L'Oréal's latest results are some of its strongest to date. In its 2014 annual results statement, the cosmetics giant saw net sales reach €22.53bn, up 3.7% like-for-like. Operating profit set a new record for the company, representing 17.3% of sales and totalling €3.891bn.
The company registered growth across all divisions and regions. L'Oréal's Professional Products division grew 2.6% like-for-like, in a market that the company acknowledged remains “difficult”. Hair care is the lead contributor to sales growth in this division.
Meanwhile, the Consumer Products division, boosted by the acquisition of NYX and Magic in 2014, posted an increase of 1.6% in sales. Over in the L'Oréal Luxe division, sales growth rocketed 7.1% like-for-like, with the make-up and women's fragrance categories being particularly dynamic.
Finally, in the Active Cosmetics division, sales jumped up 8.7% like-for-like, with the Vichy brand contributing to growth via its major franchises, and La Roche-Posay maintaining growth in all regions. SkinCeuticals also met with success both in the US and in new markets.
Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal, said: “As anticipated and announced, L'Oréal recorded in the fourth quarter its strongest growth of the year. In a volatile economic context and a less dynamic market, the group posted growth in all its divisions and regions of the world.
“L'Oréal Luxe and Active Cosmetics achieved very good growth and outperformed their market significantly. The Professional Products Division continued to improve. Meanwhile, in a slowing market, the Consumer Products Division saw a temporary sag in its growth, particularly in the United States.
“2014 was also a year of transformation for L'Oréal, in particular through the acceleration of our digital transformation and strategic acquisitions such as Magic, NYX, Decléor, Carita and Niely [in the process of being acquired], which complement our brand portfolio in key categories and regions of the world.
“Despite adverse currency effects, operating margin increased once again in 2014 highlighting the strength of our business model. Following the capital gain realised upon the disposal of Galderma as part of the strategic transaction with Nestlé, net profit has grown strongly.
“We are looking to the future with confidence, driven by our "Beauty for All" mission and our "Universalisation" strategy towards our ambition of winning one billion new consumers. In an economic environment that is uncertain, but more favourable on the monetary front, all our teams are focused to ensure L'Oréal outperforms the market in 2015, and to deliver sales and profit growth."