Giant multinational groups have published some encouraging sales data for the first trimester of 2024, underlining that the hair & beauty industry is, in the main, one of the leading global performers.
Here is a summary of some of the data released by the big three: Unilever, Procter & Gamble and L’Oréal.
Unilever
Led by the performance of the Beauty Division, in the first quarter of 2024, Unilever sales jumped more than forecasted as chief executive officer Hein Schumacher pushes ahead with his turnaround plan and shoppers are coming back to premium brands.
Following a trend already registered by other giant multinational companies, the Anglo-Dutch consumer goods group announced sales rose 4.4% in the first three months of the year, ahead of analyst expectations of 3.5%. It also increased volumes for the second consecutive quarter as Unilever tried to win back market share.
The shares rose as much as 5% in early trading in London bouncing back from last year’s performance when stocks were down more than 9%. The decline was caused by a prolonged period of high inflation considered responsible for stretching consumer budgets and pushing shoppers to cheaper supermarket brands. That trend appears to be reversing for some European consumer groups, such as Unilever and Reckitt Benckiser Group. Different is the situation for Nestlé which missed sales growth expectations for the first quarter with volumes once again contracting, apparently as a consequence of the North American slowdown.
Unilever’s beauty and wellbeing unit was the fastest-growing division with sales rising 7.4%, led mostly by higher volumes.
Good news also from P&G that raises annual earnings forecast thanks to US growth.
Amid strong U.S. consumer demand and lower costs, Procter & Gamble raises its annual earnings forecast, now expecting a benefit of approximately $900 million after taxes, for fiscal 2024, which ends in June, compared to its previous forecast of a benefit of $800 million.
Although P&G’s third-quarter net sales ($ 20.20 Billion) fell short of analysts’ expectations, the company was able to increase its profits, taking advantage of the benefits resulting from the reduction in raw material prices compared to the peaks recorded during the pandemic.
Volumes grew about 3% in its core market, the United States, while consumers are not switching from P&G products to unbranded products (similarly to Unilever analysis – Editor’s Note).
However, cost-conscious consumers are turning to value-based products. Indeed, P&G’s strong sales momentum in the U.S. and Europe was overshadowed by lower sales of its high-end skincare line SK-II, one of the best-selling in China, due to lower capacity of consumer spending and their environmental concerns.
P&G’s Volume trends in some countries, such as Egypt, Saudi Arabia, Turkey, Indonesia and Malaysia, have remained weak since the onset of rising tensions in the Middle East.
‘Stellar’ Performance by L’Oréal
Data published by L’Oréal for the first quarter show global sales increased by €11.24 billion which is equal to +8.3 % compared to the same period of 2023 (+9.4% like-for-like).
The company report calls these ‘stellar results’ and they enable L’Oréal to continue to outperform in an already dynamic global beauty market.
Particularly remarkable is the growth in Europe and the Emerging Markets.
Perpetrated growth in both, volume and value is derived from the continuous strive for innovation and the attention to trending issues like diversity and inclusion.
Commenting on the figures, Nicolas Hieronimus, CEO of L’Oréal, said: “2024 is off to a very good start with like-for-like growth of +9.4%, perfectly illustrating the power of our unique model. We are a pure player in beauty, a category that has once again proven its relentless growth capacity. Our multipolar approach to beauty – from luxury to mass, professional to dermatological, in all channels, all price points, and all geographies – allows us to seize all growth opportunities and offset temporary points of softness. In an environment that continues to be marked by economic and geopolitical tensions, we are optimistic about the outlook for the beauty market and confident in our ability to keep outperforming it and to achieve another year of growth in sales and profit.”
