L’Oreal, the French beauty industry titan, has reported a significant double-digit revenue increase in the first half of 2023, despite experiencing stagnant sales in Asia. The company, known for owning renowned brands such as Maybelline New York and Garnier, announced an impressive 12% rise in sales, reaching a staggering €20.57 billion (US$22.6 billion). This surge reflected growth in both volume and value.
CEO Nicolas Hieronimus expressed satisfaction with the company’s robust performance amidst global challenges, revealing that L’Oreal’s growth surpassed the global beauty market’s expansion of 10%.
L’Oreal demonstrated strong growth across various regions, with North Asia being the sole exception where sales slightly rose by 0.6%. Last year, China phased out its stringent zero-Covid policy, lifting extensive lockdowns across the country. However, consumer expenditure has been subdued, primarily due to uncertainties surrounding the economic outlook.
Addressing this issue, Hieronimus acknowledged the slower-than-anticipated recovery of the Chinese market, yet he remained optimistic, citing a steady improvement. In the second quarter, L’Oreal’s sales in China grew between 15% and 18%, outpacing the overall beauty market’s 6.5% growth.
Contrary to the sales deceleration experienced by luxury groups LVMH and Richemont in North America, L’Oreal enjoyed a robust 14.7% revenue increase in the region, credited to strategic price adjustments and a well-balanced product mix.
In a notable shift, the consumer products division took the lead from the luxury unit, registering a 13.1% sales leap. The luxury unit boasts prestigious brands like Lancome and Yves Saint Laurent perfumes.
News is based on an article published on malaymail.com.
