Loreal 2011 Annual Report Download - page 74

72 REGISTRATION DOCUMENT − L’ORÉAL 2011
3Comments on the2011 nancialyear
The Group's business activities in 2011
In the New Markets, L’Oréal Luxury is growing fast. Thanks to
Lancôme , Kiehl’s and Shu Uemura , the Division is making
substantial market share gains in Asia; it is also continuing to
grow in Latin America, the Middle East and Eastern Europe.
Active Cosmetics
In2011, the Active Cosmetics Division grew by +3.2% like-for-like
and +2.6% based on reported figures. With strong dynamism
in Latin America, the United States and Africa, Middle East,
the Division is strengthening its position as number one in the
worldwide dermocosmetics market.
♦The Division’s sales are increasing, thanks to the dynamism
not only of La Roche-Posay , but also of SkinCeuticals and
Roger&Gallet .
La Roche-Posay is growing on all continents, thanks in
particular to Tolériane Ultra, skincare for highly sensitive and
allergy-prone skin, and Cicaplast Baume B5 in the scarring
segment.
Vichy is maintaining its world number one position, and
carried out two major launches in Europe:
Lift Activ Sérum10
in anti-ageing skincare, and Dercos Aminexil in anti-hairloss
haircare.
The strong growth of
SkinCeuticals is continuing, both in its
original market in the United States, and in Europe.
Finally, the internationalisation of
Roger&Gallet is continuing,
with strong growth in the countries it is moving into, and the
highly successful launch of the fragrance Fleur d’Osmanthus.
♦The Division’s growth is being boosted by good performances
in North America and in the New Markets, particularly Latin
America and the Africa, Middle East zone. The very good
scores of Innéov in Brazil, now the brand’s number one market
worldwide, are worth noting.
In Europe, the Division’s growth continues to reflect contrasting
trends in different countries: positive in France, but more difficult
in Southern Europe and in Eastern Europe, where difficulties in
the pharmacies channel are continuing.
The broadening of distribution and the conquest of new
health channels, such as drugstores and medispas, are an
important element in the Division’s worldwide strategy.
Multi-division summary by geographic zone
Western Europe
In a very slightly positive market, L’Oréal recorded a growth rate
of +0.6% like-for-like, with good growth rates in France, Germany
and the United Kingdom, and in travel retail. Sales have been
galvanised in this zone by Maybelline make-up and by L’Oréal
Luxury. The situation remains more difficult in Southern Europe,
and particularly in Greece and Portugal.
North America
In North America, L’Oréal grew faster than the market, and recorded
2011 growth of +5.5% like-for-like. The Luxury, Consumer Products
and Active Cosmetics Divisions all posted sustained growth. The
Consumer Products Division is significantly outperforming the
market trend, thanks in particular to Maybelline and Garnier .
The recently acquired Essie brand had a very good year. Growth
in the Professional Products Division is less substantial, but is
nevertheless ahead of the professional market trend.
New Markets
At December31st, 2011, the New Markets posted growth of +9.5%
like-for-like and +8.3% based on reported figures. Excluding Japan,
the New Markets recorded growth of +10.6% like-for-like, driven by
the constant dynamism of Asia.
♦Asia, Pacific: L’Oréal achieved annual growth in Asia-Pacific
of +13.0% like-for-like and +13.4% based on reported figures.
If Japan is excluded, growth in this zone amounted to +16.1%
like-for-like and +15.5% based on reported figures. Despite
the disasters which hit Japan, Australia, New Zealand and
Thailand during the year, the Group is continuing to improve
its positions throughout the zone, driven by markets whose
dynamism remains intact. The Group is advancing thanks to
the very good scores of L’Oréal Luxury in Greater China and
South Korea with Lancôme , Kiehl’s , Shu Uemura and Biotherm .
Consumer Products are also contributing to this dynamism
thanks to L’Oréal Paris and Maybelline . L’Oréal is thus asserting
its status as a skincare and make-up expert in all countries in
this zone. Haircare made a good start in the emerging markets
of South-East Asia.
♦Eastern Europe: At end-2011, the Group is at -2.8% like-for-
like in Eastern Europe. In a dismal economic context which is
affecting all the countries in this zone, the Group’s Divisions
recorded contrasting levels of performance. The Professional
Products Division and L’Oréal Luxury are improving their
penetration. In the Consumer Products Division, a programme
of carefully adapted initiatives is under way, for
Garnier in
particular.
♦Latin America: In2011, L’Oréal achieved growth of +13.2%
like-for-like in Latin America. Argentina, Mexico and Central
America are the growth drivers in this zone. Brazil is still
posting a solid trend. All the Group’s Divisions recorded good
performances, particularly the Active Cosmetics Division. The
very good results of Maybelline make-up in the Consumer
Products Division are worth noting.
♦Africa, Middle East: At December31st, 2011, Africa - Middle East
achieved growth of +10.5% like-for-like. In this zone, growth is
being driven by the countries of the Levant, the Gulf and Turkey,
and by two recently created subsidiaries, Pakistan and Egypt.
However, the situation is more contrasted in South Africa. All
Divisions are contributing to the dynamism of this expansion.