L’Oréal annual results boosted by European sales

L’Oréal Group has reported an 18.5% increase in sales to £33.8 billion (€38.26 billion) for the year ending 31 December 2022, revealing growth across all business divisions and geographical regions. 

Professional Products sales increased 18.3% to £3.8 billion (€4.4 billion), with growth in the premium haircare market largely driven by Kérastase and L’Oréal Professionnel.

Consumer Products sales grew 14.6% to £12.3 billion (€14 billion), boosted by "innovation and sound valorisation, without sacrificing volume". The group said all major brands outperformed the market, including Elvive, Maybelline, NYX Professional Makeup and Garnier.

L’Oréal Luxe sales increased 18.6% to £12.9 billion (€14.6 billion), with growth across fragrance, skincare and makeup from Yves Saint Laurent, Lancôme, Urban Decay and Armani Beauty.

Active Cosmetics sales rose 30.6% to £4.5 billion (€5.1 billion), driven by La Roche-Posay, CeraVe, Vichy and SkinCeuticals. The group's newly acquired brand Skinbetter Science, integrated into the division in the fourth quarter, "showed promising potential".

Sales in Europe increased 12.3% to £10 billion (€11.4 billion), boosted by fragrance, makeup and sun protection. The group also reported "strong improvement" in operating margin, up 40bps to 19.5%. Operating profit totalled £6.5 billion (€7.4 billion).

Nicolas Hieronimus, CEO of L'Oréal, said: “We achieved a remarkable performance this year, thanks to our innovation leadership, our highly desirable brands, our operational agility and the tremendous commitment of our teams.

"We have emerged stronger from 2022 and reinforced our position as the world’s leading beauty company. These high-quality results allow us to consistently support our social and environmental commitments, in line with our dual ambition of economic and corporate performance.

"Mindful of the current uncertainties, we remain ambitious for the future, optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming the market and achieve in 2023 another year of growth in sales and profits.”