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L’aral Can avoid the worst tariff war with the United States, CEO of Beauty Giant Nicolas Hieranimus, CNBC said that the exposure to prices could still get into consumers
Hieronymus said his “not too concerned” for the impact of the White House tariffs on L’Oreal because the group produces most of its goods sold in the US in the North American country. Some of the luxury Cosmetics Titan products, such as flavors, are still exported from Europe.
“There are no tariffs in this category now,” he said. “Should there be one? Well, we’ll do around it. There’s a pricing force. Also there is a currency effect. The dollar is stronger.”
He added that the tariffs are “until it is a global force for Tat.”
His comments come after President Trump introduced 25% tariffs on Canadian and Mexican imports and 10% of Chinese goods, seeking to reduce US trading deficit with counterparties. Washington also threatened duties in Europe.
Performance
L’Oreal, which owns such brands as Maybelline, Garnier and La Roche-Posay, is generally exceeded in 2024 in what he called the “normalized beauty market”. The company, however, missed expectations in the last quarter, when similar sales increased by 2.5%, slowing compared to the previous quarter.
Sales in the fourth quarter in the US were soft, failed to replenish a long decline in China. But this year the hierarch is raised by the prospect of growth in North America.
“I think there are the basics of the economy,” he said. “We only have a 30% share of the market, so it is not only about market growth. It is about the ability to defeat new consumers.”
Sustainable in Europe
The performance of L’Oreal in Europe, meanwhile, remained strong. Last year, the region was the largest growth participant, and the sales of 8.2%increased by 8.2%.
However, the hierarch says that the EU remains too oriented to regulate and is not enough on innovation.
“My faith and hope, and this is what I perceive today when I meet with European politicians, is that the new Trump administration and their emphasis on competitiveness will be a true impetus that was needed.”
China has been the L’Oreal growth engine and many luxurious players for several years, but demand has taken a blow from different corruption factors, the Covid-19 pandemia pandemia
The hierarch says the uncertainty around the Chinese landscape can linger.
He does not expect 2025 in China to show much improvement in demand, but says that there is light at the end of the tunnel. “I’m sure,” he said. “I do not see this year to be a big change compared to last year, but I think we will see good news from China in the following months.”
L’Oreal, the world’s largest beauty company, both on income and market capitalization, is facing competition on several fronts – from large luxury groups such as Hermes or Kering, starting their own beauty units, to smaller social media.
The hierarch makes its bids on innovation “Every year, 10 to 15% of our business comes from new products, and you must constantly surprise and delight the consumer.
Buying 10% of Gredsm Injectable Beauty Specialist, L’Oreal said he takes position in clinics in North America and China to find out more about the aesthetics market. He will decide whether to invest further at a later time, said to the hierarching, noting that “it is important to learn l’areal, watch, and then come up with your mind.”
The company is expected to make ads on Nutricosmetics this year.
