Key Facts

• L’Oréal Groupe, based in France, has 36 brands in 150 countries—and 88,000 employees.
• BEAUTY SALES: $45 Billion

Even in an unsteady year, L’Oréal pulled it off in style, topping the previous year’s sales—at an exceptional $45 billion—and, once again, claiming the No. 1 spot on Beauty Packaging’s Top 20 list.

In another record-breaking year, net sales rose more than 7%. By division, Consumer Products and L’Oréal Luxe each accounted for nearly 38% of sales. Professional Products and Dermatological Beauty contributed about 12% each.

Company Highlights

Key Personnel at L’Oréal Groupe

• Nicolas Hieronimus, Chief Executive Officer
• Barbara Lavernos, Deputy Chief Executive Officer
• Christophe Babule, Chief Financial Officer
• Ezgi Barcenas, Chief Corporate Responsibility Officer
• Vincent Boinay, President, North Asia Zone & Chief Executive Officer

L’Oréal China:

• Cyril Chapuy, President, Luxe Division
• Myriam Cohen-Welgryn, President, Dermatological Division
• Vianney Derville, President, Europe Zone
• Asmita Dubey, Chief Digital & Marketing Officer
• Emmanuel Goulin, President, Travel Retail
• David Greenberg, President, North America & Chief Executive Officer, L’Oréal USA
• Silvia Galfo, President, Luxe Division USA
• Nathalie Gerschtein, President, Consumer Products NA
• Omar Hajeri, President, Professional Products
• Alexis Perakis-Valat, President, Consumer Products
• Ersi Pirishi, President, Latin America
• Vismay Sharma, President, South Asia Pacific, Middle East, North Africa

L’Oréal Groupe Has 4 Major Divisions

There are 36 international brands (across 150 countries on five continents), divided into 4 Divisions:

• Luxe
• Consumer Products
• Dermatological Beauty
• Professional Products

Brands include:

L’Oréal Paris, L’Oréal Professionnel
Garnier, Maybelline, NYX, Essie, IT Cosmetics, Urban Decay
Dark and Lovely, Kérastase, Redken, Matrix, Pureology, Pulp Riot
Kiehl’s, Biotherm, Helena Rubinstein, Shu Uemura, La Roche-Posay, Vichy, CeraVe SkinCeuticals, Skinbetter Science, Youth to the People, Takami, Carita Paris, Aesop
Giorgio Armani, Yves Saint Laurent, Ralph Lauren, Mugler, Viktor&Rolf, Valentino
Cacharel, Azzaro, Diesel, Yuesai, Atelier Cologne, Maison Margiela, Prada

Sales—By Division

By division, L’Oréal said Luxe sales rose 2% as gains were impacted by weaknesses in North Asia’s lower travel retail sales in mainland China. In general, fragrances played a strong role, driven by Yves Saint Laurent’s Libre and the debut of Myslf, as well as Born in Roma by Valentino, Paradoxe by Prada, Wanted by Azzaro, and Angel by Mugler.

In Skincare, Helena Rubinstein passed the €1 billion mark, and Takami sales jumped within the medical luxury skincare segment. Makeup sales picked up in the second half of the year, driven by couture brands. More recently the addition of brands including Prada, Takami, and Valentino made strong growth contributions. Aesop, acquired a year ago, got off to a good start.

Consumer Product Sales

Consumer Product sales rose 8.2%—the division’s strongest growth in more than 30 years. All four key brands achieved double-digit gains, with L’Oréal Paris crossing the €7 billion mark.

All major categories posted strong growth, but makeup led the way with launches like Surreal Mascara by Maybelline New York, Infallible Matte Resistance lipstick by L’Oréal Paris, and Fat Oil gloss by NYX Professional Makeup.

Hair care sales were helped by launches like Elvive Bond Repair by L’Oréal Paris and Garnier Good hair color. Skincare grew significantly, with the successful global rollout of Garnier Fast Bright with Vitamin C, as well as the launches of Revitalift Clinical and Glycolic Bright by L’Oréal Paris.

Sales in the Dermatological Beauty division rose an enviable 25.5%. L’Oréal said division sales grew twice as fast as the dermo-cosmetics market, delivering its sixth consecutive year of double-digit growth.

Three of L’Oréal’s dermatological beauty brands were among the top four most-recommended brands by dermatologists. La Roche-Posay was the greatest contributor to growth, due to the debut of UVmune400 sun care, and the relaunch of Cicaplast. CeraVe became the No. 1 skincare brand in the world. Vichy reported its best growth in 18 years.

Professional Division Sales

Professional division sales increased by 4%, driven by the two largest brands, L’Oréal Professionnel and Kérastase. Haircare also remained strong, with gains driven by premium products (especially Kérastase’s Genesis and Chronologiste brand franchises).

Launches such as Metal Detox and Absolut Repair Molecular also did well. Hair color sales were driven by Shades EQ by Redken and Inoa by L’Oréal Professionnel.

By Region

By region, sales in Latin America jumped 22.8%, followed by South Asia Pacific, Middle East, North Africa and sub-Saharan Africa (16.4%), Europe (13.7%) and North America (9.7%). Only North Asia reported a decline in sales (-5.8%).

As of May 2024, Kiehl’s now has an Amazon storefront.

Company Highlights 2023-2024

Facing challenges in China and elsewhere, in September 2023, L’Oréal announced several Q1 2024 changes within the Groupe’s Executive Committee, in addition to the creation of the new role of Deputy CEO in Charge of Divisions-L’Oréal China, given to Laurence Ma.

Fabrice Megarbane was appointed Chief Global Growth Officer; he succeeded Frédéric Rozé, who had announced his plans for retirement after 38 years with the Groupe. Megarbane had been CEO of L’Oréal China since 2019, and President of the North Asia Zone since 2021. Vincent Boinay was appointed President of the North Asia Zone and Chief Executive Officer of L’Oréal China.  Emmanuel Goulin was appointed President of Travel Retail.

In October 2023, L’Oréal sold the “green” beauty brand Sanoflore, which they bought in 2006, to French investment fund Ekkio Capital and Sergio Calandri, Sanoflore’s new chief executive officer, who is also the founder of Inula Group, an owner of other natural product brands. Financial terms of the deal were not disclosed. At the time, L’Oréal said their focus would be “more on the dermatological brands in their portfolio.”

In February 2024, L’Oréal Groupe and Prada S.p.A signed a worldwide long-term license agreement for the creation, development, and distribution of the luxury beauty products for the Miu Miu brand. Following the successful collaboration with the Prada brand, Miu Miu is now joining the L’Oréal Luxe division for a new beauty chapter.

At the end of March, L’Oréal reported a 9.4% rise in first-quarter sales on a like-for-like basis, beating expectations and easing concerns about a slowdown in the world’s two largest beauty markets—the U.S. and China. The French-owned company reported sales of $11.98 billion for the first three months to the end of March.

In May, L’Oréal announced that it had adopted EcoDesignCloud by Eviden, a solution that measures the environmental footprint of point-of-sale and promotional materials, in support of its ‘L’Oréal for the Future’ sustainability ambitions. EcoDesignCloud calculates the environmental impact of point-of-sale and promotional materials throughout their lifecycle, using the internationally recognized Product Environmental Footprint (PEF) methodology which looks at 16 criteria including CO2 emissions.

Cyril Chapuy, President, L’Oréal Luxe, noted: “As the leader in luxury beauty, re-inventing the most memorable retail experiences with the lowest environmental impact is our responsibility and we must embrace this change collectively with our suppliers and retailers worldwide. We envision that this innovation will be widely adopted by the ecosystem as the new norm for the future of luxury retail.”

At the end of July, L’Oréal’s half-year 2024 sales topped €22bn despite continued challenges in the Chinese beauty market. Sales rose by 7.5% in the first half of the year, with net profits also increasing by 8.8% to €3.65bn. Results were due in part to a standout performance from L’Oréal’s Dermatological Beauty division, which grew 16.4% on a like-for-like basis.

L’Oréal’s Consumer Products saw gains particularly in Europe, with the category up 8.3%.

La Roche-Posay remained the luxury beauty giant’s top-performing skincare brand, with CeraVe also “significantly” outperforming the global market during H1. The strong demand for skincare helped to offset difficulties in North Asia, where sales decreased 3.1%.

“Our continued strong momentum in emerging markets, Europe, and North America allowed us to more than offset the depressed beauty market in mainland China and the unfavorable comparative in travel retail,” said Hieronimus. However, he told JPMorgan investors that the French cosmetics company now “expects the global market to grow 4.5% to 5% this year, down from a prior outlook of above 5%. The rebound in China isn’t materializing as expected,” he added.

This past August, L’Oréal purchased a 10% stake in Swiss skincare company Galderma. Hieronimus said, the investment “marks an ambitious step for L’Oréal, and true to our mantra of ‘seize what is starting,’ it allows us to explore partnering in the fast-growing aesthetics market, a key adjacency to our own pure beauty play.” With this acquisition, L’Oréal gains a stake in injectable products that reduce wrinkles such as neuromodulators and fillers, including botox, for the first time.

At press time, L’Oréal announced that Chris de Lapuente, CEO, selective retailing, would retire at the end of October.

Here’s a look at some of L’Oréal Groupe’s recent product launches: 

New Product Launches

• L’Oréal Paris Colorsonic
• Garnier Good hair color
• Vitamin C Serum
• Elvive Bond Repair
• Fructis Hair Filler
• L’Oréal Paris Panorama Mascara
• NYX Professional Makeup Duck Plump lip gloss
• Essie Nail Art Studio
• Maybelline New York Surreal Mascara
• Infallible Matte Resistance lipstick by L’Oréal Paris
• Fat Oil Gloss by NYX Professional Makeup
• Yves Saint Laurent Libre
• Lancôme La Maison de Beauté Carita
• Vichy LiftActiv B3 Serum
• La Roche-Posay Mela B3 Dark Spot Serum
• Kérastase Genesis
• Metal Detox

Looking Ahead

L’Oréal’s half-year 2024 sales rose by 7.5%, topping €22bn, despite ongoing challenges in the Chinese beauty market. The company says this was achieved in part, due to its Dermatological Beauty division, which grew 16.4% on a like-for-like basis. La Roche-Posay remained their top-performing skincare brand, with CeraVe “significantly” outperforming the global market during H1.

Poor travel retail sales also affected sales growth in the first half of the year, but L’Oréal stated that the category also saw signs of improvement.

According to Hieronimus, “Our continued strong momentum in emerging markets, Europe, and North America allowed us to more than offset the depressed beauty market in mainland China and the unfavorable comparative in travel retail.

“In this context, I am particularly pleased to see the acceleration of L’Oréal Luxe, the dynamism of Consumer Products, and the continued share gains of Dermatological Beauty and Professional Products.”

Sales in Japan and Europe rose double digits in makeup and skincare. European sales were up 12.2%, led by makeup and skincare sales across Germany, Spain, the UK, and Ireland.

L’Oréal’s Consumer Products saw gains particularly in Europe, with the category up 8.3%.

Makeup sales in emerging markets including Brazil, Mexico, and India also boosted the division’s gains.

“In an environment that continues to be marked by economic and geopolitical tensions, we remain optimistic about the outlook for the beauty market and confident that our innovation power and the robustness of our multi-polar model will allow us to keep outperforming it and to achieve another year of growth in sales and profit,” said Hieronimus.

Photo of L’Oreal’s US office, shown on right above, via Instagram/lorealgroupe

Next in Our Top 20:

Unilever is #2 On Our Top Global Beauty Companies 2024 Report

Beauty Sales: $40.84 billion

Major Products/Brands:

36 international brands across categories including—

L’Oréal LUXE: Lancôme Paris, Kiehl’s, Giorgio Armani, Yves Saint Laurent, Biotherm, Helena Rubinstein, Shu Uemura, It Cosmetics, Urban Decay, Ralph Lauren, Mugler, Viktor&Rolf, Valentino, Cacharel, Azzaro, Diesel, Yuesai, Atelier Cologne, Maison Margiela, Prada, Youth to the People, Aesop (acquisition).

CONSUMER PRODUCTS: L’Oréal Paris, Garnier, Maybelline, NYX, Stylenanda, Essie, Dark and Lovely, Mixa, MG, Niely.

DERMATOLOGICAL DIVISION: La Roche-Posay, Vichy, CeraVe, SkinCeuticals, Skinbetter Science.

PROFESSIONAL PRODUCTS: L’Oréal Professionnel, Kérastase, Redken, Matrix, Pureology

New Products/Brands:

L’Oréal Luxe Division

• My Way by Giorgio Armani
• YSL Rouge Sur Mesure
• Viktor & Rolf mini series
• Valentino Born In Roma
• Mugler Angel Elixir
• Prada Luna Rossa Ocean and Paradoxe
• Lancôme Ultra-Precise Colored Idôle Liners

L’Oréal Consumer Products Division

• Garnier Solid Shampoo
• Skin Genius
• Telescopic Lift Mascara by L’Oréal Paris
• NYX Bare With Me Blur Tint foundation
• Elvive Bond Repair
• Revitalift Clinical Vitamin C Serum

L’Oréal Professional Division

• Redken All Soft Mega Curls Shampoo, Conditioner and HydraMelt Leave-In Treatment
• Kérastase Hair E-diagnosis
• Discover Style My Hair Pro
• Kérastase Symbiose anti-dandruff range

L’Oréal Dermatological Beauty Division

• La Roche-Posay Spotscan

Comments:

L’Oréal posted an incredible 18.5% sales increase in 2022, as well as a 22.6% increase in net profit. E-commerce sales were a particular bright spot, topping nearly $12 billion USD, marking 28% of consolidated sales in e-commerce, representing an 8.9% increase over the previous year. L’Oréal filed 50 patents for packaging in 2022.

Across its divisions, the L’Oréal Luxe unit accounted for $15.7 billion (38.3%) of its sales, followed by Consumer Products $15 billion (36.6%), Active Cosmetics $5.5 billion (13.4%) and Professional Products $4.8 billion (11.7%).

Geographically, Europe was the company’s strongest region with $12.2 billion in sales (29.9%, up 12.3% over previous year), followed closely by North Asia $12 billion (14.8%, up 29.6%), North America $10.8 billion (26.6%, up 24.6%), South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa $3.2 billion (7.7%, up 28%), and Latin America $2.5 billion (6.2%, up 34.1%).

The company’s L’Oréal Luxe unit’s strong growth was attributed to strong fragrance performance driven by global bestsellers like Libre by Yves Saint Laurent, La Vie Est Belle by Lancôme and Acqua di Gio by Armani, as well as launches including Prada Paradoxe. In skincare, Luxe grew three times faster than the market, spurred by the ultrapremium segment and stellar performances from Helena Rubinstein, Lancôme’s Rénergie H.C.F Triple Serum, and the success of recent acquisitions including the Japanese brand Takami. The unit’s makeup category also grew thanks to initiatives from Yves Saint Laurent and Urban Decay.

L’Oréal Consumer Products division posted its best growth in 20 years, with all major brands outperforming the market. Growth was attributed to haircare innovations like Elvive Hyaluron Plump, and makeup launches like Superstay Vinyl Ink by Maybelline New York and Bare With Me concealer and Jumbo False Eyelashes from NYX Professional Makeup. In skincare, Garnier was the Division’s top growth contributor, with its Vitamin C Brightening Serum a standout success.

Led by mainstay “dermocosmetics” brands, L’Oréal’s Active Cosmetics division (now called L’Oréal Dermatological Beauty) ended 2022 with +21.9% like-for-like growth, and double-digit growth across all geographical zones. Division-leading brand La Roche-Posay and CeraVe contributed equally to the unit’s growth. La Roche-Posay was sustained by its pillar products, Cicaplast and Effaclar, and by the success of the UVMune 400 breakthrough innovation in sun protection. CeraVe continued to expand internationally, achieving growth in both the United States and the rest of the world. Vichy maintained its strong momentum thanks to Dercos and the Capital Soleil UV franchise in both seasonal and daily sun protection. On the aesthetic front, SkinCeuticals recorded double-digit growth, fuelled by the excellent performance of A.G.E Interrupter antiwrinkle cream. The newly acquired brand Skinbetter Science, integrated into the division in the fourth quarter, also showed promising potential.

L’Oréal’s Professional Products division recorded strong growth spurred by Kérastase, whose sales exceeded the symbolic one-billion-euro mark for the first time, and Série Expert by L’Oréal Professionnel, with the success of the Metal Detox innovation.

Growth was also aided by Shades EQ by Redken and Inoa by L’Oréal Professionnel.

2022-2023 Highlights: In 2022, Mugler celebrated the 30-year launch anniversary of Angel and, inspired by the brand’s “fragrance fountain” approach enabling consumers to refill their fragrance bottles at points of sale, L’Oréal expanded the concept to include a refill option for more of its iconic fragrances including My Way and Acqua Di Gio by Giorgio Armani, La Vie est Belle by Lancôme and Paradoxe by Prada.

At the end of December, L’Oréal USA announced the roll out of L’Oréal’s Product Impact Labeling system in the U.S. Originally launched in France in 2020, the program provides consumers with info on the environmental impact of their product compared to other L’Oréal products in the same category. Products are given a ranking on a scale from A to E by considering 14 planetary impact factors such as greenhouse gas emissions, water scarcity, ocean acidification, and impact on biodiversity, measured at every stage of a product’s life cycle—from ingredients to packaging, manufacturing process, transport and ultimately use and disposal.

In March 2023, L’Oréal announced it was rebranding its Active Cosmetics Division to become L’Oréal Dermatological Beauty. The division will feature the same brands as before, including Vichy, La Roche-Posay, CeraVe, SkinCeuticals, and Skinbetter Science.

Also in March, Hieronimus was selected to receive The Fragrance Foundation 2023 Hall of Fame Award.

In April, L’Oréal purchased Aesop from Natura for $2.5 billion and tucked it into its L’Oreal Luxe division with plans to expand the brand into China and travel retail.

Also in April, Garnier, which had tapped Drew Barrymore as a brand ambassador, partnered with Loop Industries Inc., on the beauty brand’s first Micellar Cleansing Water All-In-1 bottle made of 100% recycled polyethylene terephthalate (PET) plastic, with both companies aiming to accelerate a circular economy.

In May, Brand Finance named L’Oréal the “World’s Most Valuable Cosmetics Brand,” and The Fragrance Foundation inducted CEO Nicolas Hieronimus into its Hall of Fame.

Looking Ahead: Delivering the outstanding results for the year, Hieronimus commented: “Mindful of the current uncertainties, we remain ambitious for the future, optimistic about the outlook for the beauty market, and confident in our ability to keep outperforming the market and achieve in 2023 another year of growth in sales and profits.”

In a 2023 half-year results statement issued in July, L’Oréal boasted broad-based momentum across all of its divisions, with half year sales tallying about $21 billion, and a 13.3% like-for-like increase. Growth is occurring in all regions, especially Europe and U.S., with a sharp recovery in China.

Beauty Sales: $37 billion

Major Brands & Products:

L’Oreal’s major brands and products include hair care, skincare, sun care, color cosmetics, toiletries and fragrances sold under more than 35 brand names in different channels.

Consumer: Garnier, L’Oréal Paris, Le Club des Créateurs, Maybelline, SoftSheen-Carson.

Professional: L’Oréal Professional, Kerastase, Redken, Matrix, Mizano, Shu Uemura Art of Hair, Keraskin Esthetics.

Luxury: Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté. Active Cosmetics: Vichy, LaRoche-Posay, Innerve, SkinCeuticals, Youth to the People.

New Products:

Consumer: Maybelline SuperStay Vinyl Ink No-Budge Longwear Liquid Lip Color, Maybelline Sky High mascara, Garnier Fructis Pure Clean Hair Reset, L’Oréal Paris Age Perfect Rosy Tone Broad Spectrum SPF 30 Sunscreen; Youth to the People Superfood Cleanser.

Luxury: Takami, Prada, My Way by Giorgio Armani, Voce Viva by Valentino.

Professional: Kérastase Curl Manifesto, Redken Volume Maximizer Thickening Spray; Active Cosmetics: Liftactiv Supreme H.A. Epidermic Filler.

Beauty Sales: $34 billion

Major Products: Hair care, skin care, color cosmetics, sun care and fragrances sold under numerous brand names in multiple channels, including: Consumer: Garnier Fructis, L’Oréal Paris, Maybelline, SoftSheen-Carson, NYX, Essie. Luxury: Lancôme, Biotherm, Urban Decay, IT Cosmetics, Helena Rubenstein, Mugler, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté, J-beauty company Takami Co. Active Cosmetics: Professional: L’Oréal Professional, Kerastase, Redken, Pureology, Matrix, Mizano, Shu Uemura Art of Hair, Keraskin Esthetics. Vichy, LaRoche-Posay, CeraVe, Innerve, SkinCeuticals, Sanoflore

New Products: Lancôme Clarifique Dual Face Essence, Lancôme Idôle Aura Eau de Parfum, Prince x Urban Decay capsule collection, Garnier Whole Blends Shampoo Bars, Kiehl’s Ferulic Brew Rejuvenating Facial Essence, Kerastase Blond Absolu, CeraVe Hydrating Facial Cleanser, Maybelline Colossal Mascara, Maybelline FitMe Tinted Moisturizer

Comments: It was a nerve-wracking Covid-complicated year for L’Oréal, but the world’s largest beauty company managed to squeak through with another half billion dollars over the previous year’s total, reaching $34 billion in net sales for FY 2021—and once again securing Beauty Packaging’s No. 1 slot on our Top 20 list.

While the company pivoted a number of facilities to produce hand sanitizer in massive quantities, their regular corporate divisions took a dip, and total L’Oréal sales fell a reported -4.1% like-for-like.

Jean-Paul Agon, who was still CEO when the annual report was released (now succeeded by Nicolas Hieronimus), addressed the impact of Covid on the Beauty industry, saying: “Thanks to the outstanding commitment of its employees, L’Oréal has traversed this crisis in the best possible condition and has even grown stronger. As anticipated and announced, the Group returned to growth in the second half, with a fourth quarter in acceleration at +4.8% [like-for-like], and won significant market shares.

“Thanks to its strength in digital and e-commerce, which has again increased considerably during the crisis, L’Oréal has been able to maintain a close relationship with all its consumers and compensate to a large extent for the closure of points of sale,” continued Agon. “As a result, sales achieved in e-commerce  rose sharply by +62% [like-for-like], across all Divisions and all regions, reaching the record level of 26.6% of the total Group’s sales for the year.”

In fact L’Oréal’s e-commerce  results topped $9 billion for the year.

As to the Group’s 4 Divisions, The Active Cosmetics Division had a record year due to skincare, reporting record growth of +18.9% like-for-like, with sales exceeding 3-billion-euro (skincare and sun protection led all categories with 39.5% of net sales); The Consumer Products Division, which accounts for nearly 42% of sales, stabilized in the second half of the year despite a Covid-induced slide in  makeup, reporting -4.7% like-for-like; The Professional Products Division, which took the biggest hit due to salon shutdowns in the first half of the year, bounced back in the second half and then outperformed the market over the year as a whole, ending the year at -6.4% like-for-like.

While global airport closures wreaked havoc on luxury sales, at years-end, L’Oréal Luxe, which accounts for 36% of Group sales, was at -8.1% with last-quarter growth.

By geographic zone, while Western Europe and North American growth was impacted by the pandemic, L’Oréal gained market share in other countries. In the New Markets, the Group saw a return to growth in all Zones in the second half of the year. The company reported that “performance of China is spectacular and its contribution to the performance of the Group is important.” Nearly half of 2020 sales (48.5%) were attributed to New Markets (Asia-Pacific, Eastern Europe, Latin America, Africa-Middle East).

On November 4, L’Oréal announced the change in the geographical scope of some of its Zones.

The North Asia Zone, which will include mainland China, Hong Kong, Taiwan, Japan and South Korea, will be led by Fabrice Megarbane, who is currently CEO of L’Oréal China and a member of the Executive Committee. A new Zone—SAPMENA—created to encompass South Asia, Pacific, Middle East and North Africa, will be headed by Vismay Sharma, currently Managing Director UK and Ireland, who will join the Executive Committee. In addition, a new Sub-Saharan Africa Zone will be run by Burkhard Pieroth. The Group also appointed Frédéric Rozé as Chief Global Growth Officer, to whom all Zone Presidents as well as the Travel Retail business will report.

On December 8, L’Oréal progressed with its sustainability momentum, when it was recognized as a global leader in sustainable development by CDP, a non-profit organization which scores the performance of companies in sustainability and environmental transparency. Of more than 9,600 companies scored by CDP in 2020, L’Oréal is the only one to have been awarded an ‘A’ score in all three areas: fighting climate change, protecting forests and sustainable water management.

In December, L’Oréal announced an agreement to acquire the Japanese company Takami Co., which develops and markets products licensed by the skincare brand Takami, owned by Dr Hiroshi Takami, the founder of two eponymous dermatology clinics in Tokyo.

The Group also added the Azzaro and Mugler fragrance brands to its portfolio in 2020—and reached a licensing deal with Prada for fragrance.

2021 Highlights

In April, L’Oréal USA announced it would open a second company headquarters in the Los Angeles area, in El Segundo, in early 2022. A 100,000 square feet of indoor and outdoor workspace will be designed to bring together the teams from its California-based brands—NYX Professional Makeup, Urban Decay and Pulp Riot, which are currently based in three different locations—into one state-of-the-art creative campus. The second headquarters will also house L’Oréal’s first-ever West Coast-based Professional Products Academy.

While L’Oreal has been accelerating the Group’s sustainability goals, in April, Lancôme revealed a new global sustainability program of its own. Goals include 50% of Lancôme products will be refillable or rechargeable by 2023; 99% of the roses used in Lancôme skincare and makeup products are organic—and 100% of roses will be organic and 60% will be sourced in France by 2021; Philanthropy that empowers women.

When it comes to packaging, Lancôme says it will be increasing its sustainable beauty choices offering products that are refillable, rechargeable and recyclable. For example, Idôle eau de parfum is made with sustainably sourced roses and is refillable and Absolue skincare products are rechargeable via a dedicated capsule reload system. Furthermore, the brand commits to manufacturing products with sustainable packaging by using less virgin materials and more recyclable materials like glass and post-consumer recycled plastic.

May 2021 brought a changing of the guard. Nicolas Hieronimus replaced Jean-Paul Agon in May 2021, becoming the sixth person to hold the position. Agon remains chairman of the company. Hieronimus joined L’Oréal in 1987 as product manager and moved up the ranks. One of his many contributions was launching the Garnier Fructis hair care range.

Also, mid-year, The Prince Estate and Urban Decay announced the launch of a Limited-Edition Capsule Collection inspired by Prince. ‘The Purple One’s’ signature color is highlighted alongside gold and black in the collection created to honor his vibrant self-expression.

In June, L’Oreal revealed they would launch an ‘infinitely recyclable’ plastic cosmetics bottle in 2025, for its Biotherm brand. The future-focused bottle is the result of a years-long partnership with French biotech specialist Carbios, and is made using fully recycled PET.

L’Oréal’s 2025 goal is for 100% of its plastic packaging to be either refillable, reusable, recyclable or compostable; and by 2030 all plastic materials to be either derived from recycled materials or bio-sourced—ending use entirely of virgin plastics of fossil origin.

Also in June, Lancôme Trésor won The Fragrance Foundation’s 2021 Hall of Fame Award. The elegant bottle is angled with rounded edges, representing the softness of the wearer. The band is black, the color a subtle reminder of the power of love and the woman embracing it.

Looking Ahead

In the first half of 2021, L’Oréal reported a return to a pre-covid growth rate, announcing that Sales rose 33.5% in the second quarter to push first half growth to +20.7 percent like-for-like.

As lockdowns opened up growth in the professional products division bounced back, with a 65.9% rise in the second quarter. L’Oréal Luxe and Active Cosmetics also saw strong growth, at +45.7% and + 48.4% respectively, while Consumer Products rose 14.2%.

In terms of geographic zone, second quarter recoveries from Europe, North America, SAPMENA and Latin America saw all regions report double-digit growth in the first half, while North Asia held the lead as the group’s best-performing region, with sales up 23.2%.

New CEO, Nicolas Hieronimus, said, “With the health situation still uncertain, the beauty market is gradually recovering and has recorded double-digit growth. As a result of the determination and continued commitment of our teams, L’Oréal is significantly outperforming the market, with an exceptional second quarter. By the end of June, the Group posted a very strong increase and returned to its pre‑Covid growth rate, up +6.6 percent like-for-like compared to the first half of 2019, with an acceleration of +8.4 percent in the second quarter compared to 2019.”

Hieronimus added, “In the second half of 2021, we will pursue our offensive product launch strategy while at the same time investing in relevant growth drivers to spur the future growth and the desirability of our brands. We are more confident than ever in our ability to outperform the market and achieve a year of growth in both sales and results.”

Beauty Sales: $33.4 billion

Update: Nicolas Hieronimus will succeed Jean-Paul Agon as CEO of L’Oréal.

Major Products

• • L’Oréal Luxe

• • Garnier

• • L’Oréal Paris

• • Maybelline

• • Urban Decay

• • L’Oréal Professional

• • Kerastase

• • Redken

• • Matrix

• • Mizano

• • Lancôme

• • Biotherm

• • Kiehl’s

• • Ralph Lauren

• • Viktor & Rolf

• • SkinCeuticals

• • Giorgio Armani Beauty

• • Modiface

• • Valentino Beauty

• • Prada

• • Thayers Natural Remedies

New Products

• • YSL Beauté Pure Shots Daily Dose Serum Eessentials Set

• • Urban Decay Naked Honey Eyeshadow Palette

• • L’Oréal Paris Sulfate-Free Scalp Care & Detox Shampoo

• • L’Oréal Paris Shimmer Liquid Eye Shadow Makeup

• • Garnier Nutrisse Color Revivers

• • Lancôme Monsieur Big Waterproof Mascara

• • Fructis Treat shampoo and conditioner

• • Kérastase Bain Hydra-Fortifiant Shampoo

• • Maybelline Brow Extensions Pomade Crayon

• • Kiehl’s Calendula & Aloe Soothing Hydration Mask

Comments: L’Oréal had another remarkable year in 2019, and maintained its role as the No. 1 beauty company on our annual Top 20 list, with beauty sales reaching $33.4 billion—a 4% rise over last year’s impressive $30.8 billion number. The world’s largest beauty company now claims 1.5 billion customers around the globe.

In commenting on 2019 results, Jean-Paul Agon, chairman and CEO of L’Oréal, said: “L’Oréal closed the decade with its best year for sales growth since 2007, at +8.0% like-for-like, and an excellent fourth quarter, in a beauty market that remains very dynamic.” All divisions grew. L’Oréal Luxe grew by +13.8% like-for-like sales, and exceeded 11 billion euros, thanks to its four billion-euro brands—Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl’s—which all posted double-digit growth. With record growth of +15.5% like-for-like, the Active Cosmetics Division had its best year ever, with La Roche-Posay sales topping one billion euros. Growth at the Consumer Products Division finished out the year at +3.3% like-for-like, highlighted with great results by L’Oréal Paris, which recorded its strongest growth since 2007, due to major launches such as Rouge Signature in makeup and Revitalift Filler with hyaluronic acid in skin care, rolled out globally in ampoule and serum format. And the Professional Products Division (+3.2% like-for-like) growth was boosted with the double-digit performance of Kérastase.

The Consumer Products division was the strongest, followed by L’Oréal Luxe, Professional Products and Active Cosmetics (which saw the greatest growth). By geographic zone, New Markets led the pack, followed by Western Europe, then North America.

Performances by geographic zone were mixed. The New Markets posted their strongest growth in more than 10 years. Asia Pacific became the Group’s No. 1 zone, with impressive annual results in China, but also good growth in South Korea, India, Indonesia and Malaysia. Eastern Europe maintained its strong growth rate, and Western Europe returned to growth last year. North America was impacted by a poor performance in makeup.

E-commerce and Travel Retail  were also critical in adding to the Group’s success. E-commerce grew by an unprecedented +52.4% 6 and accounted for 15.6% of sales. Travel Retail maintained its strong momentum and posted growth of +25.3%.

At the end of the year, L’Oreal added to its fragrance business, signing an agreement with Clarins for Mugler and Azzaro fragrances</a>; and with fashion house Prada, for its fragrance license. The fragrance from the Italian prestige company is set to enter L’Oréal’s luxe portfolio in 2021.

2020 Highlights

Who would have guessed the swift turnaround? From Agon first recognizing pending troubles due to Covid spreading in China, to acknowledging it as a beauty sales deterrent worldwide, the situation escalated rapidly, especially when brick-and-mortar retailers and travel closed down. L’Oréal secured their workers and offices, produced and donated huge quantities of hand sanitizer—and moved forward with online sales strategies.

Forging ahead with its commitment to sustainability and “the limits of the planet,” at the end of June, L’Oréal launched a new sustainability program called “L’Oréal for the Future,” highlighting the Group’s latest set of efforts to become fully sustainable by 2030, including that by 2025, all of L’Oréal’s sites will have achieved carbon neutrality by improving energy efficiency and using 100% renewable energy; by 2030, 100% of the plastics used in L’Oréal’s products’ packaging will be either from recycled or bio-based sources; and pledging to support urgent social and environmental needs, through an unprecedented plan launched in May 2020, in which the Group set aside €150 million for the cause.

Product- and packaging-wise, in order to empower its consumers to make more sustainable choices, L’Oréal has developed a Product Environmental & Social Impact Labelling mechanism, scaling from A to E, endorsed by independent scientific experts and verified by an independent auditor, which will be progressively deployed for all brands and categories.

By 2030, 100% of L’Oréal brands will be made with 100% recycled or bio-based plastic, saving 18,000 tons of virgin plastic each year—and increasing the use of paper-based tubes and bamboo alternatives. By 2025, all plastic packaging will be refillable, reusable, recyclable or compostable.

As some signs of the pandemic waned, L’Oréal signed an agreement to acquire Thayers Natural Remedies, a U.S.-based natural skin care brand from Henry Thayer Company. The brand will be integrated into L’Oréal’s Consumer Products Division.

With more emphasis than ever on packaging, L’Oréal appointed Jacques Playe as global head of packaging & product development. He is the former chief technology officer of L’Oréal’s Research & Innovation team, and replaces and succeeds Philippe Thuvien, who retired.

In July, Valentino Beauty announced Lady Gaga as the face of their new perfume, Valentino Voce Viva (Living Voice). It was created by Pierpaolo Piccioli, creative director of  Valentino Beauty—and the Valentino Beauty team at L’Oréal. According to the brand, Lady Gaga speaks to the same values as those of Valentino.

Also in July, Agon revealed that L’Oréal was considering an internal replacement for him. He has been with the global giant since 1978, but corporate policy is to announce a successor prior to when he turns 65 in July 2021. A successor is expected to be named this fall, with Nicolas Hieronimus, deputy chief executive officer, reportedly at the top of the list.

Following a drastic 18.8% fall in second-quarter comparable sales, L’Oréal announced sales growth in July—for the first time since January—largely owing to the Chinese comeback from the virus and hopes for a global turnaround. A huge uptick in online sales of skin care and hair care products by stay-at-homers aided the bottom line.

Looking Ahead

In the first half of 2020, L’Oréal reported sales of $15.35 billion, a decrease of 11.7% like-for-like compared to the prior period.

The consumption of beauty products over the period was strongly impacted by the closure of millions of points of sale (hair salons, perfumeries, department stores, airport stores, etc.) which caused a real crisis of supply, rather than demand, with consumers temporarily unable to purchase products and services, said the company.

Despite this, Agon commented that the company demonstrated great business resilience. He noted that L’Oréal has seen its activity accelerate month after month since April, and it is progressively returning to growth. According to Agon, sales rose in July for the first time since January.

“This business resilience was made possible by several key strengths of the Group,” Agon explained. “First of all, our lead in the field of digital and e-commerce, which proved to be crucial during the crisis and is now even bigger, with e-commerce growing by +64.6% over the first half. L’Oréal’s performance in mainland China was also decisive, with growth in the second quarter of +30%.”

In the second half of the year, L’Oréal says it is embarking on “an aggressive plan of new product launches and business drivers to stimulate, in partnership with its retail partners, the return of the consumption of beauty products.”

Beauty Sales: $30.8 billion

Major Products: L’Oréal Luxe, Consumer Products, Professional Products and Active Cosmetics in skincare, color cosmetics, sun care, hair care and fragrances, sold under many brand names in different channels, including:

• Garnier, L’Oréal Paris, Le Club des Créateurs
• Maybelline, Essie, L’Oréal Professional
• Kerastase, Redken, Matrix
• Mizano, Lancôme, Biotherm
• Kiehl’s, Giorgio Armani, Ralph Lauren
• Viktor & Rolf, Diesel, YSL Beauté, Vichy
• LaRoche-Posay and SkinCeuticals, Giorgio Armani Beauty, Modiface

New Products

• Seed Phytonutrients
• La Provençale Bio
• L’Oréal Paris Infallible Fresh Wear Foundation
• L’Oréal Paris Unbelievabrow
• Garnier Fructis Sleek & Shine Zero Shampoo
• Maybelline New York x Ashley Longshore collection
• Lancôme Idôle Eau de Parfum
• Elseve Dream Lengths
• Fructis Hair Food

Comments: Innovation and excellence remain L’Oréal’s modus operandi and, in 2018, aided in the world’s largest beauty company retaining its esteemed position at No. 1 on Beauty Packaging’s list of leading beauty companies, with global sales topping $30.8 billion—its best year in more than a decade, and outpacing the market in luxury, skincare and dermocosmetics. Total sales increased 3.5% and like-for-like sales increased 7.1%. The company also reached a record operating margin of 18.3%. Gains were reported in all divisions, led by double-digit increases by L’Oréal Luxe and Active Cosmetics. Lancôme sales crossed the 3-billion-euro mark.

By division, Consumer Products led with 44.7%, followed by L’Oréal Luxe (34.8%), Professional Products (12.1%) and Active Cosmetics (8.4%).

The Consumer Products Division’s three major brands— L’Oréal Paris, Maybelline and Garnier—are growing. Skincare is robust, with double-digit growth worldwide in facial skincare, thanks to Revitalift Filler by L’Oréal Paris, Garnier tissue masks and Men Expert skincare. Makeup growth continues, due in part to Maybelline New York and the global success of Superstay Matte Ink and Fit Me!. Hair care saw two successful launches with Elseve Dream Lengths and Fructis Hair Food. The Division is gaining market share in the U.S. and Eastern Europe, and continuing a rise in Asia.

L’Oréal Luxe sales grew by +14.4% like-for-like, with the division outperforming the market—and making 2018 “a historic year.” The Division’s four billionaire brands—Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl’s—achieved double-digit growth. Lancôme was led by its skincare, especially Génifique and Absolue, and the great success of La Vie est Belle.

L’Oréal Luxe captured market share in Asia Pacific, particularly in China where growth was double-digit.

The Professional Products Division grew in all geographic zones, except for Western Europe. Hair care is benefiting from the strong growth of Kérastase. Hair color is being driven by brands including Shades EQ by Redken.

The Active Cosmetics Division was up +11.9% like-for-like and continues to win market share across all geographic zones; it is moving “at a rapid pace,” with growth remaining strong in North America and in Asia. All the major brands are contributing to the division’s growth, including La Roche-Posay, Vichy and SkinCeuticals, which is strengthening its No. 1 position in professional skincare in the U.S. CeraVe is recording double-digit growth in North America, and has now been rolled out in more than 30 countries.

By business segment, Skincare topped the list at 31.8%, with Makeup (27.4%) next in line, followed by Hair Care (16.2%).

Western Europe (29.9%) proved to be the strongest geographic zone, over North America (26.9%—a +2.7% like-for-like growth). Asia-Pacific (27.5%) outpaced North America to become L’Oréal’s second largest zone in 2018, with all four L’Oréal divisions winning market share. Eastern Europe saw a 9.1% like-for-like improvement while Africa-Middle East was up 4.9% like-for-like.

Travel Retail broke the 2-billion-euro barrier with an increase of +27.1%. The category plays an ever-increasing role in overall revenue. At one point, Jean-Paul Agon, chairman and chief executive officer commented that the group’s travel-retail business is now so large, that if it were a country—sales-wise— it would follow the U.S. and China.

E-commerce was especially vibrant, with more than 3 billion euro in sales—a 40.6% like-for-like growth—accounting for 11% of Group sales. E-commerce accounted for over 35% of L’Oréal’s sales in China, up from about 10% just five years ago.

International acquisitions in 2018 included Valentino, Giorgio Armani Beauty, ModiFace, Logocos, Style Nanda and Pulp-Riot.

What trends made the year particularly strong? Agon says, “The first, and probably most important factor is the insatiable desire for beauty across all countries and cultures.” He also points to premiumization, digitalization (“as beauty and digital are a perfect match”) and “new consumer targets.”

Still, Agon says, “Delivering financial performance while being a committed corporate citizen is probably our greatest source of pride.” In 2018, L’Oréal received a number of accolades including for its actions in sustainability, fighting climate change, ensuring water security and combating deforestation; as the top gender-balanced company in Europe by Equileap; and as the leading company worldwide, across all industries, by Covalence EthicalQuote.

For the first time, L’Oréal offered its employees the chance to take a stake in the company’s financial capital via an employee share ownership plan.

In addition, by 2020, 100% of L’Oréal’s products will have “an improved environmental or social profile.” A program called SPOT, created by L’Oréal employees, is used to compile information on ingredients, packaging materials, suppliers and components. It is fully integrated into the product design process and can be used to assess and improve environmental impact. They have also started to reduce the weight and dimensions of packaging, particularly plastics, and to replace commonly used materials with alternatives when possible.

In line with its multi-year Sharing Beauty for All initiative, L’Oréal says 79% of new products in 2018 “have an improved environmental or social profile.”

2019 Highlights

In June 2019, L’Oréal appointed Delphine Viguier-Hovasse as global brand president for L’Oréal Paris, the first woman ever to take charge of the firm’s No.1 brand.

In July, L’Oréal and Clarins were rumored to be in talks about a possible acquisition of Clarins fine fragrances, Mugler and Azzaro. Interestingly, L’Oréal would also gain Mugler’s fashion business.

Also in July, in the pursuit of sustainable technologies, L’Oréal purchased a minority stake in Carbios, a company active in bio-industrial solutions “to reinvent the lifecycle of plastic and textile polymers.”

L’Oréal also announced plans for continued expansion in China. The French beauty giant said it will target its product range and geographic coverage to reach as many as 500 million Chinese consumers, compared with its current 100 million customer base.

In September, Stéphane Rinderknech was named president and CEO of L’Oréal USA, executive vice president North America, and a member of L’Oréal’s executive committee. He succeeds Frédéric Rozé and will report to him in his role as executive vice president Americas.

Also in September, Jamie Kern Lima announced she would be stepping down as CEO of IT Cosmetics, the brand she founded 11 years ago, and sold to L’Oréal for $1.2 billion in 2016. L’Oréal has not yet named a successor.

Looking Ahead

In the second quarter of 2019, a slowdown in North American sales, particularly of makeup brands, kept overall L’Oréal sales to 6.8%, $8.3 billion—and below the 7.4% growth predicted.But total Group sales in the first half of 2019 rose 10.6% to $16.8 billion.

In a statement, Agon said that the company “has delivered its strongest first-half like-for-like growth in more than a decade at plus 7.3 percent, outperforming a dynamic market which has, for the second year running, posted one of its highest-ever growth rates.”

All of the Group’s divisions achieved gains. In the half, sales rose 17.3% for L’Oréal Luxe, 15.1% for Active Cosmetics, 6.4% for Consumer Products and 5.1% for Professional Products.

On a like-for-like basis, L’Oréal’s e-commerce revenues rose 48.5%, making up 13.2% of total company sales; travel-retail sales grew 21.2%.

On a geographic basis, sales generated by New Markets increased 19.3%, 6.8% for North America and 1.9% for Western Europe.

“In a volatile and contrasted environment, this good first half gives us confidence in our capacity to outperform the market in 2019 and achieve another year of growth in sales and profits,” Agon said.

Read Next: Unilever is #2

Beauty Sales: $31.2 billion (FY 2017: $27.2 billion)

Major Products/Brands: Hair care, skin care, sun care, color cosmetics and fragrances sold under 34 brand names in 150 countries, in multiple channels, including Consumer, Professional, Luxury and Active Cosmetics.

Brands include:

• Garnier, L’Oréal Paris, Maybelline, Urban Decay
• NYX, Soft-Sheen-Carson, Kerastase, Redken
• Matrix, Valentino, Lancôme, Biotherm
• Helena Rubenstein, Kiehl’s, Ralph Lauren
• Cacharel, Viktor & Rolf, Giorgio Armani
• Diesel, YSL Beauté, Vichy
• LaRoche-Posay, SkinCeuticals, Sanoflore
• IT Cosmetics, Stylenanda
• Pulp Riot, ModiFace, CeraVe and Logocos

New Products

• Garnier Fructisse Smoothing Treat Hair Mask
• Vichy Minéral 89
• Urban Decay Born to Run Eyeshadow Palette
• LaRoche-Posay Lipikar Stick AP+
• Lancôme Monsieur Big Mascara
• Lancôme Juicy Shaker lipsticks
• Lancôme Advanced Génifique Sensitive Dual Concentrate
• Biolage R.A.W.
• Maison Margiela La Vie est Belle Magic Retouch
• Colorista
• YSL Touche Eclat Glow Shot Liquid Highlighter
• Giorgio Armani Code Pour Femme

L’Oréal Tops The List, Again

L’Oréal once again heads this year’s list as the Top Global Beauty Brand, with annual FY 2018 Beauty Sales coming in at a whopping $31.2 billion, up $4 billion—a like-for-like sales growth of 4.8%.

Appropriately, chairman and chief executive officer Jean-Paul Agon, when delivering the news, commented: “As people’s desires for beauty grows in multiple ways worldwide, beauty has never looked this good. Market growth accelerated in 2017, stimulated by extremely favourable demographic and sociological developments. In this dynamic market, L’Oréal achieved a great new year in terms of sales and results.”

Agon predicts that the beauty market will continue to grow in the coming years, in part due to “the emergence of the new middle and upper classes who are powerful consumers of beauty, especially of premium products.”

The beauty giant strengthened its position in all categories, channels and regions “that are important for growth”—particularly in makeup and skincare—and particularly in the Luxe arena. In the selective sector, L’Oréal Luxe achieved its strongest growth since 2000, and L’Oréal’s Active Cosmetics Division, with dermocosmetics, surpassed the 2-billion-euro mark. In the New Markets, boosted particularly by the Asia-Pacific Zone, the Group topped 10-billion euros in sales. Rounding out the record-breaking year, e-commerce sales rose by +34%, with online sales of over 2-billion euros. Travel retail was also strong.

All these goals have been achieved, says Agon, while following the shared economic, social and environmental precepts of the Group’s Sharing Beauty With All program, which has the goal to improve the social or environmental impact of 100% of their new or renovated products by 2020; in 2017, 76% of products met this standard. This goes hand-in-hand with L’Oreal’s Universalisation strategy, a global thinking that respects and honors the differences of consumers throughout the world. In 2017, L’Oréal was named one of the world’s Most Ethical Companies by The Ethisphere Institute.

While Agon pointed to L’Oréal Luxe as “delivering spectacular growth, particularly in Asia,” L’Oréal has also been pushing into the luxury segment, with the makeup and fragrance lines for Giorgio Armani, Yves Saint Laurent and Lancome. In general, L’Oreal says the Luxury Cosmetics Market accounts for nearly a quarter (23%) of the total beauty market.

By Operational Division, Consumer Products accounted for 46.6% of sales; L’Oréal Luxe (32.5%);  Professional Products (12.9%); and Active Cosmetics (8%). Sales of mass market brands rose 1% while luxury sales grew by 10.6%. Skincare was the largest business segment with 29.3%, followed closely by Makeup (27.9%); Haircare (17.5%), Hair Colour (11.8%), Fragrance (9.2%), and Other (4.3%).

Geographically, the breakdown for 2017 sales was 40.5% New Markets; 31.2% Western Europe; 28.3% North America; 23.6% Asia Pacific; 7.5% Latin America; 6.7% Eastern Europe; 2.7% Africa, Middle East.

2018 Highlights

At the start of 2018, the L’Oréal Group announced receipt of a number of awards gathered in 2017, including recognition of L’Oréal workplace wellness, code of business ethics and efforts to support gender equality, protect the environment and promote innovation.

In January 2018 Bloomberg reported that L’Oréal was using living cells from donors to grow Chinese skin to test and then customize color cosmetics and products such as anti-aging serums, whitening creams, and pollution-fighting cleansers for customers in this expansive market. According to Euromonitor International, cosmetics sales in China are forecast to exceed $40 billion by 2021, surpassing the U.S. as the world’s biggest market for makeup and skin care.

At the CES show in January, L’Oréal advanced its commitment to promoting sun safety with La Roche-Posay UV Sense, the first battery-free wearable electronic UV sensor. The My UV Patch provides consumers with information about their individual ultraviolet exposure levels.

Advancing Acquisitions and Opportunities

Focused on digital acceleration, in March, L’Oréal announced the acquisition of 100% of the Canadian company ModiFace, a specialist in augmented reality and artificial intelligence applied to the beauty industry. ModiFace has developed advanced technologies of 3D virtual makeup, color and skin diagnosis services that track facial features and color. It will be part of L’Oréal’s Digital Services Factory, a dedicated network to design and develop new digital services for the group’s brands.

In May, L’Oréal announced the acquisition of Stylenanda, a Korean fashion and beauty brand, whose 3CE makeup brand accounts for more than 70% of its business. L’Oréal’s plans for the brand, described as “a highly desirable brand among Korean and Chinese Millennials” is for global expansion. Later in the month, L’Oreal snapped up the professional hair color brand Pulp Riot, which launched in the U.S. in June 2016. In 2017, Pulp Riot had net sales of $ 11 million.

Signed in May but not effective until January 1, 2019, L’Oréal gained a worldwide long-term license agreement for the creation, development and distribution of fine fragrances and luxury beauty under the Valentino brand.

In June, the world’s largest cosmetics company signed an agreement with Alibaba Group to strengthen their efforts to reduce waste by committing to use environmentally friendly packaging for all L’Oréal products sold in China within the next five months.

Per the agreement, L’Oréal China pledged to decrease the use of plastic materials for all of its brands by switching to Forest Stewardship Council-certified sustainable paper and zipper paper cartons or paper adhesives. The group also plans to use only 100% recycled boxes by the time this year’s 11.11 Global Shopping Festival arrives in November.

Jet Jing, the head of Alibaba’s B2C marketplace Tmall, said the goal of New Retail is not only to provide Chinese consumers with high-quality products in a fast and convenient manner, but also to create “green, healthy and sustainable social values.”

Similar to other consumers around the world, as Chinese consumers become increasingly eco-conscious, more brands are boasting earth-friendly and energy-efficient products—and are willing to pay more for them.

This is the latest step in an effort launched in May of 2017 when Alibaba and 13 L’Oréal brands, including Kiehl’s, Helena Rubenstein and Giorgio Armani, formed a Green Brand Alliance that required participants to commit to an array of environmentally friendly measures, such as the use of biodegradable packaging materials.

Another acquisition came in August as L’Oréal scooped up Logocos, a German “pioneer” in natural beauty. All the company’s brands are vegan and bio certified with a range of products using their own plant extracts and natural ingredients derived from organic farming. Again, L’Oréal plans to expand the sales of Logocos Naturkosmetik brands internationally.

Looking Ahead

Sales for L’Oréal remained strong for the second quarter of 2018, with sales reported at $7.7 billion for the three-months ended June 30. The L’Oréal Luxe and Active Cosmetics divisions both recorded double-digit growth.

“The good sales growth and the quality of the first-half results reinforce our confidence in our ability to once again outperform the cosmetics market in 2018, and to achieve significant like-for-like sales growth and an increase in our profitability,” said Agon.

Read Next: Unilever is #2

Beauty Sales: $27.2 billion

Major Products/Brands: Hair care, skin care, sun care, color cosmetics and fragrances sold under 32 brand names in mass, professional, active and prestige channels, including Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson, IT Cosmetics, NYX, Essie, Kiehl’s, Urban Decay, Diesel, Dark & Lovely, L’Oréal Professional, Kerastase, Redken, Matrix, Lancôme, Biotherm, Giorgio Armani, Ralph Lauren, Viktor & Rolf, YSL Beauté, Vichy, LaRoche-Posay, SkinCeuticals, Sanoflore, CeraVe, AcneFree, Ambi; and The Body Shop (now sold to Natura).

New Products: Lancôme’s Le Teint Particulier, Maybelline City Mini Palette, Garnier Whole Blends, IT Cosmetics Je Ne Sais Quoi Hydrating Color Awakening Lip Treatment, Urban Decay All-Nighter, YSL Black Opium Eau de Parfum, L’Oréal Pure Clay Detox & Brighten Cleanser, Biolage R.A.W. range.

Comments: In a move indicative of the times, with mergers of large and small beauty brands, 105-year-old L’Oréal capped off a successful 2016, by boosting its Luxe portfolio with the acquisition of IT Cosmetics—the rapidly growing firm founded by entrepreneur Jamie Kern Lima—for $1.2 billion. Covering all its bases, the world’s largest beauty company also put in progress a deal with Valeant to acquire mass skincare brands CeraVe, AcneFree and Ambi for a cash purchase price of $1.3 billion. The deal was finalized early in 2017, and nearly doubled the size of L’Oréal’s Active Cosmetics Division in the U.S.

These types of strategic decisions worked to strengthen the brand’s global position, and drove 2016 annual sales to $27.2 billion, once again making L’Oreal the top performing global beauty company on Beauty Packaging’s annual Top 20 list. Sales were up +4.7% on a like-for-like basis and all divisions recorded sales growth. Consumer Products led, reaching nearly $12.6 billion, a 3% gain, like-for-like. L’Oreal Luxe showed the strongest growth (+6.9%), and came in at $8 billion. Active Cosmetics achieved a 5.7% growth, adding up to just under $2 billion. The Professional Products division, up 1.8%, recorded sales of $3.6 billion. The Body Shop brought in an additional $970 million, a 6% decline in sales in the fourth quarter of 2016, which led to its sale to Brazil-based Natura in 2017.

Sales by Division

In a market that L’Oreal describes as “gradually improving,” the Professional Products Division posted a “contrasted” year, with good growth in Europe, Africa, Middle East and Latin America, but a mixed performance in North America. India, Russia and the UK led in growth. Hair color was the top performer, boosted by Shades EQ by Redken, SoColor Beauty and Color Sync by Matrix, and Inoa and Dia by L’Oréal Professionnel. In skincare, the Decléor brand recorded double-digit growth.

The Consumer Products Division credited success to the continued popularity of NYX Professional Makeup, as well as Maybelline, L’Oréal Paris and Essie. In skincare, Micellar Cleansing Waters by Garnier and Pure Clay Masks; and Magic Retouch in hair color for L’Oréal Paris proved to be winners. The Division performed well in North America, where it “significantly strengthened its leadership,” according to L’Oréal.

L’Oréal Luxe outperformed its market and was further strengthened by the acquisition of new brands IT Cosmetics and Atelier Cologne. Yves Saint Laurent achieved “an exceptional year,” with sales breaking the 1-billion-euro mark, thanks to makeup and fragrances, especially with Black Opium and the new women’s perfume Mon Paris.

Giorgio Armani had a very good year, driven by makeup and the success of the men’s fragrance Code Profumo. Urban Decay, remained strong, launching Vice Lipstick worldwide. Sales of Kiehl’s products rose. Lancôme posted another year of growth, with results attributed to Absolu Rouge, Énergie de Vie skincare for Millennials and La Vie Est Belle, No. 1 in Europe and among the top five women’s fragrances in the U.S.

The Active Cosmetics Division ended the year on a high note, increasing its share of the worldwide market. La Roche-Posay is posting its seventh consecutive year of double-digit growth, with a strong performance. Vichy is rolling out Slow Âge, “an innovative facial skincare line” stemming from advances made by L’Oréal Research in the exposome field.

Geographic Zones

As for the geographic zones, Jean-Paul Agon, chairman and CEO, L’Oréal, said the Group “grew sales and increased its lead in North America, and further accentuated its leadership in Europe, outperforming the market despite the difficult situation in France. Growth in the New Markets has remained solid.” New Markets led with the highest percentage growth, and sales of $10.3 billion; followed by Western Europe with $8.4 billion; and North America at $7.5 billion.

A Focus on Technology and Startups

Bent on pioneering advances in digital technology and harnessing it to conquer new markets and attract new consumers, L’Oréal pursued initiatives from naming a multitude of social media influencers to developing SPF-level indicating skin patches to partnering with tech startups and creating custom-made makeup.

Late in 2016, Lancôme launched Le Teint Particulier Custom Made Makeup, which it called “a breakthrough technology” that detects individual skin tones to deliver a uniquely-blended, custom foundation perfectly matched to an individual’s complexion. A Lancôme beauty advisor scans a client’s facial skin tone, and processes the data through a new, state-of-the-art algorithm that measures the tone. The personalized formula is then blended right at the counter and the customer’s Complexion ID is printed on the bottle for easy reference.

Earlier this year, L’Oréal announced a strategic investment and partnership with Founders Factory as part of a yearly incubator program.

2017 Highlights

At the beginning of 2017, L’Oréal celebrated its 20-year anniversary in China, originally entering the country with a dream of “putting a lipstick in the hands of every Chinese woman,” and later envisioning that China would become the No.1 sales contributor for the Group.

In April, L’Oréal re-emphasized its sustainability efforts to reduce its environmental footprint and to fight climate change. By 2020, they have committed to improve the environmental or social profile of 100% of its new or renovated products.

This commitment affects all L’Oréal brands and 82% of the products launched in 2016 (74% in 2015) already show such an improvement. Some of the new products launched in 2016 demonstrate levels of biodegradability exceeding 98%, such as the new Biolage R.A.W. range, and Garnier’s Ultra Doux 5 Plants shampoo.

In June, following speculation on the future of The Body Shop, L’Oréal announced a firm offer from Natura Cosméticos SA for its acquisition. The transaction of  The Body Shop was valued at 1 billion euros and recently closed.

Looking Ahead

At press time, L’Oréal said it expects to post a record profit margin in 2017, backed by strong second-quarter and first-half results that were driven by the company’s Luxe Division and emerging markets. Sales in the three months ended June 30, which deconsolidated The Body Shop business—reached $7.5 billion euros, up 3.5% in reported terms and 4.3% on a like-for-like basis.

On a constant basis, the Active Cosmetics Division’s sales rose by 6.7%; the Consumer Products Division’s by 2.4%, and the Professional Products Division’s by 0.3%. Sales in the New Markets increased 6.9%, followed by Western Europe (3.1%), and North America (2.4%).

Beauty Sales: $27.6 billion

Major Products/Brands: Hair care, skin care, sun care, color cosmetics and fragrances sold under a variety of brand names in mass, professional, active and prestige channels, including Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson, IT Cosmetics, NYX, Essie, Kiehl’s, Urban Decay, Diesel, Dark & Lovely, L’Oréal Professional, Kerastase, Redken, Matrix, Shu Uemura Art of Hair, Lancôme, Biotherm, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, YSL Beauté, Vichy, LaRoche-Posay, Innerve, SkinCeuticals, Sanoflore; and The Body Shop.

New Products: Elvive by L’Oréal Paris, Ultra Doux by Garnier, NYX Macaroni Lippies, Maybelline Master Brow Pro Palette, Yves Saint Laurent Volupte Tint in Oil, Pro Fiber by L’Oréal Professionnel, Biolage Cleansing Conditioner, Kérastase Thérapiste, The Body Shop Spa of the World, L’Oréal Pretty & Healthy (China), Urban Decay Alice Through the Looking Glass collection, Lancôme Juicy Shaker.

Comments: Still at the top of our list, L’Oréal continues to maintain its title as “the world’s largest global beauty company,” racking up sales of $27.6 billion in 2015, a growth of nearly 4% over the previous year. In the company’s annual report, Jean-Paul Agon, chairman and chief executive officer, noted: “We have stepped up our metamorphosis to the new L’Oréal: more universal, more digital and more sustainable.”

In the midst of a global economic slump, the company’s Consumer Products range fell slightly in the first half of the year, but went on to growth in the second half, adding to the annual positive results in Prestige, Professional and Active Products. The company reported growth in all markets, except for Brazil, which has been plagued by falling currency and turmoil. The French-owned company continues on a vast expansion and diversification roll throughout all corners, categories and markets, in all channels of distribution. With investments of more than $870 million in R&D in 2015, the company was granted 90 patents for packaging and processes, and claimed 1,850 suppliers of packaging and raw materials.

Continuing to pursue all paths, L’Oréal is especially focused on the digital world and compatible acquisitions—especially those with strong social media savvy. In the past year, acquisitions of Urban Decay, and most recently NYX and IT Cosmetics, have skyrocketed them into the social sphere.

Consumer Products accounted for 48.7% of total sales in 2015, while L’Oréal Luxe took a 29.8% share; Professional Products, 14%; and Active Cosmetics 7.5%.

Gains in L’Oréal Luxe were led by Makeup. Overall annual sales in Luxe increased by +6.1% like-for-like and +16.7% based on reported figures. In skin care, Kiehl’s was a top performer. Fragrances, too, were strong thanks to L’Oréal’s three major women’s launches: La Vie Est Belle, Sì and Black Opium, and men’s fragrances Polo Red and Acqua di Giò Profumo. The YSL brand grew an impressive 18.4%, in part, due to the brand’s Volupte Tint in Oil, described as “the first tinted lip oil.”

Across the board, Western Europe accounted for a third of annual sales, with North America following with 27%. The New Markets contributed a percentage just shy of 40%, with more than half of that attributed to the Asia Pacific region.

Hair Care and Makeup proved to be key areas throughout the year, but the skin care category led by nearly 30%. Makeup followed at 23.8%; Hair Care (19.7%); Hair Colorants (12.7%); and Fragrances (9.8%). Africa, Middle East registered the highest percentage sales increase at 12%, followed by Eastern Europe at nearly 10%.

In Hair Care, Redken did particularly well, described as “best in class in the digital field,” becoming the division’s second largest brand, and achieving strong growth in the U.S. Biolage Cleansing Conditioner was a hit as a new alternative to shampoo—one that combines two functions (and packages) in one.

Overall sales at The Body Shop, which has more than 3,100 global doors, dropped a little less than 1%, but skin care sales rose by nearly 10% year over year. Relying on the “naturals” market, the brand regained ground in the UK, which is its No. 1 market.

Online & Digital Acceleration

In 2015, L’Oréal’s online sales increased by nearly 40% to reach $1.4 billion, essentially making e-commerce the equivalent of the group’s No. 5 country. In China, e-commerce accounts for more than 20% of the Group’s Consumer Products Division sales. Like-for-like e-commerce growth was up more than 50% in 2015 and, according to L’Oréal, this is just the beginning.

L’Oréal continues its strong bent on technology as its No. 1 way to reach more than a billion new customers by 2020. In the past year, they have gained huge ground with online blogger “tryouts,” investments in incubator programs, mobile apps including Makeup Genius, and more.

Sustainability is also a key trend at L’Oréal, and the determinant behind the company’s ambitious Beauty for All program. This corporate-wide effort driven by Agon, is a social and environmental responsibility program, which aims to achieve the lofty goal that by 2020, 100% of their products will have an improved environmental or social profile. Among the pillars: the corporate environmental footprint will be reduced by 60%, consumers will be able to make sustainable consumption choices; and all employees will have access to the best level of healthcare coverage and social protection, as well as training; and all of the global giant’s strategic suppliers will participate in L’Oréal’s supplier sustainability program. L’Oréal says under the program, they will enable 100,000 people from socially and financially underprivileged communities to access work.

News of Note in 2016

L’Oréal brought sophisticated hardware and software into Beauty in January 2016, when it launched a stretchable skin sensor called My UV patch. Designed as a wearable, the product is meant to educate users about their exposure to ultraviolet rays. The patch is marketed by the company’s Active Cosmetics brand, La Roche-Posay.

In April, several executive moves were made in preparation for the future leadership of the company as Agon’s contract expires in 2018 (but can be renewed). Alexis Perakis-Valat was named head of L’Oréal’s Consumer Products Division, and is considered a leading contender for the top job.

L’Oréal’s pursuit of technology led to its deal with Founders Factory as an exclusive partner for investments in global beauty tech startups. As part of the agreement, the partners will invest and scale five early stage startups and co-create two new companies from scratch every year.

In line with its reputation for forward thinking and a modern outlook, L’Oréal USA announced the relocation of its corporate headquarters to New York City’s newly developed Hudson Yards complex with sustainable design and state-of-the-art amenities.
With interests in fragrance as well as beauty, L’Oréal acquired niche fragrance brand Atelier cologne.

In July L’Oréal grabbed headlines with its purchase of IT Cosmetics for $1.2 billion.

With more than 300 products and a multi-channel distribution model, the brand is now part of the Luxe Division of L’Oréal.

Looking Ahead

Group sales reported for the first half of 2016 reached $14 billion, an increase of +4.2% like-for-like—but the second quarter came in below analysts’ expectations. Sales growth for the period was achieved in all divisions and geographic zones. The Consumer Products Division had improved, with the largest divisional gain of 4%, reaching $3.4 billion—thanks in part to makeup, and an impressive start in bringing NYX international. During this period, e-commerce sales rose by 33%, and accounted for about 6% of total sales.

Recent acquisitions NYX, Urban Decay and Niely (Brazil) made a “very positive contribution,” while Magic and Clarisonic fell below expectations.

Hair color, the No. 1 contributor to Group growth, continues its momentum. Skin Care got a boost from Micellar Cleansing Waters by Garnier and Age Perfect Golden Age by L’Oréal Paris. Yves Saint Laurent and Urban Decay continued to drive the Luxe Division, while La Roche-Posay was a major producer in the Active Cosmetics Division.

Commenting on the half-year figures, chairman and CEO Jean-Paul Agon, said: “The Group is at the cutting edge of online beauty, and is accentuating its digital leadership, particularly in makeup, a category that is accelerating strongly, driven worldwide by the Millennials generation.”

Beauty Sales: $27.4 billion

Major Products/Brands: Hair care, skin care, sun care, color cosmetics and fragrances sold under a variety of brand names in mass, professional, active and prestige channels, including Garnier, L’Oréal Paris, Le Club des Créateurs, Maybelline, SoftSheen-Carson, L’Oréal Professional, Kerastase, Redken, Matrix, Mizano, Shu Uemura Art of Hair, Keraskin Esthetics, Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté, and Vichy, LaRoche-Posay, Innerve, SkinCeuticals, Sanoflore, NYX, Niely and Carol’s Daughter; and The Body Shop.

New Products: Pureology Smooth Perfection, Garnier Fructise Full & Plush, The Body Shop Drops of Youth Eye Concentrate, Maybelline Colossal Chaotic Lash Mascara, Lancôme Miracle Cushion Compact, La Roche-Posay Pigmentclar Eyes, Yves Saint Laurent Black Opium, Kiehl’s Hydro Plumping Serum, L’Oréal Professional Serioxyl, Redken Curvaceous Curl Products.

Comments: From 3D printing artificial human skin to combatting the “frizzies,” L’Oréal Group’s R&D department was hard at work in 2014, forging partnerships, generating patents and launching new products. L’Oréal was also one of the first to bring the Korean beauty sensation of the year—the liquid-in-cushion compact—to the U.S., with Lancôme’s Miracle Cushion Compact.

While a sluggish economy caused a lag during most of the year, strength came in the final quarter, giving a boost to annual sales totaling $27.4 billion, an increase of +1.8%. Like-for-like (i.e., based on a comparable structure and constant exchange rates), the sales trend of the L’Oréal Group was +3.7%.

Commenting on the annual results, Jean-Paul Agon, chairman and chief executive officer of L’Oréal, said, “In a volatile economic context and a less dynamic market, the Group posted growth in all its divisions and regions of the world. L’Oréal Luxe and Active Cosmetics achieved very good growth and outperformed their market significantly. The Professional Products Division continued to improve. Meanwhile, in a slowing market, the Consumer Products Division saw a temporary sag in its growth, particularly in the United States.”

In 2014, L’Oréal also focused on its digital transformation, and made strategic acquisitions such as Magic, NYX, Carol’s Daughter, Decléor, Carita and Niely, to complement its brand portfolio in key categories and regions of the world.

L’Oréal’s Makeup Genius app, which launched last year, has been particularly effective in China, where 4.7 million of its downloads have been—out of a total of 14 million in all. The app acts as a mirror and allows women to virtually try on cosmetics. Asmita Dubey, chief marketing officer for L’Oréal China, says “Girls in China can be shy to apply makeup if they are at the counter or if they are going out with friends … so for a girl like that to get a virtual experience and try some new looks, that’s something she wants to do.”

By operational division, Active Cosmetics achieved the greatest growth for the year (8.7%), followed by L’Oréal Luxe (7.1%).

In what L’Oréal described as a difficult market, the Professional Products Division recorded sales growth of +2.6% like-for-like and +2.0% based on reported figures. Conditions improved in Western Europe and in the New Markets. The United States, Brazil, India and Russia were the largest contributors to growth.

Despite a slowdown during the year in the Consumer Products Division, L’Oréal reported +1.6% like-for-like and -1.0% based on reported figures, with an improvement in the final quarter. The Division’s three major global brands—L’Oréal Paris, Garnier and Maybelline—did well, and the beauty giant’s two 2014 acquisitions, NYX and Magic, were strong.

Not surprisingly, with the prestige channel doing well, and a strong fourth quarter, L’Oréal Luxe recorded growth of +7.1% like-for-like and +5.7% based on reported figures. In 2014, Luxe outperformed the market in all its main zones, particularly in Europe, China, the Middle East and the U.S. E-commerce sales were also strong.

The Luxe makeup and women’s fragrance categories performed especially well. Yves Saint Laurent continued to grow double-digits in 2014, boosted by the women’s fragrance Black Opium, makeup and Asia. Giorgio Armani also had a very good year with its fragrance Sì and its makeup products. Lancôme’s La Vie est Belle proved to be the No. 1 selling fragrance in France, and No. 2 in Europe. Urban Decay, Kiehl’s, Clarisonic and Shu Uemura also boosted the Division’s growth.

In 2014, L’Oréal’s Active Cosmetics Division experienced excellent growth, with sales rising by +8.7% like-for-like and +5.3% based on reported figures, outperforming a healthy market. Sales were strong in all regions, with France, Brazil, and China especially of note.

By Geographic region, growth was strongest in Africa/Middle East (13.5%), followed by Latin America (10%).

Even with Western Europe’s flat market, and a highly competitive environment between mass-market retailers, L’Oréal’s growth came out at +2.4% like-for-like and +3.1% based on reported figures. Again, much of this growth came in the fourth quarter, and growth was good both in Northern and Southern Europe, particularly in Germany, the UK and Spain. L’Oréal Luxe and Active Cosmetics led the trend.

Following strong momentum in North America over the last few years, growth in 2014 slowed up due to the Consumer Products Division. Sales increased by +1.1% like-for-like and +0.6% based on reported figures. The Professional Products Division, Active Cosmetics and L’Oréal Luxe continued to expand, thanks to American brands Redken, SkinCeuticals, Urban Decay and Kiehl’s.

When the market improved in the second half, the Consumer Products Division showed increased sales, in particular from L’Oréal Paris. L’Oréal noted that its recent acquisitions of NYX and Carol’s Daughter complemented the Consumer Products Division. The New Markets all achieved growth.

In Asia-Pacific, L’Oréal recorded annual growth of +5.3% like-for-like and +4.1% based on reported figures. Excluding Japan, like-for-like growth came out at +5.8%. Kiehl’s, Yves Saint Laurent, Giorgio Armani, La Roche-Posay and Clarisonic were part of the growth mix. Magic, acquired in China in the first half of the year, achieved growth in the expanding beauty mask market.

In Latin America, L’Oréal recorded +10.0% like-for-like and -1.7% based on reported figures. The Professional Products Division, Active Cosmetics and L’Oréal Luxe recorded double-digit growth, highlighted by their major brands  Professionnel, Lancôme, Giorgio Armani, La Roche-Posay and Vichy. Consumer Products growth came from L’Oréal Paris with its Elsève brand and Maybelline—especially due to its kiosks installed in Brazil.

Eastern European sales registered +6.0% like-for-like and -6.3% based on reported figures, and grew much faster than the market, thanks to L’Oréal Luxe and the Professional Products Division. The Consumer Products Division achieved total market share in hair color and in deodorants. Active Cosmetics outperformed the market in Russia and Turkey.

Sales in Africa, Middle East rose by +13.5% like-for-like and +12.5% based on reported figures. All Divisions recorded double-digit growth and gained market share.

The Body Shop had what L’Oréal called “a satisfactory end to the year” in all its categories. The brand recorded growth of +1.6% like-for-like and +4.6% based on reported figures. The Americas’ region that now includes the Emporio Body Store outlets in Brazil, accounted for the highest growth.

News of Note

In December 2014, L’Oréal announced the acquisition of a start-up company that develops hair fiber optical reader technology for a long-term research program.

In February 2015, L’Oréal was named one of Fast Company’s “50 Most Innovative Companies in the World.”

This past May, L’Oréal Professionnel announced that its new Pro Fiber line was formulated to repair hair only where needed. “It’s the best formula ever achieved in the field of damaged hair,” said Patricia Pineau, L’Oréal’s scientific communications director.

Also in May, L’Oréal USA, announced a partnership with 3-D bioprinting company Organovo Holdings, Inc. to further the collaboration between Organovo’s proprietary NovoGen Bioprinting Platform and L’Oréal’s expertise in skin engineering to develop 3-D printed skin tissue for product evaluation and other areas of advanced research.

Sustainability is also a continued area of importance at the world’s leading beauty company, boosted by L’Oréal’s global sustainability program, Sharing Beauty With All. L’Oréal USA says that by 2020, 100% of products will have an environmental or social benefit—and 100% of strategic suppliers will be evaluated on their social and environmental performance. Carbon emissions, as well as water consumption and waste per finished product, will be cut by 60%.

Looking Ahead

In July, L’Oréal announced a “strong sales increase” of nearly 15%, topping out at about $14.2 billion. The Group reported a gradual improvement in sales in Western Europe and North America, and solid sales in New Markets excluding Brazil.

Commenting on the figures, Jean-Paul Agon, said: “At the end of June, our reported growth is the strongest recorded for the last twenty years, with a very positive currency effect.”  He noted, “All divisions are growing.”

Agon projected acceleration in the second half, saying, “We are confident in our ability to outperform the beauty market and achieve a year of significant growth in both sales and profits.”

In early September, based on concerns about a slowdown in China, L’Oréal announced that it had lowered its forecast for this year to about 3.5% from a previous range of 3.5% to 4%.

Beauty Sales: $29.7 billion

L’Oréal’s Frédéric Rozé was appointed executive vice president of the Americas Zone.

Major Products: Color cosmetics, skin care, hair care, sun care, and fragrance sold under a large number of brands in a variety of channels, including L’Oréal Professionnel, Redken, Kerastase, Matrix, L’Oréal Paris, Garnier, Maybelline, SoftSheen-Carson, Essie, Lancôme, Giorgio Armani, YSL Beauté, Biotherm, Kiehl’s, Ralph Lauren Fragrances, Shu Uemura, Diesel, Cacharel, Helena Rubenstein, Clarisonic, Viktor&Rolf, Vichy, La Roche-Posay, SkinCeuticals, Roger&Gallet, Inneov, Cadum, Urban Decay and The Body Shop.New Products: Lancôme DreamTone, Garnier Olia Hair Color, Garnier BB Cream, YSL Beauté Touche Éclat Foundation, YSL Forever Light Creator, Redken Curvaceous, La Roche-Posay Anthelios Cell-OX ShieldT XL; L’Oréal Paris Sublime Bronze Self-Tanner Collection, Kiehl’s Super Multi-Corrective Cream, The Body Shop Brazil Nut Bodycare.

Comments: It was a busy and productive 2012 at L’Oréal, in which the French beauty giant’s penetration into New Markets and record capture of difficult domestic and Western European gains paid off. Sales were up once again, with 2012 results showing a healthy growth for the Group with sales of nearly $30 billion—about a 10.4% increase based on reported figures and 5.5% like-for-like.The Cosmetics branch (Consumer Products, L’Oréal Luxe, Professional Products, Active Cosmetics) delivered the bulk of sales at $27.5 billion. The Body Shop contributed about $1.1 billion, with Dermatology hovering around the $1 billion mark.The world’s leading beauty company says that business was so good in 2012, it outpaced the gains of the global cosmetics market, which it reported as 4.6%. In North America, the L’Oréal Group grew roughly twice as fast as the market. Corporate sales in New Markets rose 9.2%, making it the group’s No. 1 sales zone for the first time, with nearly 40% of cosmetics sales.L’Oréal made tremendous strides in hair care, but also brought significant launches to market in skin care, fragrance, cosmetics and dermocosmetics as well.In New Markets, Asia-Pacific accounted for 20.6% of Cosmetics sales, followed by Latin America (8.8%), Eastern Europe (6.8%) and Africa, Middle East (3.3%). The remaining regions were Western Europe (35.6% of sales) and North America (25%).Within Cosmetics, Consumer Products sales accounted for slightly more than half (51.5%), followed by Luxe (26.8%), Professional (14.4%) and Active (7.3%). By business segment, Skin Care continued to top the list at 29.1%, followed by Makeup (21.5%), Hair Care (21%), Hair Color (14.1%), Perfumes (9.7%) and Other (4.6%).Jean-Paul Agon, chairman and chief executive officer, said in the Group’s annual report that in addition to strengthening its global leadership in the beauty world, 2012 was also “a year of renewal” for brands such as Lancôme, Vichy, Garnier and The Body Shop. L’Oréal also added strategically to its portfolio with acquisitions such as Cadum in France, Vogue in Colombia and Urban Decay in the U.S.Agon also maintains that innovation is key, and that the company achieved success in this direction in all categories. In total, the Group registered 611 patents in 2012.L’Oréal sprinted ahead with its research and innovation in hair care, opening the largest hair research center in the world in Saint-Ouen, France, as well as a fifth regional research hub in Mumbai, India. In December, the beauty company opened an enormous hair care production plant in Mexico.As it advances into New Markets, the French beauty giant also opened what it calls its largest factory, in Indonesia, which will serve as a production hub for the Southeast Asia region. In order to reinforce its presence in the Kingdom of Saudi Arabia, L’Oréal created L’Oréal KSA, a new subsidiary based on a joint venture with Al Naghi Group.The company also stepped up its efforts toward social responsibility and sustainable production methods. L’Oréal’s global mottoes are “Beauty for All ” and “Beauty Is Universal,” and its further goal in this respect is to gain a billion new consumers over the next decade.The Professional Products Division posted a 2.1% like-for-like and +6.7% reported growth in 2012. In the technical products category, the long-lasting hair colorant ODS2 (Oil Delivery System) was introduced worldwide under the brands INOA2 by L’Oréal Professionnel, Chromatics by Redken and ColorInsider by Matrix.The Consumer Products Division achieved sales growth of +5% like-for-like and +8.9% based on reported figures, driven by strategic advances in Western Europe and North America, along with major product initiatives. Again, hair care proved strong, boosted with products such as Elvive by L’Oréal Paris, Arginine Resist, and Olia by Garnier, the first home-use hair colorant to feature ODS technology. In fact, the hair care division set a new all-time record for market share in Western Europe—in France, as well as in North America.The facial skin care category is also growing, thanks in part to L’Oréal Paris’ Revitalift Laser and Garnier’s BB Cream. Maybelline’s Volume Express Mega Plush mascara and the internationalization of the Essie brand also contributed to category success.Thanks to consumers’ penchant for luxury cosmetics, L’Oréal Luxe sales grew by 8.3% like-for-like and +16% based on reported figures. The division significantly outperformed market growth, due especially to Lancôme, and sales in Asia and North America. The Lancôme brand grew strongly, driven by innovations in facial skin care with Génifique Yeux Light Pearl, and in fragrances with the launch of La Vie est Belle, the top worldwide launch of the year in its category.Facial skin care continues it strength in the Luxe category, with Lancôme joined by Kiehl’s globally, and Clarisonic in the U.S.In Fragrance, Ralph Lauren’s Big Pony Collection for Women and Flowerbomb by Viktor & Rolf continue as top performers.In makeup, the results of a late 2012 launch of Maestro foundation by Giorgio Armani, and the acquisition in December of Urban Decay, hold much promise. (L’Oréal also acquired the Colombian makeup brand Vogue, in October.)L’Oréal says purchasing was also particularly strong in its Active Cosmetics branch—about twice that of the dermocosmetics market—with sales growth of 5.8% like-for-like. Vichy and La Roche-Posay were especially good performers. In fact, 2012 was the first year in which the division made more than 50% of its sales outside Western Europe.In April 2013, Sir Lindsay Owen-Jones announced that he would resign from the board of directors of L’Oréal effective April 26. Owen-Jones served as chief executive officer of the multinational beauty conglomerate from 1988 to 2006.For the first half of 2013, L’Oréal’s sales increased 4.7% to just over $15 billion. Investments in research and innovation and in advertising were cited as growth drivers. Emerging markets again played a key role.Commenting on the figures, Agon said: “In the first half, in a market whose growth slowed down slightly, L’Oréal has continued to record good sales dynamics, and achieved further growth in profits.” He also said that operating profit had reached a “historically high level” at 17.4% of sales.In May, Agon announced a number of changes within the executive ranks. Nicolas Hieronimus was appointed president selective divisions (supervising all the Selective Divisions of L’Oréal—Luxury, Active Cosmetics, Professional Products, The Body Shop); Jean-Jacques Lebel retired as president of the consumer products division and was replaced by Marc Menesguen. In addition three new zones were created: the Americas headed by Frédéric Rozé, Eastern Europe headed by Alexandre Popoff, and Western Europe headed by Jochen Zaumseil. Alexis Perakis-Valat was appointed executive vice-president Asia Pacific Zone.In June, Youssef Nabi, president of Lancôme worldwide, resigned, and Xavier Vey started his new job as Lancôme U.S. president, succeeding Serge Jureidini.In August L’Oréal announced its pending acquisition of China’s Magic Holdings International, a manufacturer of cosmetic facial masks. (Please see more on this key acquisition at ajay.bp.rodmanadmin.com; Expert’s View by Rob Field-Marsham.)Just last month, L’Oréal India announced its first acquisition—Cheryl’s Cosmeceuticals, a pioneer in professional skin care products and treatments in more than 10,000 beauty salons across the country, and annual sales of about 3 million euros.

L’Oréal’s Frédéric Rozé was appointed executive vice president of the Americas Zone.

Stephanie Martins, L’Oréal NA’s vice president of packaging and development—and a member of Beauty Packaging’s Board of Advisors

Lancôme’s ombré-shaded, multi-dimensional bottle lends a futuristic look to the technologically advanced DreamTone.

2012 was a year of acceleration for The Body Shop, whose sales grew by 4.9% like-for-like.

Beauty Sales: $26.3 billion

Major Products: Hair care, skincare, sun care, color cosmetics, toiletries and fragrances sold under many brand names in consumer, luxury and active channels, marketed under brands including Essie, Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson, L’Oréal Professional, Kerastase, Redken, Matrix, Mizano, Shu Uemura Art of Hair, Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté, Vichy, LaRoche-Posay, Innerve, SkinCeuticals, Sanoflore, Stella McCartney. L’Oréal also owns The Body Shop.

New Products: Ralph Lauren Big Pony for Women, Maybelline Falsies Flared and Colossal Cat Eyes mascaras, Kiehl’s Rosa Arctica Lightweight Cream, Garnier’s BB cream, Miracle Skin Perfector, and Dark Spot Corrector; L’Oréal Paris Elvive Triple Resist, Mythic Oil from L’Oréal Professionnel, Lancôme Visionnaire, Hypnôse Doll Eyes, Giorgio Armani Régénessence skincare, Loverdose by Diesel, La Roche Posay Tolériane Ultra, The Body Shop Chocomania Beautifying Lotion.

Comments: Thanks to an expansive global market and increased sales in all categories, L’Oréal enjoyed a profitable year. Net sales rose to more than $26 billion, up over 5% like for like. Commenting on the annual results, Jean-Paul Agon, chairman and chief executive officer, said: “2011 was a solid year of development, which has made the group even stronger.” He added: “L’Oréal achieved sustained sales growth and confirmed its position as the world leader in beauty.”
What’s more, he said, it was a good indicator of the future.

Agon said all divisions are expanding—and as in the growing case with prestige product sales—L’Oréal Luxury posted a particularly prosperous year, due to Lancôme, Giorgio Armani and Kiehl’s. New Markets such as Asia and Latin America are leading the way, but North America, too, showed progress. Agon said that 2012 will be a telling year, “as the New Markets are set to become the group’s number one geographic zone.”

Cosmetics accounted for the lion’s share of total sales—$24.4 billion—boosted by almost $1 million in sales from both The Body Shop ($994 million, up 4.4% like-for-like) and L’Oréal’s Dermatology brands ($912 million, an increase of 8.4% like-for-like).By operational division, Consumer Products led with $12.7 billion (up 4% like for like), followed by L’Oréal Luxury with $6.2 billion (an 8.2% rise like for like), Professional Products reached $3.6 billion (up 2.5%) and Active Cosmetics $1.8 billion (a rise of 3.2%).

By geographic zone, Western European sales, at $9.4 billion, led slightly over New Markets at $9.3 billion, North America followed with $5.7 billion. Of the New Markets, Asia Pacific topped the list at $4.7 billion (up double digits to 13% like-for-like), followed by Latin America at $2.2 billion (also up double digits to 13.2%). Africa and Middle East also increased double digits (10.5% like-for-like), landing at $752 million. Eastern Europe was the only region to mark a decrease, dropping almost 3% like-for-like, to come in third at $1.7 billion.

Professional Products were boosted by hair care and color, which helped to win market share in all zones. The introduction of hair oils—such as Mythic Oil from L’Oréal Professionnel, Elixir Ultime from Kérastase and Argan-6 oil by Redken—added to growth.

Big Pony for Women performed well for L’Oréal in the fragrance race.

In the Consumer Products Division, L’Oréal Paris stepped up launch activities across the board. In Europe, hair care got a boost with the Elvive range, while in makeup, Lash Architect mascara and Color Riche lipstick were strong. The new hair colorant Sublime Mousse and the strong growth of skincare in China are also contributing to the brand’s strong sales.

In Western Europe, the division is winning market share in France, Germany and the Nordic countries. In North America, things are looking up thanks to hair care, makeup and skincare. In the New Markets, the division is performing well in all zones, except Eastern Europe. In Asia, the division is continuing to grow strongly, particularly in facial skincare for both women and men. In Latin America, the division had a good year, particularly in Mexico, Argentina and Chile, due to deodorants and hair color.

As discussed previously, premium products carried the weight at many companies in 2011. L’Oréal Luxury illustrates the trend, with 2011 sales up by 8.2% like-for-like. The division launched innovations in all regions, with Visionnaire from Lancôme leading the way.

In Western Europe, L’Oréal Luxury did well, especially in France, due to Lancôme, Kiehl’s and Diesel. In North America, the division recorded strong growth with its brands Lancôme, Yves Saint Laurent, Kiehl’s, Giorgio Armani and Viktor & Rolf.

In the New Markets, L’Oréal Luxury is growing rapidly. Market share is expanding in Asia due to Lancôme, Kiehl’s and Shu Uemura; and it continues to grow in Latin America, the Middle East and Eastern Europe. The cosmetics brand Clarisonic, joined the L’Oréal Luxury brand portfolio; it is the market leader in sonic technology skincare applications.

Kiehl’s contributed to L’Oréal’s market expansion in Asia.

In 2011, the Active Cosmetics Division grew by 3.2% like-for-like and with strong gains in Latin America, the U.S., Africa, and Middle East, boosted its top position in the worldwide dermocosmetics market. Leading brands included La Roche Posay, SkinCeuticals and Roger&Gallet.
La Roche Posay is growing globally, and Vichy has maintained its No. 1 position in the world.

Conditions improved in 2011 for The Body Shop, which achieved 4.2% sales growth like-for-like, with a large rise in the 4th quarter. In 2011, The Body Shop achieved growth in Europe and North America and quickly expanded in the New Markets. The brand experienced strong growth in the Middle East, particularly in Saudi Arabia and Egypt, as well as in Asian countries such as India, and in Hong Kong and Eastern Europe. The retailer now has 16 online stores and is continuing to grow at an accelerated rate in e-commerce. At the end of 2011, The Body Shop had a total of 2,748 stores, an addition of 143 since December 31, 2010, with an additional presence in global Travel Retail outlets.

A few additional notes on activities during the year:

In March, with Designers Brand fragrances gaining within the L’Oréal Luxe Division, Stephan Bezy was appointed international general manager of Yves Saint Laurent and joined the management committee of L’Oreal Luxe.

Ralph Lauren expanded one of its headliners, adding the four-fragrance Big Pony Collection for Women.


L’Oréal renewed its commitment to hair care by opening a new Global Hair Research Center, located in Paris Saint-Ouen. The cutting edge facility is the head of a network of six regional centers around the world. The 25,000-square meter center employs 500 chemists, physico-chemists, opticians, materials scientists, metrologists, rheologists, computer scientists and statisticians.

In August L’Oréal reported first-half sales of $14.55 billion, a 10.5% gain. Net profits rose 10.8%, and the world’s largest beauty company confirmed expectations that it will outperform the market this year.

However, despite the optimism, shares dropped and one investment firm downgraded the French beauty giant. At the end of August, Agon acknowledged: “We believe that the cosmetics market should remain buoyant, even though over the summer we noted some obvious signs of slowdown.”

Agon noted a slight falling off in the luxury market in Asia and the U.S., as well as in the travel-retail channel. Despite that, he said L’Oréal believes the worldwide cosmetics market should grow by about 4% over the year.

Major Products: Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under a variety of brand names in different channels. Consumer—Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson. Professional—L’Oréal Professional, Kerastase, Redken, Matrix, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Giorgio Armani, Ralph Lauren, Viktor & Rolf, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, SkinCeuticals, Sanoflore. Other—The Body Shop.

Maybelline sales are rising strongly in all regions. In the U.S., success was due in part to Falsies mascara.

New Products: Maybelline New York Great Lash Lots of Lashes Mascara, Baby Lips Lip Balm, L’Oréal Paris Matte Morphose, Garnier Pure Active Exfo-Brusher, Inoa, Matrix Optistraight, Kérastase Chronologiste, Wonderbrown, Redken Style Connection, Lancôme Hypnôse Precious Cells, Trésor in Love and Teint Miracle, Yves Saint Laurent Rouge Pur Couture, Ralph Lauren Big Pony, Maison Martin Margiela (untitled), La Roche-Posay Anthélios with Mexoplex, Skinceuticals Pigment Regulator; The Body Shop—Rainforest, Hemp Collection.

Comments: In sync with L’Oréal’s CEO Jean-Paul Agon’s announcement that he would also be taking over the reins of chairman in March when the France-based beauty giant’s long-time leader Sir Lindsay Owen-Jones retired, Agon announced the financials for the year ended December 31, 2010. Sales for the period rose 5.6%, like-for-like to $25.8 billion. Agon declared that the economic crisis was over, and said the worldwide cosmetics market had returned to growth in 2010, with an estimated 4% increase. Corporate sales were highest in the consumer products division, but strongest growth was in luxury products. The company, which now claims a billion consumers, is looking to emerging countries and new markets to double that number over the next decade.

Commenting on the figures, Agon, said: “In the context of an upturn in the cosmetics market, L’Oréal achieved strong sales growth. The group advanced in all zones, all channels and all business segments; more dynamic than the market, it bolstered its position as the world’s number one in beauty.” He added: “L’Oréal is entering a new phase in its history, that of universalization and beauty for everyone.”

By division, consumer products accounted for 52.5% of sales, followed by luxury products (24.9%), professional products (15.0%) and active cosmetics (7.6%).

By business segment, skin care accounted for 27.2% of sales, followed by hair care (22.1%), makeup (21.2%), hair colorants (15.0%), perfumes (10.0%) and other (4.5%).

By region, Western Europe totaled 39.6% of sales, followed by New Markets (36.8%, of which 47.9% came from Asia Pacific, 20.9% Eastern Europe, 22.8% Latin America and 8.4% Africa, Middle East) and North America, 23.6%.

In 2010 several brands achieved what Agon referred to as “spectacular breakthroughs:” L’Oréal Professionnel (with its hair colorant Inoa), Maybelline Falsies mascara), Yves Saint Laurent and La Roche-Posay.

La Roche-Posay, one of L’Oréal’s Active Cosmetics brands, achieved double-digit growth, thanks to Redermic[+].

The L’Oréal Group is growing in Western Europe, improving its standing in North America, and continuing to gain consumers in new strategic markets, particularly in Asia and Latin America. In 2010, L’Oréal China became the group’s No. 3 cosmetics subsidiary, with sales of more than $1.35 billion, and China became L’Oréal’s third largest market worldwide. Looking ahead, Agon commented: “In 2011, for the first time, the New Markets may be the group’s number-one zone for sales.”

L’Oréal South America is shooting to double sales in Brazil by 2015 with the goal of adding 50 million new customers there in the next decade. L’Oréal’s Brazilian sales climbed 21% in 2010, making it the company’s seventh-largest country.

Globally, consumer product sales rose 5.5% like-for-like to more than $12.6 billion. The company credits the gain to the introduction of Youth Code, which marks a new era in mass market skin care, according to L’Oréal, and the successful debuts of Elséve in India, China and Southeast Asia. Professional product sales rose more than 4% to nearly $3.6 billion on the success of Matrix products in emerging markets and the continued expansion of Inoa hair colorants. Luxury product sales rose 7% to nearly $6 billion as Lancôme skin care posted double-digit gains and sales in Asia soared nearly 20%. Sales of active cosmetics rose 4.7% to more than $1.8 billion as Vichy posted an 18.4% gain in Latin America. Finally, The Body Shop posted sales in excess of $1 billion and received a boost from a 31% gain in e-commerce sales.

The consumer products division gained market share in North America and the New Markets. The makeup market, the No. 1 category in this division, saw growth across all zones. All the brands are reported to be growing, especially Maybelline, which achieved growth of 13.3% like-for-like, and which is rising strongly in all regions. It became the makeup market leader in the U.S. due to the success of Falsies mascara and Instant Age Rewind The Eraser foundation.

L’Oréal’s acquisition of Essie drew instant nail care sales.

Garnier made its move into the facial skin cleanser segment for youth with the launch of Pure Active Exfo-Brusher. The brand is also following on its success by introducing deodorants around the world, and is adapting its formats and prices to reach as many new consumers as possible, with products such as Garnier Light skin care sachets in Thailand and Fructis shampoo sachets in India.
The division is also making progress in the men’s skin care category, especially in Western Europe where Men Expert is now No. 1 in the market, and in Asia where the Garnier Men launch complements the L’Oréal Paris Men Expert range.

In Western Europe, the division advanced thanks to makeup, hair care and deodorants. In North America, it gained market share in makeup, hair colorants, hair care and styling.

In the salon market, which recovered slightly over the previous year, the Professional Products Division achieved growth in 2010 of 4.1% like-for-like.

In 2010, L’Oréal claimed a number of winning launches in the salon channel, including ammonia-free hair color Inoa by L’Oréal Professionnel, SoColor by Matrix, and Wonderbrown.
In Western Europe, the salon division saw significant growth in Germany, the UK, Sweden and France. In North America, 2010 saw strong results with Matrix, Mizani and Pureology. The acquisition of two distributors, CB Sullivan and Peel’s, has completed the SalonCentric network. There has been strong growth in the New Markets of India, China, Indonesia, and also in the Middle East and Brazil, where L’Oréal Professionnel has opened its first institute for the training of young hairdressers.

The Luxury Products Division was up 7% like-for-like, and posted sell-out growth. It proved particularly strong in Travel Retail.

Lancôme returned to strong growth, boosted by its skin care lines, particularly Génifique, but also by the launch of Teint Miracle foundation. The fragrance Trésor by Lancôme is doing well, boosted by the launch of Trésor in Love.

Yves Saint Laurent returned to double-digit growth, due especially to fragrances such as L’Homme Yves Saint Laurent, La Nuit de L’Homme, the relaunch of Opium and the arrival of Belle d’Opium. The brand is also making a strong comeback in makeup with the launch of Rouge Pur Couture.

Giorgio Armani had a very good year, driven by women’s fragrance (Acqua di Gioia) and cosmetics (Eyes to Kill Excess mascara).

Kiehl’s also surged ahead in 2010 on all continents.

In Western Europe, the Luxury division remains No. 1, with sales led by France, Germany, the UK and Scandinavia.

In North America, the situation is a little more tenuous, but the Yves Saint Laurent, Kiehl’s and Viktor & Rolf brands are all showing strong sales growth. Ralph Lauren’s The Big Pony Collection proved highly successful.

In the New Markets, the division is growing faster than the market: in Asia, thanks to the dynamism of Travel Retail, China, and the good performances of Lancôme, Kiehl’s, Giorgio Armani and Shu Uemura; and in Eastern Europe, where the division is continuing to make strides.

Annual sales of the Active Cosmetics Division grew 4.7% like-for-like. All the brands and all the zones achieved growth. Across the world, the division proved No. 1 in dermocosmetics.

La Roche-Posay owed double-digit growth to Redermic, and Vichy’s success came with the LiftActiv franchise. SkinCeuticals recorded strong growth as well.

The Body Shop finished out 2010—a year of transition and reorganization—with like-for-like growth at -1.1%, affected by trends that varied between the developed countries and the New Markets. New innovative products are being launched in 2011 and the brand is revving up its entrance into the New Markets.

All the zones ended the year with positive growth.

Sales in Western Europe were up 1.7% like-for-like. In North America, 2010 exceeded the market growth trend at 4.1% like-for-like. New Market growth at 11.3% like-for-like shows the group is growing twice as fast as the market. The main driving forces are Asia and Latin America.

In Asia Pacific, L’Oréal recorded 11.2% growth like-for-like.

Growth in Eastern Europe at 8.1% like-for-like is strongest in Ukraine and Russia where makeup and Garnier prove popular, in addition to the continuing advances of the Luxury Products Division.
In Latin America, sales grew by 17.5% like-for-like. All the major countries in this zone are growing, particularly Brazil and Argentina. Mexico has returned to growth. The Consumer Products Division is the driving force of this expansion, with hair care and deodorants.

Sales grew by 4.1% like-for-like in Africa and Middle East.

L’Oréal USA acquired Essie Cosmetics, the iconic nail brand.

New global brand ambassadors signed on in 2010 included Jennifer Lopez and Rachel Weisz for L’Oréal Paris, and Penelope Cruz as a face of Lancôme.

For the first half of 2011, L’Oréal’s sales rose 5% to $14.24 billion. On a like-for-like basis, revenues were up 5.2%. Sales in Latin America rose 18% during the period, with a 13.5% rise in Asia Pacific, 3.1% in North America and 1.4% in Western Europe. Eastern Europe saw a drop of 3.8%.

Beauty Sales: $23.3 billion

Major Products: Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under a variety of brand names in different channels. Consumer—Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson. Professional—L’Oréal Professional, Kerastase, Redken, Matrix, Mizano, Keraskin Esthetics. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté. Active Cosmetics—Vichy, LaRoche-Posay, Inneov, SkinCeuticals; The Body Shop
.
New Products: Professional products—Inoa hair color; Consumer products—Renewal Lash Serum, Garnier Essentials, Maybelline New York Color Sensational lipstick; Luxury products—Lancôme Génifique, Hypnôse Drama mascara, Yves Saint Laurent Parisienne fragrance, Giorgio Armani Idole fragrance; Active cosmetics—Vichy Neovadiol Gf skin care, Vichy LiftActiv Retinol HA, Galderma Azzalure; The Body Shop’s Love, etc…

Frédéric Rozé, president and chief executive officer of L’Oréal USA

Comments: For the fiscal year, L’Oréal’s 100th, the leading global cosmetics player ultimately generated more than respectable sales of $23.3 billion, while at the same time gearing up for future growth. Cosmetics accounted for the largest share of revenues at $21.9 billion. Skin care and hair color showed slight gains. Sales were strongest in Western Europe, followed by Rest of the World and North America.

Jean-Paul Agon, chief executive officer, said that 2009 was a turning point. “We have emerged from it stronger and transformed, paving the way for the L’Oréal of tomorrow,” he said. “The good news is that the cosmetics market proved very resilient. Despite the exceptionally tough economic conditions, it ended up showing slight growth even though the start of the year was very difficult.”

To weather the crisis, L’Oréal introduced three major strategic changes to prepare for the future: broadening its consumer base with the target of winning a billion new consumers worldwide; a thorough transformation of the company to make it stronger and more flexible; and increased investments in R&D and advertising and promotion to accelerate future growth.

The performances of the divisions varied greatly. The Consumer Products Division reportedly grew faster than its market and strengthened its positions across the world, particularly in new markets. Luxury Products experienced a difficult year in a negative market context, although the integration of Yves Saint Laurent was successful. The Professional Products Division experienced a difficult year in sales terms, but set an all-time record for recruiting new salons, with market share gains in every region of the world. Active Cosmetics strengthened its global position as No. 1 in dermocosmetics. The Body Shop managed a very slight sales growth. And, Galderma achieved another year of double-digit growth and made significant market share gains.

Agon noted two highlights in a difficult year: advances in R&D and growth in the Rest of the World zone. Innovations including Inoa by L’Oréal Professionnel, Génifique and Absolue Precious Cells by Lancôme showed how L’Oreal’s dedication to science and R&D pays off. The company registered a total of 674 patents during 2009.

The gradual return to strong growth in the Rest of the World zone resulted in large market share gains in all divisions. This set of countries, which accounts for more than 85% of the world’s population, already represents 50% of the total cosmetics market, according to Agon. “This proportion is constantly rising,” he said. “The shift in the global cosmetics market is happening right now. The consumption of cosmetics products will follow population trends. This is a unique opportunity for L’Oréal’s development over the next 20 years.”

Environmental commitment also loomed large at L’Oréal as with other manufacturers, and contributed to a number of earth-friendly launches in all divisions. In the Professional Products Division, L’Oréal Professionnel launched its first-ever Ecocert certified organic shampoo in its Série Nature range. The Body Shop’s Love Etc… is the first internationally available fragrance to include Community Trade alcohol made from organic sugar cane. Garnier, a pioneer in packaging reduction, continues with its commitment to a 15% reduction in the average weight of its packaging by 2012.

In 2010, L’Oréal looked to capitalize on the growing nail care market with its acquisition of the Essie brand. The company also closed all U.S. operations of Shu Uemura Cosmetics.

Conditions remain positive for 2010. L’Oréal’s first half report for 2010 showed a strong increase in profits, with a high level of operating margin at 17.3% of sales, and a feeling of optimism for the future. Net profit rose 21% in the first half of the year, and was in part attributed to a strong demand for its Maybelline and YSL Beauté’s mascaras, Lancôme fragrances and the new Inoa hair colorant.d two highlights in a difficult year: advances in R&D and growth in the Rest of the World zone. Innovations including Inoa by L’Oréal Professionnel, Génifique and Absolue Precious Cells by Lancôme showed how L’Oreal’s dedication to science and R&D pays off. The company registered a total of 674 patents during 2009.

Beauty Sales: $25.8 billion

Major Products: Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under many brand names in different channels. Consumer—Garnier, L’Oréal Paris, Maybelline, SoftSheen-Carson. Professional—L’Oréal Professional, Kerastase, Redken, Matrix, Mizano. Luxury—Lancôme, Biotherm, Helena Rubenstein, Kiehl’s, Shu Uemura, Giorgio Armani, Ralph Lauren, Cacharel, Viktor & Rolf, Diesel, YSL Beauté. Active Cosmetics—Vichy, La Roche-Posay, Inneov, SkinCeuticals. Personal Care—The Body Shop.

New Products: Redken Blonde Glam; L’Oréal Paris Elsève Renutrition Highlights; Garnier Fructis Oil Repair triple nutrition; Franck Provost shampoo and hair care range; Only the Brave by Diesel.

Comments: Priding itself on offering a wide range of products for beauty consumers at every level, L’Oréal focused on launching products at more accessible prices in several brands, ensuring market coverage in all distribution channels and across all price segments. As a result, corporate sales for 2008 reached $25.8 billion. The company’s Professional Products division saw sales rise 1.3%, Consumer Products were up 4.1% and Active Cosmetics gained 4.2%.

Frederic Roze has replaced Laurent Attal as president and chief executive officer of L’Oréal USA.

The company’s Luxury Products division took a hit, however, as sales declined 0.7% on a like-for-like basis. By segment, cosmetics contributed $23 billion, a 2.7% likefor- like growth over the previous year, while The Body Shop showed a like-for-like growth of 4.6% at $1 billion, and Dermatology showed a 17% rise to $601 million. In the cosmetics segment, Consumer Products accounted for more than half (51.5%), followed by Luxury Products (25.5%); Professional Products (15.1%); and Active Cosmetics (7.9%). By segment, skin care, hair care and makeup drew the most sales at 26%, 23.2%, and 20.6% respectively, followed by hair colorants (15%), perfumes (11.3%) and other (3.7%). By geographic zone, Western Europe held the lead with more than 45% of sales, followed by the Rest of the World (32%) and North America (22.9%).

L’Oréal marked its monumental 100th anniversary in 2009.

For the first half of 2009, L’Oréal’s sales figures elicited a wave of hope and a sigh of relief, as the world’s No. 1 cosmetics group reported higher than expected profits of nearly $2 billion, with operating profitability at 15.7% of sales.

Based on June 30, 2009 figures, the group’s sales amounted to $12.6 billion, an increase of 1.4%. Like-for-like, the sales trend of the L’Oréal group declined 3.2%.

Profitability of the cosmetics segment varied by division. In the Professional Products division, it amounted to 19.1%, compared with 21.1% in the first half of 2008.

Lancôme is gaining ground with Génifique Youth Activating Concentrate, $78, which brings together geneomics and proteomics.

Consumer Products profitability reached 20.7%, similar to that of the first half of 2008. The profitability of the Luxury Products division, at 11.9%, declined substantially over the same period of 2008, due to shrinking markets and reduced inventories. (However, in the second quarter, L’Oréal reported that the Luxury Products division reversed the trend with its latest launches, in particular, those from Lancôme.) Lancôme is gaining ground with Génifique, which brings together geneomics and proteomics. Ôscillation Powermascara and Ôscillation Power Booster are both doing well. Kiehl’s recorded doubledigit worldwide growth at the end of June, with strong performances in Asia. Yves Saint Laurent sales are said to be steadily improving thanks to products such as its latest fragrance La Nuit de l’Homme, and its makeup range. Only the Brave by Diesel added clout in the men’s fragrance market.

Launches continue at a rapid-fire rate in the Professional Products Division, too. Matrix, an easily affordable brand, is doing well in the Rest of the World zone. In Asia, perm lines Opti-Straight and Opti-Thermic Curl are particularly popular.

In the Consumer Division, L’Oréal Paris launched Elsève Renutrition Highlights and Revitalift face and neck contours. At Garnier, new items are Fructis Oil Repair triple nutrition, and the Garnier Soins Essentiels initiative, a line of skin care and cleansing products priced below $7. At Maybelline, the success of Stiletto mascara and Dream Liquid foundation continues. A new shampoo and hair care range, the Franck Provost brand launched with very affordable pricing.

The Active Cosmetics Division was especially profitable, accounting for almost 30% of sales. The operating profitability of The Body Shop proved slightly positive. Profitability of the Dermatology branch, Galderma, grew 11.6% in the first half of 2009.

Moving forward, the company continues its focus on innovation. In 2008, alone, L’Oréal filed 628 patents. Now at the helm of R&D efforts is former president and chief executive officer of L’Oréal USA, Laurent Attal, who, after four years in the post, was promoted and reassigned to the Paris headquarters to handle L’Oréal’s global R&D effort, as well as its innovation department. Attal’s replacement in New York is Frederic Roze, formerly the head of the company’s mass-market Consumer Products division in Europe. Attal succeeds Jean-François Grollier, who retired after 40 years with L’Oréal.

Beauty Sales:: $24.7 billion

Products/Brands: Hair care, skin care, sun care, color cosmetics, toiletries and fragrances sold under 25 international brand names, including L’Oréal Paris, Garnier, Maybelline New York, Pureology, Lancôme, Biotherm, Helena Rubinstein, Kiehl’s, Shu Uemura, Ralph Lauren Fragrances, Diesel, Victor & Rolf, La Roche-Posay. L’Oréal’s holdings also include The Body Shop.

The Yves Saint Laurent Rouge Volupté, shown here in Provocative Pink, boasts a built-in mirror.

New Products:  L’Oréal Professionnel Color Supreme, Derma Genesis/Skin Genesis, Lancôme Rénergie Morpholift Rare line, La Roche-Posay Substiane anti-aging replenishing care, Maybelline Define-A-Lash.

Comments: Sir Lindsay Owen-Jones, chairman of L’Oréal, noted in the company’s 2007 annual report that “the globalization of cosmetics consumption is only just beginning.” No company understands that better than L’Oréal, for while U.S. sales grew by 4.8% like-for-like, global and emerging markets were key to the company’s profitability in 2007. Led by CEO Jean-Paul Agon, L’Oréal reported double-digit growth for the 23rd consecutive year, with sales of $24.7 billion (which would actually put L’Oréal in first place ahead of P&G, if not for P&G’s addition of personal grooming into its beauty segment).

L’Oréal strengthened its position in all markets, and reported that for the 15th consecutive year, the growth of its business in the world’s cosmetic market was once again above average at 5%. For the first time, “the newer countries” (in areas such as Asia, Latin America and Eastern Europe), which L’Oréal calls the “rest of the world” zone, comprised the largest market. “This is a turning point in the history of L’Oréal,” said L’Oréal’s Agon. “Over the coming years, this zone will make a major contribution to the increase in the group’s profitability.” All in all, L’Oréal’s share of the world market increased to 15.3% with significant gains on all continents.

By percentage, consumer products led with 52%, followed by luxury products (24.7%), professional products (15%) and active cosmetics (7.8%). By business segment, skin care captured over a quarter of sales with 26.2%, followed by hair care (23.8%), makeup (20.4%), hair color (15.7%), perfumes (10.8%) and other (3.2%). Overall, Western Europe still held a commanding share with 45.6%, with “the rest of the world” edging out North America 29.2% over 25.2%.

Looking at the first half of 2008, L’Oréal’s sales registered $13.6 billion, an increase of 5.3% like-for-like. Luxury brands are proving to be a driving force behind sales.

Sales in the Luxury Products division grew 4.9% like-for-like over the same period last year. In skin care, Lancôme’s anti-aging products (in particular the Rénergie line and the launch of Primordiale Cell Defense) were major contributors. The men’s skin care segment also proved healthy, due to the launch of Skin Minerals for Men by Giorgio Armani, and the success of the Biotherm Homme and Kiehl’s skin care lines. In makeup, the new Photogenic Lumessence foundation from Lancôme was a standout. In fragrances, the success stories of Emporio Armani Diamonds and Diesel Fuel for Life continue. The division has undertaken major worldwide launches for Magnifique by Lancôme and Notorious by Ralph Lauren.

The Professional Products division, which is expanding into salons and winning market share around the globe, achieved like-for-like growth of 3.8%. Chroma Riche by Kérastase and Shu Uemura Art of Hair, were both increasingly successful.

The Consumer Products division reported a like-for-like increase of 5.7%. Skin care continued to show growth and significant gains in market share thanks to L’Oréal Paris’ Skin Genesis, Maybelline New York’s Mineral Power foundation and Define-A-Lash mascara. In hair care, Garnier Fructis Blond Care and Re-Nutrition by L’Oréal Paris led the segment.

Also in June, the French cosmetics giant announced the completion of the purchase of YSL Beauté and its subsidiary Roger and Gallet for a reported $1.68 billion. Under the agreement, L’Oréal also gained licenses to the Stella McCartney, Oscar de la Renta and Ermenegildo Zegna fragrance and cosmetics lines.

Looking ahead, Agon said, “With a very intensive launch program in the second half, we are optimistic about our ability to improve our growth by the end of the year.”