Earnings Release • Oct 29, 2015
Earnings Release
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Commenting on the figures, Mr Jean-Paul Agon, Chairman and Chief Executive Officer of L'Oréal, said:
"At the end of September, the Group's reported growth is strong, at +13.2%, still supported by a very positive currency effect.
In the third quarter, the Consumer Products Division is confirming the gradual strengthening of its growth, notably through strong momentum in make-up with its three brands: Maybelline, L'Oréal Paris and NYX. The Active Cosmetics Division continues to forge ahead and the Professional Products Division keeps outperforming a lacklustre market.
L'Oréal Luxe experienced a temporary slowdown as a result of market turbulence over the summer in Asia, in Hong Kong and in Travel Retail.
By geographic zone, North America's growth is gradually increasing and Western Europe confirms its positive trend. In the third quarter, the New Markets have been hampered by the difficult Brazilian market, market turbulence in Asia and the taking over of agents' contracts in the Middle East. In China, sales growth is in line with earlier quarters.
Despite a global context that is still volatile, we are confident for the year end.
The beauty market remains dynamic. In each Division, our brands are pushing forward with successes such as Maybelline and NYX in the Consumer Products Division, Yves Saint Laurent, Kiehl's and Urban Decay at L'Oréal Luxe, Redken in the Professional Products Division and La Roche-Posay at Active Cosmetics. Finally, the acceleration of our digital transformation is making us stronger, in particular with the rapid increase (+40%) of our e-commerce sales* which should significantly exceed one billion euros this year.
We are confirming our ambition to outperform once again the beauty market in 2015 and to achieve significant growth in both sales and profits."
* Sales achieved on our brands' own websites + estimated sales achieved by our brands corresponding to sales through our retailers' websites (non-audited data); like-for-like growth.
Like-for-like, i.e. based on a comparable structure and identical exchange rates, the sales growth of the L'Oréal group was +3.7%.
The net impact of changes in scope of consolidation was +1.2%.
Growth at constant exchange rates was +4.9%.
Currency fluctuations had a positive impact of +8.3%. If end of September exchange rates (€1 at \$1.12) are extrapolated up to December 31st, the impact of currency fluctuations would be +6.7% for the whole of 2015.
Based on reported figures, the Group's sales at September 30th , 2015 amounted to 18.76 billion euros, an increase of +13.2%.
| rd quarter 2015 3 |
At September 30th , 2015 |
|||||
|---|---|---|---|---|---|---|
| Growth | Growth | |||||
| €m | Like-for-like | Reported | €m | Like-for-like | Reported | |
| By operational Division | ||||||
| Professional Products | 811.1 | 2.5% | 8.8% | 2,551.4 | 3.2% | 13.4% |
| Consumer Products | 2,799.3 | 3.3% | 8.7% | 8,960.7 | 2.3% | 11.2% |
| L'Oréal Luxe | 1,705.3 | 4.2% | 13.8% | 5,192.0 | 5.8% | 17.9% |
| Active Cosmetics | 409.4 | 8.0% | 7.6% | 1,428.0 | 7.3% | 9.7% |
| Cosmetics Divisions total | 5,725.1 | 3.8% | 10.1% | 18,132.1 | 3.8% | 13.2% |
| By geographic Zone | ||||||
| Western Europe | 1,873.0 | 2.5% | 4.4% | 6,033.9 | 2.1% | 4.5% |
| North America | 1,621.4 | 3.8% | 22.5% | 4,947.7 | 3.0% | 25.4% |
| New Markets, of which: | 2,230.7 | 4.8% | 7.1% | 7,150.6 | 5.8% | 13.7% |
| - Asia, Pacific - Latin America - Eastern Europe - Africa, Middle East |
1,268.8 455.0 342.1 164.8 |
3.3% 5.9% 9.4% 4.4% |
14.7% -2.3% -7.6% 17.9% |
4,056.6 1,405.1 1,145.3 543.6 |
4.4% 5.5% 9.5% 9.8% |
21.9% 4.7% -4.1% 28.1% |
| Cosmetics Divisions total | 5,725.1 | 3.8% | 10.1% | 18,132.1 | 3.8% | 13.2% |
| The Body Shop | 212.5 | 0.5% | 11.6% | 624.3 | 2.0% | 12.6% |
| Group total | 5,937.5 | 3.7% | 10.1% | 18,756.4 | 3.7% | 13.2% |
At the end of September, the Division recorded an increase of +2.3% like-for-like and +11.2% based on reported figures. The gradual improvement of its growth is continuing.
Growth amounted to +2.1% like-for-like and +4.5% based on reported figures. L'Oréal Luxe is continuing to act as a growth driver in the Zone, reflecting the complementarity of the brands in its portfolio. In a massmarket channel that has remained lacklustre, the Garnier brand is winning market share in haircare and skincare. L'Oréal is continuing to outperform the market in Germany and the United Kingdom, notably thanks to the performances of L'Oréal Luxe.
L'Oréal posted growth of +3.0% like-for-like and +25.4% based on reported figures. The Active Cosmetics and Professional Products Divisions are driving growth, particularly thanks to the La Roche-Posay and Redken brands. Kiehl's and Urban Decay are contributing to the development of L'Oréal Luxe. The Consumer Products Division is accelerating, thanks in particular to the strengthening of its make-up positions with L'Oréal Paris, Maybelline and above all NYX, which is growing at a remarkable pace.
The Body Shop recorded growth of +2.0% like-for-like and +12.6% based on reported figures. The launch of two premium lines – Spa in bodycare and Oils of Life in facial skincare – is underpinning the brand's strategy of refocusing on skincare. Growth is continuing in Europe and the Middle East. Asian countries have recorded mixed performances, while growth in Australia is solid.
"This news release does not constitute an offer to s ell, or a solicitation of an of fer to buy L'Oréal shares. If you wish to obtain more comprehensive information about L'Oréal, please refer to the public documents registered in France with t he Aut orit é de s Marchés Financiers, also av ailable in English on our Int ernet site www.loreal-finance.com.
This news release may contain some forward -looking statements. Although the Company considers that these statements are bas ed on reasonable hypot heses at the dat e of publication of this release, t hey are by their nat ure subject to risks and uncertainties which could cause actual results to differ materially from those indicat ed or projected in these statements."
This is a f ree translation into English of the news release of the Sales at September 30 t h , 2015 issued in the French language and is provided solely for the c onvenience of English speaking readers. In case of discrepancy, the French version prevails.
Individual shareholders Financial analysts and and market authorities Institutional investors Journalists
Tel: +33 1 47 56 83 02 Tel: +33 1 47 56 86 82 Tel: +33 1 47 56 76 71
Mr Jean Régis CAROF Mrs Françoise LAUVIN Mrs Stephanie CARSON-PARKER [email protected] [email protected] [email protected]
For more information, please contact your bank, broker or financial institution (I.S.I.N. code: FR0000120321), and consult yo ur usual newspapers, the Internet site for shareholders and investors, www.loreal-finance.com or the L'Oréal Finance app, alternatively, call +33 1 40 14 80 50.
| 2014 | 2015 | |
|---|---|---|
| First quarter: | ||
| Cosmetics Divisions | 5,462.2 | 6,243.9 |
| The Body Shop | 176.4 | 192.4 |
| First quarter total | 5,638.6 | 6,436.3 |
| Second quarter: | ||
| Cosmetics Divisions | 5,348.5 | 6,163.1 |
| The Body Shop | 187.4 | 219.5 |
| Second quarter total | 5,536.0 | 6,382.6 |
| First half: | ||
| Cosmetics Divisions | 10,810.8 | 12,407.0 |
| The Body Shop | 363.8 | 411.9 |
| First half total | 11,174.6 | 12,818.9 |
| Third quarter: | ||
| Cosmetics Divisions | 5,200.7 | 5,725.1 |
| The Body Shop | 190.4 | 212.5 |
| Third quarter total | 5,391.1 | 5,937.5 |
| Nine months: | ||
| Cosmetics Divisions | 16,011.4 | 18,132.1 |
| The Body Shop | 554.2 | 624.3 |
| Nine months total | 16,565.7 | 18,756.4 |
| Fourth quarter: | ||
| Cosmetics Divisions | 5,646.7 | |
| The Body Shop | 319.6 | |
| Fourth quarter total | 5,966.4 | |
| Full year | ||
| Cosmetics Divisions | 21,658.2 | |
| The Body Shop | 873.8 | |
| Full year total | 22,532.0 |
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