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L’Oréal reported Q3 2023 revenue slightly below consensus but above our expectations. The softer rebound in the Chinese beauty market and the impact of Beijing’s crackdown on Daigou on Asian travel retail led to a decline in North Asia.
However, the US and Europe delivered exceptional performances, fuelled by robust Consumer Product and Dermatological Beauty demand.
Despite China’s weakness, we maintain that L’Oréal’s greater diversification in business and geographical presence bolsters its
Companies: L'Oreal (OR:EPA)L'Oreal S.A. (OR:PAR)
L’Oréal posted another consensus-beating first half, driven by its best-ever half year growth from the Consumer Product division and the unwavering dynamic of the Dermatological beauty division.
The better margin progression in the Dermatological beauty division fully offset the 80bps margin contraction in L’Oréal Luxe division.
The group will continue to benefit from the ongoing recovery in Chinese demand and its dominance of the booming dermo-cosmetics market, and achieve another year of gro
L’Oréal published another stronger-than-expected start to the year.
All regions reported double-digit growth except for North Asia, due to the reduction of stock-in-trade in China at the very beginning of the year.
The group experienced balanced growth in terms of geography and business. A fully recovery for beauty product consumption in China and a gradual recovery in Chinese travel spending will further drive the group’s top-line for the rest of the year.
L’Oréal has just reported a consensus-beating start to the year. The impressive acceleration in make up and strong demand for dermo-cosmetics in North America, South Asia and Latin America offset the decline in China early this year.
The group saw Chinese consumer demand resume from February and is confident that it will benefit from the sustained strong appetite of Chinese consumers for beauty products and a gradual recovery in Chinese tourist spending for the rest of the year.
The beauty giant publishing an encouraging set of FY22 results, with both the top-line and the profitability beating the consensus and our expectations.
Benefiting from the advanced omnichannel development, a strong acceleration in skincare as well as the solid leadership in fragrance, the group experienced a stronger-than-expected year-end performance across its three major markets despite the tougher trading environment in China.
We believe the group’s structural advantages, best-in-class R
L’Oréal published consensus-beating Q3 22 revenue.
All divisions reported better-than-expected quarterly growth except for L’Oréal Luxe. The luxury segment has suffered from the lower demand in Skincare in China due to the ongoing COVID-19-related restrictions and sourcing difficulties in fragrance.
The ongoing “zero-COVID” policy will not disappear in China overnight and, coupled with intensified inflationary pressure in some western countries, this will continue to result in a challenging tr
L’Oréal reported an impressive set of results for the first half. Both the top-line and profitability beat the consensus expectations.
Benefiting from the group’s advanced omnichannel development, all geographic zones reported double-digit growth including North Asia.
The flexible cost structure and solid top-line momentum led the margin to advance 70bps from H1 21 to 20.4% despite the inflationary environment.
Companies: L'Oreal S.A. (0NZM:LON)L'Oreal S.A. (OR:PAR)
L’Oréal has reporting an encouraging start to the year despite the current uncertain trading environment.
L’Oréal maintained its double-digit sales growth in Mainland China. COVID-related lockdowns and restrictions will only temporarily impact the group’s business.
L’Oréal does not see any impact of inflation on consumer purchasing behaviour but did warn that cost inflation will have some impact on the first half margin.
The group has released a mixed set of FY21 results. The top-line has continued to benefit from the advanced omnichannel distribution, especially the greater eCommerce penetration in emerging countries.
Despite the good cost control in SG&A and COGS, the considerably increased A&P expenses and slightly deceleration in the Chinese market at the year-end weighed on the group’s profitability.
Going forward, we are more concerned about the highly competitive Chinese make-up market and higher market
L’Oréal published a consensus-beating set of Q3 21 figures. All business divisions experienced qualitative growth, benefiting from the group’s faster digital adoption and innovative omnichannel distribution.
Despite the resurgence of Covid-19 having affected the trading performance in several areas in Asia (i.e. Hainan), the group maintained double-digit growth in most of its major markets.
With a well-balanced business portfolio and geographical presence, the group is on the new acceleration
L’Oréal has released its H1 21 results, very slightly above (+1.5%) consensus expectations. All divisions experienced double-digit growth except for Consumer Product. The heavier exposure to the make-up business has slowed the recovery pace of the division.
The healthy profitability driven by the rapid margin recovery in the Professional Product and L’Oréal Luxe was encouraging.
With several smashing forecasts publications seen this week, the moderate beat is not enough to comfort the market.
L’Oréal has released revenue growth of 10.2% lfl.
The growth was mainly driven by Mainland China. Sales jumped 37.9% lfl, benefiting from group’s strong online penetration in the country and lower comparisons.
But, interestingly, the strong rebound in the Chinese market did not make the L’Oréal luxe shine as much as the market expected. Active cosmetics and Professional products continued to be the firepower.
L’Oréal will continue to benefit from its leadership in the dermo-cosmetics market a
The year-end trading performance was above consensus expectations, all divisions experienced better than expected performances except for the consumer products division, which was impacted by its higher footprint in the make-up business.
The group has grown its footprint in e-commerce from 16% to 27% and skincare exposure from 35% to 40% in 2020, which has helped the group to maintain the operating margin at the pre-crisis level and confirmed the group’s incredible agility to catch the marke
Companies: L'Oreal S.A.
The world’s cosmetic leader has released better-than-expected Q3 20 figures, comfortably outperforming the global beauty market.
The strategic bet to resume product launches and marketing actions ahead of its peers has borne fruit, the group having gained market share in all geographies during the downturn.
The strong momentum in the professional product and active cosmetics divisions, along with higher e-commerce penetration across all geographies have given the group confidence in its abil
Despite the strong rebound in China, all divisions have been heavily impacted by the pandemic in the last three months, especially those with the greatest exposures to makeup products which have been most impacted. Unlike the top-line trend, the group has maintained its good profitability, especially in the Active cosmetics division.
The group is now expecting slightly positive growth in H2 20, which was not encouraging enough since the market anticipates a sales contraction of 4% for FY 20.
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At its AGM scheduled for 11.00am today, the Group will state that the business continues to trade satisfactorily and financial results are expected to be in line with current market expectations. Although trading conditions in the current financial year to August 2024 remain challenging, the Group has a strong product offering which has been well received by the trade. Adverse trading conditions will at some stage revert to normality which we believe will allow strong historic growth to resume.
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Nexteq’s Quixant division hosted an event at the ICE gaming exhibition on 7 February, and as we show from p3, Quixant had a strong presence to discuss numerous opportunities with new and existing customers. Highlights of the event included: the successful launch of the IQ-2 solution, which expands Quixant’s opportunities in emerging markets including LatAm; the team’s diligence in delivering the QMAX-3 in under 9 months supporting a multi-year extension with a major customer; and a UK-based cust
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The group’s AGM update provides a mixed picture as new order momentum provides further order book growth and internal operational improvements have been implemented as part of the CEOs strategy. However, some areas such as Industrial and Medical laser have seen demand weakness and destocking, which has been more prolonged than previously expected. As such, it signals the expectation that profits will be H2 weighted and adjusted PBT will be c£3m lower than previous guidance. We reduce our forecas
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Please find below our weekly update covering themes that we feel that are of interest to investors and participants in the small and mid-cap TMT sector as well as commentary on recent newsflow.
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