L’Oréal H1 sales and net profit soar – CEO claims ‘remarkable performance’
L’Oréal generated worldwide sales of €15.9bn for the first half (H1) of 2021, up 16.2% on the previous year, with net profit after non-controlling interests up by more than 20% at €2.36bn.
Total sales for the second quarter (Q2) of 2021 tallied up at €7.58bn, with overall company growth up 33.5%.
Nicolas Hieronimus, CEO of L’Oréal, said it was a “remarkable performance” across all regions and markets and reflected the “relevant and healthy balance” of the company’s “multi-faceted model” in terms of geographic footprint, brands and categories.
“With the health situation still uncertain, the beauty market is gradually recovering and has recorded double-digit growth. As a result of the determination and continued commitment of our teams, that I wish to warmly thank, L’Oréal is significantly outperforming the market, with an exceptional second quarter,” Hieronimus said.
Record divisional performances and double-digit growth
All four business divisions performed strongly, he said, with a record performance in Professional Products – up 57.5% in sales for Q2 and up 32.6% for H1. Consumers Products also continued to grow, up 11.5% in sales for Q2 largely due to the “recovery of makeup” and up 1.9% overall for H2. Fragrance sales within the Luxe division also sharply rose driving an overall sales rise in the division of 40.9% for Q2 and 24.9% for H1. Active Cosmetics also achieved record growth in Q2, with sales up 44.9% and up 32% for H1.
L’Oréal’s global e-commerce and digital business also continued to grow, now representing 27.3% of total sales worldwide.
In Europe, Hieronimus said L’Oréal “significantly outperformed the market” which was starting to recover gradually, led by the UK, France and Russia. Q2 sales in Europe grew 27.6% to €2.39bn, with H1 sales reaching €4.85bn, up 11.6%.
Business in North America returned to growth with “a tremendous acceleration” in Q2 – up 33.7% with sales of €1.95bn – and North Asia continued to do well with a sales rise of 23.3% to €2.29bn for the quarter, still driven by mainland China.
An ‘offensive’ product launch strategy planned for H2
Looking ahead, the CEO said L’Oréal had an “offensive product launch strategy” planned for the second half (H2) of 2021 and would also continue to invest in relevant areas of growth and leverage technology, data and Artificial Intelligence (AI) to advance in these areas further.
“We are more confident than ever in our ability to outperform the market and achieve a year of growth in both sales and results,” Hieronimus said.