Get 1970 billion yuan! L'Oreal set a new decade high in revenue

Recently, the latest financial report of L'Oreal Group pointed out that in the third quarter from July to September 2022, the group's sales increased by 19.7% to 9.58 billion euros (about 67.813 billion yuan), exceeding the analysts' general expectation; In the first nine months of 2022, L'Oreal Group's revenue reached 27.94 billion euros (about 197.493 billion yuan), an increase of 20.5% over the same period in 2021.

From January to September 2022, the four major departments and all regions of L'Oreal Group will achieve growth. Including:

The revenue of high-end beauty department (Helena, Lancome, YSL Beauty, Armani and other brands) was 10.48 billion euros (about 74.184 billion yuan), up 22% year on year;

The mass consumer goods sector (L'Oreal, Canier, Maybelline and other brands in Paris) achieved a strong growth of 15.7%. Due to cutting-edge innovation in key categories, all major brands contributed to this impressive performance, and cosmetics led the success of the sector;

The sales volume of the active cosmetics sector (Xiulike, Shilefu, Lifuquan, Weizi and other brands) increased by 31.5% year on year, and the sales volume in retail channels such as pharmacies increased by 22.6% year on year;

The professional hairdressing department increased by 19.6% to 3.26 billion euros (about 23.076 billion yuan). The department grew in all regions and performed well in all distribution channels.

Specifically, Europe is still the main market of L'Oreal, with revenue of 2.87 billion euros in the third quarter, up 12.1%; North America followed, with revenue of 2.82 billion euros, up 27.7%; The revenue of North Asia, where China is located, was 2.41 billion euros (about 17.059 billion yuan), up 11.3%; Sales in Latin America reached 675.6 million euros in the third quarter, with an organic growth of 16.2%.

L'Oreal said that the beauty market remained sluggish in the third quarter due to the health restrictions related to the epidemic in China. However, L'Oreal ranked first in China's emerging Tiktok channel, while the tourism channel began to recover.

Recently, L'Oreal Group has made frequent actions in terms of brand and category improvement, as well as in terms of the depth of the Chinese market.

Not long ago, L'Oreal Group acquired Skinbetter Science, an American doctor dispensing skin care brand, which will join the active cosmetics sector that has maintained a high growth rate. This week when the financial report was issued, L'Oreal set up a new luxury perfume branch, covering six brands, namely Maison Margiela, Atelier Cologne, Viktor&Rolf, Azzaro, Diesel and Cacharel.

In the Chinese market, on September 22, L'Oreal's Shanghai Meicifang Investment Co., Ltd. announced its first investment in China, holding a minority stake in the Chinese luxury perfume brand Documents Wenxian. On October 11, the foundation laying ceremony of L'Oreal Suzhou Intelligent Operation Center and the launch of L'Oreal Suzhou Shangmei Factory Clean Workshop were successfully held, marking the official commencement of the world's first self built intelligent operation center of L'Oreal Group, and the official production of a 100000 level clean workshop far beyond the beauty industry standard.

Speaking of this financial report, Nicolas Hieronimus, CEO of L'Oreal Group, said: "L'Oreal has achieved very stable quarterly performance under the unprecedented turbulent background marked by the Chinese epidemic and western inflation. Consumer demand for beauty products has not changed. Although there is uncertainty at present, we are still confident in the prospects of the global beauty market."