French beauty giant L’Oréal has posted its best sales growth in more than 10 years – 7.1 percent.
Announcing the result, L’Oréal chairman and CEO Jean-Paul Agon, said the record growth followed a strong fourth-quarter increase of 7.7 percent in “a beauty market that accelerated significantly in 2018”.
According to Agon, all divisions of the company, which owns over 40 cosmetic brands, grew during the year.
Other highlights for the year included:
The Consumer Products Division, made up of 12 brands including L’Oréal Paris, Garnier, Maybelline, NYX Cosmetics and Essie, grew 2.5 percent.
“The Division’s three major brands are growing. L’Oréal Paris and Maybelline New York are maintaining their very good annual momentum, and Garnier accelerated in the fourth quarter. Skincare is growing strongly, with double-digit growth worldwide in facial skincare, thanks to the excellent performance of Revitalift Filler by L’Oréal Paris, Garnier tissue masks and Men Expert skincare. Makeup growth continues, driven especially by Maybelline New York and the global success of Superstay Matte Ink and Fit Me!”
The L’Oréal Luxe Division, made up of 21 brands including Lancôme, Yves Saint Laurent Beauté, Keihl’s, Shu Uemura and Urban Decay, recorded a 14.4 percent increase in sales.
“The Division’s four billionaire brands are posting double-digit growth. Lancôme sales crossed the 3 billion euro mark driven by its skincare performance, with franchises Génifique and Absolue, and the undisputed success of La Vie est Belle. Yves Saint Laurent and Giorgio Armani had a very good year in fragrances and in foundations. Kiehl’s is benefiting from the acceleration in skincare, with an excellent performance from Line-Reducing Concentrate. The successful development of IT Cosmetics and Atelier Cologne is continuing.”
The Active Cosmetics Division, made up of nine brands including La Roche-Posay, Skinceuticals, Dermablend and Vichy, recorded an 11.9 percent increase in sales.
“All the major brands are contributing to the Division’s growth. La Roche-Posay ended the year with double-digit growth, driven by its anti-wrinkle innovation Hyalu B5, and core franchises Anthelios and Effaclar, and is performing well across all zones. Growth at Vichy is again bolstered by the success of Minéral 89, the star product of 2018. Skinceuticals is posting very strong growth in all zones, and strengthening its number one position in professional skincare in the US. CeraVe is recording double-digit growth in North America, and has now been rolled out in more than 30 countries.”
Agon attributed L’Oréal’s success to the strength of its “robust and well-balanced” business model which covers “all circuits, all categories, all price points and addresses all consumers” so that the Group can seize opportunities wherever they are.
“All over the world, our teams are alert and listening to consumers’ needs and desires,” he said.
“They adapt and allocate resources with great agility, always in the pursuit of excellence.
“This is how L’Oréal delivers profitable and sustainable growth, and strengthens its position as the cosmetics market leader year after year.”
In addition Agon stressed that 2018 was also a very good year for two of the Group’s most powerful growth drivers – e-commerce (which grew 40.6 percent to account for 11 percent of sales( and Travel Retail (which grew 27.1 percent to reach over 2 billion euros).