Clichy, 2 November 2017 at 6:00 p.m.
SALES AT 30 SEPTEMBER 2017 Strengthening growth: +4.5% over the first nine
months like-for-like [1]
-
Sales: 19.5 billion euros
-
Sales still highly
differentiated by Division
-
Excellent performance of
L'Oréal Luxe and growth momentum of the Active Cosmetics Division
confirmed
-
Growth acceleration in the New
Markets, particularly in Asia Pacific
-
Solid performance in Western
Europe
Commenting on the figures, Mr
Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal,
said:
"As announced,
there was an acceleration in the third quarter with growth at +5.1%
like-for-like. Overall, the Group outperformed the market and
strengthened its position.
L'Oréal Luxe
delivered an excellent performance with double-digit growth, driven
by the robust health of its four key brands: Lancôme, Yves Saint
Laurent, Giorgio Armani and Kiehl's, and the momentum of its recent
acquisition, IT Cosmetics. The Active Cosmetics Division is growing
significantly, reflecting the quality of its launches and the good
performance of CeraVe. The Consumer Products Division is
reinforcing its positions in several major Zones, but is still
being slowed down by continuing difficulties in the American and
French markets.
The highlight of
the quarter is the acceleration of our sales in the New Markets,
which posted double-digit growth, with strong performances in Asia
Pacific, particularly in China, but also in Latin America and
Eastern Europe. Western Europe is continuing to deliver a solid
performance.
The growth in
sales continues to be boosted by our digital lead, particularly
with the sustained expansion of e-commerce sales at +31.6%
[3].
These good
performances strengthen our confidence in our ability to once again outperform the cosmetics market in 2017, and to achieve growth in both
our sales and profits."
Sales at 30 September 2017
Like-for-like, i.e. based on
a comparable structure and identical exchange rates, sales growth
was +4.5%.
The net impact of changes in the scope of
consolidation was -2.2%, corresponding to:
Currency
fluctuations had a positive impact of +0.1%. If the
exchange rates at 29 September 2017, i.e. €1 = $1.18, are
extrapolated up to 31 December 2017, the impact of currency
fluctuations on sales would be approximately -1.3% for the whole of
2017.
Growth at constant exchange rates
was +2.3%.
Based on reported figures, the Group's sales,
at 30 September 2017, amounted to 19.5 billion euros, an increase
of +2.4%.
Sales by operational Division and geographic
Zone
|
3rd quarter
2017 |
At 30 September 2017 |
|
|
Growth |
|
Growth |
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
By operational Division |
|
|
|
|
|
|
Professional Products |
779.3 |
+0.5% |
-3.6% |
2,518.6 |
-0.3% |
-0.6% |
Consumer
Products |
2,818.7 |
+2.3% |
-1.4% |
9,208.0 |
+2.0% |
+2.1% |
L'Oréal
Luxe |
2,024.2 |
+11.2% |
+8.9% |
6,172.7 |
+10.8% |
+13.2% |
Active
Cosmetics |
475.7 |
+6.2% |
+11.7% |
1,610.6 |
+5.0% |
+11.3% |
Operational Divisions total |
6,097.9 |
+5.1% |
+2.4% |
19,509.9 |
+4.5% |
+5.8% |
By geographic Zone |
|
|
|
|
|
|
Western
Europe [4] |
1,873.7 |
+2.6% |
+1.5% |
6,076.5 |
+2.8% |
+1.6% |
North
America |
1,764.3 |
+1.3% |
+0.5% |
5,589.1 |
+2.5% |
+7.2% |
New
Markets, of which: |
2,459.9 |
+10.2% |
+4.6% |
7,844.3 |
+7.4% |
+8.2% |
- Asia, Pacific [4] |
1,421.3 |
+14.7% |
+7.3% |
4,556.6 |
+10.1% |
+8.8% |
- Latin America |
479.3 |
+3.4% |
-0.4% |
1,464.4 |
+5.0% |
+8.9% |
- Eastern Europe |
392.4 |
+7.8% |
+6.2% |
1,301.0 |
+8.9% |
+13.8% |
- Africa, Middle East |
166.9 |
+0.4% |
-5.3% |
522.3 |
-9.0% |
-9.2% |
Operational Divisions total |
6,097.9 |
+5.1% |
+2.4% |
19,509.9 |
+4.5% |
+5.8% |
Group total |
6,097.9 |
+5.1% |
-0.9% |
19,509.9 |
+4.5% |
+2.4% |
In the third quarter of 2016 and
at 30 September 2016, reported Group sales included The Body Shop
sales in respective amounts of 200.9 million euros and 599.5
million euros.
In the interest of simplification,
so as to bring external communication into line with internal
performance analysis reporting, and in view of its low impact, the
introduction of the GST (Goods & Services Tax) in India has
resulted in a restatement. The impact amounts to +0.1% on the
Group's sales growth in the third quarter, with zero impact on
sales growth over the first nine months.
PROFESSIONAL PRODUCTS
At the end of
September, the Professional Products Division is at -0.3%
like-for-like and -0.6% based on reported figures.
Sales improved slightly in the third quarter, driven by Eastern
Europe and Latin America.
In haircare, the revamping of the Série Expert
ranges at L'Oréal Professionnel and of the
core franchises at Redken (Extreme and All Soft) are
galvanising the category, while Aura Botanica
at Kérastase and Biolage
at Matrix are continuing to prove highly
successful, surfing on the trend for naturalness. Hair colour is
still benefiting from the launch of Colorfulhair at L'Oréal
Professionnel and the strong momentum of Shades EQ by Redken.
CONSUMER PRODUCTS
The Consumer
Products Division posted third-quarter growth of +2.3%
like-for-like, and ended September at +2.0% like-for-like, and
+2.1% based on reported figures.
Make-up is maintaining its good momentum thanks to the
successful mascara Lash Paradise and the lipsticks Color Riche
Mat by L'Oréal Paris, and SuperStay Matte Ink by Maybelline New
York, along with the blockbuster Total Control
Drop foundation and Epic Ink eyeliner at
NYX Professional Makeup.
Facial skincare is accelerating thanks to the robust health of our
L'Oréal Paris anti-ageing franchises and the
success of Garnier products, especially
Micellar Cleansing Waters.
In hair colour, the success of the two new beauty steps, Magic Retouch and Colorista from
L'Oréal Paris, is continuing.
The Division is winning market share in Western Europe, Eastern
Europe and Spanish-speaking America. In Asia, the Division
accelerated in the third quarter. In the United States, the
Division has been facing a particularly tough market since the
beginning of the year.
L'ORÉAL LUXE
At the end of
September, L'Oréal Luxe has grown by +10.8% like-for-like and by
+13.2% based on reported figures, after an excellent third quarter
at +11.2% like-for-like.
The Division continues to accelerate in make-up and facial
skincare. Lancôme is strengthening its growth,
with the success of Monsieur Big mascara,
strong performances from Teint Idole
foundation, and the launch of Advanced
Génifique Sensitive skincare and the fragrance
La Vie Est Belle L'Éclat. Yves Saint Laurent is continuing to grow strongly, in
make-up with the latest launches Encre de Peau All
Hours in foundation and Tatouage Couture
for the lips, and in fragrances with the new men's line Y. Giorgio Armani is accelerating,
driven by the Emporio Armani fragrance duo and
the boom in make-up. Kiehl's is continuing to
deliver double-digit growth and Urban Decay is
being boosted by the launch of the new Naked
Heat palette. IT Cosmetics is posting
rapid growth.
L'Oréal Luxe is continuing to gain market share with double-digit
growth in Asia Pacific, especially in China and Hong Kong, and in
Travel Retail and e-commerce.
ACTIVE COSMETICS
At the end of
September, the Active Cosmetics Division is continuing to
accelerate, with sales up by +11.3% based on reported figures and
by +5.0% like-for-like.
La Roche-Posay posted solid growth in all
Zones in the third quarter, and is innovating with the launch of
Lipikar Stick AP+ anti-itch for sensitive
skin.
Vichy confirms the success
of Minéral 89 in every market where it
has been rolled-out, and is launching Liftactiv anti-oxidant and anti-fatigue fresh
shot.
The American brands, SkinCeuticals and
CeraVe in North America, are maintaining their
strong momentum in the third quarter with double-digit
growth.
The Division achieved very good third-quarter performance in Asia,
driven by successful launches and the strong expansion of
e-commerce.
Summary by geographic Zone WESTERN EUROPE
In this Zone, growth amounted to
+2.8% like-for-like and +1.6% based on reported figures.
Growth is extremely dynamic in the United Kingdom, Spain and
Germany, and in the Netherlands and Greece. In France, sales
continue to be held back by a difficult market. The Consumer
Products and L'Oréal Luxe Divisions are outperforming their
respective markets, and the make-up category remains a strong
growth driver for the region.
NORTH AMERICA
The Zone recorded growth of +2.5%
like-for-like and +7.2% based on reported figures, despite the
United States economy experiencing multiple setbacks since the
start of the year.
In a difficult market environment, the Consumer Products Division
is expanding in new distribution channels, and thanks to successful
L'Oréal Paris launches: Lash
Paradise mascara and Infallible
foundation. L'Oréal Luxe is continuing to grow with Yves Saint Laurent and IT
Cosmetics. The Redken brand is performing
well in the Professional Products Division. The Active Cosmetics
Division is continuing to post double-digit growth, thanks in
particular to the recent acquisition of CeraVe, as well as the SkinCeuticals and La Roche-Posay
brands.
NEW MARKETS
Asia,
Pacific: the Zone posted growth of +10.1% like-for-like and
+8.8% based on reported figures. In Northern Asia, China is
achieving sustained growth, driven by L'Oréal Luxe, and by the
strong vitality of e-commerce sales. Hong Kong is also growing
strongly, with Chinese tourists continuing to return. In Southern
Asia, growth is spurred on by Thailand, Malaysia and Indonesia,
thanks to the strength of our make-up brand portfolio in the
Consumer Products Division.
Latin
America: the Zone posted growth of +5.0% like-for-like and
+8.9% based on reported figures. Mexico is maintaining its
momentum. Argentina and Uruguay are achieving double-digit growth.
Business in Brazil however, continues to be challenging.
Eastern
Europe: the Zone is growing at +8.9% like-for-like and +13.8%
based on reported figures. Strong growth is continuing in Central
Europe and Turkey. All Divisions are gaining market share. The
make-up category is the most dynamic, thanks to NYX Professional Makeup, Maybelline
New York, Yves Saint Laurent and Urban Decay. In Russia, extension work on the Vorsino
plant began in July in order to increase capacity and roll out
skincare technology.
Africa, Middle
East: like-for-like growth in this Zone is at -9.0%, and -9.2%
based on reported figures. The situation is gradually improving,
with a third quarter up by +0.4% like-for-like, thanks to a gradual
recovery in the Gulf States. Egypt is growing strongly. The
Consumer Products and L'Oréal Luxe Divisions are gaining market
share in the Maghreb - Middle East region.
Important events during the period 01/07/17 to
30/09/17
-
On 7 September 2017, after obtaining the
necessary authorisations from the relevant authorities, L'Oréal and
Natura Cosmeticos finalised the definitive agreement for the sale
of The Body Shop to Natura, in accordance with the terms of the
project announced on 9 June 2017.
-
On 19 September 2017, L'Oréal was awarded the
second prize for Diversity in Senior Management Bodies at the
Corporate Governance Grand Prix ceremony organised by
l'AGEFI.
-
On 21 September 2017, L'Oréal was awarded first
prize for its Code of Ethics at the Labrador Grands Prix de la Transparence ceremony.
"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 2017 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.
Contacts at L'Oréal
(switchboard: +33 1 47 56 70 00)
Individual shareholders and
market authorities
Mr Jean Régis CAROF
Tel: +33 1 47 56 83 02
jean-regis.carof@loreal.com
Financial analysts and
Institutional investors
Mrs Françoise LAUVIN
Tel: +33 1 47 56 86 82
francoise.lauvin@loreal.com
Journalists
Mrs Stephanie CARSON-PARKER
Tel: +33 1 47 56 76 71
stephanie.carsonparker@loreal.com
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 2016/2017 (€
million)
|
2016 [5] |
2017 [6] |
First
quarter: |
|
|
Operational Divisions |
6,352.4 |
6,847.8 |
The Body
Shop |
200.1 |
197.2 |
First quarter total |
6,552.4 |
7,045.0 |
Second
quarter: |
|
|
Operational Divisions |
6,143.6 |
6,564.2 |
The Body
Shop |
198.5 |
|
Second quarter total |
6,342.2 |
6,564.2 |
First
half: |
|
|
Operational Divisions |
12,496.0 |
13,411.9 |
The Body
Shop |
398.6 |
|
First half total |
12,894.6 |
13,411.9 |
Third
quarter: |
|
|
Operational Divisions |
5,952.2 |
6,097.9 |
The Body
Shop |
200.9 |
|
Third quarter total |
6,153.2 |
6,097.9 |
Nine
months: |
|
|
Operational Divisions |
18,448.2 |
19,509.9 |
The Body
Shop |
599.5 |
|
Nine months total |
19,047.8 |
19,509.9 |
Fourth
quarter: |
|
|
Operational Divisions |
6,468.1 |
|
The Body
Shop |
321.3 |
|
Fourth quarter total |
6,789.3 |
|
Full
year: |
|
|
Operational Divisions |
24,916.3 |
|
The Body
Shop |
920.8 |
|
Full year total |
25,837.1 |
|
www.loreal.com - Follow us on
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[1] Like-for-like: based on a comparable structure and constant
exchange rates, see details on page 2.
[2] In the third quarter of 2016 and at 30 September 2016,
reported Group sales included The Body Shop sales in respective
amounts of 200.9 million euros and 599.5 million euros.
[3] Sales achieved on our brands' websites + estimated sales
achieved by our brands corresponding to sales through our
retailers' websites (non-audited data); like-for-like
growth.
[4] As of 1 July 2016, the Asian Travel Retail business of the
Consumer Products Division, previously recorded under the Western
Europe Zone, was transferred to the Asia Pacific Zone. All figures
for earlier periods have been restated to allow for this
change.
[5] In the third quarter of 2016 and at 30 September 2016,
reported Group sales included The Body Shop sales in respective
amounts of 200.9 million euros and 599.5 million euros.
[6] In the first quarter 2017, reported Group sales included
The Body Shop sales, which amounted to 197.2 million euros.
Read the News Release of 2 November
2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: L'ORÉAL via Globenewswire
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