Cosmetics group L'Oreal reported better than expected first-quarter sales growth on Tuesday, citing strong demand in the US, Europe and mainland China as consumers brushed off concerns about inflation and snapped up high-end beauty products.
Sales for the first three months of 2022 rose 13.5% on a like-for-like basis to 9.06 billion euros ($9.8 billion), with double-digit growth from Europe, North America and mainland China.
Analysts had expected 10.6% sales growth, according to a consensus estimate cited by Credit Suisse.
"This is a good statement overall with strong momentum behind L'Oreal's key growth drivers," RBC analysts said, citing North Asia, North America and the Active Cosmetics division.
The Active Cosmetics division, which includes Vichy and CeraVe labels, grew fastest, with sales up 18%, while the beauty giant's largest division, L'Oreal Luxe, which sells Giorgio Armani and Lancome products, clocked 17.5% growth.