CEO hails strength of e-commerce, digital marketing and brands

L’Oréal recorded sales of EUR13.07bn (USD15.5bn) for the first half of 2020, dropping down 11.7% on a like-for-like basis compared to the previous year while net profit declined 13% to EUR2.14bn (USD2.5bn).

Sales figures in were down in Asia Pacific on a like-for-like basis compared to the previous year to EUR4.46bn (USD5.29bn).

In the first half, sales in China grew by 17.5% in a negative market. The second quarter saw a growth of 30%.

However, it reported that advertising and promotional costs increased by 30 basis points to 30.5% of sales to support the growth of its brands, especially in China.

“We have continued to reinforce our growth drivers to support our brands, especially in China, with agility to maintain the closest possible bond with our consumers,”​ said L’Oréal Group CFO Christophe Babule.

Jean-Paul Agon, L’Oréal Group Chairman and CEO said: “In China especially, the market rebounded very quickly and was back to double-digit growth in Q2, confirming consumer’s strong appetite for beauty. Beauty is leading the recovery and growing much faster than total retail sales. Online growth remains very strong and offline traffic is returning to normal progressively.”

L’Oréal’s outstanding performance can be attributed to the contribution of e-commerce, which accounts for more than 50% of its business in the Chinese market.

Its strong e-commerce business in China grew even stronger in the past few months, with growth of 58% during the first half thanks to a strong showing in the first and second quarters.

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