L’Oreal Romania expects turnover growth next year on a market with smallest cosmetics budgets in Europe

Cosmetics producer and retailer L’Oreal Romania, part of the French L’Oreal Group, expects its 2011 turnover to go down 5 percent year-on-year, Richard Matalon, country general manager of L’Oreal Romania (in picture) told Romania-insider.com. Matalon however expects the company’s business to increase by 5 to 10 percent in 2012, on a better economic situation and improving consumer spending.

L'Oreal Romania posted a turnover of around EUR 56 million in 2010, according to data from the Finance Ministry, and a profit of around EUR 3.5 million in the same year. Its turnover and profit in 2009 stayed at a similar level. The company does not have any production sites in Romania. For this year, L’Oreal’s sales on the luxury segment should post an average growth of 30 percent in December, while sales of mass market products will go up by 15 percent, said Matalon.

Mascara reported the best sales within L'Oreal's make-up products. Products for men stood at a total of only 4 percent in sales, but should record a small increase in the next period, according to Matalon.

Romania’s cosmetic market is among the smallest in Europe, with an average of 20 euro spent per capita, half of the level of neighbor countries like Poland, where it stays around 40 EUR per capita, according to Richard Matalon. “Moreover, the average in Europe stays at EUR 100 per capita, mainly because Europe has more people in urban areas, a lower difference in purchasing power and many more selling points”, added Richard Matalon. If in 2010 the beauty market stood at a level of EUR 500 million, in 2011 this market reports a decrease of about 10 percent, to EUR 450 million. “The market shows a decrease in 2011 in units and in value,” said Richard Matalon. L’Oreal Romania’s plans for 2012 include new products in all the company’s divisions, namely hair-care, coloration, make-up and skin care. UNESCO in partnership with L’Oreal Romania have recently launched the third edition of the “For women in science” national scholarship program, which takes place between November 2011 and June 2012. L’Oreal is present on the market in Romania since 1997 and is part of the French L’Oreal Group which is active in over 130 countries. The group posted sales of EUR 19.5 billion last year and has 23 global brands. Reporting by Irina Popescu, irina.popescu@romania-insider.com Editing by Corina Saceanu, corina@romania-insider.com