Beauty / news
L’Oréal posts 7.7% growth in 'exceptional' third quarter as travel retail rebounds
L’Oréal reported third-quarter sales of €11.6 billion, up 7.7% on an adjusted like-for-like basis, with growth across every division and region and travel retail returning to growth.
CEO Nicolas Hieronimus described the quarter as "exceptional" on the company's earnings call, with reported sales growth of 11.9% and like-for-like growth of 7.2%. The adjusted like-for-like figure accounts for the net impact of the phasing of a groupwide IT transformation.
For the nine months to 30 September, sales reached €35.33 billion, an increase of 6.9% on both adjusted like-for-like and like-for-like bases and 7.7% as reported.
Professional Products and L’Oréal Dermatological Beauty were singled out for "remarkable" performances, while the Luxe division showed a strong recovery. Growth was recorded across all divisions and all regions.
Travel retail returned to growth in the third quarter and outpaced the market, helped by what Hieronimus called a "very positive Hainan." South Korea also grew, supported by a rebound in travel activity.
Mainland China remained "a bit negative," which Hieronimus linked to previously reported disruption from retailer transitions at Shanghai Pudong and Hongqiao airports earlier in the year. Avolta replaced Sunrise Duty Free at Pudong Terminal 1 and Satellite Hall 1, while China Duty Free Group took over from subsidiary Sunrise at Pudong's T2 and S2 Satellite Hall and Hongqiao's T1.