L'Oréal recorded a low growth of 3.3% like-for-like, and suffered a loss of 0.4% based on reported figures, in Q3 2014.
Jean-Paul Agon, Chairman and CEO, attributed this to "a slight contraction in the Consumer Products Division, as the mass market hit an air pocket in Western Europe."
On the other hand, he noted some positive factors that influenced the company's results, citing: "steady mass market improvements in the US, continuing market growth in emerging countries, the resumption of our market share gains in the mass market in Western Europe during the third quarter, and continuing good momentum in our Selective Divisions."
In the Consumer Products Division, sales were €2.58bn, equating to a 0.4% loss like-for-like and 0.9% loss based on reported figures. L'Oréal Luxe sales were €1.45bn, a 4.9% growth like-for-like and 4.2% reported. The Active Cosmetics Division generated €380m in sales, at a gain of 11.3% like-for-like and 9% reported. The Body Shop hit sales of €190m - a 1.2% like-for-like and 5.8% reported growth.
Geographically, Western Europe's disappointing results were reflected in the company's 0.4% like-for-like loss and small 1% reported gain. Latin America, however, did well, with sales of €466m but a like-for-like growth of 10%, along with 2.7% based on reported figures. Similarly, Africa and Middle East showed a 12.4% increase on a like-for-like basis and 11.7% based on reported figures, with sales of €140m.
Looking forward, Agon commented: "We think the group's like-for-like growth should reaccelerate in the fourth quarter, particularly in the Consumer Products Division. Meanwhile, we are actively pursuing the strategic strengthening of our portfolio thanks to targeted acquisitions of complementary brands whose development will fuel the group's like-for-like growth: brands with strong local presence such as Magic in China and Niely in Brazil, and brands with high international potential such as NYX, whose digitally-based business model is also a source of inspiration for our brands. All in all, 2014 should be another year of improved economic performance for L'Oréal, with the Group increasing its net earnings per share, thanks in part to the accretive impact of the strategic transaction with Nestlé. This transaction will also ensure very strong growth in net income, thanks to a capital gain of about €2bn."