PARIS – L’Oréal’s business remains robust, with sales up 13.5 percent in the fourth quarter of 2022. The group outperformed the beauty market in all of its divisions and geographic regions during the full year.
Sales at the maker of Lancôme, Kérastase and Garnier products reached 10.32 billion euros in the three months ended Dec. 31, an 8.1 percent rise on a like-for-like basis.
“We achieve a remarkable performance, maintaining growth in excess of 20 percent quarter after quarter compared with 2019, thanks to our innovation leadership, our highly desirable brands, our operational agility and the tremendous commitment of our teams,” said Nicolas Hieronimus, L’Oréal chief executive officer, in a statement released Thursday after the close of the Paris Bourse.
“We have emerged stronger from 2022 and reinforced our position as the world’s leading beauty company,” he continued.
In the fourth quarter, L’Oréal’s Active Cosmetics division registered sales of 1.27 billion euros, a 28 percent rise. The division grew two-times faster than the dermocosmetics market overall, and posted double-digit sales increases in all geographic zones.
L’Oréal called the Active Cosmetics division’s performance “remarkable” in North America; the South Asia-Pacific, Middle East, North Africa and sub-Saharan Africa, or SAPMENA-SSA, zone, and mainland China.
The group’s Professional Products division’s sales grew 15 percent to 1.22 billion euros. L’Oréal said the branch strengthened its position and maintained growth momentum around the world, with an “outstanding performance” in mainland China, India and Brazil.
Sales at the Consumer Products division hit 3.68 billion euros, increasing 11.8 percent. All major brands in the branch outperformed the market, according to L’Oréal.
On the prestige end, L’Oréal Luxe generated sales of 4.15 billion euros, a 10.7 percent rise. The division outperformed the dynamic global luxury beauty market, according to the group.
In the fourth quarter, North Asia was L’Oréal’s largest geographic market, with sales of 3.29 billion euros, representing an 8.7 percent rise. There, the group said the Professional Products and Active Cosmetics divisions maintained their double-digit growth, driven by premium brands.
L’Oréal said the European beauty market surpassed pre-coronavirus pandemic levels, bolstered by categories including fragrance, makeup and sun care, and that the group “significantly outperformed” the market. Despite rising inflation in the second half of 2022, the European beauty market remained dynamic, L’Oréal said.
In Europe, the company generated sales of 2.99 billion euros, up 8.4 percent.
In North America in the fourth quarter, group sales advanced 23.5 percent. In full-year 2022, they hit the 10-billion-euro mark for the first time, even though inflation was rising there.
L’Oréal said that despite sourcing challenges, it achieved “solid growth” across all markets in the SAPMENA-SSA zone.
“Consumers returned to stores, and L’Oréal recorded booming sales in the brick-and-mortar channel,” the company said. The group’s sales in the region came in at 771.3 million euros, gaining 16.6 percent.
L’Oréal registered double-digit growth in key Latin American countries and increased market share there, thanks to all branches, led by the Consumer Products division. The company’s e-commerce sales continued growing in Latin America, where it also posted double-digit growth in brick-and-mortar stores.
For full-year 2022, L’Oréal’s net profit rose 24.1 percent to 5.71 billion euros, while operating profit was 7.46 billion euros, a 21 percent increase.
Company sales in the 12 months were 38.26 billion euros, advancing 18.5 percent. Versus 2019, L’Oréal’s 2022 sales climbed 23.4 percent.
“These high-quality results allow us to consistently support our social and environmental commitments, in line with our dual ambition of economic and corporate performance,” said Hieronimus.
“Mindful of the current uncertainties, we remain ambitious for the future, optimistic about the outlook of the beauty market, and confident in our ability to outperform the market and achieve in 2023 another year of growth in sales and profits,” he said.
Source: WWD