With the acquisition of Innovist, the consumer products division is expected to further strengthen its foothold in the market
French beauty major L’Oreal has said its India business continued to grow in the first half of the current year, driven mainly by strong performance in haircare and skincare. The company said that with the acquisition of Innovist, the consumer products division is expected to further strengthen its foothold in the ‘all-important Indian market’.
The company’s South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa (SAPMENA-SSA) region’s adjusted like-for-like growth amounted to 13.8 per cent, with growth driven by a combination of volume and value. Consumption in the Gulf Countries has been impacted since the start of the Middle East conflict, except Saudi Arabia, which proved resilient.
“By country, the performance was outstanding in Vietnam and very strong in the Australia-New Zealand cluster, while growth continued to accelerate in India, driven by haircare and skincare,” the company said in an official statement.
Across the region, ecommerce remained a key growth driver, notably in India, Southeast Asia and the Gulf Cooperation Council (GCC). In the first six months, sales of the company amounted to EUR 23.77 billion, up by 5.8 per cent. Like-for-like sales grew by 6.8 per cent. The professional products segment posted 12.6 per cent LFL growth during the same period, while the consumer products division reported 4.1 per cent LFL. L’Oreal Luxe reported 5.4 per cent LFL.
“Our virtuous P&L was on full display. Boosted by volume growth and strong mix improvement, our gross margin continued to expand. This, coupled with our ongoing focus on cost control, allowed us to increase our brand fuel by 70 basis points and deliver a record first half operating margin of 21.3 per cent,” stated Nicolas Hieronimus, Chief Executive Officer (CEO), L’Oreal.
Consumer Products Division
The Division delivered solid growth, which accelerated between the first and second quarter with a particularly strong performance. By region, North America delivered a solid performance in a dynamic market. Europe maintained its robust momentum with noteworthy performances in the UK-Ireland cluster and Italy.
Emerging markets continued to grow with particularly strong results in Brazil, India, and Vietnam. With the acquisition of Innovist, the division is further strengthening its foothold in the all-important Indian market, the company added.
