2024 Half-Year Results
Continued Strong Growth and Market
Outperformance
Further Operating Margin
Improvement
- Sales: 22.12 billion euros, +7.3%
like-for-like1, +7.5% reported.
- Continued outperformance of the global beauty
market.
- Positive momentum in all Divisions, led by
Dermatological Beauty and Consumer Products. Sequential
acceleration of L’Oréal Luxe in the last two quarters.
- Double-digit growth in Europe and Emerging Markets.
Rhythm in North America maintained throughout the first
half.
- Growth driven by a combination of value and
volume.
- Progress balanced between offline and
online.
- Operating margin at 20.8%, up 10 basis
points.
- Net profit increased by +8.8% to 3.65 billion
euros.
- Moody’s once again awarded L’Oréal 74
points out of 100 in its ESG Assessment, well above the
sector average.
Commenting on these figures, Nicolas Hieronimus, CEO of L'Oréal,
said:
“In the first half, we delivered strong growth of +7.3%,
well-balanced between value and volume and strengthened our global
leadership in a beauty market that remains dynamic.
Our continued strong momentum in emerging markets, Europe
and North America allowed us to more than offset the depressed
beauty market in mainland China and the unfavourable comparative in
Travel Retail. In this context, I am particularly pleased to see
the acceleration of L’Oréal Luxe, the dynamism of Consumer Products
and the continued share gains of Dermatological Beauty and
Professional Products.
The combination of our powerful R&I and unique marketing
creativity allowed us to offer consumers groundbreaking
innovations. The consistent increase of our A&P spend to
support these innovations and our 37 international brands allowed
us to, once again, outpace the global beauty market.
In an environment that continues to be marked by economic
and geopolitical tensions, we remain optimistic about the outlook
for the beauty market and confident that our innovation power and
the robustness of our multi-polar model will allow us to keep
outperforming it and to achieve another year of growth in sales and
profit.”
The Board of Directors has decided, under the authorisation
approved by the Annual General Meeting of 23 April 2024, to set up
a share buyback programme during the second half of 2024 amounting
to a maximum of 500 million euros and with a maximum number of
shares to be acquired of 2 million. The shares thus repurchased are
intended to be cancelled2.
*********
2024 HALF-YEAR SALES
In the first six months, sales amounted to 22.12 billion
euros, up +7.5% reported.
Like-for-like, i.e., based on a comparable
structure and identical exchange rates, sales grew by +7.3%.
The net impact of changes in the scope of
consolidation was +2.5%.
Growth at constant exchange rates came out at
+9.8%.
Currency fluctuations had a negative impact of
-2.3% at the end of June 2024. If the exchange rates as of 30
June 2024, i.e., €1 = $1.0700, are extrapolated until 31 December,
the impact of currency fluctuations on sales would be around -1.1%
for the whole of 2024.
Sales by Division and Region
|
|
2nd quarter 2024 |
1st half 2024 |
|
|
|
Growth |
|
Growth |
|
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
|
By Division |
|
|
|
|
|
|
|
Professional Products |
1,183.4 |
+0.9% |
+1.1% |
2,426.7 |
+5.7% |
+4.9% |
|
Consumer Products |
4,149.4 |
+6.7% |
+7.3% |
8,322.2 |
+8.9% |
+8.3% |
|
Luxe |
3,765.8 |
+2.8% |
+5.8% |
7,578.8 |
+2.3% |
+4.0% |
|
Dermatological Beauty |
1,777.2 |
+10.8% |
+11.1% |
3,793.0 |
+16.4% |
+15.5% |
|
Group Total |
10,875.8 |
+5.3% |
+6.7% |
22,120.8 |
+7.3% |
+7.5% |
|
By Region |
|
|
|
|
|
|
|
Europe |
3,550.0 |
+9.7% |
+12.2% |
7,283.3 |
+11.1% |
+12.2% |
|
North America |
2,783.6 |
+3.4% |
+5.5% |
5,798.7 |
+7.8% |
+8.7% |
|
North Asia |
2,752.0 |
-2.4% |
-2.4% |
5,474.7 |
-1.7% |
-3.1% |
|
SAPMENA–SSA3 |
922.5 |
+14.0% |
+14.3% |
1,884.0 |
+15.2% |
+14.3% |
|
Latin America |
867.6 |
+12.3% |
+13.3% |
1,680.2 |
+14.2% |
+15.8% |
|
Group Total |
10,875.8 |
+5.3% |
+6.7% |
22,120.8 |
+7.3% |
+7.5% |
Summary by Division
PROFESSIONAL PRODUCTS
The Professional Products Division delivered robust
growth of +5.7% like-for-like and +4.9% reported.
Professional Products grew across all regions: in developed
markets, North Asia including China, as well as emerging markets,
notably GCC4 and Latin America. It outpaced the global
professional market.
The Division continues to expand through its omnichannel
strategy with strong acceleration in e-commerce and selective
distribution.
In the dynamic haircare market, growth was fuelled by new
product launches: Kérastase Première is off to an
excellent start; L’Oréal ProfessionnelAbsolut Repair
Molecular continued its successful roll-out; Redken
was boosted by the ongoing success of Acidic Bonding
Concentrate and the promising debut of Acidic Color
Gloss. In hair colour, Shades EQ from
Redken, iNOA, as well as Dia Color by
L’Oréal Professionnel maintained their momentum.
In the second half of the year, the Division will further
capitalise on the market for hair devices with the debut of
AirLight Pro, a revolutionary hair dryer by L’Oréal
Professionnel – reinforcing the Division's commitment to
bringing cutting-edge technology and innovation to the professional
haircare industry.
CONSUMER PRODUCTS
The Consumer Products Division achieved strong
growth of +8.9% like-for-like and +8.3% reported.
The first half performance reinforced the Division’s
democratisation and premiumisation strategy driven by strong value
(combining price and mix), while maintaining positive volumes.
Growth was driven by particularly strong performances in Europe
and emerging markets, notably Brazil, Mexico, and India.
All major brands advanced strongly. Most remarkable was the
excellent performance of L’Oréal Paris, the world’s number
one beauty brand, which continued to grow in double digits.
All categories remained dynamic, fuelled by powerful innovations
and activations. Haircare was a particular highlight, driven by
continued premiumisation: L’Oréal Paris led the way with
the remarkable success of Elvive Glycolic Gloss. Makeup
delivered double-digit growth thanks to new launches like
L’Oréal Paris Panorama mascara, NYX Professional
Makeup Duck Plump lip gloss, and Maybelline New
York’s Sunkisser blush. Skincare remained very
dynamic, with Garnier democratising the daily use of UV
fluids, L’Oréal Paris launching Bright Reveal, a
scientific breakthrough in the fight against dark spots, and
Mixa pursuing its successful expansion in Europe.
LUXE
L’Oréal Luxe posted growth of +2.3% like-for-like,
accelerating in 2Q24, and +4.0% reported.
Growth was robust in Europe, and in double digits in North
America as well as in emerging markets; on an aggregate basis,
L’Oréal Luxe outperformed the luxury beauty market across these
three regions. In mainland China, the Division continued to gain
share in a negative market; Travel Retail in North Asia, meanwhile,
saw first signs of improvement. Japan remained very dynamic.
Fragrances were, once again, the most dynamic category, and
L’Oréal Luxe outperformed the market across all regions, thanks to
Couture brands like Yves Saint Laurent,
Valentino, Maison Margiela and Prada,
and lifestyle brands such as Azzaro. The rebound of makeup
continued, fuelled by powerful innovations from Yves Saint
Laurent, Armani, and Urban Decay.
Aesop pursued its expansion plan. The other recently
acquired brands remained very dynamic.
DERMATOLOGICAL BEAUTY
Dermatological Beauty reported excellent growth of
+16.4% like-for-like and +15.5% reported.
The Division maintained its strong momentum, growing
significantly faster than the dermo-cosmetics market, which remains
dynamic despite the slowdown in the US. This outperformance once
again vindicated its successful growth strategy, boosted by its
medical leadership and unparalleled R&I foundation.
Developed and emerging markets as well as North Asia grew in
double digits as Dermatological Beauty pursued its global
expansion. In mainland China, the Division continued to make
significant inroads, driven by SkinCeuticals and
CeraVe.
With strong double-digit growth across all regions, La
Roche-Posay remained thenumber one growth contributor to
the Division. This was fuelled by the success of breakthrough
innovation MelaB3, addressing localised pigmentation
issues based on the multi-patented Melasyl™ molecule.
CeraVe continued to grow strongly, significantly
outperforming the global market. Vichy maintained its
double-digit pace, supported by the success of its
Dercos haircare franchise. Skinbetter
Science sustained its strong momentum in the US and is off to
a promising start in Canada.
Summary by Region
EUROPE
Europe posted impressive growth of +11.1% like-for-like
and +12.2% reported.
L’Oréal continued to outperform a market that remained
dynamic.
Growth was broad-based across countries with particularly strong
contributions from the Germany-Austria-Switzerland, Spain-Portugal,
and UK-Ireland clusters and impressive momentum across the midsized
countries.
Each of the four categories advanced in double digits with
makeup and skincare particularly dynamic.
Consumer Products posted strong growth with stand-out
performances by L'Oreal Paris - notably in haircare - as
well as Maybelline New York and NYX Professional
Makeup, fuelled by new launches. L'Oréal Luxe performed
broadly in line with the market; growth was particularly dynamic in
fragrances as well as makeup. Dermatological Beauty advanced
strongly across all countries thanks to the complementarity of the
Division’s brand portfolio. Professional Products benefited from a
number of successful launches with all three key brands
growing.
NORTH AMERICA
North America reported robust growth of +7.8%
like-for-like and +8.7% reported.
Adjusted for the impact of phasing (related to the
implementation of new IT systems), the region maintained a balanced
rhythm throughout the first half. All Divisions grew, led by
Dermatological Beauty and L’Oréal Luxe.
Growth in Consumer Products was driven by haircare as
L’Oréal Paris continued to outpace the market; the brand
recently introduced Colorsonic, its first at home hair
colouration device. In makeup, NYX Professional Makeup
advanced strongly thanks to the launch of Fat Oil and
Duck Plump; Maybelline New York’s recent
innovation is off to a promising start.
Fuelled by the success of its unique fragrance portfolio,
L’Oréal Luxe outperformed the luxury beauty market. Valentino’s
Born in Roma, now in the top-three for both men and women, and
Yves Saint Laurent’s MYSLF continued to grow strongly;
Ralph Lauren was boosted by the launch of Polo
67. Following in the successful footsteps of Lancôme,
Kiehl’s was launched on Amazon in the second quarter.
Dermatological Beauty outpaced the dermo-cosmetics market with
particularly strong contributions from La Roche-Posay,
boosted by the Mela B3 launch, and Skinbetter
Science. CeraVe stayed the number one skincare
brand.
Professional Products grew ahead of its market, driven by
successful launches like Kérastase’s Première and
Redken’s Acidic Color Gloss, as well as the continued
pursuit of its omni-channel strategy.
NORTH ASIA
Sales in North Asia contracted -1.7% like-for-like and
-3.1% reported.
Operating conditions in the Chinese ecosystem remained
challenging.
In mainland China, the beauty market was negative in the second
quarter on a tough comparison base, exacerbated by lasting low
consumer confidence. In the first half, L’Oréal delivered low
single-digit growth and gained market share thanks to
Dermatological Beauty, Professional Products as well as L’Oréal
Luxe which broke new records.
While Travel Retail still weighed on growth in the first half,
its momentum has been improving sequentially. Japan maintained
double-digit growth, benefiting from the return of tourism.
By Division, growth was led by Dermatological Beauty with all
brands contributing, as well as by Professional Products thanks to
the ongoing success of Kérastase. Consumer Products
recorded low single-digit growth, driven by L'Oréal Paris
and Maybelline New York. L'Oréal Luxe was hampered by the
depressed market in mainland China and Travel Retail but progressed
well in other parts of the region; the Couture brands were the best
performers.
SAPMENA–SSA3
Sales in SAPMENA-SSA saw an outstanding growth of +15.2%
like-for-like and +14.3% reported.
In SAPMENA, growth was broad-based by category and Division.
Volume and value both contributed, the latter fueled by a
balanced combination of mix and price.
By country, key growth contributors were the Australia-New
Zealand cluster, Thailand, Saudi Arabia, and India.
By Division, the most remarkable performances were in
Dermatological Beauty, as CeraVe had another outstanding
performance, as well as Consumer Products, driven by L’Oréal
Paris and Garnier, and Luxe, where Yves Saint
Laurent and Prada were the main growth
contributors.
Fragrances remained the fastest-growing category, boosted by new
launches. Skincare advanced strongly thanks to Dermatological
Beauty and Consumer Products. Haircare was driven by premiumisation
in both the consumer and professional channels.
Online remained particularly dynamic across the region, notably
in South-East Asia and India.
Sub-Saharan Africa (SSA) saw remarkable growth, broad-based
across countries. All categories contributed, notably skincare. By
Division, the main growth contributors were Consumer Products and
Dermatological Beauty, driven by Garnier and La
Roche-Posay, respectively.
LATIN AMERICA
Latin America delivered outstanding growth of +14.2%
like-for-like and +15.8% reported.
Growth was fuelled by a balanced contribution from both value
and volume.
The performance was broad-based across the region, with
particularly remarkable momentum in Mexico, the Group’s second
largest growth contributor, and Brazil. Argentina was impacted by
the economic crisis and the subsequent contraction in
consumption.
All Divisions grew. Consumer Products maintained exceptional
momentum with L’Oréal Paris particularly
dynamic; Elsève has become the number one haircare brand
in Brazil in value. Growth in Dermatological Beauty was driven by
La Roche-Posay and CeraVe.
By category, haircare had outstanding growth across all three
Divisions. The other categories also progressed strongly with
makeup and fragrances particularly dynamic.
Sales progressed faster online than offline, driven primarily by
pure players.
IMPORTANT EVENTS SINCE THE LAST PUBLICATION
STRATEGY
- In June, CEO Nicolas Hieronimus gave a keynote speech at The
Consumer Goods Forum in Chicago, demonstrating how
L’Oréal is “Revolutionising Beauty with Technology.” Consumer
Products Division President Alexis Perakis-Valat joined a panel to
deep dive into how L’Oréal creates a circular economy for
plastics.
RESEARCH, BEAUTY TECH AND DIGITAL
- L’Oréal Advanced Research and the University of Oregon
pioneered the first successful development of a bioprinted
skin model mimicking natural human skin. Resulting from
the L’Oréal Skin Technology Platform, this model enables the rapid
and precise construction of skin-like structures. This reinforced
the Group’s commitment to innovation and to Beauty with no animal
testing.
- At Viva Technology in Paris, L’Oréal unveiled
a number of Beauty Tech innovations: Skin Technology, facial
treatment Renergie Nano-Surfacer|400 Booster
(Lancôme), skin diagnosis tool Derma-Reader
(Kiehl’s), hair health analyser My Hair [iD] - Hair Reader
(L’Oréal Professionnel), personal beauty assistant Beauty
Genius (L’Oréal Paris) and CREAITECH, the Gen AI
Beauty Content Lab.
- In June, the Cannes Lions International Festival of
Creativity 2024 awarded CeraVe the GRAND
PRIX for Social & Influencer Marketing, alongside nine
other Cannes Lions Awards, making CeraVe one of the top-10
most awarded brands at the event.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
PERFORMANCE
- In June, Moody’s once again awarded L’Oréal
74 points out of 100 in its ESG Assessment, well
above the sector average. The score underlines L'Oréal’s
sustainable transformation towards a more responsible and inclusive
business model through the implementation of an ambitious
sustainability strategy.
- L’Oréal scored a total of 69 RoSPA (Royal
Society for the Prevention of Accidents) awards across 70 sites,
covering close to 46,000 employees, continuing to demonstrate its
unwavering commitment to health and safety.
- In alignment with its L’Oréal for the Future sustainability
ambitions, the Group announced the adoption of
EcoDesignCloud by Eviden, which measures the
environmental footprint of point-of-sale as well as promotional
materials.
- In May, Fondation L’Oréal and UNESCO announced the winners of
the 26thL’Oréal-UNESCO For Women in Science
International Awards, honouring them for their pioneering
research in life and environmental sciences. Since the creation of
the programme, 7 of the 132 laureates have received Nobel Prices in
science.
- In June, L’Oréal announced the launch of its fourth
Employee Share Ownership Plan (ESOP), which was
rolled out in over 60 countries, allowing employees to be even more
closely linked to the group development. The ambition is to renew
the ESOP each year, subject to the usual authorisations.
2024 HALF-YEAR RESULTS
The limited review procedures of the half-year consolidated
accounts have been completed. The limited review report is being
prepared by the Statutory Auditors.
Operating profitability at 20.8% of sales
Consolidated profit and loss account: from sales to
operating profit.
|
€m |
30/6/23 |
% of sales |
31/12/23 |
% of sales |
30/6/24 |
% of sales |
Change
H1-2024 vs. H1-2023 |
|
Sales |
20,574.1 |
100.0% |
41,182.5 |
100.0% |
22,120.8 |
100.0% |
+7.5% |
|
Cost of sales |
-5,291.5 |
25.7% |
-10,767.0 |
26.1% |
-5,568.7 |
25.2% |
|
|
Gross profit |
15,282.6 |
74.3% |
30,415.5 |
73.9% |
16,552.1 |
74.8% |
+8.3% |
|
R&I expenses |
-622.8 |
3.0% |
-1,288.9 |
3.1% |
-667.3 |
3.0% |
|
|
Advertising and promotion expenses |
-6,682.6 |
32.5% |
-13,356.6 |
32.4% |
-7,109.1 |
32.1% |
|
|
Selling, general and administrative expenses |
-3,718.5 |
18.1% |
-7,626.7 |
18.5% |
-4,176.6 |
18.9% |
|
|
Operating profit |
4,258.8 |
20.7% |
8,143.3 |
19.8% |
4,599.1 |
20.8% |
+8.0% |
Gross profit, at 16,552.1 million
euros, came out at 74.8% of sales compared with 74.3% in the first
half of 2023, an increase of 50 basis points.
Research & Innovation expenses, at 667.3
million euros, came out at 3.0% of sales.
Advertising and promotion expenses, at 7,109.1
million euros, came out at 32.1% of sales, a decrease of 40 basis
points.
Selling, general and administrative expenses, at
18.9% of sales, increased by 80 basis points.
Overall, operating profit increased by +8.0% to
4,599.1 million euros and amounted to 20.8% of sales, an increase
of 10 basis points compared with the first half of 2023.
Operating profit by Division
|
|
30/6/23 |
31/12/23 |
30/6/24 |
|
|
€m |
% of sales |
€m |
% of sales |
€m |
% of sales |
|
By Division |
|
|
|
|
|
|
|
Professional Products |
490.1 |
21.2% |
1,005.3 |
21.6% |
536.7 |
22.1% |
|
Consumer Products |
1,617.4 |
21.0% |
3,114.7 |
20.5% |
1,833.2 |
22.0% |
|
Luxe |
1,687.9 |
23.2% |
3,331.8 |
22.3% |
1,661.2 |
21.9% |
|
Dermatological Beauty |
933.9 |
28.4% |
1,670.9 |
26.0% |
1,097.4 |
28.9% |
Total Divisions
before non-allocated |
4,729.3 |
23.0% |
9,122.7 |
22.2% |
5,128.5 |
23.2% |
|
Non-allocated5 |
-470.5 |
2.3% |
-979.4 |
2.4% |
-529.4 |
2.4% |
|
Group |
4,258.8 |
20.7% |
8,143.3 |
19.8% |
4,599.1 |
20.8% |
The L’Oréal group is managed on an annual basis. This means that
half-year operating profits cannot be extrapolated for the whole
year.
The profitability of the Professional Products
Division came out at 22.1% of sales, up 90 basis
points.
The profitability of the Consumer Products
Division came out at 22.0% of sales, up 100 basis
points.
The profitability of the Luxe Division came out at
21.9% compared to 23.2% in 2023.
The profitability of the Dermatological
BeautyDivision came out at 28.9%, up 50 basis points.
Net profit excluding non-recurring items
Consolidated profit and loss account: from
operating profit to net profit excluding non-recurring items.
|
€m |
30/6/23 |
31/12/23 |
30/06/24 |
Change
H1-2024 vs.
H1-2023 |
|
Operating profit |
4,258.8 |
8,143.3 |
4,599.1 |
+8.0% |
|
Financial revenues and expenses, excluding Sanofi
dividends |
-45.3 |
-113.4 |
-131.0 |
|
|
Sanofi dividends |
420.9 |
420.9 |
444.5 |
|
Profit before tax and associates
excluding non-recurring items |
4,634.4 |
8,450.8 |
4,912.6 |
|
|
Income tax excluding non-recurring items |
-1,013.2 |
-1,957.8 |
-1,163.9 |
|
Net profit excluding non-recurring items
of equity consolidated companies |
- |
0.2 |
-0.8 |
|
|
Non-controlling interests |
-4.6 |
-6.7 |
-3.3 |
|
Net profit excluding non-recurring items,
after non-controlling interests6 |
3,616.6 |
6,486.6 |
3,744.6 |
+3.5% |
|
EPS7 (€) |
6.73 |
12.08 |
6.98 |
+3.7% |
|
Diluted average number of shares |
537,136,456 |
537,021,039 |
536,387,970 |
|
Overall financial expenses came out at 131.0
million euros.
Sanofi dividends amounted to 444.5 million
euros.
Income tax excluding non-recurring items came out
at 1,163.9 million euros, i.e. a tax rate of 23.7%.
Net profit excluding non-recurring items after
non-controlling interests came out at 3,744.6 million
euros.
Earnings per share, at 6.98 euros, increased by
+3.7% compared with the first half of 2023.
Net profit
Consolidated profit and loss account: from net profit excluding
non-recurring items to net profit.
|
€m |
30/6/23 |
31/12/23 |
30/6/24 |
Net profit excluding non-recurring items,
after non-controlling
interests6 |
3,616.6 |
6,486.6 |
3,744.6 |
|
Non-recurring items |
-257.6 |
-302.5 |
-89.0 |
|
of which: |
|
|
|
- other income and expenses
|
-321.7 |
-449.9 |
-103.4 |
|
|
64.1 |
147.4 |
14.4 |
|
|
|
|
|
|
Net profit after non-controlling interests |
3,359.0 |
6,184.0 |
3,655.6 |
Non-recurring items amounted to 89.0 million euros net of
tax.
Operating cash flow and balance sheet
Gross cash flow amounted to 4,514 million
euros, an increase of +3.1%.
The change in working capital amounted to -1,745
million euros.
Investments, at 781 million euros, represented
3.5% of sales.
Operating cash flow8 amounted to 1,987
million euros, compared to 2,097 million euros at the end of June
2023.
As of 30 June 2024, after taking into account finance lease
liabilities for 1,895 million euros, net debt
amounted to 6,459 million euros.
“This news release does not constitute an offer to sell, or
a solicitation of an offer to buy L’Oréal shares. If you wish to
obtain more comprehensive information about L’Oréal, please refer
to the public documents registered in France with the Autorité des
Marchés Financiers, also available in English on our website
www.loreal-finance.com.
This news release may contain some forward-looking statements.
While the Company believes that these statements are based on
reasonable assumptions as of the date of publication of this press
release, they are by nature subject to risks and uncertainties
which may lead to a discrepancy between the actual figures and
those indicated or suggested in these statements.”
About L’Oréal
For 115 years, L’Oréal, the world’s leading beauty player,
has devoted itself to one thing only: fulfilling the beauty
aspirations of consumers around the world. Our purpose, to create
the beauty that moves the world, defines our approach to beauty as
essential, inclusive, ethical, generous and committed to social and
environmental sustainability. With our broad portfolio of 37
international brands and ambitious sustainability commitments in
our L’Oréal for the Future programme, we offer each and every
person around the world the best in terms of quality, efficacy,
safety, sincerity and responsibility, while celebrating beauty in
its infinite plurality.
With more than 90,000 committed employees, a balanced
geographical footprint and sales across all distribution networks
(ecommerce, mass market, department stores, pharmacies,
perfumeries, hair salons, branded and travel retail), in 2023 the
Group generated sales amounting to 41.18 billion euros. With 20
research centers across 11 countries around the world and a
dedicated Research and Innovation team of over 4,000 scientists and
6,400 Digital talents, L’Oréal is focused on inventing the future
of beauty and becoming a Beauty Tech powerhouse. More information
on https://www.loreal.com/en/mediaroom
L’ORÉAL CONTACTS
Switchboard
+33 (0) 1 47 56 70 00
Individual shareholders and market authorities
Pascale Guerin
+33 (0)1 49 64 18 89
pascale.guerin@loreal.com
Investor relations
Eva Quiroga
+33 (0)7 88 14 22 65
eva.quiroga@loreal.com
Journalists
Brune Diricq
+33 (0)6 63 85 29 87
brune.diricq@loreal.com
Christine Burke
+33 (0)6 75 54 38 15
christine.burke@loreal.com
For more information, please contact your bank, broker or
financial institution (I.S.I.N. code: FR0000120321), and consult
your usual newspapers, the website for shareholders and investors,
www.loreal-finance.com or the L’Oréal Finance app; alternatively,
call +33 (0)1 40 14 80 50.
This press release has been secured and authenticated with the
blockchain technology.
You can verify its authenticity on the website
www.wiztrust.com
Appendices
Appendix 1: L’Oréal group sales
2023/2024 (€ million)
|
|
2023 |
2024 |
|
First quarter |
10,380.4 |
11,245.0 |
|
Second quarter |
10,193.7 |
10,875.8 |
|
First half total |
20,574.1 |
22,120.8 |
|
Third quarter |
10,003.1 |
|
|
Nine months total |
30,577.2 |
|
|
Fourth quarter |
10,605.3 |
|
|
Full year total |
41,182.5 |
|
Appendix 2: Compared consolidated income
statements
|
€ millions |
1st half 2024 |
1st half 2023 |
2023 |
|
Net sales |
22,120.8 |
20,574.1 |
41,182.5 |
|
Cost of sales |
-5,568.7 |
-5,291.5 |
-10,767.0 |
|
Gross profit |
16,552.1 |
15,282.6 |
30,415.5 |
|
Research & Innovation expenses |
-667.3 |
-622.8 |
-1,288.9 |
|
Advertising and promotion expenses |
-7,109.1 |
-6,682.6 |
-13,356.6 |
|
Selling, general and administrative expenses |
-4,176.6 |
-3,718.5 |
-7,626.7 |
|
Operating profit |
4,599.1 |
4,258.8 |
8,143.3 |
|
Other income and expenses |
-103.4 |
-321.7 |
-449.9 |
|
Operational profit |
4,495.7 |
3,937.1 |
7,693.4 |
|
Finance costs on gross debt |
-185.7 |
-80.7 |
-226.7 |
|
Finance income on cash and cash equivalents |
83.9 |
65.6 |
162.1 |
|
Finance costs, net |
-101.8 |
-15.1 |
-64.6 |
|
Other financial income and expenses |
-29.3 |
-30.2 |
-48.8 |
|
Sanofi dividends |
444.5 |
420.9 |
420.9 |
|
Profit before tax and associates |
4,809.2 |
4,312.7 |
8,001.0 |
|
Income tax |
-1,149.5 |
-949.1 |
-1,810.6 |
|
Share of profit in associates |
-0.8 |
— |
0.2 |
|
Net profit |
3,658.9 |
3,363.6 |
6,190.5 |
|
Attributable to: |
|
|
|
|
owners of the company |
3,655.6 |
3,359.0 |
6,184.0 |
|
non-controlling interests |
3.3 |
4.6 |
6.5 |
|
Earnings per share attributable to owners of the company
(euros) |
6.84 |
6.27 |
11.55 |
|
Diluted earnings per share attributable to owners of the company
(euros) |
6.82 |
6.25 |
11.52 |
|
Earnings per share attributable to owners of the company, excluding
non-recurring items (euros) |
7.00 |
6.75 |
12.11 |
| Diluted
earnings per share attributable to owners of the company, excluding
non-recurring items (euros) |
6.98 |
6.73 |
12.08 |
Appendix 3: Consolidated statement of
comprehensive income
|
€ millions |
1st half 2024 |
1st half 2023 |
2023 |
|
Consolidated net profit for the period |
3,658.9 |
3,363.6 |
6,190.5 |
| Cash
flow hedges |
-39.1 |
-47.9 |
-137.3 |
|
Cumulative translation adjustments |
206.9 |
-359.3 |
-425.8 |
|
Income tax on items that may be reclassified to profit or loss
(1) |
2.6 |
6.3 |
22.7 |
|
Items that may be reclassified to profit or
loss |
170.5 |
-400.9 |
-540.3 |
|
Financial assets at fair value through other comprehensive
income |
-2.1 |
972.6 |
-76.3 |
|
Actuarial gains and losses |
210.1 |
57.8 |
-119.3 |
|
Income tax on items that may not be reclassified to profit or
loss (1) |
-54.3 |
-45.0 |
28.9 |
|
Items that may not be reclassified to profit or
loss |
153.7 |
985.4 |
-166.7 |
|
Other comprehensive income |
324.1 |
584.5 |
-707.0 |
|
CONSOLIDATED COMPREHENSIVE INCOME |
3,983.0 |
3,948.1 |
5,483.6 |
|
Attributable to: |
|
|
|
|
|
3,979.7 |
3,943.7 |
5,477.7 |
- non-controlling interests
|
3.3 |
4.4 |
5.9 |
(1) The tax effect is as
follows:
|
€ millions |
1st half 2024 |
1st half 2023 |
2023 |
|
Cash flow hedges |
2.6 |
6.3 |
22.7 |
|
Items that may be reclassified to profit or
loss |
2.6 |
6.3 |
22.7 |
|
Financial assets at fair value through other comprehensive
income |
-1.1 |
-30.6 |
-1.3 |
|
Actuarial gains and losses |
-53.2 |
-14.4 |
30.2 |
|
Items that may not be reclassified to profit or
loss |
-54.3 |
-45.0 |
28.9 |
|
TOTAL |
-51.6 |
-38.7 |
51.6 |
Appendix 4: Compared consolidated balance
sheets
Assets
|
€ millions |
30.06.2024 |
30.06.2023 |
31.12.2023 |
|
Non-current assets |
36,430.2 |
33,536.2 |
35,529.7 |
|
Goodwill |
13,235.1 |
11,362.0 |
13,102.6 |
| Other
intangible assets |
4,441.2 |
3,610.9 |
4,287.1 |
|
Right-of-use assets |
1,746.5 |
1,443.0 |
1,692.4 |
| Property,
plant and equipment |
4,065.9 |
3,626.7 |
3,867.7 |
|
Non-current financial assets |
11,817.2 |
12,710.3 |
11,631.6 |
|
Investments accounted for under the equity method |
121.5 |
18.2 |
27.0 |
| Deferred
tax assets |
1,002.9 |
765.2 |
921.2 |
|
Current assets |
16,553.8 |
17,571.6 |
16,325.4 |
|
Inventories |
4,676.6 |
4,258.0 |
4,482.4 |
| Trade
accounts receivable |
6,424.4 |
5,483.6 |
5,092.7 |
| Other
current assets |
2,540.7 |
2,668.9 |
2,270.6 |
| Current
tax assets |
183.8 |
164.2 |
191.6 |
| Cash and
cash equivalents |
2,728.3 |
4,996.9 |
4,288.1 |
| TOTAL |
52,984.0 |
51,107.9 |
51,855.1 |
Equity & Liabilities
|
€ millions |
30.06.2024 |
30.06.2023 |
31.12.2023 |
|
Equity |
29,630.6 |
27,961.6 |
29,081.6 |
| Share
capital |
106.9 |
107.2 |
106.9 |
|
Additional paid-in capital |
3,370.1 |
3,368.7 |
3,370.2 |
| Other
reserves |
16,556.4 |
14,215.5 |
13,799.1 |
| Other
comprehensive income |
6,241.0 |
7,348.6 |
6,123.8 |
|
Cumulative translation adjustments |
-302.8 |
-443.2 |
-509.6 |
| Treasury
shares |
— |
— |
— |
| Net
profit attributable to owners of the company |
3,655.6 |
3,359.0 |
6,184.0 |
|
Equity attributable to owners of the company |
29,627.3 |
27,955.7 |
29,074.3 |
|
Non-controlling interests |
3.4 |
5.9 |
7.3 |
|
Non-current liabilities |
7,027.0 |
6,027.2 |
7,873.9 |
|
Provisions for employee retirement obligations and related
benefits |
556.7 |
447.0 |
562.0 |
|
Provisions for liabilities and charges |
74.6 |
68.3 |
68.8 |
|
Non-current tax liabilities |
270.8 |
245.7 |
255.7 |
| Deferred
tax liabilities |
903.7 |
849.5 |
846.6 |
|
Non-current borrowings and debt |
3,804.0 |
3,250.2 |
4,746.7 |
|
Non-current lease debt |
1,417.2 |
1,166.5 |
1,394.2 |
|
Current liabilities |
16,326.4 |
17,119.0 |
14,899.7 |
| Trade
accounts payable |
6,778.1 |
6,074.9 |
6,347.0 |
|
Provisions for liabilities and charges |
920.0 |
1,149.4 |
977.2 |
| Other
current liabilities |
4,348.3 |
4,251.9 |
4,816.1 |
| Income
tax |
313.0 |
239.9 |
208.1 |
| Current
borrowings and debt |
3,489.1 |
5,002.0 |
2,091.5 |
| Current
lease debt |
477.8 |
400.9 |
459.8 |
| TOTAL |
52,984.0 |
51,107.9 |
51,855.1 |
Appendix 5: Consolidated statements of
changes in equity
|
€ millions |
Common shares outstanding |
Share Capital |
Additional paid-in capital |
Retained earnings and net profit |
Other comprehensive income |
Treasury shares |
Cumulative translation adjustments |
Equity attributable to owners
of the company |
Non-controlling interests |
Total
equity |
| At 31.12.2022 |
535,186,562 |
107.0 |
3,368.7 |
17,382.2 |
6,404.4 |
— |
-83.8 |
27,178.5 |
8.0 |
27,186.5 |
|
Consolidated net profit for the period |
|
|
|
6,184.0 |
|
|
|
6,184.0 |
6.5 |
6,190.5 |
|
Cash flow hedges |
|
|
|
|
-113.9 |
|
|
-113.9 |
-0.6 |
-114.5 |
|
Cumulative translation adjustments |
|
|
|
|
|
|
-425.9 |
-425.9 |
0.1 |
-425.8 |
|
Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
-113.9 |
|
-425.9 |
-539.8 |
-0.6 |
-540.3 |
Financial assets at fair value
through other comprehensive income |
|
|
|
|
-77.5 |
|
|
-77.5 |
|
-77.5 |
|
Actuarial gains and losses |
|
|
|
|
-89.2 |
|
|
-89.2 |
— |
-89.2 |
|
Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
-166.7 |
|
— |
-166.7 |
— |
-166.7 |
|
Consolidated comprehensive income |
|
|
|
6,184.0 |
-280.6 |
|
-425.9 |
5,477.6 |
5.9 |
5,483.6 |
|
Capital increase |
810,545 |
0.2 |
1.5 |
— |
— |
|
— |
1.7 |
— |
1.7 |
|
Cancellation of Treasury shares |
|
-0.3 |
|
-503.2 |
— |
503.3 |
— |
-0.2 |
— |
-0.2 |
Dividends paid
(not paid on Treasury shares) |
|
|
|
-3,248.4 |
— |
— |
— |
-3,248.4 |
-6.2 |
-3,254.6 |
|
Share-based payment |
|
|
|
168.5 |
— |
— |
— |
168.5 |
— |
168.5 |
| Net
changes in Treasury shares |
-1,271,632 |
|
|
— |
— |
-503.3 |
— |
-503.3 |
— |
-503.3 |
|
Changes in scope of consolidation |
|
|
|
— |
— |
— |
— |
— |
— |
— |
| Other
movements |
|
|
|
-0.1 |
— |
— |
— |
-0.1 |
-0.4 |
-0.6 |
| At 31.12.2023 |
534,725,475 |
106.9 |
3,370.2 |
19,983.1 |
6,123.8 |
|
-509.6 |
29,074.3 |
7.3 |
29,081.6 |
|
Consolidated net profit for the period |
|
|
|
3,655.6 |
|
|
|
3,655.6 |
3.3 |
3,658.9 |
|
Cash flow hedges |
|
|
|
|
-36.4 |
|
|
-36.4 |
-0.1 |
-36.5 |
|
Cumulative translation adjustments |
|
|
|
|
|
|
206.8 |
206.8 |
0.1 |
206.9 |
|
Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
-36.4 |
|
206.8 |
170.4 |
— |
170.5 |
Financial assets at fair value
through other comprehensive income |
|
|
|
|
-3.2 |
|
|
-3.2 |
|
-3.2 |
|
Actuarial gains and losses |
|
|
|
|
156.9 |
|
|
156.9 |
|
156.9 |
|
Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
153.7 |
|
— |
153.7 |
— |
153.7 |
|
Consolidated comprehensive income |
|
|
|
3,655.6 |
117.3 |
— |
206.8 |
3,979.7 |
3.3 |
3,983.0 |
|
Capital increase |
— |
|
— |
— |
|
|
|
— |
|
— |
|
Cancellation of Treasury shares |
|
|
|
— |
|
— |
|
— |
— |
— |
Dividends paid
(not paid on Treasury shares) |
|
|
|
-3,565.1 |
|
|
|
-3,565.1 |
-7.1 |
-3,572.1 |
|
Share-based payment |
|
|
|
135.4 |
|
|
|
135.4 |
|
135.4 |
| Net
changes in Treasury shares |
— |
|
|
|
|
— |
|
— |
|
— |
|
Changes in scope of consolidation |
|
|
|
|
|
|
|
— |
|
— |
| Other movements |
|
|
-0.1 |
3.0 |
|
|
|
2.9 |
-0.1 |
2.7 |
| AT 30.06.2024 |
534,725,475 |
106.9 |
3,370.1 |
20,212.0 |
6,241.0 |
— |
-302.8 |
29,627.3 |
3.4 |
29,630.6 |
Changes in first-half 2023
|
€ millions |
Common shares outstanding |
Share Capital |
Additional paid-in capital |
Retained earnings and net profit |
Other comprehensive income |
Treasury shares |
Cumulative translation adjustments |
Equity attributable to owners
of the company |
Non-controlling interests |
Total
equity |
|
At 31.12.2022 |
535,186,562 |
107.0 |
3,368.7 |
17,382.2 |
6,404.4 |
— |
-83.8 |
27,178.5 |
8.0 |
27,186.5 |
|
Consolidated net profit for the period |
|
|
|
3,359.0 |
|
|
|
3,359.0 |
4.6 |
3,363.6 |
|
Cash flow hedges |
|
|
|
|
-41.2 |
|
|
-41.2 |
-0.4 |
-41.6 |
|
Cumulative translation adjustments |
|
|
|
|
|
|
-359.5 |
-359.5 |
0.2 |
-359.3 |
|
Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
-41.2 |
|
-359.5 |
-400.7 |
-0.2 |
-400.9 |
Financial assets at fair value
through other comprehensive income |
|
|
|
|
942.0 |
|
|
942.0 |
|
942.0 |
|
Actuarial gains and losses |
|
|
|
|
43.4 |
|
|
43.4 |
|
43.4 |
|
Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
985.4 |
|
— |
985.4 |
— |
985.4 |
|
Consolidated comprehensive income |
|
|
|
3,359.0 |
944.2 |
— |
-359.5 |
3,943.7 |
4.4 |
3,948.1 |
|
Capital increase |
776,525 |
0.2 |
— |
-0.2 |
|
|
|
— |
|
— |
|
Cancellation of Treasury shares |
|
— |
|
— |
|
— |
|
— |
|
— |
Dividends paid
(not paid on Treasury shares) |
|
|
|
-3,248.4 |
|
|
|
-3,248.4 |
-6.2 |
-3,254.6 |
|
Share-based payment |
|
|
|
81.3 |
|
|
|
81.3 |
|
81.3 |
|
Net changes in Treasury shares |
— |
|
|
|
|
— |
|
— |
|
— |
|
Changes in scope of consolidation |
|
|
|
|
|
|
|
— |
|
— |
|
Other movements |
|
|
|
0.6 |
|
|
|
0.6 |
-0.3 |
0.3 |
| AT
30.06.2023 |
535,963,087 |
107.2 |
3,368.7 |
17,574.5 |
7,348.6 |
— |
-443.2 |
27,955.7 |
5.9 |
27,961.6 |
Appendix 6: Compared consolidated statements of cash
flows
| €
millions |
1st half 2024 |
1st half 2023 |
2023 |
|
Cash flows from operating activities |
|
|
|
| Net
profit attributable to owners of the company |
3,655.6 |
3,359.0 |
6,184.0 |
|
Non-controlling interests |
3.3 |
4.6 |
6.5 |
|
Elimination of expenses and income with no impact on cash
flows: |
|
|
|
- depreciation, amortisation, provisions and non-current tax
liabilities
|
769.7 |
911.3 |
1,715.0 |
- changes in deferred taxes
|
-53.7 |
-5.0 |
-95.3 |
- share-based payment (including free shares)
|
135.4 |
81.3 |
168.5 |
- capital gains and losses on disposals of assets
|
-3.7 |
2.9 |
6.9 |
| Other
non-cash transactions |
5.3 |
24.2 |
14.1 |
| Share of
profit in associates net of dividends received |
2.2 |
— |
-0.2 |
|
Gross cash flow |
4,514.0 |
4,378.3 |
7,999.5 |
| Changes
in working capital |
-1,745.8 |
-1,556.6 |
-394.9 |
|
Net cash provided by operating activities (A) |
2,768.2 |
2,821.7 |
7,604.6 |
|
Cash flows from investing activities |
|
|
|
| Purchases
of property, plant and equipment and intangible assets |
-781.1 |
-724.1 |
-1,488.7 |
| Disposals
of property, plant and equipment and intangible assets |
0.3 |
1.7 |
12.8 |
| Changes
in other financial assets (including investments in
non-consolidated companies) |
-32.1 |
-41.9 |
-170.7 |
| Effect of
changes in the scope of consolidation |
-138.0 |
-159.4 |
-2,497.2 |
|
Net cash from investing activities (B) |
-950.9 |
-923.7 |
-4,143.7 |
|
Cash flows from financing activities |
|
|
|
| Dividends
paid |
-3,605.9 |
-3,398.2 |
-3,425.6 |
| Capital
increase of the parent company |
— |
— |
1.5 |
| Capital
increase of subsidiaries |
— |
— |
— |
| Disposal
(acquisition) of Treasury shares |
— |
— |
-503.3 |
| Purchase
of non-controlling interests |
— |
— |
— |
| Issuance
(repayment) of short-term loans |
313.6 |
2,218.2 |
-823.7 |
| Issuance
of long-term borrowings |
151.6 |
2,015.4 |
3,567.1 |
| Repayment
of long-term borrowings |
— |
-29.9 |
— |
| Repayment
of lease debt |
-235.4 |
-211.2 |
-430.6 |
|
Net cash from financing activities (C) |
-3,376.1 |
594.2 |
-1,614.6 |
| Net
effect of changes in exchange rates and fair value (D) |
-1.1 |
-113.0 |
-175.9 |
|
Change in cash and cash equivalents (A+B+C+D) |
-1,559.8 |
2,379.2 |
1,670.4 |
|
Cash and cash equivalents at beginning of the year
(E) |
4,288.1 |
2,617.7 |
2,617.7 |
| CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD (A+B+C+D+E) |
2,728.3 |
4,996.9 |
4,288.1 |
1 Like-for-like: based on a comparable structure
and identical exchange rates.
2 The L'Oréal Universal Registration Document
filed with the AMF (Autorités des Marchés Financiers) on 19 March
2024 includes, on page 400, the other pieces of information that
must appear in the share buyback programme description pursuant to
Article 241-2 of the General Regulation of the AMF.
3 SAPMENA–SSA: South Asia Pacific, Middle East,
North Africa, Sub-Saharan Africa.
4 GCC: Gulf Cooperation Council.
5 Non-allocated expenses = Central Group
expenses, fundamental research expenses, free grant of shares
expenses and miscellaneous items.
6 Net profit excluding non-recurring items,
after non-controlling interests, excludes mostly capital gains and
losses on disposals of long-term assets, impairment of assets,
restructuring costs, tax effects and non-controlling
interests.
7 Diluted net profit per share, excluding
non-recurring items, after non-controlling interests.
8 Operating cash flow = Gross cash flow + changes
in working capital - capital expenditure.
LOreal (EU:OR)
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From Jul 2024 to Jul 2024
LOreal (EU:OR)
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From Jul 2023 to Jul 2024
