- Sales: 20.57 billion euros, +13.3% like-for-like
- Standard & Poor's Global again awarded L'Oreal 85 points out of 100 in its ESG rating, reflecting the Group's performance in terms of sustainability.
Commenting on the figures, Nicolas Hieronimus, CEO of L'Oreal, said: "In a beauty market that is more dynamic than ever, L'Oreal delivered a remarkable performance and further strengthened its global leadership in the first half. Growth was broad-based across all Divisions, Regions, categories, and channels, once again vindicating our balanced, multi-polar model. Growth continued to be driven by the dual cylinders of volume and value - testament to the success of our innovations and the desirability of our brands. In keeping with our virtuous circle, we improved our profitability, all while significantly increasing investment in our brands. At the same time, in line with our dual ambition of economic and corporate performance, we continued to invest in the transition towards a more sustainable operating model that will ensure long-term value creation. In an economic context that is still uncertain, 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."
Summary by Division
Professional Products Division +7.6%
Growth in the dynamic haircare market was driven by Kerastase, with an excellent start for the Symbiose anti-dandruff range, and by L'Oreal Professionnel, with the success of Metal Detox. The Division performed well in hair colour, thanks to its iconic lines Shades EQ by Redken and Inoa by L'Oreal Professionnel. The Division continued to pursue the rollout of its "Hairstylists for the Future" programme, supporting all partner hairstylists in their green transition.
Consumer Products Division +15.0%
Each of the large brands grew in double-digits. Makeup was the most dynamic, boosted by the newly launched Falsies Surreal Mascara by Maybelline New York, Telescopic Lift Mascara by L'Oreal Paris and Fat Oil Gloss by NYX Professional Makeup. Haircare benefitted from the Division's premiumisation strategy, especially with the highly successful launch of Elvive Bond Repair. Skincare recorded double digit growth thanks to L'Oreal Paris' new Revitalift Clinical Vitamin C SPF50+ fluid and Garnier's new AHA BHA anti-acne line.
L'Oreal Luxe +7.6%
The Division outperformed the luxury fragrance market, with double-digit growth across all Regions, spurred by standout performances from couture brands including Yves Saint Laurent, Prada and Valentino. In skincare, L'Oreal Luxe continued to make progress thanks to the spectacular success of Helena Rubinstein and the recovery of Lancome in North America, along with the success of Takami in Japan and more recently in mainland China. Makeup also grew, buoyed by the success of Yves Saint Laurent and encouraging performances from specialist brands Urban Decay and Shu Uemura. The A?sop brand will be integrated in the second half once the necessary regulatory approvals have been obtained.
Dermatological Beauty Division +29.0%
This was driven by its portfolio of highly complementary brands - coupled with the continued pursuit of medical and prescription leadership. All global brands advanced in double digits: La Roche-Posay, the Division's number one growth contributor maintained its strong momentum, driven by Effaclar, Cicaplast and UVmune 400. CeraVe remained extremely dynamic in North America and accelerated strongly in the rest of the world. Vichy was spurred by the success of Dercos and solid momentum in suncare. SkinCeuticals continued to progress and the newly acquired SkinBetter Science was off to a very promising start.
Summary of SAPMENA-SSA2 Region +23.6%
SAPMENA continued to deliver outstanding double-digit growth in all categories and Divisions, making gains in both volume and value. By category, skincare was the main driver, fuelled by the expansion of CeraVe and strong growth in La Roche-Posay suncare; makeup was the fastest-growing category due to the rebound of Maybelline New York; fragrances recorded another strong and broad-based performance. By Region, growth was well-balanced between Pacific, Southeast Asia, South Asia and Middle East & North Africa. In the Pacific region, growth was outstanding, especially in the drug store channel; in India, growth was driven by mass and professional hair colour and haircare. In Southeast Asia, L'Oreal recorded strong sales and outperformed in Thailand, Malaysia, and Singapore, while the Consumer Products Division in Vietnam benefited from the expansion of e-commerce. The Gulf States recorded excellent growth over the religious holidays. In Sub-Saharan Africa (SSA), all countries saw double-digit growth, with particularly strong momentum in South Africa and Kenya.
Recent key events of L'Oreal on innovation and ESG
RESEARCH, BEAUTY TECH AND DIGITAL
- L'Oreal launched several major biotech initiatives. Its venture capital fund BOLD invested in US biotech company Debut to co-develop a platform of over 7,000 increasingly high-performing and more sustainable ingredients; the joint development program between L'Oreal and Debut aims to accelerate their go-to-market. It also announced a partnership with Bakar Labs, the pioneering biotech incubator of University of California Berkeley; the collaboration gives Bakar Labs' start-ups free access to L'Oreal's 3D-reconstructed skin models, an innovative tool for animal-free safety and efficacy testing.
- At Viva Technology 2023, L'Oreal unveiled its latest Beauty Tech innovations: inclusive solutions such as HAPTA, designed to enable people with hand motion disorders to apply makeup; diagnostic tools (SPOTSCAN, META PROFILER(TM), K-SCAN); personalised solutions (3D shu:brow); and sustainable solutions like L'Oreal Professionnel's WATER SAVER, which has saved over 66 million litres of water to date.
- L'Oreal and Verily - an Alphabet precision health tech company - also announced the launch of My Skin & Hair Journey, the world's largest, most diverse multi-year skin and hair health study. Involving thousands of women in the US, the study will help researchers better understand the biological, clinical and environmental factors that contribute to skin and hair health.
- At the World Congress of Dermatology (WCD) in Singapore, L'Oreal unveiled new research on pigmentation and the impact of hormonal variations on women's skin and scalp.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE PERFORMANCE
- L'Oreal was recognised by Standard & Poor's Global for its sustainability performance, with a solid Environmental, Social & Governance (ESG) rating of 85 points out of 100. The score underlines L'Oreal's sustainable transformation towards a more responsible and inclusive business model through the implementation of an ambitious sustainability strategy.
- At the 25th L'Oreal-UNESCO For Women in Science International Awards, five women scientists were recognised for their outstanding work. A medal of honour and a financial endowment were also given to three researchers who have been forced to flee their country and have shown exemplary courage, resilience and commitment to science.
- To coincide with Earth Day, in April L'Oreal announced three new projects supported by its Fund for Nature Regeneration. NetZero, ReforesTerra and Mangroves.Now were chosen for their innovative approaches to soil carbon sequestration, reforestation and mangrove restoration as well as their potential to have a far-reaching, positive impact on the environment and local communities.
- L'Oreal featured on Fast Company's 2023 list of 100 Best Workplaces for Innovators, which recognises organisations around the world that demonstrate an inspiring commitment to encourage and develop innovation at all levels.
About L'Oreal
For over 110 years, L'Oreal, the world's leading beauty player, has devoted itself to one thing only: fulfilling the beauty aspirations of consumers around the world. Our purpose, to create the beauty that moves the world, defines our approach to beauty as inclusive, ethical, generous and committed to social and environmental sustainability. With our broad portfolio of 35 international brands and ambitious sustainability commitments in our L'Oreal for the Future programme, we offer each and every person around the world the best in terms of quality, efficacy, safety, sincerity and responsibility, while celebrating beauty in its infinite plurality.
With 85,400 committed employees, a balanced geographical footprint and sales across all distribution networks (e-commerce, mass market, department stores, pharmacies, hair salons, branded and travel retail), in 2021 the Group generated sales amounting to 32.28 billion euros. With 20 research centers across 11 countries around the world and a dedicated Research and Innovation team of over 4,000 scientists and 3,000 tech professionals, L'Oreal is focused on inventing the future of beauty and becoming a Beauty Tech powerhouse.
More information on https://www.loreal.com/en/mediaroom
About L'Oreal (Thailand) Ltd
L'Oreal Thailand is a subsidiary of the world's leading Beauty company and manages international brands across four divisions:
- Consumer Products Division: L'Oreal Paris, Garnier, and Maybelline New York
- Luxe Division: Lancome, Biotherm, Giorgio Armani, Kiehl's, Shu Uemura, Yves Saint Laurent, and IT Cosmetics
- Professional Products Division: L'Oreal Professionnel and Kerastase
- Active Cosmetics Division: La Roche-Posay, Vichy and CeraVe
More information about L'Oreal Thailand www.lorealthailand.com or www.facebook.com/lorealthailand