Three-month sales rose 7.7%, above analyst expectations
L’Oréal is designing SkinCeuticals and Kiehl’s products to work alongside GLP-1 drugs and the effects of rapid weight loss. The products are intended for effects that can include loose skin, particularly around the face. L’Oréal also owns Maybelline and La Roche-Posay.
Nicolas Hieronimus, L’Oréal’s head, called GLP-1 adoption “a very important phenomenon for us.” He told an investor call that rising use of the drugs was “having an impact on beauty consumption and skin care consumption in particular.” Hieronimus described the beauty market as resilient in a challenging global context.
L’Oréal announced on Thursday that sales in the three months to September had risen 7.7%, exceeding analyst expectations. The company presented GLP-1 use as a factor affecting beauty consumption while reporting overall growth in its sales.
BBC News reported that GLP-1 use has grown in popularity in recent years. Drugs developed to treat diabetes, including Ozempic, Wegovy and Mounjaro, were found to produce significant weight loss by suppressing appetite.
The report cautioned that loose skin is not caused directly by GLP-1 drugs. Rapid weight loss can cause loose skin for some people, however, including around the face.
Hieronimus said SkinCeuticals and Kiehl’s have products “that have been designed to work alongside and complement GLP-1 and its side effects on skin sagging,” along with other effects related to rapid weight loss.
L’Oréal has also moved further into the clinical aesthetic market. The company increased its stake in dermatology firm Galderma to 20% last December. BBC News cited Reuters in reporting that L’Oréal and Galderma are testing products on GLP-1 users concerned about loose skin in separate clinical trials.
Galderma owns Sculptra, an injectable intended to stimulate collagen production, and Restylane, an injectable dermal filler. The company released a report last year on rising GLP-1 use and concerns about changes in facial appearance.
A Galderma survey of people who used weight-loss medication found that the vast majority noticed changes in their facial appearance after using the drugs.