L’Oréal has announced its results for FY fiscal 2018, revealing that it enjoyed its best sales growth in more than 10 years over the last financial year. The French beauty giant saw sales grow 7.1 percent (like-for-like) to €26.9 billion.
L’Oréal also smashed its operating margin record, with operating profit reaching €4.92 billion or 18.3 percent of sales. Net profit was up 8.8 percent to €3.89 billion.
“In a beauty market that accelerated significantly in 2018, L’Oréal marked its best year of growth since 2007, at 7.1 percent, following a strong fourth-quarter increase of 7.7 percent,” said Jean-Paul Agon, Chairman and CEO.
“All divisions are growing, especially L’Oréal Luxe and Active Cosmetics, which both recorded double-digit growth. The big brands are the star performers, particularly in the L’Oréal Luxe Division, where Lancôme sales crossed the 3 billion euro mark. The Active Cosmetics Division achieved its highest growth for more than 10 years in a very dynamic skincare market. In the Consumer Products Division, 2018 was a good year for L’Oréal Paris and Maybelline New York. The Professional Products Division meanwhile recorded a modest increase in sales, thanks to a significant acceleration in the final quarter.”
The French beauty giant’s sales in China show no sign of slowing down, with Chinese consumers’ continued appetite for L’Oréal fuelling an upsurge in Asia-Pacific sales, which, at more than €7 billion, have now overtaken North America. Travel retail and e-commerce were highlights, with the former breaching the €2 billion barrier for the first time.