L & # 39; Oreal Profit Q3 2018; CEO sees no slowdown in China

Like luxury goods manufacturers, cosmetics companies like L & # 39; Oreal or Japan's Shiseido have been hit by fears of a slowdown in China, resulting in a sell-off on the stock market. Shares of the French cosmetics group have fallen by almost 8 percent since peaking in August.

However, according to the company's income statement, equities rose nearly 6 percent on Wednesday during morning trading. The company said on Tuesday that its appetite for its mass-market brands such as L & # 39; Oreal Paris and, above all, luxury brands such as Lancome in Asia, remained robust. Sales growth in the region has even accelerated compared to a quarter earlier.

A particularly strong performance in the luxury segment, which includes Yves Saint Laurent make-up and brands such as Clarisonic, helped L & # 39; Oreal exceed expectations from July to September.

Agon said that besides China, India and Korea were among the Asian markets that supported the company's performance.

"But China is very strong," he added. "The sale in China is flying, especially in the luxury sector, and we've seen that for a long time, and it continues."

Agon said that this meant that L & # 39; Oreal "not only benefited from this strong market, but also gained market shares that are very good for the future."

The company said there were some improvements in Western Europe in the third quarter, including brands like Garnier Shampoo. However, the Brazilian market is still tough.

Regarding Western Europe, Agon said: "For us, we had two good years (in the region) – last year and the year before – this year is a bit more difficult, but we are still confident We continue to invest in Western Europe and we are counting on profit in market share to keep growing. "

– Reuters contributed to this report.