L’Oréal posted a 6.2% increase in third-quarter sales to €6.47bn, citing strong growth in skincare, Asia and the Luxe and Active Cosmetics divisions. On a like-for-like basis, sales were up 7.5%. The group said this was the highest quarterly growth it has seen in 10 years.
For the first nine months, sales rose 1.8% to €19.86bn. On a like-for-like basis sales were up 6.8%.
Commenting on the period, L’Oréal chairman and ceo Jean Paul Agon said that the beauty market continues to accelerate, but that its performance is contrasted between the divisions.
The group singled out the performance of travel retail, which saw a 29.9% increase in sales and e-commerce, which saw sales growth of 38.3% for the first nine months.
The group’s Luxe division saw a 14.8% (+15.6% like-for-like) increase in sales for the third quarter to €2.32bn. L’Oréal said that the division is outperforming the market and continues to see strong growth in facial skincare, in Asia Pacific, especially China and Hong Kong, and in travel retail.
The group said that the Consumer Products division however, is held back by persistent difficulties in some countries. Sales for the first nine months were down 2.4% (+2.4% like-for-like) to €8.99bn.It said that the division is still facing challenges in Western Europe, although there was an improvement in the third quarter, and that it is facing a tough market in Brazil
By region, sales in Western Europe fell 1% (-0.7% like-for-like) to €1.86bn for the third quarter. The company said it is being held back by the slowdown in the UK. In North America sales were up 3.2% (+2.7% like for like) to €1.82bn, while in Asia Pacific sales rose 26.2% (+25.8% like- -for-like) to €1.79bn, boosted by strong demand from Chinese consumers, and the Lancôme, Kiehl’s, Giorgio Armani, Yves Saint Laurent and L’Oréal Paris brands.