News release: “First Quarter 2020 Sales” Paris Stock Exchange:OR

Clichy, 16 April 2020 at 6:00 p.m.

First Quarter 2020 Gross sales

Gross sales evolution: -4.8% 1

  • Gross sales: 7.22 billion euros
    •  -4.8% like-for-like 1
    •  -5.0% at fixed trade charges
    •  -4.3% primarily based on reported figures
  • Resumption of enterprise in China, +6.4% in first quarter 1
  • Progress in e-commerce: +52.6% 2
  • Lively Cosmetics Division nonetheless posting double-digit development
  • All L’Oréal groups strongly mobilised

Commenting on the figures, Mr Jean-Paul Agon, Chairman and CEO of L’Oréal, mentioned: 

In a state of affairs marked by the growth of the Covid-19 pandemic, which first appeared in China and has unfold to the remainder of the world, L’Oréal’s primary precedence is to make sure the safety of its staff. The Group has additionally taken numerous solidarity measures for its clients and companions, and is offering help to well being authorities 3.

The primary quarter of 2020 has seen a decline within the cosmetics market of round -8%. In these troublesome circumstances, L’Oréal has succeeded in outperforming the market with gross sales at -4.8% like-for-like 1. The performances by Division are contrasted. The L’Oréal Luxe and Skilled Merchandise Divisions are essentially the most impacted as a result of closure of perfumeries, malls and hair salons in lots of nations. The Shopper Merchandise Division nevertheless has seen a extra average decline, largely as a result of the exercise in mass-market retail has been maintained. Lastly, the Lively Cosmetics Division remains to be posting double-digit development, with the pharmacy channel nonetheless open, and a portfolio of manufacturers that’s tailored to the sturdy demand for health-related merchandise.

All geographic Zones have progressively been impacted by the closure of gross sales shops and the introduction of lockdown measures: initially in China from January, after which in the remainder of the world, significantly in Western Europe from the start of March, and in North America from the tip of March. As for Journey Retail, it has been closely impacted by the sharp restrictions on journey worldwide.
Observe that China is already seeing an encouraging restoration in magnificence product consumption.

E-commerce, a key development driver for the Group, is rising at +52.6%, and now represents near 20% of gross sales 2. The present disaster has led to a powerful acceleration of the digital transformation on which L’Oréal is especially nicely positioned due to its power in e-commerce and its experience in digital media, content material and providers which enrich the buyer expertise.  

In an atmosphere that’s evolving daily, lockdown measures will clearly proceed to have a big influence on the consumption of skincare and wonder merchandise, and consequently on our enterprise within the second quarter. Nevertheless, as the instance of China has proven, the present state of affairs doesn’t name into query customers’ sturdy urge for food for magnificence merchandise, which stays intact. The market ought to recuperate rapidly as quickly as measures to shut gross sales shops are lifted.

On this context L’Oréal’s fundamentals stay extra related than ever. Initially, our power rests on our balanced enterprise mannequin, with our presence in all distribution channels and all classes. As well as, the Group has already launched very strict measures when it comes to operational self-discipline, with a freeze on the worldwide headcount, a freeze on journey, a discount in non-essential spending, and a radical assessment of enterprise drivers and investments. Moreover, L’Oréal entered this era with a sturdy stability sheet, a excessive degree of shareholders’ fairness, a optimistic internet money state of affairs, and with very substantial credit score traces out there. Lastly, it’s the excellent expertise and dedication of L’Oréal groups everywhere in the world, and the agility of its organisation, which allow the corporate to adapt, nation by nation, to the continuously altering state of affairs.

We’re subsequently assured in our potential to traverse this era of disaster in the very best circumstances and to reaccelerate as quickly as circumstances allow in every geographic Zone.

First quarter 2020 gross sales

Like-for-like, i.e. primarily based on a comparable scope of consolidation and fixed trade charges, the L’Oréal group gross sales have been at -4.8%.
The online influence of modifications within the scope of consolidation was -0.2%.
Evolution at fixed trade charges amounted to -5.0%.
Forex fluctuations had a optimistic influence of +0.7%. Extrapolating from the trade charges on 31 March 2020, i.e. with €1 = $1.095 as much as 31 December, the influence of foreign money fluctuations on gross sales for the complete yr 2020 could be roughly -1.0%.
Based mostly on reported figures, the Group’s gross sales, at 31 March 2020, amounted to 7.22 billion euros, that’s -4.3%.

Gross sales by Division and geographic Zone

  Quarterly gross sales Evolution
€ million 1st quarter 2019 1st quarter 2020 Like-for-like Reported
By Division        
Skilled Merchandise 835.3 751.1 -10.5% -10.1%
Shopper Merchandise 3,284.5 3,169.8 -3.6% -3.5%
L’Oréal Luxe 2,679.6 2,464.4 -9.3% -8.0%
Lively Cosmetics 751.0 839.9 +13.2% +11.8%
Group whole 7,550.5 7,225.2 -4.8% -4.3%
By geographic Zone        
Western Europe 2,169.0 1,997.7 -7.7% -7.9%
North America 1,895.5 1,847.2 -4.8% -2.5%
New Markets, of which: 3,486.0 3,380.3 -2.9% -3.0%
 – Asia Pacific 2,398.0 2,337.2 -3.7% -2.5%
 – Latin America 422.3 394.8 +0.8% -6.5%
 – Japanese Europe 483.5 479.6 -1.4% -0.8%
 – Africa, Center East 182.1 170.7 -5.6% -6.3%
Group whole 7,550.5 7,225.2 -4.8% -4.3%

Abstract by Division


On the finish of March, the Skilled Merchandise Division is at -10.5% like-for-like and -10.1% reported.
After a superb begin to the yr – significantly for its largest model, L’Oréal Professionnel, confirming that its transformation is paying off – the Skilled Merchandise Division noticed its development brake sharply in March, with the progressive closure of hair salons in lots of Zones, significantly in Europe and the USA. Kérastase posted development within the first quarter, due to the launch of its new anti-hair loss vary Genesis and the restoration of enterprise within the Asia Zone, particularly in China. The model can be pushed by the worldwide dynamism of the Division’s e-commerce. 
The historic accomplice of hairdressers, the Skilled Merchandise Division is dedicated to them greater than ever on this present interval, first by freezing the money owed of small unbiased salons till they resume their exercise, and second by stepping up its digital providers, making its L’Oréal Entry e-learning platform out there to hairdressers. Due to digital activation, it’s making ready and supporting hairdressers to allow them to resume enterprise in the very best circumstances.


After a dynamic month of January sustaining the fourth quarter momentum, the Division posted a primary quarter at -3.6% like-for-like and -3.5% reported.
The well being disaster has had a broadly contrasted influence on classes, distribution channels, areas and subsequently manufacturers. The class most affected is make-up, leading to a transparent non permanent slowdown for Maybelline New York and NYX Skilled Make-up, after a superb begin to the yr. Facial skincare has additionally slowed, whereas in distinction facial cleaning, hygiene, hair care and above all home-use hair color are accelerating, to the good thing about Garnier particularly within the closing weeks of March within the Western nations. The present state of affairs is beneficial to comfort retailer meals retail, and is quickly accelerating the transition to e-commerce, the place the Division recorded sturdy development within the first quarter.
The Division has set itself three main priorities to fight the results of the disaster and emerge from it stronger than earlier than. Initially, the maximisation of e-commerce alternatives due to L’Oréal’s distinctive experience in China and acceleration plans in place everywhere in the world. Secondly, the variation of communication plans within the gentle of this new actuality, by drawing on our digital management. The power of our manufacturers on social media permits us to adapt our content material in actual time, and to stay in shut contact with our customers whereas protecting prices underneath management. Thirdly, the strengthening of our motion plans in classes the place demand is accelerating and worldwide mobilisation to make sure the provision of our merchandise.


L’Oréal Luxe ended the quarter at -9.3% like-for-like and -8.0% reported, however was above the worldwide luxurious magnificence market, estimated at round -16%.
After a extremely dynamic begin throughout all geographic Zones, the Covid-19 disaster led to the closure of most brick-and-mortar and airport gross sales shops in all of our main markets: Northern Asia and Journey Retail from February, and North America and Western Europe from March. This a part of our enterprise is subsequently down sharply, whereas e-commerce however stays very buoyant, up by +57% 2 worldwide.
The class most affected by the disaster is make-up, whereas skincare and fragrances are proving extra resilient, reflecting shopper demand for merchandise linked to well-being and private care. Because of this, our massive manufacturers with a big proportion of skincare, resembling Kiehl’s, Lancôme and Helena Rubinstein, are considerably outperforming the market. Our 2019 perfume launches have maintained momentum, alongside our historic pillars, and have enabled our couture manufacturers – Giorgio Armani, Yves Saint Laurent and Ralph Lauren – to withstand nicely.
Within the first quarter, the Division tailored in a short time to those new market circumstances by reshaping and reallocating its enterprise drivers throughout its digital ecosystem. It’s counting within the brief time period on its power in e-commerce throughout all Zones and on its management in China, the place there are clear and inspiring indicators of a restoration in consumption. As quickly as circumstances allow, it will likely be able to develop as soon as once more, with a sustained and concentrated plan of main world launches within the second half of the yr throughout the entire portfolio.


Regardless of the well being disaster that hit Asia and is spreading in Europe, the Lively Cosmetics Division has carried out very nicely, at +13.2% like-for-like and +11.8% reported.
Some two-thirds of the Division’s gross sales are by way of pharmacies and drugstores. These channels, whose most important precedence is to provide medication, have remained open for the reason that starting of the disaster. Because of this our main dermatological manufacturers, significantly CeraVe and La Roche-Posay, are nicely positioned to fulfill shopper expectations for hygiene and day by day skincare merchandise.
The Division is rising in all geographic Zones. In Asia, double-digit development is pushed particularly by China, Japan and Australia. China has maintained a sturdy development curve, regardless of the closure of malls, due to the digital activation of our manufacturers and the outperformance of e-commerce, the Division’s primary distribution channel. The good success of SkinCeuticals is confirmed. North America additionally remained extraordinarily dynamic earlier than the epidemic started, with double-digit development charges for the SkinCeuticals and CeraVe manufacturers. Western Europe, which has posted slight development, has been impacted since March by the decrease footfall in gross sales shops, significantly in massive city pharmacies.
The Division has taken initiatives to speed up the growth of e-commerce.
The La Roche-Posay model has been on the forefront of manufacturing hand sanitiser gel and making it out there to well being professionals, hospitals, residential care properties for the aged, and accomplice pharmacies.

Abstract by geographic Zone


Within the first quarter the Western Europe Zone noticed its gross sales decline by -7.7% like-for-like and by -7.9% reported.
Enterprise was impacted by lockdown measures, and by the closure of hair salons and perfumeries in nearly all nations within the Zone in March. Italy particularly has been adversely affected, and over current weeks Spain and the UK. The Scandinavian nations, the Netherlands and Germany have been extra resilient.
L’Oréal Luxe and the Skilled Merchandise Division particularly have been affected by the closure of gross sales shops. The Shopper Merchandise Division has been held again in make-up, however sell-out has accelerated in current weeks within the haircare class and significantly in home-use hair color. The Lively Cosmetics Division has grown, due to the dynamism of La Roche-Posay and the sturdy acceleration of CeraVe.
The numerous weight of e-commerce in Northern Europe and the UK has restricted the influence of the closure of gross sales shops. On this channel, L’Oréal can make the most of the highly effective repute of its manufacturers and from the funding made in digital over the previous few years. The Southern nations are nevertheless benefiting much less, as a result of decrease penetration of e-commerce and the saturation of our purchasers’ logistic capacities.
To take advantage of the rebound as quickly because it occurs, every nation has drawn up a dynamic industrial plan, with logistic capacities that can guarantee good ranges of service to our purchasers.


The North America Zone is at -4.8% like-for-like and -2.5% reported. Regardless of a superb begin to the yr, enterprise slowed sharply in the direction of the tip of March.
Selective {and professional} distribution are the sectors most affected by the closure of many gross sales shops.
L’Oréal Luxe is mobilising all its sources to speed up on-line gross sales each by itself model web sites and on its companions’ e-commerce web sites. The Skilled Merchandise Division has launched a solidarity plan for hairdressers, has taken initiatives to modernise and digitalise its coaching, and is mobilising all its manufacturers’ social media to allow interplay with hairdressers. The SalonCentric e-commerce platform additionally permits unbiased hairdressers to acquire provides and proceed their actions. Most mass-market stores stay open. The Shopper Merchandise Division is subsequently adapting its industrial and activation plans to fulfill the wants of recent residence magnificence traits. Specifically it’s seeing a pointy acceleration of its hair color gross sales, bringing market share beneficial properties and reinforcing its management. The Division is modernising and accelerating the omni-channel expertise with its distribution companions, in addition to “click on and acquire”. The Lively Cosmetics Division, regardless of a slowdown since mid-March, has posted sturdy double-digit development, pushed by all of its manufacturers and particularly by CeraVe at greater than 40%. E-commerce too is rising very quick. Medical visits now happen remotely, encouraging on-line gross sales.
Confronted with the present distinctive state of affairs, all our groups are mobilised to reinvent the best way we work together with customers and to create new digital codecs and connections.


Asia Pacific: the Zone is at -3.7% like-for-like and -2.5% reported, with 1 / 4 very contrasted geographically.

Mainland China
After a powerful begin to the yr previous to the Chinese language New 12 months break, the lockdown following the outbreak of Covid-19 led to the closure of many shops, and in consequence had an influence on the enterprise in February. The month of March confirmed progressive indicators of restoration. L’Oréal was in a position to rebound rapidly to attain development in March and a optimistic first quarter, gaining market share and reinforcing its management place on the sweetness market. This rebound was as a result of early restoration of operational capabilities in February, strict software of security measures to make sure a secure working atmosphere, in addition to the speedy adjustment of activation plans in favour of On-line and O+O (On-line + Offline) actions. A powerful wager on the Girls’s Day Competition triggered the restoration. Throughout this on-line competition, L’Oréal China gained important market shares with a powerful contribution from L’Oréal Paris, Lancôme, SkinCeuticals, Helena Rubenstein, 3CE Stylenanda and Kérastase.

In Asia Pacific, vacationer markets have been severely impacted as a result of absence of Chinese language customers. Different nations resisted at first of the yr, however from March have been closely impacted by lockdown inflicting enterprise disruption in all markets. Nonetheless, Indonesia posted double-digit development, and Australia is rising.
Skincare has been essentially the most resilient class. The Lively Cosmetics Division posted sturdy development throughout the Zone, particularly in China, Japan and Australia. The Skilled Merchandise Division was severely affected as a result of closure of hair salons in all markets.
E-commerce continues to develop at greater than 60%, particularly in China, Japan, Australia, Thailand and Indonesia 2.

Latin America: the Zone is at +0.8% like-for-like and -6.5% reported. The quarter was contrasted with double-digit development over the primary two months and a pointy deceleration in March.
Brazil, Chile and Uruguay remained optimistic for the quarter. Mexico had combined outcomes. Columbia and Peru have been closely impacted by the closure of magnificence shops and perfumeries.
The Skilled Merchandise and L’Oréal Luxe Divisions each declined as a result of closure of malls and salons within the Zone. The Shopper Product Division was much less closely impacted and grew over the quarter in Brazil and Chile. Lively Cosmetics maintained a powerful rhythm of double-digit development. By class, make-up and hair color have slowed given the closure of many distribution channels, whereas skincare stays dynamic.
The Zone has rapidly tailored to the atmosphere with a powerful deal with e-commerce, up by +45% 2.

Japanese Europe: The Zone is at -1.4% like-for-like and -0.8% reported.  After a superb begin of the yr, the month of March was impacted by lockdowns and retailer closures in lots of nations of Central Europe, in addition to Israel, while nations resembling Russia or Turkey have gone by way of partial shutdown. The Zone skilled a drop in gross sales as of mid-March. Turkey, Czech Republic, Romania and Ukraine stay optimistic. Meals shops, pharmacies, comfort shops and onerous discounters have remained open in lots of nations, nevertheless drug chains, perfumeries, luxurious retail and hair salons have come to a cease.
On this context, the Zone is targeted on e-commerce (e-retailers, pure gamers, our manufacturers’ personal web sites) in addition to meals shops and pharmacies. When it comes to classes, the Zone focuses on hair color at residence, haircare, face care and hygiene merchandise.

Africa, Center East: the Zone is at -5.6% like-for-like and -6.3% reported. Center Japanese and North African nations have been hit by lockdown measures in early March. The most important malls within the Center East have closed, meals shops and pharmacies stay open. Saudi Arabia, Egypt and Pakistan posted sturdy development. South Africa reacted with an entire shutdown within the final week of March, which has had an instantaneous and necessary influence on gross sales.
Within the second quarter, the main focus will likely be on e-commerce, meals shops and pharmacies, in addition to home-use hair color, haircare and face care by class.



Regardless of an impressive begin to the yr for our world manufacturers, Lancôme, Giorgio Armani, Yves Saint Laurent, Kiehl’s and L’Oréal Paris, this channel ended the primary quarter with a double-digit lower 1.
The Journey Retail market has fallen in all geographic Zones following the progressive closure of airports and shops, and the standstill in air site visitors. It ought to be careworn nevertheless the progressive reopening of shops in Northern Asia particularly. Observe that the significance of our main fragrances has been confirmed, in addition to skincare – particularly dermocosmetics – in airport shops.
L’Oréal, in shut collaboration with obligation free operators, is making ready for a gradual restoration by geographic Zone.

Covid-19: Overview of measures taken by the L’Oréal group 

In view of the unfold of the Covid-19 virus, L’Oréal’s absolute precedence is to guard the well being of its staff worldwide, whereas additionally guaranteeing that the Group gives all its assist and solidarity wherever potential. Numerous measures have subsequently been taken, associated to well being, salaries and financial issues.

Well being measures

  • All of the L’Oréal group factories worldwide outfitted with an authorized unit for dealing with alcohol and flammable substances (28 out of 39 factories) are as we speak getting used to provide hand sanitiser gel in Europe, the USA, Latin America, Asia and Africa. In all, some 2,400 tonnes of gel, representing greater than 14 million items, will likely be produced by the tip of Could 2020.
  • Moisturising hand lotions have additionally been donated for the usage of medical personnel.
  • L’Oréal has mobilised its operational infrastructures in France and China and positioned them on the disposal of the French authorities for ordering massive portions of medical tools, together with tons of of respirators and tens of tens of millions of masks, which will likely be transported to France in accordance with the federal government’s directions.
  • Quite a few well being initiatives have been arrange within the nations the place L’Oréal operates. In the USA, for instance, the Group has donated multiple million {dollars} value of hygiene and private care merchandise, and USD 250,00Zero to non-profit organisations offering emergency help throughout America to households affected by monetary or meals insecurity. In Canada, L’Oréal has additionally made a donation totalling CAD 200,000, comprising each funding and hygiene merchandise. In China, L’Oréal has donated RMB 5 million to the Chinese language Crimson Cross for the acquisition of emergency medical provides.             

Wage measures

  • L’Oréal maintains jobs and salaries for all L’Oréal staff worldwide.
  • In France, L’Oréal is not going to furlough staff between now and the tip of June, though in lots of fields of exercise a number of classes of staff are at a partial or whole standstill.    

Financial measures and company citizenship

  • Everywhere in the world, L’Oréal has chosen to assist its small skilled purchasers and small perfumeries to defer the cost of their money owed in gentle of money circulation difficulties they could be dealing with, till their actions recuperate. L’Oréal has shortened the delay of funds to its most severely affected suppliers.
  • In France, the Group has given an endeavor that it’ll not postpone the cost of any social or tax costs (contributions, taxes, and so on.) throughout this era. 

L’Oréal Basis

To contribute to the struggle towards the coronavirus pandemic and its penalties for essentially the most weak members of society, the L’Oréal Basis has determined to donate a million euros to associations, a few of that are already companions within the Basis’s programmes, working in France to fight deprivation. The L’Oréal Basis will even present help to Emergency and Banco Alimentare in Italy.

Essential occasions through the interval 01/01/20 to 31/03/20

  • On 26 February, L’Oréal was recognised as one of many World’s Most Moral Corporations by the Ethisphere Institute, a worldwide chief in defining and advancing the moral requirements of enterprise practices. That is the eleventh time that L’Oréal has achieved this recognition, underscoring its dedication to main with integrity and prioritising moral enterprise practices.
  • On 17 March, the 2019 Common Registration Doc was registered with the French Market Authorities. The Common Registration Doc contains the annual monetary report, an built-in report, the experiences from the Auditors and their charges, and the knowledge required for the share buy-back programme.
  • On 30 March, the Board of Administrators of L’Oréal held a gathering, and in view of outstanding circumstances linked to the Covid-19 epidemic, determined to postpone the Annual Common Assembly, initially scheduled for 21 April, to 30 June 2020. The Board of Administrators will in the end decide the preparations to be made for the holding of the Assembly, in addition to for the dividend and its date of cost.
  • On 31 March, after acquiring the required authorisations from the related authorities, L’Oréal finalised the acquisition of the Mugler manufacturers and Azzaro fragrances from Clarins Group, in accordance with the phrases introduced on 21 October 2019.


“This information launch doesn’t represent a suggestion to promote, or a solicitation of a suggestion to purchase L’Oréal shares. In the event you want to receive extra complete details about L’Oréal, please consult with the general public paperwork registered in France with the Autorité des Marchés Financiers, additionally out there in English on our Web website
This information launch might include some forward-looking statements. Though the Firm considers that these statements are primarily based on cheap hypotheses on the date of publication of this launch, they’re by their nature topic to dangers and uncertainties which might trigger precise outcomes to vary materially from these indicated or projected in these statements.”

This can be a free translation into English of the First quarter 2020 gross sales information launch issued within the French language and is offered solely for the comfort of English-speaking readers. In case of discrepancy, the French model prevails.

Contacts at L’Oréal

Particular person shareholders and market authorities
Mr Jean Régis CAROF
Tel: +33 1 47 56 83 02 

Monetary analysts and Institutional buyers
Mrs Françoise LAUVIN
Tel: +33 1 47 56 86 82

Mme Domitille FAFIN
Tel: +33 1 47 56 76 71

Switchboard: +33 1 47 56 70 00

For extra data, please contact your financial institution, dealer or monetary establishment (I.S.I.N. code: FR0000120321), and seek the advice of your regular newspapers, the Web website for shareholders and buyers, or the L’Oréal Finance app, alternatively, name +33 1 40 14 80 50.



L’Oréal group gross sales 2019/2020 (€ million)

  2019 2020
First quarter 7,550.5 7,225.2
Second quarter 7,261.0  
First half whole 14,811.5  
Third quarter 7,182.8  
9 months whole 21,994.3  
Fourth quarter 7,879.3  
Full yr whole 29,873.6 – Observe us on Twitter @loreal


1 Like-for-like: primarily based on a comparable scope of consolidation and fixed trade charges.
2 Gross sales achieved on our manufacturers’ personal web sites + estimated gross sales achieved by our manufacturers similar to gross sales by way of our retailers’ e-commerce web sites (non-audited information).
3 The measures are detailed additional on this article.



Source link


Leave a Reply