L’Oréal reports double-digit sales growth as skincare sales soar
“L’Oréal Luxe has become the first division of the group, with remarkable success in perfumes , while the consumer products division, the leading division by volume, strengthened its position, with notable performances in make-up,” said CEO Nicolas Hieronimus. With a portfolio of brands in perfect harmony with the health aspirations of consumers, active cosmetics has also experienced spectacular growth, doubling in four years. »
Hieronimus noted that e-commerce sales grew 25.7%, to account for 28.9% of sales. He added that the company invests in data and artificial intelligence, and establishes strategic partnerships such as its alliance with Verily, to better understand and characterize the mechanisms of skin and hair aging.
The professional products division achieved historic market share gains in all regions, with exceptional performances in the United States and mainland China in particular. Haircare remains the No. 1 growth category. Kérastase had a spectacular year, driven by the success of Curl Manifesto. L’Oréal Professionnel, thanks to its breakthrough innovation Metal Detox, and Redken, with its new line Acidic Bonding Concentrate, also recorded strong growth. Hair color experienced a very strong recovery, thanks in particular to the success of Shades EQ by Redken and Dialight by L’Oréal Professionnel.
The consumer products division also gained market share in 2021. Momentum is strong in the United States and in fast-growing markets such as India, Brazil, Mexico and Indonesia. Growth was driven by the development of e-commerce, in all areas and particularly in emerging countries. All the major brands are progressing, with an exceptional succession of innovations in all categories. Maybelline’s Sky High mascara was the most successful launch in the brand’s history. In hair care, high-end innovations include Dream Lengths Wonder The water by Elsève and L’Oréal Full Resist in mainland China. In skincare, Garnier’s Vitamin C Serum has been well received in many countries in SAPMENA (South Asia Pacific, Middle East, North Africa and Sub-Saharan Africa) and Latin America. NYX Professional Makeup also had an exceptional year, driven by major launches and new types of partnerships, such as the one with Netflix’s Money Heist (La Casa de Papel). L’Oréal Paris reinforced its position as the world’s leading beauty brand with sales approaching $7 billion.
L’Oréal Luxe sales are almost back to pre-Covid levels. The division is gaining market share in its three categories. Ultra-premium brands Lancôme Absolue and Helena Rubinstein, and anti-aging innovations such as Kiehl’s Retinol Skin-Renewing Daily Micro-Dose Serum performed very well in skincare. The division is consolidating its leadership in fragrances, driven by the strength of established icons such as Libre by Yves Saint Laurent and by promising launches such as Alien Goddess by Mugler and Luna Rossa Ocean by Prada. In a less dynamic make-up market, performance was driven by Lancôme and Shu Uemura. The Division strengthened its positions in all regions, recording significant market share gains in North Asia and excellent performances in Europe. Following the reorganization of its distribution network in North America, sales are once again accelerating in this zone.
At the end of the year, L’Oréal Luxe finalized the acquisition of Youth to the People.
With health on the minds of so many consumers, L’Oréal said its Active Cosmetics division outperformed a booming dermocosmetics market in 2021. The division strengthened an already strong relationship with healthcare professionals and confirmed its leadership in recommendations dermocosmetics. Active cosmetics posted strong growth in all regions, with exceptional performances in North America and North Asia. Offline sales returned to strong double-digit growth and online sales were exceptionally strong, exceeding one billion euros. Among the brand’s achievements, La Roche-Posay has more than doubled its rate of growth, thanks to innovations such as the Effaclar serum and Lipikar EczemaMED, which is revolutionizing the treatment of eczema. Vichy is strengthening its European leadership in anti-aging, particularly in skincare for postmenopausal women, while accelerating in Latin America and North America. SkinCeuticals continued to ramp up thanks in part to the success of Silymarin CF. CeraVe experienced spectacular growth for the second consecutive year, both in the United States and in the rest of the world.
By region, European sales increased by 10.7%. North American sales increased by 18.1%. Sales in North Asia increased by 18.6%. Sales increased by 10% in SAPMENA. Sales in Latin America jumped 20.6%.
Last year, L’Oréal bought back 4% of its own shares held by Nestle.