L’Oréal chief executive Nicolas Hieronimus said the Chinese beauty market is improving after a difficult couple of years, adding that the company retains the firepower to do more deals, days after announcing the €4 billion ($4.64 billion) purchase of Kering’s beauty business, reports the Financial Times. “The Chinese market has stabilised at a slightly positive level and with a little bit more [demand for] luxury, which is quite good for us,” Hieronimus told the Financial Times.
The comments came as L’Oréal reported that group sales grew by 4.2% in the third quarter to €10.3 billion, compared with the same period last year.
The owner of dozens of beauty brands from Garnier to Aesop and La Roche-Posay said third-quarter revenues in mainland China grew by a mid-single digit percentage. Sales in north Asia are now in positive territory so far this year, following two years of declines.