L’Oréal growth remains strong in China despite economic slowdown
By Simon Pitman+, 02-Aug-2016, cosmeticsdesign-asia
Despite the economic slowdown in China, L’Oréal’s performance in the country continues to go from strength to strength as the product innovation pipeline is maintained.
The article shares the information that for the first six months of the year the like-for-like growth was 4.6 to €2.8bn, while on a reported basis it rose 0.6%.
L’Oréal Luxe maintains momentum in China
Especially the performance of the luxury brands Yves Saint Laurent and Giorgio Armani contributed to the strong sales of the company’s luxe division. In the Asia Pacific region it has been driven by the launch of Ultra Doux in China and India, while in Southern Asia the reason lies behind the roll-out of the Garnier brand.
On an international basis, the company stressed that the currency negatively impacted the results by 3.9% for the first six month of the year. According to the group, the like-for-like revenues for the first half of the year accounted for 4.2% to €12.89bn, which represented a reported growth of 0.6%, taking into consideration the negative impact of currency exchange.
Interestingly, all divisions and geographies reported growth despite the impact from currency translation, while the Luxe and Active Cosmetics divisions were the most outstanding ones despite the challenging situation.
“L’Oréal Luxe, in a market that remains solid, is continuing to deliver sustained growth by capitalizing on its unique brand portfolio and by maintaining its innovation drive”, explains L’Oréal CEO Jean-Paul Agon, who points equally out that the strength of the group lies definitely within its balanced business model.