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Remarkable Financial Performance: Strong Growth Metrics
L’Oréal has reported an impressive sales growth of +20.5%, with a +12.0% increase in like-for-like sales, showcasing the company’s resilience in the beauty industry.

Total Sales Reached: 27.94 Billion Euros
In the competitive landscape of beauty products, L’Oréal’s sales figures exhibit a robust performance with a reported growth of +20.5% and a like-for-like increase of +12.0%, reflecting the company’s strong market position.

Outperforming Global Beauty Market Trends
With a significant outperformance compared to the global beauty market, L’Oréal experienced growth across all divisions and geographic zones. The positive impact from foreign exchange rates contributed +8.1%, and the third quarter saw continued growth above +20% compared to pre-pandemic figures in 2019.

Nicolas Hieronimus, CEO of L’Oréal, commented on the impressive results, stating:
“In a landscape characterized by unprecedented volatility, including public health measures in China and inflationary pressures in the Western world, L’Oréal achieved a steady growth trajectory, maintaining +20.5% growth compared to 2019. This success reflects our strategic geographic rebalancing and the positive influence of foreign exchange rates, alongside a +12.0% increase in like-for-like sales.”

The global beauty market remains robust, with consumers displaying a strong preference for beauty products. L’Oréal’s combination of a solid business model, adaptability, and the dedication of its global teams has enabled the company to significantly outperform the market, reinforcing its status as the leading beauty brand worldwide.

Analysis of the financial results indicates a successful geographic rebalancing within the Group. Each region showed positive growth, with North Asia making notable strides despite challenges in the Chinese market. Emerging markets, particularly in the SAPMENA-SSA region and Latin America, demonstrated remarkable growth, with Europe also performing exceptionally well. Every division saw growth, with the Consumer Products Division accelerating since the year’s start, while all three selective divisions achieved double-digit growth in the first nine months. Despite temporary disruptions in the L’Oréal Luxe division due to factors like lockdowns and anticipated invoicing, it rebounded in September, achieving record market shares in mainland China.

Capitalizing on its valorisation strategy launched earlier this year, L’Oréal is witnessing accelerated effects, particularly in Europe and North America, enhancing its market presence.

In pursuit of both economic and societal excellence, L’Oréal proudly received the Platinum medal from EcoVadis, placing the company in the top 1% globally for environmental and social performance. Furthermore, L’Oréal’s commitment to diversity and inclusion was recognized by Refinitiv, earning a spot in the global Diversity & Inclusion Top 100.

Despite the ongoing uncertainties, L’Oréal remains optimistic about the global beauty market’s outlook, which has reaffirmed its resilience. The company is confident in its innovative capabilities and its ability to exceed market expectations, forecasting another year of sales and profit growth in 2022.

SALES PERFORMANCE AS OF 30 SEPTEMBER 2022

On a like-for-like basis, which accounts for a comparable scope of consolidation and constant exchange rates, L’Oréal’s sales grew by +12.0%, showcasing the company’s effective market strategies.

The net effect of changes in the consolidation scope contributed +0.4% to overall growth.

Sales growth at constant exchange rates registered at +12.4%, highlighting the company’s strong performance amidst fluctuating market conditions.

Currency fluctuations positively affected sales by +8.1%. If we project the exchange rates from 30 September 2022, approximately €1 equated to $0.977, the anticipated impact of currency on sales for the entirety of 2022 is estimated at about +8.1%.

According to reported figures, L’Oréal’s total sales as of 30 September 2022 reached 27.94 billion euros, marking a significant increase of +20.5%.

Sales Analysis by Division and Geographic Zone

3rd Quarter 2022 Performance as of 30 September 2022
Sales Growth Metrics
€m Like-for-like Reported €m Like-for-like Reported

By Division
Professional Products: 1,094.3 (+4.3% like-for-like; +15.7% reported) with total sales of 3,258.2 (+10.9% like-for-like; +19.6% reported)
Consumer Products: 3,548.3 (+10.0% like-for-like; +19.1% reported) with total sales of 10,342.6 (+8.7% like-for-like; +15.7% reported)
L’Oréal Luxe: 3,612.3 (+4.6% like-for-like; +15.8% reported) with total sales of 10,483.9 (+12.2% like-for-like; +22.0% reported)
Active Cosmetics: 1,320.2 (+26.0% like-for-like; +38.8% reported) with total sales of 3,856.9 (+22.6% like-for-like; +31.5% reported)

Group Total: 9,575.2 (+9.1% like-for-like; +19.7% reported) with total sales of 27,941.5 (+12.0% like-for-like; +20.5% reported)

Sales by Geographic Zone
Europe: 2,878.7 (+10.5% like-for-like; +12.1% reported) with total sales of 8,445.9 (+13.0% like-for-like; +13.7% reported)
North America: 2,822.7 (+9.3% like-for-like; +27.7% reported) with total sales of 7,473.2 (+10.8% like-for-like; +25.0% reported)
North Asia: 2,410.4 (+0.3% like-for-like; +11.3% reported) with total sales of 8,030.5 (+7.4% like-for-like; +17.5% reported)
SAPMENA–SSA: 787.7 (+30.0% like-for-like; +41.5% reported) with total sales of 2,191.1 (+25.4% like-for-like; +32.7% reported)
Latin America: 675.6 (+16.2% like-for-like; +36.5% reported) with total sales of 1,800.9 (+20.0% like-for-like; +38.1% reported)

Group Total: 9,575.2 (+9.1% like-for-like; +19.7% reported) with total sales of 27,941.5 (+12.0% like-for-like; +20.5% reported)

It is important to note that third-quarter sales included an insurance benefit of €94.7 million, compensating for a natural disaster that disrupted operations at the L’Oréal plant in Vichy.

As a reminder, the Asian Travel Retail business unit was relocated on 1st July 2022, which led to expected invoicing of €90 million in June. This had a neutral like-for-like impact on growth by the end of September. This relocation positively influenced second-quarter like-for-like growth by 110 basis points, which shifted to a negative impact of 100 basis points in the third quarter.

Detailed Performance Overview by Division

PROFESSIONAL PRODUCTS
As of the end of September, the Professional Products Division reported a like-for-like growth of +10.9% and a reported increase of +19.6%. This division further solidified its leadership in the professional beauty market, experiencing growth across all geographic zones, with exceptional performance noted in India, mainland China, Brazil, and Germany. The division thrived across all distribution channels, including salons, its SalonCentric network in the United States, and e-commerce platforms, reaffirming the success of its omnichannel strategy. The buoyant haircare market significantly contributed to this division’s growth, primarily driven by Kérastase and sustained growth in Serie Expert by L’Oréal Professionnel, particularly through the Metal Detox line. Furthermore, the division saw growth in hair color with iconic products like Shades EQ by Redken and Inoa by L’Oréal Professionnel.

CONSUMER PRODUCTS
Following an impressive growth of +10% in the third quarter, the Consumer Products Division achieved robust growth of +8.7% like-for-like and +15.7% reported over the initial nine months. The division’s strategy focused on premiumization and valorisation significantly contributed to this growth acceleration. Performance was especially strong in the SAPMENA-SSA and Latin America zones, with remarkable gains recorded in India and Mexico, complemented by solid growth in the United States and Europe. All major brands played a crucial role in this impressive performance, fueled by innovative products across key categories. Makeup was a standout success, highlighted by significant launches like Superstay Vinyl Ink lipstick by Maybelline New York and Bare With Me concealer serum by NYX Professional Makeup. Additionally, haircare was a key growth driver led by L’Oréal Paris and the global launch of Elvive Hyaluron Plump. The division also saw an acceleration in hair color and steady performance in skincare, largely attributed to the success of Garnier’s new Vitamin C Brightening Serum.

L’ORÉAL LUXE
With a growth rate of +12.2% like-for-like and +22.0% reported as of September, L’Oréal Luxe surpassed the global luxury beauty market’s performance. In the third quarter, the division faced challenges due to repeated lockdowns in China and Hainan during the summer, anticipated invoicing linked to the relocation of the Asian Travel Retail business unit, and sourcing difficulties, especially concerning fragrance bottles. Despite these hurdles, the division made significant progress in mainland China, achieving record market shares. L’Oréal Luxe also recorded strong sales growth in Europe and emerging markets such as SAPMENA-SSA and Latin America, while fragrance performance drove growth in North America. The division relies on strong foundational pillars and continues to innovate across all three categories. In the booming fragrance sector, L’Oréal Luxe confirmed its global leadership with bestsellers like Libre by Yves Saint Laurent and La Vie est Belle by Lancôme, complemented by promising new launches such as Paradoxe by Prada and Armani Code. The surge in collection fragrances was notable, with successes like Replica by Maison Margiela and Armani Privé. In skincare, innovations like Lancôme Rénergie Triple Serum and a strong presence in the ultra-premium segment with brands like Helena Rubinstein and Lancôme Absolue bolstered performance. In North Asia, Takami also achieved significant growth, while makeup brands such as Yves Saint Laurent, Lancôme, and Shu Uemura reported solid results.

ACTIVE COSMETICS
As of the end of September, the Active Cosmetics Division continued its impressive performance, achieving a +22.6% increase like-for-like and a +31.5% rise based on reported figures. By deepening its partnerships with healthcare professionals, this division has strengthened its recommendation-based model, outpacing the dermocosmetics market significantly. Growth exceeded double digits across all zones, particularly in North America, Europe, and SAPMENA–SSA. La Roche-Posay remained the primary growth driver, with major contributions from its key products including Cicaplast, Effaclar, the revolutionary UVMune 400 sun protection, and the recent launch of Pure Niacinamide 10 serum. CeraVe emerged as the division’s fastest-growing brand, contributing to growth across North America and globally. Vichy also recorded double-digit growth, driven by the success of its Dercos haircare line, anti-aging sunscreen innovation Capital Soleil UV AGE Daily, and Neovadiol. Skinceuticals saw accelerated growth in the third quarter, propelled by the outstanding performance of A.G.E Interrupter anti-wrinkle cream and gains in the professional medical channel. In October, the division completed the acquisition of Skinbetter Science, a US physician-dispensed skincare brand supported by cutting-edge dermatological research.

Summary of Sales by Geographic Zone

EUROPE
By the end of September, Europe reported strong growth, clocking in at +13.0% like-for-like and +13.7% reported. The beauty market maintained its momentum through summer, with L’Oréal achieving solid growth in key markets like Germany, Spain, and the United Kingdom. In a climate of rising inflation, L’Oréal has successfully enhanced its product offerings, leveraging the appeal of its brands. The Consumer Products Division experienced accelerated growth, particularly in makeup, haircare, and skincare categories. The Active Cosmetics Division outperformed the dermocosmetics sector, largely thanks to La Roche-Posay and CeraVe’s successful blemish control line. L’Oréal Luxe benefited from its diverse fragrance portfolio, with strong performances from Paradoxe by Prada and Armani Code. The Professional Products Division capitalized on its e-commerce presence and the thriving premium haircare market.

NORTH AMERICA
As of September, North America achieved a growth rate of +10.8% like-for-like and +25.0% reported. After a slower July, market performance rebounded as consumers returned from their summer holidays. The third quarter was fueled by higher valorisation strategies, improved services, and balanced growth across online and brick-and-mortar retail. The Consumer Products Division experienced significant growth in makeup categories, led by innovations like Maybelline Sky High mascara and Superstay Vinyl Ink, alongside Garnier Micellar water and L’Oréal Paris Elvive Hyaluron Plump. L’Oréal Luxe outperformed the fragrance market, driven by its strong product portfolio and promising launches like Paradoxe by Prada. The Professional Products Division maintained growth in salon channels and SalonCentric, benefiting from the success of Redken and Kérastase in hair care. Despite supply chain challenges, the Active Cosmetics Division substantially outperformed the dermocosmetics market, driven by La Roche-Posay and CeraVe. In alignment with L’Oréal for the Future commitments, L’Oréal USA was recognized by Forbes as one of America’s Best Employers for Women 2022.

NORTH ASIA
As of September, North Asia recorded a growth of +7.4% like-for-like and +17.5% reported. In a challenging market environment, L’Oréal achieved solid growth, outpacing the beauty market. Both the Active Cosmetics and Professional Products divisions experienced double-digit growth and increased market share, driven by brands like Skinceuticals and professional haircare lines such as Kérastase and L’Oréal Professionnel. L’Oréal Luxe also gained market share through its fragrance portfolio and premium skincare lines like Lancôme Absolue and Helena Rubinstein, as well as the newly introduced Carita in mainland China. The Consumer Products Division continued to innovate, led by L’Oréal Paris in haircare and skincare, including the launch of the new Revitalift Filler HA Pro-Xylane PRO cream, alongside recent launches from Maybelline New York. Despite the negative trends in the beauty market due to stringent COVID-19 measures in China, L’Oréal achieved impressive sell-out performances, widening the gap with competitors and achieving record market shares in L’Oréal Luxe. Additionally, the Group’s position in e-commerce strengthened, topping rankings on emerging platforms like TikTok/Douyin (ByteDance), with L’Oréal Paris being the number one brand in skincare. The easing of public health restrictions in South Korea and Japan positively impacted the beauty market, leading to double-digit growth for L’Oréal in these regions during the third quarter.

SAPMENA–SSA
By the end of September, the SAPMENA zone reported exceptional growth of +25.4% like-for-like and +32.7% reported. L’Oréal continued its upward trajectory, significantly outperforming the beauty market in this region. The Consumer Products Division and L’Oréal Luxe were key contributors to this remarkable growth. In Australia, growth accelerated as the Consumer Products Division navigated sourcing pressures in makeup successfully. Offline sales in Southeast Asia rebounded significantly, while India continued to witness sales growth, bolstered by strong performances from both the Professional Products and Consumer Products divisions. The Group also recorded solid performances across the Gulf states. In Sub-Saharan Africa, the Active Cosmetics Division achieved spectacular growth, driven by the successful launch of CeraVe across various countries in the region.

LATIN AMERICA
As of September, Latin America recorded impressive growth of +20.0% like-for-like and +38.1% reported. With the beauty market expanding in key countries, L’Oréal secured significant market share gains, greatly supported by the Consumer Products Division’s outstanding performance throughout the region. Every country and division experienced double-digit sales growth, particularly in Mexico. Online sales surged, reflecting L’Oréal’s commitment to omnichannel activation in major markets.

KEY EVENTS FROM 1/7/22 TO 30/9/22 AND POST-CLOSING EVENTS

On 23 August 2022, L’Oréal was honored with the EcoVadis Platinum medal, scoring 83/100 for its environmental and social performance, placing the company among the top 1% of the highest-performing organizations globally (out of 100,000 assessed). The Group significantly improved its score in ethics, sustainable procurement, and human rights.
September 2022 marked the inaugural year of the L’Oréal for Youth program, aimed at providing job opportunities for young individuals, particularly those from disadvantaged backgrounds. Since its launch, the program has created over 18,300 job opportunities for under-30s, with a goal of offering 25,000 opportunities annually starting in 2022.

On 19 September, L’Oréal Group Chairman, Jean-Paul Agon, received the 2022 Award from the Appeal of Conscience Foundation, a prestigious recognition awarded to visionary business leaders who demonstrate social responsibility and utilize their company’s resources to benefit the global community. Agon was honored for his innovative leadership, emphasizing respect for human dignity, diversity, and inclusivity.
On 22 September, L’Oréal China Corporate Venture Capital (Shanghai Meicifang Investment Co. Ltd) announced its first investment in China, acquiring a minority stake in the luxury fragrance brand Documents, supported by the BOLD venture capital fund.

On 29 September, L’Oréal ranked 14th in the 2022 Refinitiv Diversity & Inclusion Index, which identifies the top 100 most diverse and inclusive companies out of 12,000 assessed according to 24 distinct metrics.

In September, as part of its European Energy Sobriety Plan, L’Oréal signed a contract with EDF via a Power Purchase Agreement (PPA) to supply green electricity to its manufacturing facilities and campuses in France. Starting in 2025, two exclusive solar parks will provide 25% of L’Oréal’s energy needs in France.
On 29 September, after a two-year renovation, L’Oréal announced the reopening of Carita’s renowned Maison de Beauté located at 11 rue du Faubourg Saint-Honoré. This iconic Parisian venue is celebrated for attracting a prestigious clientele and will offer an immersive beauty and wellness experience, featuring skincare, makeup, and hairdressing services, alongside an in-house gourmet restaurant, a private beauty “apartment,” and a concept store.

On 11 October, L’Oréal China laid the foundation for two groundbreaking projects in Suzhou, launching its first D2C intelligent fulfillment center and a new healthy beauty workshop in its Suzhou factory. These initiatives set new standards for sustainable, data-driven logistics management tailored to green sciences.

On 14 October, L’Oréal finalized the acquisition of Skinbetter Science, a US physician-dispensed skincare brand renowned for its advanced dermatological research, available through a network of dermatology, plastic surgery, and medical aesthetics practices.

“This news release does not represent an offer to sell or a solicitation of an offer to purchase L’Oréal shares. For comprehensive information regarding L’Oréal, please refer to the public documents registered with the Autorité des Marchés Financiers in France, which are also accessible in English on our website www.loreal-finance.com.

This news release may contain forward-looking statements. Although the Company believes these statements are based on reasonable assumptions at the time of publication, they are subject to risks and uncertainties that could lead actual results to differ materially from those projected.

This is a free English translation of the Sales at 30 September 2022 news release originally issued in French, provided for the convenience of English-speaking readers. In the event of any discrepancies, the French version will take precedence.