LRLCY - L'Oreal sales surge in Q3 as beauty product demand remains robust

US-listed shares of L’Oreal SA ( OTCPK:LRLCY ) gained on Thursday after the company posted strong Q3 sales, bolstered by resilient demand for cosmetics and consumer products.

The French beauty giant posted €27.94B, up from €23.19B in the year prior. The jump in sales was cited as a signal of consumer strength across geographies. Foreign exchange was also cited as a tailwind for the company.

“In a context of unprecedented volatility, marked by the public health restrictions in China and inflation in the Western world, L’Oréal achieved a very solid quarter, continuing at a steady pace of growth compared to 2019,” CEO Nicolas Hieronimus said. “Benefiting from its rebalancing strategy, particularly in terms of geographic footprint, at the end of September the Group reported strong growth of +20.5%, with a significant positive impact of foreign exchange, and +12.0% like-for-like.”

He added that consumer demand for beauty products has not slowed despite inflationary headwinds, touting L’Oreal ( OTCPK:LRLCY ) in primary position within this space. Indeed, Hieronimus said all regions grew sales, even the North Asia region which reaccelerated in September as lockdowns loosened. He indicated that L’Oreal ( OTCPK:LRLCY ) reached record market share in mainland China during the quarter.

“Despite the current uncertainties, we remain confident in the outlook for the global beauty market, which has again confirmed its resilience; confident in our power to innovate; and confident in our ability to outperform the market and achieve another year of growth in sales and profits in 2022,” Hieronimus said on Thursday.

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