L'Oréal achieves 'record' annual sales despite challenges in North Asia
L’Oréal Group has reported its third consecutive year of double-digit growth, despite a difficult sales environment in Asia.
Annual sales increased 11% to £35.16 billion (€41.18 billion), with growth across all divisions and regions except North Asia, which continued to be impacted by the market softness in mainland China and the reset in travel retail.
The Professional Products division reported growth of 7.6% during the year, supported by its strategic focus on driving haircare, strengthening its omni-channel approach and conquering new markets. Its two biggest brands, L’Oréal Professionnel and Kérastase, shared "strong" growth.
Meanwhile, the Consumer Products division achieved its best growth in over 30 years at 12.6%. This was driven by volume and value as the division continued to pursue its strategy of simultaneously democratising and premiumising.
Makeup was the leading contributor to the division’s growth, helped by Maybelline New York, L’Oréal Paris, and NYX Professional Makeup. Haircare was also "very dynamic" and skincare grew "significantly".
Sales at L'Oréal Luxe increased 4.5%, boosted by continued investment in the division's portfolio of complementary brands as well as its ambitious omni-channel strategy, now including Amazon in the US.
The Dermatological Beauty division revealed "spectacular growth" of 28.4%, driven by its portfolio of highly complementary brands, online and offline channel coverage, and longstanding medical prescription leadership.
Nicolas Hieronimus, CEO of L'Oréal, said: "2023 was a successful year for the group. I am immensely grateful to our teams. 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.
"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."
Last month, L’Oréal acquired a minority stake in Swiss longevity biotech company Timeline through its strategic venture capital fund.
It has also been increasing its investments in other technology and biotech companies in recent months. Last year, the group acquired probiotic and microbiome research firm Lactobio. It also purchased the outstanding shares of environmental tech start-up Gjosa at the beginning of 2023.