L’Oréal’s travel retail business has grown by almost 30% in the first nine months of 2018. The cosmetics giant released its Q3 financial results on Oct. 30, reporting “an acceleration in the third quarter, with the highest quarterly growth rate for 10 years.”
Total sales for the nine months reached 19.86 billion euros, an increase of +6.8% on a like-for-like basis, or +7.4% at constant exchange rates. Travel Retail sales turned in “rapid growth” of 29.9% (based on constant exchange rates), far outstripping the company’s total growth rate of 6.8% during the period.
Among the brands, L’Oréal Luxe posted growth of 14.2%, like-forlike, for the nine month period.
L’Oréal Luxe is growing strongly in Asia Pacific, especially in China and Hong Kong, and in Travel Retail. Eastern Europe and Latin America also performed well for the division.
L’Oréal also said that it leads in digital beauty, particularly in ecommerce, which has grown by +38.3% and represents 9.7% of sales.
Commenting on the figures, L’Oréal Chairman and CEO, Jean-Paul Agon, said:
“In a beauty market that continues to accelerate, driven by robust growth in skincare, the Group maintains its strong momentum, with contrasted performances between the Divisions. L’Oréal Luxe is showing dynamic growth, underpinned in particular by its four biggest brands, Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl’s.
“The Active Cosmetics Division, which continues to post double-digit growth, is being driven worldwide by consumer aspirations for dermo-cosmetics and the quality of its brand portfolio.
“The Consumer Products Division is held back by persistent difficulties in some countries. The L’Oréal Paris and Maybelline New York brands are however maintaining their good momentum. The performance of the Professional Products Division, which is continuing its transformation, is stable.
“This quarter also confirms the power of our major global brands, which are delivering an excellent performance at a time when the offer in beauty products is particularly rich.”
Agon also reports that geographically, new markets are accelerating once again: “The Group is growing rapidly in Asia, especially in China where the boom in luxury products continues. The pace of growth remains moderate in North America, while the situation of sales in Western Europe is still difficult, particularly in the United Kingdom.”