Asia Pacific leads strongest L’Oreal sales growth in 10 years
L’Oreal sales in Asia Pacific soared 25.8 per cent on a like-for-like basis in the latest quarter – making it the French-headquartered company’s strongest international market.
Sales in the region hit €1.794 billion in the quarter and €5.342 billion year to date, an increase of 23.3 per cent.
“This acceleration in growth is boosted by strong demand from Chinese consumers, and the dynamic sales of the Lancome, Kiehl’s, Giorgio Armani, Yves Saint Laurent and L’Oreal Paris brands,” the company said in a statement.
“In Northern Asia, the key factor remains the strong growth in China and Hong Kong, and in travel retail. In Southern Asia, sustained growth is continuing, particularly in India and Malaysia.”
L’Oreal chairman and CEO Jean-Paul Agon said the company achieved its highest quarterly growth rate for 10 years in the three months to September 30. Worldwide sales reached €6.473 billion, up 7.5 per cent.
“In a beauty market that continues to accelerate, driven by robust growth in skincare, the group maintains its strong momentum, with contrasted performances between the divisions. L’Oreal Luxe is showing dynamic growth, underpinned in particular by its four biggest brands, Lancome, Yves Saint Laurent, Giorgio Armani and Kiehl’s. The active cosmetics division, which continues to post double-digit growth, is being driven worldwide by consumer aspirations for dermocosmetics and the quality of its brand portfolio,” he said.
While the consumer products division is being held back by persistent difficulties in some countries, the L’Oreal Paris and Maybelline New York brands are maintaining strong momentum.
Travel retail globally was a standout for the group, posting growth of 29.9 per cent for the quarter and online sales grew by 38.3 per cent to now account for 9.7 per cent of L’Oreal’s turnover.