On April 17, L’Oréal announced its financial results for the first quarter of fiscal year 2025. The company reported sales of €11.73 billion, marking a 4.4% increase year-over-year and a like-for-like growth of 3.5%, excluding currency and structural effects. Despite ongoing global economic uncertainty and geopolitical risks, strong performances in Europe and emerging markets significantly bolstered the Group’s overall results.
The company also noted that part of the sales growth was driven by a positive phasing effect related to its ongoing IT system overhaul since 2024, resulting in an early benefit of €100 million.
Europe and Emerging Markets Lead Growth
By region, SAPMENA-SSA (South Asia Pacific, Middle East, North Africa, Sub-Saharan Africa) posted the strongest like-for-like growth at +10.4%, followed by North Asia (mainly China, Japan, and South Korea) at +6.9%, and Europe at +4.3%, all showing solid performance.
In contrast, sales in North America declined by -3.8%, which was attributed to the impact of prior-year IT phasing and continued softness in the makeup category. Adjusted like-for-like growth stood at a modest +0.5%.
Fragrance and Haircare Remain Growth Drivers
By division, L’Oréal Luxe recorded a strong like-for-like increase of +5.8%. In the fragrance category, standout performers included “Libre” and “MYSLF” by Yves Saint Laurent, “Born in Roma” by Valentino, and “Paradoxe” by Prada, all contributing to growth that outpaced the overall market.
Premium haircare also continued its momentum, driven by new products such as “Gloss Absolu” by Kérastase. The Professional Products Division achieved double-digit growth in key markets including Europe, China, and Brazil.
L’Oréal CEO Nicolas Hieronimus shared the following remarks on the results: “In what has been a particularly challenging and volatile operating environment, L’Oréal has started the year with growth in line with our projections. There were some good and some less good surprises: the US were more challenging than anticipated, while China was slightly better than expected. Europe was, once again, our single largest growth contributor and emerging markets remained dynamic.”
Hieronimus also addressed the impact of tariff increases, stating: “In the current context, our priorities are to drive growth and manage our P&L to offset the impact of tariff hikes – with the benefit of an already very healthy gross margin.”
L’Oréal reaffirmed its ambition to continue outperforming the global beauty market and plans to accelerate growth further through the rollout of new products and sustained brand investments.
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