L’Oréal feels Covid-19 impact
“In a situation marked by the expansion of the Covid-19 pandemic, L’Oréal’s number one priority is to ensure the protection of its employees. The Group has also taken a large number of solidarity measures for its customers and partners, and is providing support to health authorities,” says Jean-Paul Agon, Chairman and CEO of L'Oréal.
According to L’Oréal, the first quarter of 2020 has seen a decline in the cosmetics market of around -8 per cent. L’Oréal reports, the company has succeeded in outperforming the market with sales at -4.8 per cent like-for-like.
The Active Cosmetics Division and E-commerce defy the crisis
Despite the health crisis, the Active Cosmetics Division is still posting double-digit growth, with the pharmacy channel still open, and a portfolio of brands that is adapted to the demand for health-related products. The division has performed well, at +13.2 per cent like-for-like, according to L’Oréal. Some two-thirds of the division’s sales are through pharmacies and drugstores. The division is growing in all geographic zones, says the company.
Furthermore, E-commerce is still a key growth driver for the Group. The segment is growing at 52.6 per cent, and now represents close to 20 per cent of sales, according to L’Oréal. The current crisis has led to a strong acceleration of the digital transformation.
Source: L’Oréal, photo: Adobe Stock/ ra2 studio