(Reuters) – L’Oréal reported on Thursday of a turnover up 3.5% in comparable to the first quarter, the high demand for perfumes and hair care of the French cosmetics group in Europe having compensated for difficulties in the United States.
L’Oréal, which manages around forty brands of shampoos, creams and perfumes, reported a turnover of 11.73 billion euros over the first three months of the year, after 11.25 billion euros a year ago.
This result exceeds the expectations of analysts who tabbed on growth of 1.3%, according to a visible alpha consensus quoted by Jefferies. It includes in particular a positive net effect of 100 million euros linked to the computer transformation carried out in 2024 and 2025, the group said in a press release.
“L’Oréal is starting the year with growth in accordance with our forecasts. There have been good and less good surprises: the United States is more difficult than expected, while China is slightly better than anticipated,” said Director General Nicolas Hieronimus in the press release.
After years of strong growth, driven by demand for its high -end products, L’Oréal had to face the attenuation of prices with the slowdown in inflation, as well as increased competition in China in the skin care category.
Sales of L’Oréal in North America fell 3.8% during the quarter, against growth of 1.4% in the previous three months, hampered by low demand.
All other regions have progressed, Europe representing a third of sales for the three months until the end of March.
L’Oréal, which imports 30% of its products in the United States of Europe and elsewhere, will also have to increase its prices to alleviate the impact of customs duties by President Donald Trump, although the company has accumulated stocks, delaying any impact until the second half, said Nicolas Hieronimus at a call conference with analysts.
However, the group said it was “confident” on the growth of the global beauty market this year, despite current economic and geopolitical tensions, and considers itself capable of achieving “a new year of growth in turnover and results”.
(Written by Augustin Turpin, with Dominique Patton, edited by Blandine Hénault and Kate Entringer)
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