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L’Oréal sales up 7 percent in 2023 despite North Asia contraction, inks new deal with Miu Miu

L’Oréal rose sales 7.6 percent to EUR 41.18 billion (USD 44.39 billion) in 2023, on the back of double-digit growth across all regions except North Asia, which was affected by softness in mainland China and travel retail.

SEE ALSO: L’Oréal wants to discover the future of beauty in North Asia

The French beauty giant said North Asia sales contracted 0.9 percent, particularly impacted by “the reset” in travel retail following the change in policy regarding daigous.

In mainland China, where the beauty market remained flat, L’Oréal grew 5.4 percent, while “momentum was buoyant” in Hong Kong, as tourist activity resumed. In Japan, L’Oréal “significantly outperformed a dynamic market,” driven by consumer products and L’Oréal luxe.

In North Asia, growth was fuelled by L’Oréal dermatological beauty, where all three core brands grew in double-digits led by CeraVe, and professional products, where Kérastase continued to advance strongly.

L’Oréal luxe continued to outperform with strong momentum in premium skincare thanks to Helena Rubinstein and Takami; couture brands such as Yves Saint Laurent and the recently launched Prada Beauty also contributed. The consumer products division was supported by the rebound makeup brands Maybelline New York and 3CE Stylenanda.

Offline and online channels both contributed to growth in the region, added the group.

Elsewhere, sales in the SAPMENA-SSA (South Asia and the Middle East and North Africa, Sub-Saharan Africa) region surged 23.2 percent.

By country, the Australia-New Zealand and GCC clusters, as well as India were the top-three growth contributors, all advancing in excess of 20 percent.

“2023 was a very successful year for the group. I am immensely grateful to our teams. Their creativity, entrepreneurship and passion enabled us to report a third consecutive year of double-digit like-for-like growth, once again outperforming a dynamic beauty market,” said Nicolas Hieronimus, CEO of L’Oréal.

“We set a new operating margin record and delivered 7.3 percent EPS growth. In a challenging environment of geopolitical tensions, inflationary pressures, and a stagnating beauty market in China, we delivered our best like-for-like growth in more than 20 years (excluding 2021). This is a clear vindication of the power of our multi-polar model, and I am particularly pleased with the strong acceleration in emerging markets.

“As we head into 2024, we remain optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profits.”

Coinciding with the earnings update, L’Oréal announced a new global licensing agreement for the creation, development, and distribution of luxury beauty products for the Miu Miu brand. The sister brand to Prada joins the L’Oréal luxe division.

The first Miu Miu fragrances under L’Oréal are expected to be launched in 2025.