L’Oréal reports strong growth for 2012
Growth was led by increased sales in new markets
L’Oréal has released its annual results for 2012, reporting sales of €22.46bn for the year, up 5.5% like for like and 10.4% based on reported figures. Operating profit rose 12.3% at 16.5% of sales.
The L’Oréal Luxe division saw sales grow 8.3% like for like in 2012 (+16% based on reported figures), thanks to the Lancôme brand which showed particularly strong growth, and good performances in Asia and North America.
Sales in the Consumer Products division rose 5% like for like (8.9% based on reported figures), driven by strategic advances in western Europe and North America, as well as by product initiatives in hair care, facial skin care and make-up.
L’Oréal’s Active Cosmetics division achieved 5.8% like for like sales growth (7.5% based on reported figures), which the company claims is around twice as fast as the trend in the dermocosmetics market. Brands in the division include Vichy, La Roche-Posay and SkinCeuticals.
The Professional Products division was impacted by the slowdown in the southern European economies where salon visits have declined. However its position is rising strongly in the new markets of eastern Europe, Asia and the Middle East. Overall for the year, the division reported 2.1% sales growth like for like and 6.7% based on reported figures.
Finally, sales for The Body Shop rose by 4.9% like for like and 11.4% based on reported figures, while Galderma (dermatology) sales increased 5.9% like for like (12.9% based on reported figures).
Geographically, growth was led by new markets such as the Africa and Middle East region where sales for the year rose 14.7% on a like for like basis and 17.6% based on reported figures. In Latin America the company saw sales rise 10.4% like for like with 8.7% reported growth, while growth in the Asia Pacific region was 9.6% like for like and 18.4% based on reported figures. In the more established markets, North America experienced sales growth of 7.2% like for like with 18.3% reported, while the market with the highest sales, western Europe, saw more modest growth of 0.6% like for like and 2.1% based on reported figures.
L’Oréal CEO and Chairman Jean-Paul Agon said: “In view of these successes and improvements, we are facing the future with optimism and confidence.”