posay. The Professional Products Division returned to
double-digit growth in the third quarter.
Latin America: The Zone was at
-6.0% like-for-like and -19.3% reported at the end of September.
Three Divisions returned to growth in the third quarter. Brazil
accelerated in the third quarter, with double-digit growth in all
Divisions. All other countries significantly improved sales with
Argentina, Uruguay and Chile leading the way. The main growth
driver was e-commerce, which more than quadrupled sales in the
third quarter. The “Back to Beauty” plan rolled out in most
countries maximised opportunities as brick-and-mortar stores slowly
reopened. Key innovations, particularly in haircare, Genesis by
Kérastase and Série Expert Pro Longer in Professional Products and
Dream Lengths in Consumer Products, drove sales. The skincare
category achieved double-digit growth driven by CeraVe in the
Active Cosmetics Division and by Hyaluro and SkinActive in the
Consumer Products Division. L’Oréal Luxe became the market leader
thanks to a strong acceleration in e-commerce and the strategic
launch of the fragrance Libre by Yves Saint Laurent.Eastern
Europe: At the end of September, the Zone was at -5.5%
like-for-like and -10.3% based on reported figures. Markets
recovered gradually, particularly in Central Europe, but remained
negative in Russia. Bounce back plans were rolled out in June, with
promotions and media, as well as new launches in all Divisions and
countries. All Divisions posted growth in the third quarter with
particularly strong performances by Active Cosmetics and
Professional Products; in terms of countries, the Czech Republic,
Hungary, Israel and Romania achieved significant growth.
E-commerce contributed significantly to growth, accounting for 16%
of sales.
Africa, Middle East: The Zone
was at -9.2% like-for-like and -13.0% reported. In the Middle East,
the situation remains difficult, particularly in Saudi Arabia. In
Sub-Saharan Africa, the market is steadily improving in South
Africa. Recovery plans focused on strong online and offline
activations, and on the “Back to Beauty” programme. The Active
Cosmetics, Consumer Products and L’Oréal Luxe Divisions drove
growth in the Zone, as did the Levant countries, Egypt and
Morocco.
Important events during the
period 1/7/20 to 30/9/20 and post-closing
events
- On 31 August, L’Oréal announced the launch of its second
Employee Share Ownership Plan. The plan, rolled out in 57
countries, gives L’Oréal employees, in France and internationally,
the possibility to be even more closely linked to the Group’s
development.
- On 16 September, L’Oréal announced that it had been named one
of the world’s top 10 companies by the 2020 Refinitiv Diversity
& Inclusion Index that ranks the top 100 organisations globally
on a wideranging set of Diversity & Inclusion metrics among the
over 9,000 international organisations it assesses.
- On 1 October, L'Oréal announced that it took 10th place in the
Universum 2020 global rankings of business students’ and graduates’
favourite companies, moving up two spots from 2019. L’Oréal is the
only French and European company in the top 10 of this prestigious
ranking.
- On 8 October, L’Oréal announced the appointment of Barbara
Lavernos as President, Research, Innovation and Technologies.
Antoine Vanlaeys is appointed Chief Operations Officer. These
nominations will be effective as of 1 February 2021.
- On 14 October, L’Oréal announced the succession of Jean-Paul
Agon as Chief Executive Officer from 1 May 2021. L’Oréal’s Board of
Directors met under the chairmanship of Jean-Paul Agon. Following
the recommendations of the Appointments and Governance Committee,
the Board decided on new governance and a succession plan at the
head of the Group. As the Company's articles of association do not
provide for any exception to the legal retirement age of 65 years,
Jean-Paul Agon must hand over his duties as Chief Executive Officer
before July 2021. In this context, the Board of Directors announced
its intention to dissociate the functions of Chairman and Chief
Executive Officer. The Board announced its intention to renew
Jean-Paul Agon’s mandate as Chairman, a position he has held since
2011, and to appoint Nicolas Hieronimus as Chief Executive
Officer. Furthermore, in his exchanges with the
Appointments and Governance Committee, Jean-Paul Agon, with the
agreement of the Board of Directors and the full support of Nicolas
Hieronimus, wished to maintain the role of Deputy CEO, a position
held by Nicolas Hieronimus at his side since 2017. Barbara
Lavernos, who will lead Research, Innovation, Technology from
February 2021, will be appointed Deputy CEO on 1 May 2021.
”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 a free translation into English of the
Sales at 30 September 2020 news release issued in the French
language and is provided solely for the convenience of
English-speaking readers. In case of discrepancy, the French
version prevails.
L'ORÉAL CONTACTSIndividual Shareholders and Market
Regulators Mr Christian MUNICH Tel.: +33 (0)1 47 56 72 06
christian.munich2@loreal.com
Financial Analysts and Institutional Investors
Ms Françoise LAUVIN Tel.: +33 (0)1 47 56 86 82
francoise.lauvin@loreal.com
Media Ms Domitille FAFIN Tel.: +33 (0)1 47 56
76 71 domitille.fafin@loreal.com
Switchboard: +33 (0)1 47 56 70 00
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, www.loreal-finance.com or the L’Oréal
Finance app, alternatively, call +33 1 40 14 80 50.
Appendix
L’Oréal group sales 2019/2020 (€ million)
|
2019 |
2020 |
First quarter |
7,550.5 |
7,225.2 |
Second quarter |
7,261.0 |
5,851.3 |
First half total |
14,811.5 |
13,076.5 |
Third quarter |
7,182.8 |
7,036.8 |
Nine months total |
21,994.3 |
20,113.3 |
Fourth quarter |
7,879.3 |
|
Full year total |
29,873.6 |
|
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1 Like-for-like: based on a comparable
structure and identical exchange rates.2 Sales achieved on our
brands’ own websites + estimated sales achieved by our brands
corresponding to sales through our retailers’ e-commerce websites
(non-audited data).
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