L’Oréal sales hit €41.18bn 2023; North Asia impacted by ‘travel retail reset’

By Faye Bartle |

L'Oreal TRAP booth at TFWA AP 2023

The L’Oréal Travel Retail Asia Pacific booth at the TFWA Asia Pacific Exhibition & Conference in Singapore, in May 2023.

Beauty giant L’Oréal achieved a third consecutive year of double-digit growth in 2023, with sales reaching EUR41.18 billion (+7.6% reported and +11.0% like-for-like*) at 31 December 2023.

The 2023 Annual Results, released on 8 February, highlight a ‘continued outperformance of a dynamic global beauty market’, with operating profit increasing by +9.2% to EUR8,143.3 million and amounting to 19.8% of sales – an improvement of 30 basis points (audited financial statements, certification in progress).

Double-digit like-for-like growth was experienced in all regions except for North Asia, which continued to be impacted by the ‘market softness in mainland China and the reset in travel retail’.

Nicolas Hieronimus, CEO of L’Oréal hailed a “very successful year for the group”.

“I am immensely grateful to our teams,” he commented. “Their creativity, entrepreneurship and passion enabled us to report a third consecutive year of double-digit like-for-like growth, once again outperforming a dynamic beauty market.

“We set a new operating margin record and delivered +7.3% EPS** growth. In a challenging environment of geopolitical tensions, inflationary pressures, and a stagnating beauty market in China, we delivered our best like-for-like growth in more than 20 years (excluding 2021).

“This is a clear vindication of the power of our multi-polar model, and I am particularly pleased with the strong acceleration in emerging markets.

“As we head into 2024, we remain optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profits.

“More than ever, L’Oréal is looking to the future – a future that will have Beauty Tech at its very core. Beauty Tech will shape our industry and enable us to further strengthen our leadership.

“It will allow us to know our consumers ever-better, to bring them ever-more impactful and sustainable products and services and to become ever-sharper in our execution.”

L'Oreal 2023 Annual Results

L’Oréal 2023 Annual Results. Source: L’Oréal Finance. 

The Group’s 2023 Annual Results also reveal like-for-like growth in all divisions, with ‘particularly noteworthy performances’ in Dermatological Beauty and Consumer Products.

Furthermore, the L’Oréal Luxe division grew +4.5% like-for-like/+2.0% reported to become the ‘global market leader (in sales) in luxury beauty’, according to the company.

North Asia impacted by ‘travel retail reset’

Zooming in further on North Asia shows that sales contracted -0.9% like-for-like and -5.8% reported.

As mentioned above, the region continued to be impacted by the ‘reset in travel retail following the change in policy regarding daigous’. [Ed – ‘Buying on behalf of’ – i.e. individuals who buy items overseas and resell them to customers in China.]

Growth in the sub-region was fuelled by L’Oréal Dermatological Beauty, where all three core brands (La RochePosay, Vichy and CeraVe) grew in double-digits, led by CeraVe.

Professional Products was also highlighted as a contributor, with Kérastase continuing to ‘advance strongly’.

*Like-for-like sales growth: based on a comparable structure and identical exchange rates.
** To be proposed at the Annual General Meeting of 23 April 2024.

READ MORE: L’Oréal Travel Retail Asia Pacific and Alipay+ extend partnership

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