PARIS — L’Oréal reported first-quarter sales in 2018 declined 1 percent, dampened by the negative impact of currency fluctuations.
In the three months ended March 31, the maker of Lancôme, Kiehl’s and L’Oréal Paris products generated sales of 6.78 billion euros. Organic growth in the period stood at 6.8 percent, spurred by an acceleration in the group’s Luxe and Active Cosmetics Divisions, the company reported after the close of the French bourse on Thursday.
“The L’Oréal group has started 2018 with very dynamic like-for-like growth, which continues to reflect sharp contrasts,” said Jean-Paul Agon, chairman and chief executive officer of L’Oréal, in a statement. “All of the divisions are growing.”
He said the L’Oréal Luxe Division quickened its gains, due to Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl’s each registering more than 10 percent increases.
“The Active Cosmetics Division, with double-digit growth, is driven by the success of its La Roche-Posay and SkinCeuticals brands, the new impetus of Vichy and the dynamism of CeraVe,” said Agon.
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The Consumer Products Division posted a moderate uptick that was highly contrasted on a regional basis.
“The gradual transformation of the Professional Products Division is producing its first positive results, held back, however, by the sluggishness of some major markets in Western Europe,” he continued.
The executive noted a return to strong sales increases in New Markets, particularly in the Asia-Pacific region.
E-commerce revenues were up 33.8 percent and generated 8.8 percent of group sales in the period.
“In a currency context that remains unfavorable, the first quarter demonstrates the vitality of our organic growth, auguring well for the future,” said Agon. “For the full year, we are confident in our ability to outperform the market and achieve significant growth in our like-for-like sales, while increasing our profitability.”