GOOD SALES MOMENTUM OVER THE FIRST NINE MONTHS
- Sales: 19.05 billion euros
- Renewed momentum of the Consumer Products Division confirmed
- Excellent performance of L’Oréal Luxe and the Active Cosmetics Division
- Strong growth in North America
* Like-for-like: based on a comparable structure and constant exchange rates.
** Sales achieved on our brands' own websites + estimated sales achieved by our brands corresponding to sales through our retailers' websites (non-audited data); like-for-like growth.
SALES AT SEPTEMBER 30TH, 2016
Like-for-like, i.e. based on a comparable structure and identical exchange rates, sales growth was +4.7%.
The net impact of changes in consolidation was +0.2%.
Growth at constant exchange rates was +4.9%.
Currency fluctuations had a negative impact of -3.3%. If end of September exchange rates (€1 at $1.12) are extrapolated up to December 31st, the impact of currency fluctuations would be -3.3% for the whole of 2016.
Based on reported figures, the Group's sales at September 30th, 2016, amounted to 19.05 billion euros, an increase of +1.6%.
SALES BY OPERATIONAL DIVISION AND GEOGRAPHIC ZONE
* As of July 1st, 2016, the Asian Travel Retail business of the Consumer Products Division, previously recorded under the Western Europe Zone, was transferred to the Asia, Pacific Zone. All figures for earlier periods have been restated to allow for this change.
At the end of September, the Professional Products Division posted growth of +1.8% like-for-like, i.e. -0.7% based on reported figures.
Hair colour, the largest contributor to growth, is maintaining its momentum, thanks to solid core franchises in all the brands - Shades Eqby Redken, SoColor Beauty by Matrix, Inoa and Dia by L'Oréal Professionnel - and the success of the Blond Studio and Hair Touch Uplaunches by L'Oréal Professionnel. In professional skincare, Decléor is continuing its expansion in Western Europe.
The resilience in Western Europe is continuing. Eastern Europe, Spanish-speaking Latin America and the Africa, Middle East Zone, are growing strongly. The Division's performance has been affected by the temporary slowdown in the United States. India and Russia are the main contributors to growth.
At the end of September, the Consumer Products Division is outperforming the market, with growth of +4.4% like-for-like and +0.6% based on reported figures.
The Division's growth is being fuelled by the success of its strategic initiatives.
On the one hand in make-up - with the breakthrough of NYX Professional Makeup, now being rolled out globally, and Maybelline, which is growing especially in the United States - and on the other hand, in haircare, where growth has been bolstered by the globalisation of Ultra Doux.
Skincare is being strengthened by the ongoing success of Micellar Cleansing Waters by Garnier and the innovation of clay masks by L'Oréal Paris. Hair colour is returning to growth thanks to Magic Retouch by L'Oréal Paris.
The Division is increasing its worldwide market share, outperforming the market substantially in North America and performing well in Western Europe, especially in the United Kingdom, Spain and Germany.
At the end of September, L'Oréal Luxe has grown by +6.8% like-for-like and by +5.0% based on reported figures, after an excellent third quarter at +9.3% like-for-like.
L'Oréal Luxe is continuing to make market share gains worldwide: in Asia, particularly in China, and in many other countries such as the United States, Russia, Spain and the United Kingdom.
At the end of September, the Active Cosmetics Division is maintaining its growth momentum. Sales are up by +5.4% like-for-like and +1.3% based on reported figures.
Despite the persistent slowdown in markets in Europe and Asia, the Division is accelerating.
La Roche-Posay maintained its strong growth in the third quarter, fuelled by Effaclar which is launching Effaclar Duo+ Unifying, its anti-blemish tinted line. Vichy is innovating with the launch of Slow Âge, and in the anti-hair loss treatment segment with Dercos Aminexil Clinical 5. Roger&Gallet is moving into facial skincare with Aura Mirabilis, enriched with 18 distilled and officinal plants.
The Division's performance is particularly strong in North America and Latin America.
MULTI-DIVISION SUMMARY BY GEOGRAPHIC ZONE
Growth amounted to +1.7% like-for-like and +0.1% based on reported figures. The Group is outperforming the market, with particularly good performances in the United Kingdom, Germany and Spain. The French market remains difficult, with consumer spending still sluggish.
Make-up is a major growth driver, with very good momentum for Urban Decay. NYX Professional Makeup is proving successful in each country it moves into. Note also in facial skincare the very promising start made by the clay masks of L'Oréal Paris and the Moisture Bomb tissue masks from Garnier.
In a dynamic market, the Zone recorded growth of +5.6% like-for-like and +5.4% based on reported figures. The Group is increasing its market share, particularly in the Consumer Products Division which is outperforming the market, with strong growth for NYX Professional Makeup, the growth of Maybelline, and Garnier whose Whole Blends (Ultra Doux) launch has made a good start. L'Oréal Luxe is also delivering good performances, and is outperforming its market, driven by the quality of its brand portfolio, particularly with Urban Decay, Yves Saint Laurent and Kiehl's.
Asia, Pacific: the Zone posted growth of +4.4% like-for-like and +1.8% based on reported figures.
In Northern Asia, the Group is growing in Japan and is continuing to advance in South Korea and Taiwan. In China, where the Consumer Products market is affected by a slowdown in some of the traditional distribution channels, L'Oréal Luxe is performing well and is continuing to outperform a dynamic market, especially thanks to the Yves Saint Laurent and Giorgio Armani brands.
Results are good in Southern Asia, with substantial gains in the make-up category, thanks to L'Oréal Paris and the roll-out of NYX Professional Makeup. In skincare, Garnier is continuing to expand.
Latin America: the Zone recorded growth of +12.1% like-for-like, i.e. -4.3% based on reported figures. Spanish-speaking Latin America accelerated further with a particularly good performance in Mexico, and advances in Peru and Colombia. The Consumer Products Division is spurring growth, thanks particularly to Maybelline and Vogue. Brazil is recovering from the effects of the IPI tax reform in 2015, and is returning to growth with an acceleration at Niely, while La Roche-Posay is winning market share.
Eastern Europe: growth in this Zone is at +9.8% like-for-like, i.e. -0.2% based on reported figures.
The Group is outperforming the market, with particularly good performances in Russia and Poland. Make-up is the category that contributes most to growth, both at L'Oréal Luxe with Urban Decay and Yves Saint Laurent, and in the Consumer Products Division with Maybelline and NYX Professional Makeup.
Africa, Middle East: like-for-like sales in this Zone are growing at +9.7%, with growth of +5.8% based on reported figures. L'Oréal is continuing to win market share, despite a slowdown in markets in the Middle East.
THE BODY SHOP
The Body Shop recorded sales increases of +0.5% like-for-like, i.e. -4.0% based on reported figures, with improved growth in North America. Market slowdowns in Hong Kong and Saudi Arabia are continuing to have an impact on global growth. Skincare is continuing to expand, thanks to the launch of a range of five new facial skincare masks.
IMPORTANT EVENTS DURING THE PERIOD JULY 1ST, 2016 TO SEPTEMBER 30TH, 2016
- On July 13th, L'Oréal made a firm offer to the Rivadis group for the acquisition of Société des Thermes de Saint-Gervais-les-Bains and the licence of the Saint-Gervais Mont Blanc brand. The approval of the Municipality of Saint-Gervais-les-Bains was obtained on August 3rd. The acquisition was finalised on November 2nd, 2016.
- On July 21st, L'Oréal inaugurated a new Research and Innovation Centre in Johannesburg, dedicated to the specific properties of African skin and hair, and to the beauty rituals and expectations of consumers in Sub-Saharan Africa.
- On July 22nd, L'Oréal announced the signing of a definitive agreement to acquire IT Cosmetics, one of the fastest growing prestige beauty brands in the United States, for a cash purchase price of 1.2 billion US dollars. The acquisition was finalised on August 31st, 2016.
"This news release does not constitute an offer to sell, or a solicitation of an offer to buy L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with the Autorité des Marchés Financiers, also available in English on our Internet site www.loreal-finance.com.
This news release may contain some forward-looking statements. Although the Company considers that these statements are based on reasonable hypotheses at the date of publication of this release, they are by their nature subject to risks and uncertainties which could cause actual results to differ materially from those indicated or projected in these statements."
This is a free translation into English of the news release of the Sales at September 30th, 2016 issued in the French language and is provided solely for the convenience of English speaking readers. In case of discrepancy, the French version prevails.
CONTACTS AT L'ORÉAL
Individual shareholders and market authorities
Mr Jean Régis CAROF
Tel.: +33 1 47 56 83 02
Financial analysts and Institutional investors
Mrs Françoise LAUVIN
Tel.: +33 1 47 56 86 82
Mrs Stephanie CARSON-PARKER
Tel.: +33 1 47 56 76 71
Tel.: +33 1 47 56 70 00