Key Facts
• October 21, L’Oréal reported Q3 revenue growth of 4.2% year-on-year.
• Revenue reached €10.3 billion ($12.01 billion), below the forecasted 4.9% growth.
• North America underperformed, while demand in China showed signs of recovery.
• Excluding IT system transition effects, underlying growth was 4.9%.
• CEO Nicolas Hieronimus estimated China’s cosmetics market grew by 3% after two years of stagnation.
• L’Oréal outperformed the overall Chinese market, despite slow recovery in the mass market.
• U.S. market share improved despite previous struggles.
• Post-pandemic inflation eased in Western markets, while Chinese consumers shifted to domestic brands.
Summary
L’Oréal’s Q3 revenue growth of 4.2% fell short of market expectations of 4.9%, with total revenue reaching €10.3 billion ($12.01 billion). The company’s performance was hindered by weak sales in North America, though demand in China showed improvement. CEO Nicolas Hieronimus highlighted a 3% growth in China’s cosmetics market, marking its first expansion in two years. L’Oréal outperformed the Chinese market overall but faced challenges in the mass market segment. Meanwhile, the U.S. market saw gains in market share. The company noted that Western markets experienced easing inflation post-pandemic, while Chinese consumers continued to favor domestic brands. Excluding the impact of IT system transitions, L’Oréal’s underlying growth rate matched the forecast at 4.9%.
