Derma beauty sales fuel growth for L'Oréal

23-Oct-2023 - Last updated on 24-Oct-2023 at 08:08 GMT

As more consumers continue to seek out derma-based beauty products, brands like CeraVe saw success

The French multinational recorded notably strong growth for its derma beauty portfolio, but results in mainland China were disappointing for Q3 2023.

For the third quarter of 2023 (30^th June – 30^th September) the L'Oréal Group recorded total sales of €10m, up by 11.1%.

Sales in the European region were a strong point for the company, up by +17.6% on a like-for-like basis.

The company said its growth on the continent was “broad-based across countries with momentum particularly strong in the Germany-Austria-Switzerland and Spain-Portugal clusters, the United Kingdom, the Nordic countries as well as Eastern Europe” (excluding Russia).

North America, SAPMENA and LATAM also saw a successful quarter, but sales dropped in North Asia, as the company said it “continued to be impacted by the reset in travel-retail following the change in policy regarding daigous” (Chinese personal shoppers).

Derma Beauty: still a consumer favourite

Global sales for L’Oréal Dermatological Beauty were up +28.7% on a like-for-like basis for the quarter and the division continued to outperform the market.

The portfolio saw growth across all regions, even in mainland China, where beauty product sales have been slower to pick up after the Covid-related restrictions were lifted.

Its La Roche-Posay brand generated the highest sales figures, which it said was “driven by Effaclar, Cicaplast and UVmune 400” product lines.

CeraVe also saw high double-digit growth, Skinbetter Science continued its upward growth in the US and Vichy accelerated boosted by the Dercos haircare.

Its Q3 sales figure also included the remaining €57m insurance benefit following a natural disaster that disrupted operations at the Vichy plant last year.

Fragrance sales boosted Luxe portfolio

Within its Luxe portfolio, scent was a stand-out performer. Paradoxe by Prada, Born in Roma by Valentino, Libre by Yves Saint Laurent and La Vie Est Belle by Lancôme were all strong performers.

Makeup sales recovery across all regions except travel-retail Asia, driven by Yves Saint Laurent and newly launched brand Prada Beauty.

It was a busy quarter for the L’Oréal Group. On 30^th August, the company acquired Aēsop from Natura and added the brand to its Luxe portfolio.

Within Q3, the company also introduced Espace François Dalle – a 4,200 sq m space dedicated to “transmitting corporate culture, creativity, and inspiration – and inventing the future of beauty.”

In September, L’Oréal’s Venture Capital arm BOLD (Business Opportunities for L’Oréal Development) also announced a minority investment in Chinese biotech company SHINEHIGH INNOVATION, for the “co-development of innovative and sustainable beauty solutions.”

Commenting on the figures, CEO of L'Oréal, Nicolas Hieronimus, said:

“Despite the slower than expected recovery of the beauty market in mainland China and the reset in Asian Travel Retail, L’Oréal kept its double-digit pace. We did so thanks to our broad-based regional footprint, our successful innovation pipeline, and our agility to rapidly allocate investment to the areas where we see the highest growth.

In a context of continued economic and geopolitical uncertainty, we remain confident in our ability to keep outperforming the market and achieve in 2023 another year of growth in sales and profits. We are optimistic about the outlook for the beauty market and remain ambitious for the future.”