PARIS, Feb 8 (Reuters) – L’Oreal posted 8.1% gross sales development within the fourth quarter, a contact slower than within the earlier three months, with agency demand in the USA and Europe serving to to offset the dent from coronavirus disruptions in China.
The cosmetics firm, which sells Maybelline mascara and CeraVe skincare, recorded gross sales for the final three month of 2022 of 10.3 billion euros ($11.1 billion), according to analyst expectations, based on Refinitiv knowledge.
The 8.1% development fee for the three months to end-December in contrast with a 9.1% improve in gross sales within the third quarter.
Total revenues have been boosted by 9.4% like-for-like development in the USA and eight.1% development in Europe, though the corporate stated it noticed a “drastic slowdown” in China within the second half of the 12 months.
“Total, the market there (in China) was very, very troublesome with lockdowns — typically even e-commerce did not work as a result of deliverers couldn’t entry houses”, L’Oreal Chief Government Nicolas Hieronimus stated.
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Enterprise in December within the nation – one of many fastest- rising markets for cosmetics – was “very unhealthy” as COVID-19 instances surged, and January “began in the identical vein,” he stated, although issues improved in early February after curbs have been relaxed.
The manager predicted the primary quarter might be “a bit smooth nonetheless” however from the second quarter the cosmetics firm – which has gained a market share of greater than 30% within the high-segment because of the recognition of its Lancome, YSL and Kiehl’s labels – will doubtless have “good Chinese language enterprise.”
Against this January figures for the USA have been “very constructive,” Hieronimus stated. “Total the (U.S.) market is dynamic and stays dynamic.”
Luxurious and cosmetics corporations together with Richemont, LVMH and Burberry, have all seen enterprise affected by disruptions in China, prompting Estee Lauder Cos Inc to forecast an even bigger drop in full-year revenue than it had initially estimated.
L’Oreal raised costs in direction of the top of the second half and centered on launching new, costlier merchandise, partly offsetting larger enter prices.
The quickest development got here from the division promoting skincare labels CeraVe and La Roche-Posay, up 19.4% over the quarter whereas the luxurious division posted 5.5% development.
($1 = 0.9271 euros)
Reporting by Mimosa Spencer, modifying by Silvia Aloisi
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