Industry Leader Achieves Record Figures for 2021
L'Oréal Backs the Right Horse with Omnichanneling and Profits from Recovering Markets
L'Oréal closed the 2021 financial year with revenues of 32.28 billion euros. This corresponds to an increase of 16.1 per cent* compared to the previous year. The group has thus grown at double the rate recorded for the overall global beauty market. According to its own figures, the cosmetics group was able to increase its sales by 11.3 per cent in 2019, the year before the pandemic. The company puts operating profits at a record figure of 6.16 billion euros.
Perfume, Omnichannel and North America
According to L'Oréal, important sales drivers were the recovery of the North American market (+ 22.2 per cent) and the restructuring of the European region (+ 10.1 per cent). L'Oréal Luxe became the group's largest division, with significant gains (+ 20.9 per cent) mainly in the fragrance portfolio. The strongest growth was recorded in the Active Cosmetics category (31.8 per cent), which benefited from the booming dermo-cosmetics market. While the Consumer Products division stabilised (+ 5.6 per cent), the Professional Products division experienced a big leap (+ 24.8 per cent). This leap can be attributed to the group's omnichannel strategy.
Digital Advantage to be Further Expanded
In general, the group emphasises its continued digital commitment. E-commerce grew by 25.7 per cent in 2021 and accounted for 28.9 per cent of sales. The company intends to continue the digitalisation of its retail outlets as part of an integrated omnichannel strategy. CEO Nicolas Hieronimus states that the company will also continue to invest in artificial intelligence as well as the collection and use of data. He cites the strategic partnership with Verily as an example, which is said to enable a better understanding of the mechanisms of skin and hair ageing.
Hieronimus still regards the global economic situation as volatile. The CEO nevertheless remains confident that the group will continue to increase sales and profits in 2022 at a rate that will outpace the market.
* All growth data on a like-for-like basis
Source, photo: L'Oréal