Beijing News Shell Finance News (Reporter Yu Menger) On May 6th, a reporter from Beijing News Shell Finance learned that Est é e Lauder Group has released its third quarter financial report for the 2024 fiscal year. During the period, the group achieved net sales of 3.94 billion US dollars, a year-on-year increase of 5%, and organic net sales increased by 6%; The net profit increased from 156 million US dollars in the same period last year to 330 million US dollars, with a growth rate of 11.5%. Est é e Lauder Group stated that the increase in net sales was mainly due to double-digit growth in the EMEA region (Europe, Middle East, and Africa).
In terms of specific categories, in the third quarter, the net sales of Est é e Lauder Group's skincare products reached 2.06 billion US dollars, a year-on-year increase of 9%. The group stated in its financial report that the growth in revenue from skincare products was mainly due to the increase in net sales, which also reflects the company's progress in reducing excess inventory.
The sales revenue of cosmetics was 1.136 billion US dollars, a year-on-year increase of 4%. The group stated that this was mainly due to the growth of its tourism retail business, as well as achieving double-digit growth in Latin America and South Korea.
In addition, fragrance and hair care products achieved revenue of $575 million and $143 million respectively, while revenue from other products was $26 million. Among them, the net sales of the perfume brand Le Labo have achieved double-digit growth both globally and in the Asia Pacific region. However, hair care products were affected by the weak North American market, with net sales declining by 4% year-on-year.
From a market perspective, Est é e Lauder Group's net sales in the Americas in the third quarter were $1.117 billion, a slight increase of 1% year-on-year. EMEA's net sales increased by 12% year-on-year to $1.647 billion. Est é e Lauder Group stated that the growth in sales in the EMEA region was mainly influenced by the continued growth of the group's tourism retail business.
It is worth noting that during the reporting period, Est é e Lauder Group's net sales in the Asia Pacific market reached $1.176 billion, a year-on-year increase of 3%. Among them, the net sales revenue in mainland China only increased by a low single digit; Driven by the tourism retail business and skincare business, Hong Kong, China has achieved double-digit growth.
Regarding the third quarter performance, Fu Yide, President and CEO of Est é e Lauder Group, said, "We have reached a turning point in the group's performance. In the second half of the year, not only is organic sales expected to achieve strong growth, but profit margins will also increase accordingly. In addition, relying on profit recovery plans, the group is fully prepared to effectively reshape profitability in the fiscal years 2025 and 2026, while accumulating strength for reinvesting in the group's brand building and various consumer oriented initiatives."
Meanwhile, he mentioned that Est é e Lauder has made progress in advancing the group's strategy and striving for innovation, including achieving growth in the mainland Chinese market. "Although the high-end beauty market in China is facing challenges, Chinese consumers are increasingly valuing consumer experience and still maintaining strong demand for high-quality beauty products. Therefore, we are confident in the group's long-term development in China, and will use Est é e Lauder China Innovation Research and Development Center as the engine to further increase innovation investment, accelerate market response speed, and continue to bring more high-end beauty products and services that exceed expectations to Chinese consumers."
Looking ahead, Est é e Lauder Group expressed confidence in the new growth trajectory of net sales and profits, but there is still a sustained macroeconomic downturn, including challenges such as the overall weakness of the high-end beauty market in mainland China and geopolitical turmoil in some parts of the world. Therefore, it has lowered its performance expectations for the fourth quarter and full year of the 2024 fiscal year. Among them, net sales in the fourth quarter are expected to increase by 5% -9% year-on-year, and organic sales are expected to increase by 6% -10%; The annual net sales are expected to decline by 3% -2%, and the organic net sales are expected to decline by 2% -1%.