PARIS — L’Oréal maintained a strong performance in the second quarter, posting organic sales growth of 6.3 percent, powered by its Luxe and Active Cosmetics Divisions.
The maker of Lancôme, Kiehl’s and L’Oréal Paris products said Thursday that sales totaled 6.61 billion euros in the three-month period ended June 30.
On a reported basis, group sales increased 0.7 percent in the second quarter.
Net profits gained 11.9 percent to 2.28 billion euros in the first half, while operating profit rose 1.8 percent to 2.58 billion euros. L’Oréal’s operating margin stood at 19.2 percent, an increase of 30 basis points against the same prior-year period.
Group sales in the six months were up 6.6 percent on a like-for-like-basis and dipped 0.2 percent in reported terms to 13.39 billion euros.
“In a beauty market [that] remains dynamic and is becoming more premium, L’Oréal is continuing to achieve strong growth,” said Jean-Paul Agon, chairman and chief executive officer of L’Oréal. “In lively markets, the L’Oréal Luxe and Active Cosmetics divisions have both recorded double-digit growth, driven by the power of their brand portfolios and the quality of their innovations.
“The Consumer Products division, especially with a robust performance at L’Oréal Paris, has recorded moderate growth, held back by an environment that is very difficult in some markets. The Professional Products division, meanwhile, has posted a slight increase in sales,” he added.
Agon noted business in New Markets picked up pace once again, particularly in Asia, while North America is gradually improving. Western Europe’s performance remains dampened by persisting problems in France and a slowdown in the U.K.
L’Oréal’s online sales registered growth of 36.4 percent in the first half, when they generated 9.5 percent of total group sales. Revenues from travel retail gained 27.3 percent for L’Oréal.
“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,” Agon said.