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L'Oreal reported a mixed yet reassuring performance in the second quarter, driven by growth outside China. The French cosmetics giant saw a 5.3% year-on-year increase in sales, reaching EUR10.875 billion, above expectations.
The growth was primarily fuelled by skin products, though the dermatological beauty sub-segment fell short of expectations. L'Oreal's performance in emerging markets, Europe, and North America offset a 2.4% decline in the North Asia region, including China, where soft consumer spending impacted sales.
Operating profit for the first half of the year rose 8% to EUR4.60 billion, narrowly beating analyst predictions. The company remains optimistic about outperforming the market this year, highlighting improvements in travel retail in North Asia and stronger-than-expected growth in Europe.
L'Oreal's North American business also showed resilience with a 3.4% increase in organic sales, while Latin America grew by 12.3%. The company's net profits for the first half of 2024 increased by 8.8% to EUR3.65 billion, with total sales rising by 7.5% on a reported basis.
Management expressed confidence in L'Oreal's ability to continue outpacing the global beauty market despite ongoing economic and geopolitical tensions.
