The beauty industry confirms its excellent results
The return to a social life without masks and the "lipstick effect" have allowed the major cosmetics groups to record increasing financial results.
By Eva Morletto30 août 2022
Coty, the American multinational founded in 1904 by Frenchman François Coty, has just posted a quarterly turnover higher than the forecasts provided by financial analysts: 1.17 billion dollars against the 1.15 expected for the fourth fiscal quarter.
The group, which owns some of the most iconic brands in perfumery and skincare - Marc Jacobs, Calvin Klein, Hugo Boss, Chloe and Miu Miu among others - has seen its net revenues reach 5.3 billion for the year 2022. This considerable figure confirms what has been ironically called by analysts the "lipstick effect", a trend that has seen consumers buying more high-end beauty products to offset the blues effect caused by the pandemic and runaway inflation.
The start of 2022 had already started well for US multinational Coty, with the first quarter up 15% compared to 2021. The premium brands - which account for 57% of its sales - played a particularly important role in the fourth quarter by achieving a turnover of 662.8 million dollars, led by perfumery and skincare. Only the Asian market saw its sales stagnate, despite the increasingly sophisticated development of digital solutions.
All the major cosmetics groups have also achieved good results. On a reported basis, the L'Oréal Group's sales at 30 June 2022 (first half) reached 18.36 billion euros, representing growth of +20.9%. The L'Oréal Luxe division also grew strongly, up 16.4% on a like-for-like basis and 25.6% on a reported basis, again outperforming the global luxury beauty market.
The Estée Lauder giant recorded sales of $17,737 million and net profit of $2,390 million for the fiscal year ending June 2022, compared to $16,215 million in sales the previous year.
Beiersdorf, the group that owns Nivea and La Prairie, said in June that its results for 2022 are expected to be at the high end of its forecast.
2022 will definitely be a year of beauty.
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