L’Oréal reports “strong sales growth” for HY1 to €11.2bn +10.5% based on reported figure; +6.7% excluding currency fluctuations and +6.0% like-for-like growth.

 

In an online web conference with shareholders, Jean-Paul Agon, Chairman and CEO of L’Oréal, said: “At the end of the first half, the growth in travel retail is very strong for us; it’s +17%… and Asia has become the number region for travel retail with +30% growth. We estimate that we are gaining market share in travel retail and believe we are outperforming the growth of the channel.”

 

Other growth drivers for the group include North America, and continual breakthroughs in Asia, Africa and the Middle East. L’Oréal believes that it has been the leader of innovation in the cosmetics market in 2012.

 

Agon highlighted L’Oréal Luxe – a division of L’Oréal, which looks after prestige and designer brands distributed in global travel retail markets – in saying it had enjoyed “major successes” with Lancôme, Yves Saint Laurent, Kiehl’s and the Designer Fragrances.

 

RISE OF NEW MARKETS

“The rise of the New Markets, now our number one geographic zone, is continuing, driven by the dynamism of Asia and Africa, Middle East,” he continued.

 

“North America is growing fast, with large market share gains and the strategic acquisition of Clarisonic. Eastern Europe is continuing its recovery, and the group is improving its positions in the major countries of Western Europe.”

 

Agon says that L’Oréal is confident in the group’s ability to outperform the market in 2012, and to achieve another year of solid growth in both sales and profits.

 

Sales of the L’Oréal Luxe Division increased by +10.4% like-for-like. Growth is based on reported figures of +17.9%, reflecting the impact of the acquisition of Clarisonic. L’Oréal Luxe says it is growing in all categories, and is making substantial market share gains.

 

LANCÔME

Lancôme had a “very good first half”, particularly in facial skincare with its two serums Génifique and Visionnaire, and the new and exclusive Absolue L’Extrait.

 

In make-up, Rouge in love, and the long-lasting foundation Teint Idole Ultra 24h are continuing to prove successful.

 

At Yves Saint Laurent, the strategic launch of Forever Youth Liberator facial skincare is driving the brand’s growth in Asia. According to L’Oréal, Rouge Pur Couture lip varnish has been acknowledged as a “major innovation”.

 

Giorgio Armani strengthened its position in men’s fragrances with the launch of Acqua di Giò Essenza, and continued its strategic advances in make-up and facial skincare.

 

KIEHL’S

Kiehl’s is continuing its rapid growth on all continents. Clearly Corrective, a great innovation in anti-blemish skincare, has had a very good start.

 

 

[Above: Kiehl’s travel retail exlcusive Travel Solutions range]

 

The Designer Fragrance brands had a very good first half: Ralph Lauren with The Big Pony Fragrance Collection for Women, Viktor & Rolf with Flowerbomb, and Spicebomb, one of this year’s biggest hits in men’s products.

 

Clarisonic, acquired in December, continued to grow strongly in the United States.

 

In Western Europe, in a slightly negative market, the division is advancing and winning market share, particularly in France, Germany and the United Kingdom, thanks to Lancôme, Yves Saint Laurent, Kiehl’s and Diesel.

 

NORTH AMERICA

In North America, L’Oréal Luxe recorded strong growth, driven by Clarisonic, Yves Saint Laurent, Ralph Lauren and Kiehl’s, along with Viktor & Rolf.

 

[Right: Ralph Lauren Pony fragrance collection at HKIA]

 

In the New Markets, the division achieved very strong growth, particularly in Asia where market share gains were significant.

 

Lancôme is proving highly dynamic there, along with Yves Saint Laurent and Helena Rubinstein. Giorgio Armani is growing in the Middle East, with its premium fragrance line Armani Privé.

 

In Latin America, Ralph Lauren is proving highly successful with The Big Pony Collection for Women and Kiehl’s is continuing its roll-out, particularly in Brazil. The division’s sales in travel retail are dynamic.