(Adds detail, analyst comment)
By Mimosa Spencer
PARIS, April 19 (Reuters) - L'Oreal reported a 13% rise in first quarter sales, beating expectations thanks to strong business in the United States and Europe as shoppers shrugged off rising prices, but said it had not benefited yet from the end of COVID-19 curbs in China.
Sales of the French cosmetics group, which sells brands ranging from Maybelline to Lancome, came to 10.38 billion euros ($11.37 billion) over the first three months to the end of March.
The 13% increase on an organic basis beat analyst expectations for 8.1% growth according to a consensus estimate cited by Barclays.
Sales in Europe and North America grew by 16% and 16.6% respectively, with the company flagging a strong performance from its consumer products, which has been moving upmarket, as well as its dermatological beauty division, which sells CeraVe skincare.
In mainland China, where the company said luxury sales were flat due to low inventories, consumer demand and store traffic resumed from February.
"These are truly outstanding numbers," despite China "still being a drag," said Bruno Monteyne, analyst with Bernstein, noting that sales growth for every division beat expectations, with a standout performance from the dermatological beauty division, up 30.6%.
Speaking in a conference call with analysts, L'Oreal Chief Executive Nicolas Hieronimus said he was confident that sales at the company's luxury division would accelerate, driven by a rebound in China, where it has over 31% market share.
Earlier this month, L'Oreal agreed to buy Australian luxury brand Aesop for an enterprise value of $2.53 billion, its largest brand acquisition to date, with an eye to international expansion, including in China. ($1 = 0.9127 euro) (Reporting by Mimosa Spencer; editing by Silvia Aloisi and Jonathan Oatis)
