L'Oréal has announced a jump in Q1 2022 sales, despite disruptions from the Ukraine war and increased regulations in China, as consumers seek out luxury cosmetics in key markets.
The French beauty giant's Luxe division, which includes Yves Saint Laurent, Giorgio Armani and Prada, saw sales jump by 17.5%.
Lancôme was highlighted as a pivotal brand in the premium category as a result of its consolidated leadership in mainland China and its position among the top brands in the Western world.
The Active Products portfolio, which sells La Roche-Posay, CeraVe and Vichy, grew fastest at 18%.
Overall group sales were up by 13.5% with double-digit growth in Europe, North America and Latin America.
L'Oréal beat analysts' forecast of 10.6% sales growth, according to Credit Suisse.
China was singled out by the beauty brand owner for its strong growth, despite strengthened Covid-19 restrictions, due to campaigns for Chinese New Year, Valentine's Day and Women's Day.
Other potential growth markets noted were South Africa and Kenya for Sub-Saharan Africa; Mexico and Chile for Latin America, and the United Kingdom, Spain and Italy for Europe.
"In the first three months of the year, the growth trend continued in the global beauty market, with consumer purchasing behaviour unaffected by inflation," said Nicolas Hieronimus, CEO of L'Oréal.
"L’Oréal pursued its premiumisation and innovation strategy and continued to outpace the beauty market across all zones and divisions, recording strong growth by volume and value."
