L’Oréal reports 2.5% Q4 FY24 sales amid China slump

FRANCE –  L’Oréal,  a French multinational company specializing in personal care products, has reported a 2.5% increase in Q4 FY24 sales to €11.08 billion(USD 11.60 billion), missing analyst expectations of 3.9% growth.

The slowdown follows a 3.4% increase in Q3 FY24 organic sales, with full-year organic sales rising 5.1% to €43.49 billion(USD 45.50 billion). 

Full-year organic group sales increased by 5.1% to reach €43.49 billion( USD 45.50 billion).

Dermatological beauty, including Cerave and La Roche-Posay, led company growth with a 5% sales increase.

Professional Products (Kerastase, Redken) increased by 3.8%, Consumer Products (L’Oréal Paris, Maybelline) by 2.7%, and L’Oréal Luxe (Kiehl’s, Yves Saint Laurent) by 1%. 

Geographically, sales in North America rose by only 1.4%, significantly below the 5% expected, North Asia saw a decline of 3.6% while European sales grew by 5.2%.

Nicolas Hieronimus, the CEO of L’Oréal  remains confident in company’s ability to outperform the market in 2025 despite the slowdown.

He stated,  “We expect growth to accelerate progressively, supported by our beauty stimulus plan, which will be driven by an exciting pipeline of launches and continued strong brand support.” 

According to L’Oréal, sales have been impacted by the sluggish Chinese market and a slow recovery in travel retail.

Estée Lauder, a competitor brand of L’Oréal, faced similar challenges.

It reported a 6% decline in Q2 2024 sales, which led to a 16% stock drop and up to 7,000 employee layoffs.

L’Oréal projects global beauty market growth of 4% to 4.5% in 2025, with the U.S. identified as a key opportunity. 

Hieronimus noted, “The consumption of particularly premium goods in the US will be dynamic.”

“While uncertainties exist, we see it as a land of opportunity.” 

Mergers and acquisitions remain part of L’Oréal’s strategy, as evidenced by its recent minority stake in luxury fragrance brand Amouage and a beauty license deal with Jacquemus.

However, Hieronimus clarified that there are no plans to increase L’Oréal’s stake in Jacquemus.

L’Oréal announced governance changes with Heiress Françoise Bettencourt Meyers stepping down from the board and proposing Téthys, the family holding company represented by deputy CEO Alexandre Benais, as her successor.

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