L'Oréal grows bigger in the face of the crisis. The French giant L'Oréal has registered an improvement substances of its revenues in the first quarter of the year and faces the conflict in the Middle East.
By regions, sales in Europe increased in the quarter by 11.5% year-on-year, up to 4,365 million; 2% in North America, with 3,303.2 million; in Latin America they grew by 5.1% up to 858 million; as well as 12.1% in Africa, South Asia and the Middle East, they increased by 12.1% with 1,210 million; while in North Asia they decreased by 9%, down to 2,678 million.
However, L'Oréal has recognized that it has been affected since the outbreak of the conflict, in the region especially in the United Arab Emirates, while Saudi Arabia has shown resilience, adding that, throughout the region, e-commerce continued to be a growth driver.
By business segments, revenues from the sale of professional products increased by 14.5%, to 1,462 million; 2.1% in the consumer area, with 4,368 million; 0.3% in the luxury business, to 4,107 million; and 6.2% in dermatological beauty, to 2,215 million.
Nicolas Hieronimus, CEO of L'Oréal, has explained the European situation and how this continent perfectly defines what is known as the "lipstick effect": although consumers are worried and have certain concerns, they may reduce their spending on high-value items, but they use beauty as compensation for stress and as a psychological buffer.