Sales: $40.1 billion

Key Personnel: Nicolas Hieronimus, chief executive officer; Barbara Lavernos, deputy chief executive officer; Christophe Babule, chief financial officer; Vincent Boinay, president, travel retail; Cyril Chapuy, president, luxe; Myriam Cohen-Welgryn, president, active cosmetics; Vianney Derville, president, Europe Zone; Asmita Dubey, chief digital and marketing officer; David Greenberg, president, North America & chief executive officer, L’Oréal USA; Omar Hajeri, president, professional products; Blanca Juti, chief corporate affairs and engagement officer; Jean-Claude Le Grand, chief human resources officer; Fabrice Megarbane, president, North Asia Zone & chief executive officer, L’Oréal China; Alexandra Palt, chief corporate responsibility officer and CEO of the Foundation L’Oréal; Alexis Perakis-Valat, president, consumer products; Ersi Pirishi, president, Latin America; Frédéric Rozé, chief global growth officer; Vismay Sharma, president, South Asia Pacific, Middle East, North Africa; Antoine Vanlaeys, chief operations officer

Major Products: 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; Consumer Products—L’Oréal Paris, Garnier, Maybelline, NYX, Stylenanda, Essie, Dark and Lovely, Mixa, MG, Niely; Dermatological Beauty—La Roche-Posay, Vichy, CeraVe, SkinCeuticals, Skinbetter Science; Professional Products—L’Oréal Professionnel, Kérastase, Redken, Matrix, Pureology

New Products: L’Oréal Luxe—My Way by Giorgio Armani, YSL Rouge Sur Mesure, Viktor&Rolf mini series, Valentino Born In Roma, Mugler Angel Elixir and Prada Luna Rossa Ocean and Paradoxe, Lancôme Ultra-Precise Colored Idôle Liners; Consumer Products—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; Professional— 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;  Dermatological Beauty—La Roche-Posay Spotscan; Acquisition—Aesop

Comments: Sales soared 18.5%. As a result, L’Oréal is closing in on Unilever for the No. 1 spot in our International Top 30 ranking.

By division, L’Oréal’s Professional Products unit sales rose 18.3% across all geographic zones. Best performances were turned in by China, India and Brazil. Kérastase sales topped €1billion for the first time. Also contributing to the gains were Série Expert via the launch of Metal Detox, as well as Redken’s Shades EQ and Inoa by L’Oréal Professionnel.

Consumer Products’ sales rose 14.6%. Makeup was the division’s fastest growing category. Top new product launches included Superstay Vinyl Ink lipcolor by Maybelline New York, and  Bare With Me concealer and Jumbo False Eyelashes by NYX Professional Makeup. In skin care, Garnier was the division’s top growth contributor, with its Vitamin C Brightening Serum a standout success.

L’Oréal Luxe sales rose 18.6% on the strength of a soaring fine fragrance business. Top selling scents included Libre by Yves Saint Laurent, La Vie Est Belle by Lancôme and Acqua di Gio by Armani. L’Oréal noted that the launch of Prada Paradoxe was well received, too. In skin care, the division grew three times faster than the market, led by a “spectacular performance” from Helena Rubinstein, cutting-edge innovations such as Lancôme’s Rénergie H.C.F Triple Serum, and the success of recent acquisitions including the Japanese brand Takami. The division also grew in makeup, thanks to the initiatives of Yves Saint Laurent and Urban Decay.

L’Oréal Active Cosmetics soared 30.6%. The division posted double-digit growth in all regions, with a “remarkable performance” in North America, China, South Asia Pacific, Middle East and North Africa. La Roche-Posay and CeraVe contributed equally to the division’s growth. La Roche-Posay is the division’s biggest brand. Its gains were driven by Cicaplast and Effaclar, as well as the success of the UVMune 400 breakthrough innovation in sun protection. CeraVe continued to expand internationally, achieving spectacular 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, fueled by the excellent performance of A.G.E Interrupter anti-wrinkle cream. The newly acquired brand Skinbetter Science, integrated into the division in the fourth quarter, showed promising potential, according to L’Oréal.

By region, European sales rose 12.3%; North American sales increased 24.6%; sales in North Asia rose 14.8%; South Asia Pacific, Middle East and North Africa sales rose 28.1%; and Latin America sales increased 34.1%.
The outstanding results continued in the new year. For Q1 2023, L’Oréal’s sales jumped 14.6%. Gains came in every division, led by dermatological beauty and consumer products. By region, L’Oréal said it posted spectacular gains in emerging markets, and strong double-digit growth in every zone except North Asia, which suffered from inventory reductions in China.

In April, L’Oréal agreed to acquire Aesop from Natura. When the $2.5 billion deal closes, the hair and skin care brand will be added to the Luxe Division of brands. L’Oréal plans to expand the brand into China and travel retail.

In May, L’Oréal was proclaimed the “World’s Most Valuable Cosmetics Brand,” by Brand Finance. Specifically, the L’Oréal brand was valued at $12 billion. That’s an increase of 7% from 2022 and put it well ahead of Estée Lauder, the No. 2 brand, which was valued at $7.2 billion. The same month, The Fragrance Foundation inducted CEO Nicolas Hieronimus into its Hall of Fame.

In July, L’Oréal and Verily, an Alphabet precision health tech company, launched My Skin & Hair Journey, a multi-year study that will help researchers better understand the biological, clinical and environmental factors that contribute to skin and hair health over time. The new My Skin & Hair Journey registry will enroll thousands of self-identifying U.S. women to develop a body of knowledge about perceptions and experiences of skin and hair health, including the role of lifestyle, environment, wellness, and personal beauty routines.

The My Skin & Hair Journey longitudinal registry for skin and hair health is enrolling participants in the United States, with the intention to expand internationally. Self-identifying women aged 18-70 from various ethnicities, social backgrounds and with diverse skin and hair attributes are invited to take part by privately sharing their unique skin and hair health journeys through self-reported data and surveys. A subgroup of participants will also be invited to further testing to uncover biomarkers—unique biological signatures—that can lead to early detection or prevention of skin disorders, before they take hold. L’Oréal will leverage insights generated from the registry to develop innovative, precision beauty offerings to support the skin and hair goals of all consumers.

“We are passionate about embarking on this journey with Verily, the worldwide leader in precision health tech. It is the first time a study of this magnitude has been designed for and launched in the beauty industry. Our work will go beyond skin and will cover our research around longevity,” said Barbara Lavernos, deputy CEO in charge of research, innovation and technology at L’Oréal. “This study has the potential to unlock the mysteries of skin and hair health down to the individual level. In the future, it can serve as the cornerstone for developing precision beauty innovations for hair and skin, with a level of personalization never seen before.”

Redken is launching a new line for the curly-haired consumer—All Soft Mega Curls Shampoo, Conditioner and HydraMelt Leave-In Treatment.

Building on the runaway success of Idôle Liner, Lancôme has expanded Idôle’s colored liner collection with new Lancôme Ultra-Precise Colored Idôle Liners.

Sales: $38.0 billion

Sales jumped 16% last year as the beauty rebound continued. CEO Nicolas Hieronimus noted company sales grew twice as fast as the overall beauty industry. And, sales rose in all zones, divisions and categories.

Great color in mere minutes! Redken added on to its hair color portfolio with new 10 Minute Color Gels.

By division, L’Oréal luxe accounted for 38.2% of sales, followed by consumer products (37.9%), active cosmetics (12.2%) and professional products (11.7%). Propelled by global demand for fine fragrance, the luxe division became the biggest L’Oréal unit. The consumer products division got a lift from the return of makeup and active cosmetics sales have doubled in the past four years.

By region, Europe accounted for 31.5% of sales, just ahead of North Asia (30.5%). Other regions and share of sales, North America (25.3%); South Asia Pacific, Middle East, Africa (7.2%) and Latin America (5.5%). The company said North America made a strong comeback and joined North Asia as the primary growth engine. Europe received a boost from a reorganization. And, despite volatile public health situations in Latin America and SAPMEA, both regions reported gains.

By business segment, skin care and sun protection represented 40.2% of sales, followed by makeup (20.5%), hair care (15.1%), fragrances (10.9%), hair color (9.3%) and other (3.9%).

Looking back at 2021 results, professional product division sales rose 22.2%, with gains in all zones, but especially big gains in the US and China. In the US, the salon re-openings played a big role. The company said Kérastase had a spectacular year, driven by demand for Curl Manifesto.

Consumer product sales were up 4.5%, led by US gains and higher sales in India, Brazil, Mexico and Indonesia. Sky High Mascara was the most successful launch in the brand’s history. Nyx had a great year due, in part, to its partnership with Money Heist, a Netflix series. L’Oréal Paris remained the No. 1 beauty brand in the world with sales topping $6.3 billion.

L’Oréal Luxe sales rose 21.3%, as prestige beauty returned to nearly pre-covid levels. In skin care, ultra-premium brands like Lancôme Absolue and Helena Rubinstein, and anti-aging innovations such as Retinol Skin-Renewing Daily Micro-Dose Serum by Kiehl’s were top performers. Fragrance sales got a lift from Libre by Yves Saint Laurent and by promising launches like Alien Goddess by Mugler and Luna Rossa Ocean by Prada. In makeup, Lancôme and Shu Uemura led the way.

Active cosmetics sales jumped 30.3%, as consumers’ concern for their health drove demand for dermo-cosmetics. Driven by demand for Effaclar serum and Lipikar EczemaMED, La Roche-Posay more than doubled its growth rate compared with 2020. Vichy strengthened its leadership in anti-aging in Europe, particularly in skin care for menopausal women, while accelerating in Latin America and North America. SkinCeuticals continued to gather momentum, with the success of Silymarin CF confirming its antioxidant expertise. CeraVe saw spectacular growth for the second year running, in both the US and the rest of the world.

The gains continued in the new year. For Q1 2022, sales jumped 19%, as the luxe, professional products and active cosmetics divisions all achieved double-digit growth.

“In the first three months of the year, the growth trend continued in the global beauty market, with consumer purchasing behavior unaffected by inflation,” observed Hieronimus. “L’Oréal pursued its premiumization and innovation strategy and continued to outpace the beauty market across all zones and divisions, recording strong growth by volume and value.”

La Roche-Posay’s newest idea in skin care.

In February, L’Oréal joined more than 30 companies and professional associations to form the EcoBeautyScore Consortium. The goal is to develop an industry-wide environmental impact assessment and scoring system for cosmetics products. Later that month, David Greenberg was appointed CEO of L’Oréal USA, president of North America Zone, and member of the executive committee.

In March, L’Oréal announced it partnered with Emotiv to help consumers make accurate and personalized fragrance choices. According to the companies, the agreement combines L’Oréal’s scents and algorithms with Emotiv’s neurotech headset. The system will debut this year in Yves Saint Laurent locations around the world.

L’Oréal maintains that 77% of consumers want fragrance to bring them emotional benefits such as happiness or relaxation. In fact, more than half of consumers ages 12-34 reportedly choose a fragrance based on their mood.
The electroencephalogram-based (EEG) headset detects neuro responses to these fragrances, which are then fed into machine learning algorithms for analysis.

These analyses reportedly “accurately sense and monitor behavior, preferences, stress and attention in real-world contexts,” per L’Oréal. The result is a determination of the consumer’s ideal scent “suited to their emotions.”
YSL executives say the technology gets 95% of people the right fragrance personalized to their needs and desires.

The partnership with Emotiv is just one example of how the world’s largest beauty company is embracing technology as tightly as it embraces chemistry and biology.

Speaking at VivaTech last month, Alexandra Bolten, L’Oréal’s global head of social and content marketing, said her company’s growing gaming strategy will promote inclusivity and representation. Garnier Fructis recently formed a sponsorship with Team Vitality, an e-sports enterprise. L’Oréal sees opportunities to reach more consumers via games like Animal Crossing, The Sims and Roblox.

“We know that our consumers are there. In the gaming space, we talk about self-expression and about boundless creativity,” explained Bolten. “Well there’s a lot to offer in the gaming space and only in a way that L’Oréal can do it because in gaming, too, we will be driven by our sense of purpose, which is creating the beauty that moves the world.”

Sales: $31.9 billion

Redken Volume Maximizer Thickening Spray provides a workable, crunch-free finish and is designed for all hair types looking to add weightless volume and body.

L’Oréal Paris’ new Sublime Bronze Self-Tanning Facial Drops went viral on TikTok last month. It deliver a streak-free bronze at an affordable price point.

New sun protection from CeraVe.

L’Oréal Paris welcomed Yseult as its newest spokesperson. Yseult is an an award-winning French singer-songwriter who uses her platform to advocate for inclusivity and body positivity. She joins Kate Winslet, Helen Mirren, Viola Davis, Eva Longoria, Camila Cabello, Cindy Bruna and others in representing the brand globally.

Three of four divisions reported lower sales. As a result, L’Oréal reported a 6.3% decline in sales.

The pandemic hammered L’Oréal’s professional division. Sales fell 10% as lockdowns caused salons around the world to shut down. Yet, the division achieved historic market share gains in all zones, thanks to a big recovery in the second half of the year. The division posted strong growth in China, especially on Tmall. The No. 1 category for growth was hair care, led by Kérastase, which registered double-digit growth due to the popularity of Genesis and Blond Absolu, along with the launch of Pro Longer by L’Oréal Professionnel.

Consumer product sales fell 8.2%, but L’Oréal said things started to return to normal in the second half, led by Garnier and L’Oréal Paris. Mask mandates mangled the makeup market. Still, the division grew faster than competitors in the second half of the year and gained market share in its other major categories. Hair color saw double-digit growth. Hair care was driven by the success of Fructis Hair Food and Elseve Dream Long, and the strong start of Elseve Full Resist and Ultra Doux shampoo bars. Skin care rose due to the success of L’Oréal Paris serums and the Fast Bright range by Garnier, rolled out in emerging countries. In makeup, the division strengthened its position, thanks to NYX Professional Makeup and 3CE Stylenanda which benefited from their mastery of digital. The division saw a significant improvement in performance in all zones in the second half of the year, and notably recorded growth in China, Brazil and Germany.

L’Oreal Luxe sales fell 7.6% as masks made makeup unnecessary. But the company said the division outperformed the market with a clear acceleration in the second half and a return to growth in the last quarter all driven by e-commerce, particularly in direct-to-consumer. The division outperformed the market in its three categories, especially in skin care, driven by the power of its brands, notably Lancôme, Kiehl’s and Helena Rubinstein. Successful fragrance launches included My Way by Giorgio Armani, Voce Viva by Valentino and Libre by Yves Saint Laurent . L’Oréal Luxe gained market share in nearly all geographic zones, led by gains in Asia Pacific, especially mainland China, as well as many Western European countries.

The lone bright spot? Active cosmetics sales jumped 13.0%. L’Oréal credited the unique relationship that the brands have with healthcare professionals, combined with the growing consumer preoccupation with health. E-commerce remains the main growth driver, supported by a dynamic digital activation strategy. In-store initiatives also drove growth. Sales grew faster than the market in all zones, with exceptional performance in North America and Asia. L’Oréal said CeraVe is now one of the top five dermocosmetics brands and almost doubled in size, driven by exceptional growth in North America. Furthermore, sales of SkinCeuticals and La Roche-Posay outpaced the market in all zones.

Beauty rebounded in 2021. Overall sales jumped 5.4% as three divisions posted double-digit gains, led by a 47.2% surge in e-commerce sales. Big gains in China (up nearly 38%), helped Asia-Pacific sales rise 23.8%. Western Europe were nearly flat and North America sales fell 1.8%. By division, L’Oréal Luxe sales increased 12.4%, professional products rose 12.9% and active cosmetics sales soared 21.8%. Only consumer products fell, declining 6.2%. By region, Western Europe sales fell 9.2% and North America dropped 8.8%. New Markets fell 3.2% in 2020, but sales in Asia Pacific rose 1.5%.

In June, following the retirement of Alexandre Popoff, president, L’Oréal Eastern Europe Zone, L’Oréal created a new Europe Zone to be led by Vianney Derville, who was president of L’Oréal Western Europe Zone. Under his leadership, the two former zones of Western Europe and Eastern Europe will come together as one single zone.  This organizational change has been designed to put in place the optimum conditions to help drive future growth and represents the last stage in the reorganization of L’Oréal’s zone structure, according to the company.

Vianney joined the Group in 1992, as a product manager in the consumer products division in France for Lascad. In 1999, he was appointed general manager for the CPD division in Japan, a position he held for four years. Following his success in Japan, Vianney was subsequently appointed as general manager for L’Oréal Spain in 2004.

Sales: $33.4 billion

Once again, L’Oréal is the world’s largest player in the global beauty market, ahead of No. 2 Unilever by about $9 billion. Rounding out the top five are Estée Lauder, Procter & Gamble and Shiseido. Sales jumped nearly 11% last year and like-for-like growth was 8%. Even more impressive, like-for-like digital sales soared more than 52% to account for 16% of Group sales. By business segment, skin care and sun protection accounted for 35.0% of sales; makeup, 26.3%; hair care, 14.9%; hair coloring, 10.1%; fragrances, 9.3% and other, 4.4%. By division, consumer products accounted for 42.7% of sales, followed by L’Oréal Luxe, 36.9%; Professional Products, 11.5% and Active Cosmetics, 8.9%. By region, New Markets (Asia-Pacific (32.3%), Eastern Europe (6.4%), Latin America (6.0%) and Africa, Middle East (2.3%) accounted for 47% of sales; followed by Western Europe, 27.7% and North America, 25.3%.

The company said like-for-like (LFL) sales in North America rose 0.8% as weak makeup sales dragged down Consumer Products and L’Oréal Luxe, but both divisions benefitted from increased demand for RevitaLift Derm Intensives by L’Oréal Paris, Ultra Facial by Kiehl’s and Confidence by IT Cosmetics. Double-digit sales gains for CeraVe, La Roche-Posay and SkinCeuticals propelled Active Cosmetics division sales and Professional Products division sales increased on the strength of hair color, especially, Shades EQ and the overall hair care category. Sales in Western Europe rose 1.8% thanks to the successful launch of fragrances Libre by YSL and Idôle by Lancôme, the popularity of Giorgio Armani and Kiehl’s, and IT Cosmetics’ successful debut in several countries. Active Cosmetics’ sales benefitted from demand for La Roche-Posay, SkinCeuticals and CeraVe.

Latin American sales rose 2%, driven by gains in skin care, which has become the growth engine in the region. L’Oréal Luxe and Active Cosmetics divisions turned in strong performances, as did Mexico and Chile.

Africa, Middle East was the only zone to turn in a negative performance as sales fell 4.1%. L’Oréal said the zone was affected by Q4 downturns in the countries of the Levant, and Lebanon in particular. During the year, Pakistan, Egypt, Saudi Arabia and Morocco recorded double-digit growth.

Sales in Eastern Europe jumped 9% (LfL), led by gains in Russia, Turkey, Ukraine and Romania, where consumers purchased skin care, makeup and hair care products. Ecommerce continued to grow strongly, and now represents 10% of sales in this zone.

According to Nicolas Hieronimus, deputy chief executive officer in charge of divisions, last year all L’Oréal divisions demonstrated tremendous ability to adapt to a rapidly changing world, especially in digital technology, distribution channel shifts and socially-conscious consumers. All well and good, but the successes of 2019 couldn’t prepare any company for COVID-19.

Q1 2020 sales fell 4.8%, but the company said sales in China rose 6.4% as business resumed. E-commerce sales rose 52.6% and represented nearly 20% of corporate sales by the end of the quarter.

Sales: $31.7 billion.

It’s a beautiful thing at L’Oréal, the world’s largest beauty company, which posted its best year of growth since 2007, as sales increased 3.5% and like-for-like sales increased 7.1%. Gains were reported in all divisions, led by double-digit increases by L’Oréal Luxe and Active Cosmetics. Here’s a closer look at each division’s results.

Active Cosmetics’ sales increased 9.2% to nearly $2.7 billion, helped by big gains in North America and Asia. All three major brands contributed to the division’s growth. La Roche-Posay ended the year with double-digit growth, driven by its anti-wrinkle innovation Hyalu B5, and core franchises Anthelios and Effaclar, and is performing well across all zones. Growth at Vichy was again bolstered by the success of Minéral 89, the star product of 2018. SkinCeuticals’ sales rose in all regions; particularly in the US, where it remains the No. 1 professional skin care brand, according to L’Oréal. CeraVe, which posted double-digit growth in North America, is available in more than 30 countries.

L’Oréal Luxe sales increased 10.6% to $3.1 billion; Lancôme sales topped €3 billion for the first time. Skin care sales were driven by Génifique, Absolue and La Vie est Belle. The company noted that YSL Laurent and Giorgio Armani had a very good year in fragrances, thanks to the success of Black Opium, Y, Sì Passione and Acqua di Giò Absolu. Furthermore, the division is adding market share in Asia Pacific, particularly in China where growth is double-digit. Luxe performed well in dynamic markets in Travel Retail, Eastern Europe and Latin America, too.

Consumer products sales fell 0.7% to $14.2 billion; but L’Oréal Paris and Maybelline New York results were strong. Skin care sales rose more than 10%, thanks to demand for Revitalift Filler by L’Oréal Paris, Garnier tissue masks and Men Expert skin care. Maybelline New York drove makeup sales.

Professional products sales fell 2.6% to $3.8 billion. Still, the company maintains that all geographic zones are growing, except Western Europe. Hair care sales benefitted from demand for Kérastase, the popularity of Shades EQ by Redken and the launch of SoColor Cult by Matrix.

By region, sales rose 10.3% to $13.7 billion in New Markets (including Asia-Pacific, Latin America, Eastern Europe and Africa, Middle East). Asia-Pacific led the way with a 20% increase. L’Oréal noted that Singles’ Day sales in China, November 11, helped propel sales. Latin American sales fell 8.6%, as gains in Luxe and Active Cosmetics, couldn’t overcome poor economic conditions in Argentina and elsewhere. Eastern Europe sales rose less than 1%, helped along by gains in Active Cosmetics, as well dynamic growth in Turkey, Ukraine, Romania and Czech Republic. Sales in Africa, Middle East were up just 0.2%, which L’Oréal blamed on geopolitical tension and sluggish markets, especially in the Middle East.

Western Europe sales fell 0.7% to $9.5 billion due to malaise in France and the UK and a slowdown in makeup. The good news is that L’Oréal Luxe and Active Cosmetics outperformed its competitors in the region.

North America sales fell 1.6% to $8.5 billion, primarily due to forex effects. L’Oréal Paris, Maybelline New York and Essie helped to boost makeup and hair color sales. The acquisition of Pulp Riot lifted Professional Product sales; and Active Cosmetics sales jumped nearly 20% as CeraVe, SkinCeuticals, La Roche-Posay and Vichy all recorded double-digit gains.

In December, L’Oréal launched Business Opportunities for L’Oréal Development (BOLD), a corporate venture capital fund that takes minority stakes in innovative startups with high growth potential. The fund invests in new business models in marketing, research and innovation, digital, retail, communication, supply chain and packaging.

Two key personnel changes were announced late last year. Christophe Babule was appointed executive vice president, chief financial officer, and Cyril Chapuy was appointed president of L’Oréal Luxe.
In other news, last year, Covalence EthicalQuote ranked L’Oréal No. 1 worldwide across all industries in its reputation index. This ranking of the world’s largest listed companies reflects stakeholder and media perceptions, and companies’ communication on environmental, social, governance and human rights issues. Earlier this year, L’Oréal was recognized for the third year in a row as a global leader in corporate sustainability by non-profit organization CDP, with three “A” scores for the management of climate change, water security and forests.

For the first quarter of 2019, sales rose 11.4% to more than $8.4 billion, thanks to gains in L’Oréal Luxe and Active Cosmetics; and strong growth in new markets. E-commerce sales jumped nearly 44% and travel retail was up 24%.

According to CEO Jean-Paul Agon, the powerful underlying growth drivers remain the same as in 2018: Luxe and Active Cosmetics, skin care, Asia, e-commerce and Travel Retail.

“L’Oréal Luxe has performed remarkably well in a particularly buoyant market, led by its four major brands, Lancôme, Yves Saint Laurent, Giorgio Armani and Kiehl’s, all of which posted more than 15% growth, and by very strong development in Asia,” said Agon. “The active cosmetics division is exceptionally dynamic, growing in every region of the world, and growth in the consumer products division is gradually improving. The professional products division is making headway in a market that remains challenging.”

By division, active cosmetic sales rose 14%, L’Oréal Luxe sales rose 19%, consumer product sales increased 7% and professional product sales rose 4.8%. By region, Western Europe sales increased 2.1%, North America sales rose 9.2% and new markets’ sales jumped 30%.

Finally, last month L’Oréal confirmed it has entered into exclusive negotiation with the Clarins Group to acquire the Mugler and Azzaro brands.

“The perfume category is at the heart of our global strategy for growth at L’Oréal Luxe,” explained Cyril Chapuy, president L’Oréal Luxe. “In this context, we would be thrilled to welcome Mugler and Azzaro: these signatures, with a long history in fashion and olfaction, would perfectly complete our portfolio of brands.”

The deal is expected to be completed later this year.

Sales: $29.4 billion

Universalization; for L’Oréal that means globalization that respects differences. And it’s a strategy that helps L’Oréal remain the biggest pure play in beauty (rounding out the Top 10 are: Unilever, Procter & Gamble, Estée Lauder, Shiseido, Beiersdorf, AmorePacific, Kao, LVMH and Coty).

Last year, corporate sales rose less than 1% in local currency. Operating margin rose to a record 18%. By business segment, skin care accounted for 29.3% of sales, followed by makeup (27.9%), hair care (17.5%), hair color (11.8%), fragrance (9.2%) and other (4.3%)

By geographic region, Western Europe represented 31.2% of sales; followed by North America, 28.3%; Asia-Pacific, 23.6%; Latin America, 7.5%; Eastern Europe, 6.7% and Africa, Middle East, 2.7%. Sales in Western Europe rose 1.5% thanks to high demand for makeup and skin care in Great Britain, Germany and Spain. Sales in France declined slightly. Consumer Products and L’Oréal Luxe outperformed competitors and demand within the Active Cosmetics division accelerated in the second half.

Sales in North America rose 3.5% helped, in large part, by gains in makeup which were offset by declines in hair care. Active Cosmetics received a lift from the acquisition of CeraVe.
Sales in Asia-Pacific soared 9.2% as consumers drove growth for L’Oréal Luxe in China and Hong Kong. Elsewhere, India, Thailand and Malaysia are all growing very strongly, according to the company.

Latin American sales were up 6.2% as Mexico and Argentina posted double-digit gains, tempered by Brazil. L’Oréal Luxe and Active Cosmetics Divisions have achieved double-digit growth, thanks respectively to the Lancôme and La Roche-Posay brands. The Consumer Products Division is growing in the makeup category, reflecting the expansion of the NYX Professional Makeup brand and the continuing growth of Maybelline New York.

Eastern European sales increased 11.4%, driven by sales in Turkey and Central Europe. Finally, sales in Africa and Middle East declined 9.4%, but the company insists the situation is stabilizing in the Gulf states.

By division, professional product sales fell 1.4%, but after first half weakness, there was a strong recovery in the US and Asia-Pacific. Eastern Europe and Latin America maintained their momentum. Shades EQ continues to make gains and the revamped Série Expert ranges provided a sales lift, too. Demand for natural formulas helped propel Aura Botanica by Kérastase and Biolage R.A.W. Consumer product sales increased 1% on strong demand for makeup. NYX Professional continues its global expansion and L’Oréal Paris is “holding up well,” according to the company, thanks, in part to the success of Lash Paradise mascara, which is the No. 2 brand in the US (behind Maybelline). The division continues to expand throughout Europe and “Spanish-speaking America,” but demand slowed in North America. In contrast sales increased in Asia due to gains in China.

L’Oréal Luxe sales jumped 10.6% on the strength of makeup and facial skin care sales. Lancôme posted double-digit gains thanks to the success of makeup products such as Monsieur Big mascara, l’Absolu Rouge and Teint Idole Ultra and by the acceleration of the Génifique skin care range. Sales of Giorgio Armani and Kiehl’s both topped €1 billion. By region, L’Oréal posted double-digit gains in Asia-Pacific, and Western Europe remained strong.

Active Cosmetics’ sales surged 11.9%, as sales topped €2 billion for the first time, driven by gains in the US, which has become the division’s No. 1 country. L’Oréal calls La Roche-Posay the world’s No. 1 dermocosmetics brand, led by products such as Effaclar, Lipikar and Cicaplast. For the eighth year in a row, SkinCeuticals posted double-digit gains.

The company proudly notes that e-commerce sales rose more than 33% last year to €2 billion.

L’Oréal insists it will continue to succeed for seven reasons:

• The beauty market continues to grow;
• The company is a “pure play” in beauty;
• Sound fundamentals based on research and innovation;
• Superior digital prowess;
• A multipolar footprint in all categories, distribution channels and regions;
• Excellence in environmental and social commitments; and
• A decentralized, entrepreneurial organization filled with high quality teams.

Nearly a year ago, L’Oréal completed the sale of The Body Shop to Natura.

For the first quarter of 2018, L’Oréal reported a 1% decline in sales to €6.78 billion, but noted that sales rose 6.8% on a like-for-like basis. Gains accelerated within the L’Oréal Luxe and Active Cosmetics division, while sales in new markets surged nearly 15%, helped along by results in Asia-Pacific, where, in China, consumers’ aspirations for iconic brands remain strong.

Sales: $28.6 billion

Additions…and subtraction. Last month L’Oréal agreed to sell The Body Shop to Natura. A purchase price was not disclosed but L’Oréal had previously said the brand was worth $1.1 billion, a figure disputed by analysts who said the price was too steep for a company that has lost control of the natural beauty space. L’Oréal paid about €940 million for the company back in 2006.

“It is the best new owner we could imagine to nurture the brand DNA around naturality and ethics,” said Jean-Paul Agon, chairman and CEO of L’Oréal. “Natura will support The Body Shop development in the long-term and enable The Body Shop to best serve its customers while respecting its strong commitments towards its employees, franchisees and stakeholders.”

Jeremy Schwartz, chairman and CEO of The Body Shop, agreed. “The ethical values and expertise of Natura makes it the perfect new owner for The Body Shop to accelerate the rejuvenation of the brand and its future expansion,” he said.

Last year, The Body Shop posted retail sales of €1.5 billion and net sales of €921 million. For the first quarter of 2017, The Body Shop’s sales fell 1.4% to just under €200 million.
Despite the sale, L’Oréal will remain the biggest beauty company in the world, and, in fact, it got a bit bigger with the recent acquisition of CeraVe, AcneFree and Ambi from beleaguered Valeant for $1.3 billion. That skin care purchase followed the 2016 acquisitions of IT Cosmetics for $1.2 billion a year ago and, more recently, Atelier Cologne.

The moves come after L’Oréal posted good, not great, results in 2016. Sales increased more than 2%, but it was the slowest increase since The Great Recession, when the company reported a decline in sales. By segment, skin care accounted for 28.5% of sales, followed by makeup (26.4%), hair care (19.2%), hair color (12.1%), fragrance (9.5%) and other (4.4%).

By region, Western Europe accounted for 32.1% of sales with North America representing 28.5%. New Markets, on the other hand, now account for the plurality of sales (39.4%), but that business is made of Asia Pacific (22.6%), Latin America (7.4%), Eastern Europe (6.3%) and Africa, Middle East (3.1%).

By division, consumer products posted a 4.4% increase in like-for-like sales on the strength of makeup (up 10.3%) and hair care. Makeup sales benefitted from the popularity of Maybelline New York and L’Oréal Paris, as well as NYX makeup and Essie nail colors. Hair care sales got a lift from the rollout of Ultra Doux by Garnier.

L’Oréal luxe sales increased 6.9% (like-for-like), helped by a 25.3% surge in makeup sales. Dynamic growth was registered in China (+11.3%), US (+7.7%), UK (+10.5%) and Russia (+25.0%). Lancôme is the No. 1 brand on the selective market in China and the No. 2 brand the US prestige market. Meanwhile, Yves Saint Laurent’s sales surged 29%.

Professional sales increased 1.8% (like-for-like), helped along by a 17.6% gain in India. Biolage R.A.W., an environmentally-friendly professional hair care line, was launched in the US. Eight of its formulas are 95% biodegradable and its portfolio includes between 70-100% of ingredients that are of natural origin.

The active cosmetics unit saw sales rise 5.7%, driven by a 12% increase in La Roche-Posay sales. But sales aren’t the whole story for the division, which is ramping up its efforts to reduce incidence of skin cancer. During the past two years, La Roche-Posay rolled out My UV Patch to help consumers adopt proper sun care habits; in 2015, the brand launched “Become a Skin Checker,” to convince customers to keep an eye on moles—their own, as well as those of family and friends.

Finally, The Body Shop’s sales rose less than 1%, but the retailer noted that skin care sales increased 7% last—not bad, but too little, too late to keep the dream of the late Anita Roddick from changing hands.

Underscoring the new reality, digital sales surged 32% last year to account for 6.5% of consolidated sales. Agon said more than 30% of advertising is digital, and the company has recruited 1,600 experts and trained nearly 10 times that amount in house.

“Digital is amplifying the power of our brands and bringing them even closer to our consumers,” said Agon.

For the first quarter of 2017, sales topped €7 billion, an increase of 7.5%. The luxury products division led the way, with sales jumping more than 17%, but every division reported an increase in sales. By geographic region, North American sales rose 11.7% and “new market” sales, led by Eastern Europe, jumped 23.2%.

Sales: $27.9 billion

Universal, digital, sustainable; three words that, in the words of chairman Jean-Paul Agnon, characterize the “new” L’Oréal. We didn’t know that there was anything wrong with the “old” L’Oréal that, after all these years, remains the biggest pure play beauty player on the planet. But when you’re No. 1, competitors are gunning for you and you have to keep moving forward.

In 2015, more than 5% of L’Oréal’s sales came from e-commerce, which represented a nearly 38% increase on a like-for-like basis.

Three major trends drove business for L’Oréal and the global cosmetics market in 2015:

• The swift expansion of makeup driven by digital communications;
• The dynamism of high-end channels; and
• The rise of the middle class in new markets.

Each helped the company register gains across the world and across its portfolio. Sales rose 3.9% in euros. Skin care accounted for 29.6% of sales followed by makeup (23.8%), hair care (19.7%), hair color (12.7%), fragrance (9.8%) and other (4.4%).

By division, consumer product sales rose 10% and accounted for 48.7% of sales. Makeup performed best with a gain of 9.3%, well ahead of hair care’s 1.6% sales increase. In contrast, hair colorant sales fell 2.3% and skin care sales dropped 1.4% in 2015.

L’Oréal Luxe reported a 16.7% increase in sales, representing 29.8% of corporate sales. Makeup led the way, with a 28.8% increase, but skin care (+13.4%) and fragrances (+12.7%) both posted double-digit increases.
Similarly, Professional Products posted a 12.1% sales increase and accounted for 14.0% of sales. Shampoo and hair care sales were up 13.7%, hair colorant sales rose 10.9%, and styling sales increased 7.8%.

Active Cosmetics’ sales rose 9.4% to represent 7.5% of sales in 2015, but division results were a mixed bag. While skin care (+12.3%) and “other” (+5.6%) showed significant improvements, hair care (-6.2%) and makeup (-4.6%) results were disappointing.

The Body Shop’s sales rose 5.7% last year, even as the total number of stores fell 17% to 3,102.

At the close of 2015, L’Oréal was present in 140 countries on all five continents—all of which posted sales gains. By region, Western Europe accounted for 33.1% of sales. The group outperformed the market, especially in Southern Europe and gains   were also recorded in the UK and Germany. Garnier provided a lift in an otherwise sluggish mass channel.

In North America, which represented 27.4% of sales, revenues were helped along by double-digit gains for Urban Decay, Kiehl’s and Yves Saint Laurent. Redken was the key reason for improving sales within the professional products division. Meanwhile, sales of NYX and Maybelline New York helped lift consumer product division sales.

L’Oréal said “new markets” represented 39.5% of sales. That broadly brushed category can be segmented as:

• Asia-Pacific, 22.5%,
• Latin America, 7.7%;
• Eastern Europe, 6.3%; and
• Africa, Middle East, 3.0%.

Asia-Pacific results were mixed, as Hong Kong remained difficult but Japan recovered in Q4. Consumer Products division sales were up in India, Australia and Thailand.
Brazil remained a drag on Latin American results. But if the biggest market in the region could somehow be excluded, Latin America posted double-digit gains, helped along by strong demand for products within the active cosmetics and luxe divisions, according to L’Oréal.

In Eastern Europe, sales in Russia, Turkey and Ukraine helped the consumer, professional and luxe divisions all post double-digit gains.

Double-digit gains in Africa, Middle East were due, in large part, to fast growth in Egypt, Pakistan and Saudi Arabia. This year, the company is opening a new research center in South Africa.

To keep the innovations coming around the world, L’Oréal spent €794 million on R&D in 2015, which helped the company register 497 patents.

For the first quarter of 2016, sales rose 1.8% to $6.5 billion. North America provided the biggest lift, as sales rose 5.8% in the quarter. Following closely was Africa, Middle East, which posted a 5.4% gain. In contrast, sales in Latin America fell 11.1% in Q1. By operating division, L’Oréal Luxe led the way, with a 4.4% gain. That was well ahead of the 0.9% increase generated by the consumer product division, but every unit reported an increase in sales.

On June 30, L’Oréal announced it would acquire Atelier Cologne, a niche fragrance manufacturer. A purchase price was not disclosed. Launched in 2009 by Sylvie Ganter and Christophe Cervasel, Atelier Cologne specializes in perfumery sold in selected retailers. Specifically, it creates and manufactures in France colognes absolues, genuine pure perfumes blending citrus notes natural raw materials. The company offers perfumed soaps, shower gels and body lotions as well as candles for the home. Atelier Cologne joins the L’Oréal Luxe Division.

Just last month, L’Oréal acquired IT Cosmetics for $1.2 billion. The company had sales of $182 million—up 56% from the previous year. Also in July, L’Oréal acquired the rights to the Saint-Gervais Mont-Blanc face and body care lines, which are said to contain 100% Mont-Blanc thermal spring water and natural extracts of Alpine plants. The Saint-Gervais thermal spa was created in 1807 and is today one of Europe’s most important thermal spa resorts, according to L’Oréal.

Sales: $27.4 billion

The world’s a beautiful thing, when you’re the world’s largest pure-play beauty company. L’Oréal is No. 1 in global beauty sales, easily outdistancing No. 2 Unilever by more than $10 billion. Rounding out the top 5 are Procter & Gamble, Estée Lauder and Shiseido.

Company leaders crow that the company registered gains across all divisions and geographic zones. By region, Western Europe represented 35.5% of sales; North America, 24.9%; Asia-Pacific, 21.1%; Latin America, 8.6%; Eastern Europe, 7.3% and Africa, Middle East, 2.6%. Overall, “New Markets” represented 39.6% of sales in 2014.

Sales in North America rose just 1.1% due to a temporary shutdown of the consumer products division. The other divisions in the region flourished, and sales got a boost from the acquisitions of Nyx and Carol’s Daughter.

Latin American sales rose 10% due to double-digit gains within the professional products, active cosmetics and luxury divisions. A kiosk initiative in Brazil provided a lift to consumer product sales in the region.

It was a tale of two Europes in 2014. While Western European sales increased 2.4%, helped by gains in Germany, the UK and Spain. Sales in Eastern Europe jumped 6%, on higher demand for L’Oréal Luxe and professional products.

Sales in Asia-Pacific increased 5.3%, led by strong gains in India, Indonesia, Hong Kong and Australia. The acquisition of Magic in mid-2014 gave L’Oréal a bigger presence in the fast-growing Chinese facial mask market.

Even more impressive, sales in Africa, Middle East soared 13.5%. All divisions posted double-digit gains and growth was particularly strong in South Africa, the Gulf States, Egypt, Saudi Arabia and Pakistan.

By division, Consumer Products accounted for 49.7% of sales. Brands include L’Oréal Paris, Garnier Maybelline New York, SoftSheen-Carson, Magic, Essie and Nyx. Sales rose 1.6% in 2014, but the company noted that sales accelerated toward the end of the year, helped along by the continued success of Elvive in Europe. Meanwhile, in Asia, the division continues to make gains within the all-important facial care category. In fact, Men Expert has helped L’Oréal achieve the top spot in China.

L’Oréal Luxe represented 28.6% of sales. Division sales surged 7.1%, getting a boost from stalwarts such as Lancôme, as well as the popularity of relatively new brands such as Urban Decay, Clarisonic, Shu Uemura and Kiehl’s. Most impressive, sales of Clarisonic surged nearly 50% in Western Europe. L’Oréal’s makeup sales within the luxe segment jumped 11.6%, helped along by the introductions of Baby Doll Kiss & Blush and Eye & Brow Maestro.

Professional Products reported a 2.6% increase to account for 14.0% of 2014 sales. With the acquisitions of Decléor and Carita, the division now has a presence in all professional beauty categories—hair, nail and skin. But, as always, it was hair care which led the way, particularly growing demand for color and styling products. The professional unit expects to remain on the cutting-edge with the introduction of Serioxyl for fine and thinning hair, and Absolut Repair Lipidium for damaged hair.

Sales within the Active Cosmetics division rose 8.7% and accounted for 7.7% of group sales last year. The gains were due primarily to the success of La Roche-Posay and Skinceuticals. L’Oréal was particularly proud of the introduction of Lipikar Baume AP+ for dry skin with atopic tendencies, as well as the debut of Vichy’s Liftactiv Supreme, which provides immediate visible results to reduce the appearance of aging.

By business segment, skin care accounted for 30% of sales; followed by makeup, 21.9%; hair care, 20.5%; hair colorants, 13.2%; fragrances, 9.8% and other, 4.6%.

For the first quarter of 2015, sales surged 14.1% to $7 billion (at current exchange rates), thanks primarily to a favorable exchange rate. Like-for-like sales rose 4%.

Sales: $31.4 billion

Sales rose 2.3% last year as gains were tempered by currency fluctuations. By region, New Markets (including Asia, Latin America, Eastern Europe and Africa, Middle East), posted a 3.3% increase in sales to $11.6 billion. Sales in Western Europe were up 1.1% to $10.2 billion and North American sales totaled $7.3 billion, up 2.8%.

By division, professional product sales fell 1% due to declining salon visits in mature consumer markets. Some of the best gains came from New Markets, specifically Brazil, Russia and India. Brand-wise, Kérastase had a good year. Consumer product division sales were up 1.5%, helped along gains from L’Oréal Paris, Garnier and Maybelline. The division posted good results in Western Europe, as well as Brazil, India, Indonesia, Turkey and the Gulf states. In North America, business was impacted by a market slowdown and inventory adjustments. Sales jumped 5.3% within L’Oréal Luxe, as Lancôme fragrance and skin care sales were strong. The company noted that sales of Giorgio Armani, Yves Saint Laurent, Kiehl’s, Clarisonic and Urban Decay all advanced as well. Sales of active cosmetics increased 4.9%, driven by the Vichy brand and its recent introduction of Néovadiol Magistral. The company noted that La Roche-Posay posted another year of double-digit gains as well. Galderma sales increased 3.9%, as demand for self-medication products continues to grow around the world, especially in Asia, Russia and Latin America. However, The Body Shop posted a 2.3% decline in sales.

For the first quarter of 2014, a slowing market in North America, coupled with a high comparison to a year ago, resulted in L’Oréal reporting a 2.2% decline in sales to $7.8 billion. However, on a like-for-like basis, sales rose 3.5% and 2.8% at constant exchange rates. The company noted that while the L’Oréal Luxe and the Active Cosmetics divisions maintained good momentum, and the Professional Products division has returned to growth in Western Europe and the US, it was a different outcome in the Consumer Products Division, which was held back by North America, because of a high comparison base in the first quarter of 2013, linked to two major launches, and a sluggish trend in the mass-market channel over the first few months of the year.

By division, professional product sales fell 2.3% to $1.0 billion. Consumer product sales fell 5.5% to $3.9 billion. L’Oréal Luxe sales rose 2.7% to $1.9 billion and sales of Active Cosmetics rose 3.9% to $668 million.

L’Oréal may be the world’s biggest beauty company, but it wants to be even bigger. Last month, L’Oréal acquired Nyx Cosmetics for an undisclosed amount. The color cosmetics company had sales of $72 million last year, an increase of 46%. Sales continued to record strong growth this year, amounting to $93 million for the 12 months ended May 31, up 57% over the comparable year-over-year period.

That deal followed the February acquisition of Carita and Decléor brands from Shiseido. The brands have been integrated into the professional products division, enabling L’Oréal to now offer face and body care products through this channel.

Sales: $29.6 billion

The world’s largest pure cosmetics company held onto that title as sales rose more than 10% last year. L’Oréal outpaced the gains of the global cosmetics market, which rose 4.6% to nearly $238 billion, according to company estimates (see box next paget). Long the leader in Europe, L’Oréal’s sales in new markets rose 9.2%. That gain was enough to make it the group’s No. 1 sales zone in 2012, representing nearly 40% of cosmetics sales. Taking a closer look at developing markets, Asia-Pacific accounted for 20.6% of 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 (25.0%).

By product category, skin care accounted for 33.8% of sales, followed by hair care (24.3%), makeup (16.4%), perfumes (12.9%), toiletries/deodorants (11.2%) and oral cosmetics (1.4%).

By division, sales of professional products rose 6.7% to nearly $4 billion  as sales of hair oils and long-lasting hair colorants like INOA2, Chromatics and ColorInsider provided a lift. Consumer product sales rose 8.9% to $14.1 billion, as consumers tried hair care products such as Elvive by L’Oréal Paris and Olia by Garnier; as well as skin care products such as Revitalift Laser by L’Oréal Paris and Garnier’s BB Cream. L’Oréal Luxe sales surged 16% to more than $7.2 billion, thanks to strong sales of skin care products like Génifique Yeux Light and fragrances such as La Vie est Belle. Active Cosmetics’ sales rose 7.5% to more than $2 billion as the division expanded well beyond Western Europe, with strong showings in both North America and Latin America. The Body Shop recorded sales of $1.1 billion, a sales gain of more than 11% and Dermatology sales were up almost 13% to more than $1 billion.

Last year, L’Oréal’s R&D budget rose nearly 10% to $791 million and the company earned 611 patents. In 2012, L’Oréal inaugurated its global hair research center in Saint-Ouen, France. The company operated 22 cosmetics and dermatological research centers, 17 evaluation centers and 42 production sites by the end of the year. Some of the notable products that made their way from the lab bench to the department store shelf during the past year included Initialiste, billed as the first beauty serum with plant stem cells, and a new generation, long-lasting hair colorant ODS2 (oil delivery system).

Like so many other multinational FMCG companies, L’Oréal takes pride in its environmental and social advances. For instance, L’Oréal has reduced its CO2 emissions by 38.8% since 2005, even though the group’s growth has risen substantially during this period. On the social front, the L’Oréal Foundation commits itself to causes based on science and beauty. For example, its Women in Science program has recognized and rewarded outstanding achievements by leading researchers around the world for more than a decade.

For the first quarter of 2013, sales rose 5.3% to more than $7.1 billion, driven by a 11.8% in Africa and Middle East and an 8.2% gain in Eastern Europe. By division, L’Oréal Luxe led the way as sales increased 8.1%. In contrast, professional product sales fell less than 1%.

Sales: $28.2 billion

Sales rose more than 5% and net income increased nearly 9% to $3.3 billion. This year, emerging markets are expected to surpass Western Europe as L’Oréal’s No. 1 market. Last year, Western Europe accounted for 38.4% of sales, followed by New Markets (Asia/Pacific, Eastern Europe, Latin America and Africa/Middle East), 38.3% and North America, 23.3%.

The company singled out several outstanding country performances: China’s sales rose 18%, driven by Maybelline New York, Garnier and Lancôme; sales in Mexico were up 11.6% due to gains posted by Maybelline New York, L’Oréal Paris and Garnier; L’Oréal’s sales in the US (+5.6%) grew faster than the market, with growth coming from Maybelline New York, L’Oréal Paris and Garnier and the successful launch of Essie in mass markets; and sales in France were up 2.6%, due to growth in all divisions.

Here’s the summer color lineup from Essie, one of L’Oréal’s newest acquisitions.

By business segment, consumer products represented 52.1% of sales, followed by luxury products (25.5%), professional products (14.9%) and active cosmetics (7.5%).

By product category, skin care accounted for 27.9% of sales, followed by hair care (21.5%), makeup (21.3%), hair colorants (14.6%), perfumes (9.8%) and other (4.9%).

Like most multinationals, L’Oréal is quick to point out its efforts to save the planet. But the company goes a step further by noting that 45% of its new raw materials comply with the principles of green chemistry and 55% of them are plant based. One of these is LR 2412 molecule, a derivative of jasmonic acid produced by an environmentally friendly synthesis process. According to L’Oréal, this anti-aging ingredient has excellent bioavailability, which enables it to seep through the epidermis and target all layers of the skin. Throughout the diffusion process, it sets off a series of reactions: at the surface, it promotes the natural peeling of the skin and at deeper levels, the synthesis of several molecules which are fundamental for maintaining the skin’s structure over time. L’Oréal teams have demonstrated that it is capable of specifically correcting 12 biological skin aging markers. LR 2412 is formulated (at 4% use levels) into Visionnaire, the new anti-aging skin care formula from Lancôme.

The Charming Cockatoo is a limited edition eye color collection from L’Oréal.

But L’Oréal is about much more than skin. That’s why earlier this year the company dedicated its Global Hair Research Center in Paris Saint-Ouen. The Center’s research and innovation program is exclusively dedicated to the hair care profession, which includes coloring, care (shampoos, conditioners), styling, (sprays, gels, waxes) and perms, smoothing or straightening. L’Oréal said it spent €100 million to build it and the network of six regional centers around the world.

For the first quarter of 2012, L’Oreal’s sales rose 9.4% to nearly $7.4 billion. The company reported gains in all branches and divisions, but noted solid gains in North America as well as continuing fast growth in new markets, especially Asia. Results within the luxury division were particularly strong.

“These first months augur well for the year, as all divisions and all geographic zones are expanding,” said Jean-Paul Agon, chairman and chief executive officer. “The worldwide cosmetics market remains strong, and trends are favorable for all brands. L’Oréal Luxe is achieving remarkable growth, bolstered in particular by the dynamism of Lancôme, the success of the designer fragrances, and the vitality of Kiehl’s.”

Sales: $25.8 billion

The Body Shop rolled out Rainforest hair care this year.

After a tumultuous couple of years, 2010 marked L’Oréal’s return to growth as consumers returned to cosmetics counters, beauty aisles and fragrance tables around the world. 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%).

Consumer product sales rose 5.5% 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 products’ 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.

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 accounted for 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%. But like other companies, L’Oréal’s focus these days is on the developing world.

Earlier this year, chairman Jean-Paul Agon made it clear that L’Oréal’s future is solidly entrenched in emerging markets such as China, India and Brazil. According to L’Oréal’s estimates, by 2020, consumers in emerging markets will reach 2.7 billion with total spending power that is equivalent to current levels in the US. In contrast, L’Oréal’s 2010 sales were achieved with less than 15% of the planet’s global population. Therefore, in addition to the BRIMC (Brazil, Russia, India, Mexico and China) countries, the company has targeted 15 growth markets for its products: Poland, Ukraine, Argentina, Colombia, Indonesia, Thailand, Vietnam, Philippines, Turkey, Egypt, Saudi Arabia, Pakistan, Kazakhstan, South Africa and Nigeria. These new consumers are often urban and live in the megalopolises of the southern part of the world, such as Shanghai, New Delhi and Rio. Sales in emerging markets rose 11.3% last year. Taking a closer look at this dynamic segment, sales in Asia Pacific rose more than 11% to $4.2 billion as the company gained share in India, the Philippines, Indonesia, South Korea and Taiwan. Sales in Eastern Europe rose more than 8% on gains in Russia and Ukraine, where consumer demand for makeup, Garnier and all products within the luxury division were strong. Sales in Latin America jumped 17.5% to more than $2 billion as Brazil and Argentina posted good growth and Mexico posted gains as well. Finally, sales in Africa and the Middle East rose 4.1% to $741 million, helped along by gains in Lebanon and Morocco.

Last year, L’Oréal USA acquired Peel’s, C.B. Sullivan, Maly’s Midwest and Marshall salon services to expand its position in the US hair salon market.

For the first half of 2011, sales rose 5% to $13.3 billion. Professional product sales rose 4.2% to nearly $1.9 billion; consumer products sales rose 4.5% to $6.6 billion; luxury product sales were up 6.9% to about $2.9 billion; active cosmetics sales rose 4.9% to $1 billion; The Body Shop sales rose less than 1% to $446 million and sales of dermatology products jumped 13.6% to more than $400 million.

Sales: $24.3 billion

Desperate times call for desperate measures, right? Maybe. Faced with the specter of a prolonged economic slowdown, in late 2008 L’Oréal announced a hiring freeze and a “progressive but significant” round of job cuts that included 500 employees in the U.S. To get growing again, L’Oréal introduced three major strategic chances to prepare for the future: adding one billion new consumers worldwide, a “thorough transformation to make it stronger and more flexible” and a “determined” increase in R&D and marketing investments. By the time the dust settled on 2009, L’Oréal’s sales had fallen less than 1%, while net income dropped 3%.

Last year, consumer products represented 52.6% of sales, followed by luxury products, 25.1%; professional products, 14.7%; and active cosmetics, 7.6%. Taking a look at division results, professional product sales fell 3.4%; consumer product sales rose 1.5%; luxury product sales fell 2.2%; and active cosmetics sales fell 4.3%.

Bridget Moynahan is the newest spokesmodel for L’Oréal.

By product category, skin care represented 27.0% of sales; followed by hair care, 22.7%; makeup, 21.0%; hair colorants, 15%; perfumes, 10.5% and other, 3.8%. Finally, by region, Western Europe represented 43.3% of sales, followed by Rest of the World, 33.3%, and North America, 23.4%.

Getting Growing
Every company, it seems, is targeting consumers in emerging markets. According to Jean-Paul Agon, chief executive officer, L’Oréal’s goal is to double its consumer base from 1.2 to 2.5 billion customers. To get there, the company is targeting the zone it calls New Markets, which includes China, India and Brazil. This zone’s share of the group’s sales has doubled every 10 years, reaching 33% in 2009 and will probably represent more than 50% of sales before the end of the next decade, according to Agon.

Likewise, every company likes to tout its commitment to the environment, and L’Oréal is no different. The company proudly notes in its 2009 annual report that, across the group, more than 400 raw materials are Ecocert certified, including 170 sourced from organic farming. This has led to the marketing of more than 70 certified products. For example, new Série Nature shampoo was Ecocert-certified organic and Deo Pure is sourced from raw materials of natural origin. Overall, 40% of the group’s raw materials are plant-based and derived from 300 species.

That commitment to innovative new products helped L’Oréal record gains in the first half of 2010. Sales rose 10.2% to $12.8 billion.

“The strong first-half sales growth reflects a return to a good like-for-like sales trend and a very positive exchange rate impact, which might increase in the course of this year,” said Agon. “All divisions are recording dynamic trends, thanks to major innovations, which are proving very successful: the rollout of the new Inoa hair colorant from L’Oréal Professionnel is continuing in salons all over the world, Yves Saint Laurent is experiencing a complete renaissance, with one of the highest growth rates among major luxury brands, and Maybelline is growing strongly across all continents.”

Sales: $25.8 billion

L’Oréal’s sales for 2008 were $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%. The company’s luxury product division took a hit, however, as sales declined 0.7% on a like-for-like basis.

This global beauty powerhouse is celebrating a major milestone this year—its 100th anniversary. For more on the company’s long history of product success and business savvy, see “L’Oréal at 100” on Happi.com

Sales: $23.3 billion.

In 2007, L’Oréal’s consolidated sales rose 8.1% to $23.3 billion and operating profit was up 11.3% to $3.8 billion, marking the 23rd consecutive year of double-digit profit growth for this cosmetic and fragrance giant based in Paris. According to Jean-Paul Agon, chief executive, L’Oréal’s performance in 2007 garnered it a worldwide market share of 15.3% fueled by 25 international brands sold in 130 countries.

By unit, L’Oréal’s cosmetics sales were $21.8 billion, The Body Shop tallied $1.1 billion and dermatology sales were $504 million. Skin care was its largest business segment, accounting for 26.2% of sales in 2007. Hair care was the second largest category, accounting for 23.8%, followed by makeup, hair colorants and perfume.

L’Oréal made several strategic acquisitions in 2007, including professional salon distributors Beauty Alliance and Maly’s West as well as PureOlogy, a highly regarded premium professional hair care brand in the U.S.

This year, the acquisitions continued, with the biggest being L’Oréal’s blockbuster deal to purchase YSL Beauté Holding from PPR. The European Commission in June approved the €1.15 billion deal, which includes some of the best known brands in luxury beauty as well as the Roger Gallet perfume soap unit. In the accord, L’Oréal gains exclusive, long-term licenses for the YSL and Bourcheron brands in fragrance and cosmetics, and it will take over licenses for Stella McCartney, Oscar de La Renta and Ermenegildo Zegna in cosmetics and fragrances. PPR will retain ownership of Yves Saint Laurent, Boucheron and Stella McCartney brands.

YSL will bolster L’Oréal’s own roster of established premium brands in its luxury products division, which recorded growth of 8.4% in 2007. In western Europe, L’Oréal said the recovery continued, with the luxury division recording very good scores in France, Italy, the UK, Belgium and Spain pushing sales higher by 6.7%. In North America, the division’s sales rose 5%. In ROW, sales rose 14.7% with substantial expansion in Asia, the Middle East, Australia, Latin America and Russia. Fragrance was the most dynamic category, up 14% or the year, according to L’Oréal.

For Lancôme, anti-aging Absolue Premium ßx with Pro-xylane achieved double-digit growth and Rénergie Morpholift r.a.r.e. was one of the best launches of the year in anti-aging skin care. Female fragrances were stable thanks to Trésor—and its new advertising campaign with Kate Winslet—generating double-digit growth in the fourth quarter. In Asia, the brand is advancing faster than the market in an extremely competitive environment. Sales also climbed sharply in the Russian market.

It was another year of double-digit growth in 2007 for Giorgio Armani in all the zones where the brand is strongly established. Specifically, Europe was up 12%, U.S. rose 13%, travel retail gained 19% with “spectacular” growth in newer markets such as Russia (+79%), Asia (+34%), and Latin America (+24%). L’Oréal is out to make Giorgio Armani a player in the cosmetics sector, and is looking for growth to come from an new ultra-premium skin care range Crema Nera.

In 2007, Kiehl’s, which now boasts more than 60 freestanding stores in 28 countries—continued very strong growth, posting a sales gain of 23.6%.Another success for L’Oréal was the Yue-sai brand, which achieved double-digit growth, the highest level since it was acquired by L’Oréal three years ago.

The Professional Products division—which includes Pureology, Matrix, Redken, Mizani, Shu Uemura Art of Hair, Kérastase, Redken and L’Oréal Professionnel—posted growth of 12.5%. In Western Europe sales rose 3.8%. In North America, sales rose 26.2% (6.2% like-for-like), benefiting from the acquisition of two distributors, by forging a strategic alliance with the hairdressers and the success of brands such as Redken and Kérastase. In addition, L’Oréal said Pureology is also growing strongly, and Mizani, an expert brand for Afro-American and mixed-race hair, is continuing to grow. Mizani’s sales were up 31% with a successful launch of Butter Blend, a straightening system. Sales in the rest of the world (ROW) rose 12.2%. In this sector, hair colorants accounted for 37.1% of sales, styling and textures 15.1% and shampoos and hair care 47.8%.

L’Oréal’s consumer products division recorded a 4.8% gain with like-for-like growth of 7.9%. Sales in western Europe rose 2.4%. North American sales fell 4.1%, but like-for-like growth was 3.9%, according to the company.ROW sales rose 17.6%. L’Oréal Paris’s growth of 8.1% exceeded targets in many countries. According to L’Oréal, Elsève continues to confirm its position as a market leader, and Préférence hair colorants delivered solid performances.Casting Crème Gloss proved extremely successful in its second year of existence, the company said.

In facial skin care, Revitalift, Age-Perfect and Collagen Filler recorded double-digit growth, according L’Oréal. In Western Europe, the brand outpaced its traditional rival at the end of 2007 with sell-through rising by 16%.

L’Oréal said its Men Expert facial skin care range has been growing since its launch at the end of 2005. Hydra-Energetic (with ambassadors Matthew Fox in Europe and Daniel Wu in Asia) and Vita-Lift (with Pierce Brosnan), are driving the line forward on a global basis.

In makeup, L’Oréal Paris recorded growth of 12%, fueled by new launches that include impulse products (Glam Shine 6H lipsticks), convenience products (Telescopic mascara)and loyalty building products (Bare Naturale foundation).

Garnier grew 8.9%, according to L’Oréal. The mass market brand’s playbook is concise:offer “well adapted effective and natural products of international quality in each region of the world” and build“close relationships with consumers by using well-known local personalities” in its advertising efforts. That strategy is producing very strong growth in emerging markets such as Russia, Ukraine, Romania, Thailand,Dubai and India.

In North America, Garnier is achieving double-digit growth and is now operating in hair care, hair colorants and skin care. The Fructis hair care and styling range grew 7%. Nutrisse Coloration/Color Naturals crème is the world’s number one hair colorant in volume and is growing strongly in western Europe, North America and theBRIMC countries. Garnier Skin Naturals facial skin care recorded growth of 24%, according to L’Oréal.

Maybelline New York had a particularly prosperous year, according to L’Oréal, with worldwide growth of 8.4%.The highlight was the brand’s balanced development across all regions of the world, including Western and Eastern Europe, Asia,Latin America and North America.

It was a more favorable year for Softsheen·Carson, with clear improvement in South Africa and the U.S., which together account for 90% of the brand’s sales.

It was another year of double-digit growth for L’Oréal’s active cosmetics division, with like-for-like sales up 10.8%.While growth was dynamic in North America and performance in Western Europe proved resilient, the ROW is the unit’s hottest sector. La Roche-Posay’s sales rise 18.4% in 2007, and Skinceuticals, which recorded a gain of 14.2%, is now available in five new European countries.

The Body Shop’s consolidated sales grew by 5.7% in 2007 with all regions recording strong performances, except for the U.S.Retail sales rose 7.9%. The Body Shop opened 161 stores in 2007, bringing its total to 2,426 in 59 countries.

Galderma’s sales rose 12.7%, according to L’Oréal, with balanced contributions across all geographic zones.