2023 Half-Year Results
L’Oréal keeps up the pace:
Continued strong growth
Further improvement in operating
margin
- Sales: 20.57 billion euros, +13.3%
like-for-like1, +12.0% reported
- Continued outperformance of the global beauty
market
- Broad-based momentum across all Divisions,
with record growth in Consumer Products and another outstanding
quarter for Dermatological Beauty
- Growth in all Regions with particularly
impressive momentum in Europe, strong performance in the United
States and sharp recovery in mainland China in the second
quarter
- Progress well-balanced between offline and
online
- Strong growth driven by both volume and
value
- Operating margin at 20.7%, up 30 basis
points
- EPS2 growth: +11.2% to €6.73
- Standard & Poor’s Global again awarded
L’Oréal 85 points out of 100 in its ESG rating,
reflecting the Group’s performance in terms of sustainability
Commenting on the figures, Nicolas Hieronimus, CEO of L'Oréal,
said:
“In a beauty market that is more dynamic than ever, L’Oréal
delivered a remarkable performance and further strengthened its
global leadership in the first half. Growth was broad-based across
all Divisions, Regions, categories, and channels, once again
vindicating our balanced, multi-polar model. Growth continued to be
driven by the dual cylinders of volume and value – testament to the
success of our innovations and the desirability of our brands. In
keeping with our virtuous circle, we improved our profitability,
all while significantly increasing investment in our brands. At the
same time, in line with our dual ambition of economic and corporate
performance, we continued to invest in the transition towards a
more sustainable operating model that will ensure long-term value
creation. In an economic context that is still uncertain, we remain
ambitious for the future, optimistic about the outlook for the
beauty market, and confident in our ability to keep outperforming
the market and achieve in 2023 another year of growth in sales and
profits.”
Moreover, the Board of Directors has decided, under the
authorisation voted by the Annual General Meeting of 21 April 2023,
to set up a share buyback programme during the second half of 2023
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 cancelled3.
*********
2023 HALF-YEAR SALES
Like-for-like, i.e. based on a comparable scope
of consolidation and constant exchange rates, sales of the L’Oréal
group grew by +13.3%.
The net impact of changes in the scope of
consolidationwas +1.1%.
Growth at constant exchange rates came out at
+14.4%.
Currency fluctuations had a
negative impact of -2.4%. If the exchange rates at 30June
2023, i.e. €1 = $1.092, are extrapolated until 31 December, the
impact of currency fluctuations on sales would be around -4.9% for
the whole of 2023.
Based on reported figures, the Group’s sales at
30 June 2023 amounted to 20.57 billion euros, an increase
of+12.0%.
Sales by Division and
Region
|
2nd quarter 2023 |
1st half 2023 |
|
|
Growth |
|
Growth |
|
€m |
Like-for-like |
Reported |
€m |
Like-for-like |
Reported |
By Division |
|
|
|
|
|
|
Professional Products |
1,170.2 |
+7.7% |
+4.2% |
2,313.7 |
+7.6% |
+6.9% |
Consumer Products |
3,865.6 |
+15.4% |
+10.7% |
7,687.2 |
+15.0% |
+13.1% |
Luxe |
3,558.8 |
+8.6% |
+4.4% |
7,288.4 |
+7.6% |
+6.1% |
Dermatological Beauty4 |
1,599.1 |
+27.3% |
+24.5% |
3,284.8 |
+29.0% |
+29.5% |
|
|
|
|
|
|
|
Group Total |
10,193.7 |
+13.7% |
+9.5% |
20,574.1 |
+13.3% |
+12.0% |
By Region |
|
|
|
|
|
|
Europe |
3,163.3 |
+20.8% |
+16.6% |
6,491.0 |
+18.2% |
+16.6% |
North America |
2,638.6 |
+9.7% |
+7.9% |
5,332.4 |
+13.0% |
+14.7% |
North Asia |
2,818.7 |
+5.9% |
+0.0% |
5,652.5 |
+3.9% |
+0.6% |
SAPMENA–SSA5 |
807.1 |
+20.7% |
+11.7% |
1,647.9 |
+23.6% |
+17.4% |
Latin America |
766.0 |
+24.9% |
+26.4% |
1,450.4 |
+23.6% |
+28.9% |
|
|
|
|
|
|
|
Group Total |
10,193.7 |
+13.7% |
+9.5% |
20,574.1 |
+13.3% |
+12.0% |
Summary by Division
PROFESSIONAL PRODUCTS
In the first half of the year, the
Professional Products Division reported continued growth of +7.6%
like-for-like and +6.9% reported.The Division outperformed
the market with remarkable growth in mainland China and India, as
well as the United Kingdom. It continued to grow in all
distribution channels: in salons, in its SalonCentric network (in
North America), in e-commerce and in the selective channel.Growth
in the dynamic haircare market was driven by Kérastase, with an
excellent start for the Symbiose anti-dandruff range, and by
L’Oréal Professionnel, with the success of Metal Detox. The
Division performed well in hair colour, thanks to its iconic lines
Shades EQ by Redken and Inoa by L’Oréal Professionnel.As the
industry leader, the Division continued to pursue the rollout of
its “Hairstylists for the Future” programme, supporting all partner
hairstylists in their green transition.
CONSUMER PRODUCTS
The Consumer Products
Division achieved its best half-year on record, growing +15.0%
like-for-like and +13.1%
reported.Driven by both volume and value,
the Division increased its sales by around one billion euros to
achieve this record performance. The Division significantly
outperformed the dynamic mass market; of particular note were the
exceptional performances in Europe and in the high-potential
emerging markets of Mexico, Brazil, and India.Each of the large
brands grew in double-digits. All four categories advanced
strongly, powered by flawless execution, best-in-class retailer
partnerships, and disruptive innovations. Makeup was the most
dynamic, boosted by the newly launched Falsies Surreal
Mascara by Maybelline New York, Telescopic
Lift Mascara by L’Oréal Paris and Fat Oil Gloss by NYX
Professional Makeup. Haircare benefitted from the Division’s
premiumisation strategy, especially with the highly successful
launch of Elvive Bond Repair. In hair colour, Good by
Garnier was off to a very promising start. Skincare recorded
double digit growth thanks to L’Oréal
Paris’ new Revitalift Clinical Vitamin C SPF50+
fluid and Garnier’s new AHA BHA anti-acne line.
LUXE
L’Oréal Luxe has accelerated quarter
after quarter, posting first-half growth of +7.6%
like-for-like and +6.1% reported.L’Oréal Luxe reported
strong growth in the first six months, driven by double-digit
increases in Europe, North America and emerging markets. In
mainland China, L’Oréal Luxe saw a remarkable recovery during the
second quarter with double-digit growth in sales and achieved
another record market share. The Division outperformed the luxury
fragrance market, with double-digit growth across all Regions,
spurred by standout performances from couture brands including Yves
Saint Laurent, Prada and Valentino. In skincare, L’Oréal Luxe
continued to make progress thanks to the spectacular success of
Helena Rubinstein and the recovery of Lancôme in North America,
along with the success of Takami in Japan and more recently in
mainland China. Makeup also grew, buoyed by the success of Yves
Saint Laurent and encouraging performances from specialist brands
Urban Decay and Shu Uemura.The Aēsop brand will be integrated in
the second half once the necessary regulatory approvals have been
obtained.
DERMATOLOGICAL BEAUTY6
The Dermatological
Beauty Division reported outstanding growth of +29.0% like-for-like
and +29.5% reported.In the first half,
the Division delivered another remarkable performance, growing well
ahead of the highly dynamic dermocosmetics market with a strong
contribution from volume and value. This was driven by its
portfolio of highly complementary brands – coupled with the
continued pursuit of medical and prescription leadership. The
Division posted outstanding progress in all regions with
particularly impressive performances in emerging markets and
Europe; in mainland China, where the market continued to gradually
recover, it outperformed significantly.All global brands advanced
in double digits: La Roche-Posay, the Division’s number one growth
contributor maintained its strong momentum, driven by Effaclar,
Cicaplast and UVmune 400. CeraVe remained extremely dynamic in
North America and accelerated strongly in the rest of the
world. Vichy was spurred by the success of Dercos and solid
momentum in suncare. SkinCeuticals continued to progress and
the newly acquired SkinBetter Science was off to a very promising
start.
Summary by Region
EUROPE
Europe posted outstanding growth of +18.2% like-for-like
and +16.6% reported.
L’Oréal outperformed a dynamic beauty market,
with remarkable performances in key countries such as the
Germany-Austria-Switzerland cluster, France, and the United
Kingdom, as well as in dynamic countries like Poland, Turkey and
the Nordics. In e-commerce, growth accelerated significantly in the
second quarter.Growth was fuelled by a sound contribution from
value and an increase in volume, demonstrating the attractiveness
of L’Oréal’s brand portfolio among European consumers. In the
Consumer Products Division, momentum was outstanding for all major
brands and in all categories, led by makeup and skincare. The
Dermatological Beauty Division continued to post very strong growth
and significantly outperformed the market, driven by La Roche-Posay
and CeraVe, both of which continued to achieve spectacular
performances. L’Oréal Luxe strengthened its leadership in
fragrances, the largest segment in the European selective beauty
market, driven by the ongoing success of Paradoxe by Prada and
Libre by Yves Saint Laurent. The Professional Products Division
continued to make gains in the strategic premium haircare
segment.
NORTH AMERICA
In the first six months, growth in North
America amounted to +13.0% like-for-like and +14.7%
reported. Growth was broad-based across all the Divisions
and driven by a strong contribution from both price and mix.In the
US, the Consumer Products Division advanced in double digits,
outperforming the market in haircare and skincare; momentum
remained strong in makeup, led by innovations across all key
brands.L’Oréal Luxe continued to outperform the market in
fragrances, driven by couture brands including Valentino and Prada;
in makeup, Yves Saint Laurent and Armani grew in double digits,
driven by recent launches. Growth in e-commerce remained dynamic
with strong momentum on Amazon, where the introduction of new
brands, including Lancôme, is redefining luxury beauty on the
platform.The Professional Products Division outpaced the market,
notably in haircare, driven by the ongoing success of Redken and
Kérastase.L’Oréal Dermatological Beauty maintained its tremendous
growth, significantly outperforming the market, thanks to the
continued success of CeraVe and the outstanding momentum of La
Roche-Posay, the Division’s fastest growing brand.
NORTH ASIA
North Asia grew +3.9% like-for-like and +0.6%
reported.
The beauty market in mainland China continued
its progressive recovery in the second quarter, driven by a
strong rebound in both offline and online channels. Against
that backdrop, L’Oréal significantly outperformed the market and
achieved strong growth across all channels and Divisions during
this period. This was fuelled by the introduction of new brands
like Valentino, Prada and Takami; a well-filled innovation
pipeline; as well as the gradual expansion into new cities. During
the 6.18 shopping festival, eight of the Group’s brands across all
four Divisions were in the Top-20; L'Oréal Paris and Lancôme ranked
first and second, respectively, cumulative across all platforms and
categories.By category, the Region’s growth in the first half was
driven by haircare, notably Kérastase and L’Oréal Professionnel;
skincare, including Helena Rubinstein, SkinCeuticals and Takami;
and fragrance with Maison Margiela and the Prada and Valentino
launches. After a challenging start to the year, makeup recovered
significantly in the second quarter, driven by both mass and
selective brands.Growth remained strong in Hong Kong SAR, which
benefited from the pick-up in travel from mainland China. In Japan,
L’Oréal outperformed the market thanks to significant momentum in
Consumer Products, notably with Maybelline New York, and L’Oréal
Luxe, with standout performances for Takami and Shu Uemura.The
Travel Retail business in the Region was affected by the base
effect of last year’s anticipated invoicing7. In addition, sell-out
was adversely impacted by Travel Retail operators’ wide-ranging
refocus on a model with the individual traveller at its core.
SAPMENA–SSA8
SAPMENA-SSA achieved outstanding growth
of +23.6% like-for-like and +17.4% reported.SAPMENA
continued to deliver outstanding double-digit growth in all
categories and Divisions, making gains in both volume and value. By
category, skincare was the main driver, fuelled by the expansion of
CeraVe and strong growth in La Roche-Posay suncare; makeup was the
fastest-growing category due to the rebound of Maybelline New York;
fragrances recorded another strong and broad-based performance.By
Region, growth was well-balanced between Pacific, Southeast Asia,
South Asia and Middle East & North Africa. In the Pacific
region, growth was outstanding, especially in the drug store
channel; in India, growth was driven by mass and professional hair
colour and haircare. In Southeast Asia, L’Oréal recorded strong
sales and outperformed in Thailand, Malaysia and Singapore, while
the Consumer Products Division in Vietnam benefited from the
expansion of e-commerce. The Gulf States recorded excellent growth
over the religious holidays. In Sub-Saharan Africa (SSA), all
countries saw double-digit growth, with particularly strong
momentum in South Africa and Kenya.
LATIN AMERICA
Latin America achieved outstanding
growth of +23.6% like-for-like and +28.9% reported.The
Latin American beauty market remained dynamic across all key
countries, driven by Mexico and Brazil.L’Oréal delivered excellent
growth with a positive contribution from volume and value –
supported by a strong innovation pipeline. All countries continued
to grow in double digits, with Brazil and Mexico being the top
contributors. E-commerce sales continued to display fast growth.
Makeup spearheaded double-digit growth across all categories, with
the stellar success of Maybelline New York innovations. In
skincare, growth was driven by the continued success of La
Roche-Posay and CeraVe, as well as L’Oréal Paris and Garnier.
Haircare sales grew thanks to the continued strength of the Elvive
franchise.
IMPORTANT EVENTS DURING THE PERIOD 01/04/23 TO
30/06/23 AND POST-CLOSING EVENTS
STRATEGY
- On 1 July, as part of the Ambition France project, the Group
established L’Oréal France as an autonomous entity, bringing
together its commercial operations and shared services, as voted by
the Annual General Meeting of 21 April 2023.
RESEARCH, BEAUTY TECH AND DIGITAL
- L’Oréal launched several major biotech
initiatives. Its venture capital fund BOLD
invested in US biotech company Debut to
co-develop a platform of over 7,000 increasingly high-performing
and more sustainable ingredients; the joint development program
between L’Oréal and Debut aims to accelerate their
go-to-market. It also announced a partnership with Bakar
Labs, the pioneering biotech incubator of University of California
Berkeley; the collaboration gives Bakar Labs’ start-ups
free access to L’Oréal’s 3D-reconstructed skin models, an
innovative tool for animal-free safety and efficacy testing.
- At Viva Technology 2023, L’Oréal
unveiled its latest Beauty Tech innovations: inclusive
solutions such as HAPTA, designed to enable people with hand motion
disorders to apply makeup; diagnostic tools (SPOTSCAN, META
PROFILER™, K-SCAN); personalised solutions (3D shu:brow); and
sustainable solutions like L’Oréal Professionnel’s WATER SAVER,
which has saved over 66 million litres of water to date.
L'Oréal and Verily – an
Alphabet precision health tech company – also announced the
launch of My Skin & Hair Journey, the world’s
largest, most diverse multi-year skin and hair health study.
Involving thousands of women in the US, the study will help
researchers better understand the biological, clinical and
environmental factors that contribute to skin and hair health.
- At the World Congress of Dermatology (WCD) in
Singapore, L’Oréal unveiled new research on pigmentation and the
impact of hormonal variations on women’s skin and scalp.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
PERFORMANCE
- L'Oréal was recognised by Standard & Poor’s
Global for its sustainability performance, with a solid
Environmental, Social & Governance (ESG)
rating of 85 points out of 100. The score underlines
L'Oréal’s sustainable transformation towards a more responsible and
inclusive business model through the implementation of an ambitious
sustainability strategy.
- At the 25th L’Oréal-UNESCO For Women in Science
International Awards, five women scientists were
recognised for their outstanding work. A medal of honour and a
financial endowment were also given to three researchers who have
been forced to flee their country and have shown exemplary courage,
resilience and commitment to science.
- To coincide with Earth Day, in April L'Oréal announced
three new projects supported by its Fund for Nature
Regeneration. NetZero, ReforesTerra and Mangroves.Now were
chosen for their innovative approaches to soil carbon
sequestration, reforestation and mangrove restoration as well as
their potential to have a far-reaching, positive impact on the
environment and local communities.
- L'Oréal featured on Fast Company’s 2023 list of 100
Best Workplaces for Innovators, which recognises
organisations around the world that demonstrate an inspiring
commitment to encourage and develop innovation at all levels.
FINANCE
- In May, L’Oréal successfully completed a bond
issue9 totalling 2 billion euros, the net
proceeds of which will be used for general corporate purposes, in
particular the acquisition of Aēsop.
2023 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 20.7% of
sales
Consolidated profit and loss account: from sales
to operating profit.
€m |
30/6/22 |
% of sales |
31/12/22 |
% of sales |
30/6/23 |
% of sales |
ChangeH1-2023 vs. H1-2022 |
Sales |
18,366.3 |
100.0% |
38,260.6 |
100.0% |
20,574.1 |
100.0 % |
+12.0% |
Cost of sales |
-4,935.8 |
26.9% |
-10,577.4 |
27.6% |
-5,291.5 |
25.7% |
|
Gross profit |
13,430.6 |
73.1% |
27,683.3 |
72.4% |
15,282.6 |
74.3% |
+13.8% |
R&I expenses |
-539.6 |
2.9% |
-1,138.6 |
3.0% |
-622.8 |
3.0% |
|
Advertising and promotion expenses |
-5,793.3 |
31.5% |
-12,059.0 |
31.5% |
-6,682.6 |
32.5% |
|
Selling, general and administrative expenses |
-3,352.2 |
18.3% |
-7,028.8 |
18.4% |
-3,718.5 |
18.1% |
|
Operating profit |
3,745.5 |
20.4% |
7,456.9 |
19.5% |
4,258.8 |
20.7% |
+13.7% |
Gross profit, at 15,282.6million euros, came
out at 74.3% of sales compared with 73.1% in the first half of
2022, an increase of 120 basis points.
Research & Innovation expenses, at 622.8
million euros, came out at 3.0% of sales.
Advertising and promotion expenses, at 6,682.6
million euros, came out at 32.5% of sales, an increase of 100basis
points.
Selling, general and administrative expenses,
at 18.1% of sales, decreased by 20 basis points.
Overall, operating profit increased by +13.7%
to 4,258.8 million euros and amounted to 20.7% of sales, an
increase of 30 basis points compared with the first half of
2022.
Operating profit by
Division
|
30/6/22 |
31/12/22 |
30/6/23 |
|
€m |
% of sales |
€m |
% of sales |
€m |
% of sales |
By Division |
|
|
|
|
|
|
Professional Products |
458.7 |
21.2% |
953.6 |
21.3% |
490.1 |
21.2% |
Consumer Products |
1,359.8 |
20.0% |
2,774.9 |
19.8% |
1,617.4 |
21.0% |
Luxe |
1,647.8 |
24.0% |
3,350.4 |
22.9% |
1,687.9 |
23.2% |
Dermatological Beauty10 |
703.5 |
27.7% |
1,303.0 |
25.4% |
933.9 |
28.4% |
Total Divisionsbefore
non-allocated |
4,169.9 |
22.7% |
8,381.9 |
21.9% |
4,729.3 |
23.0% |
Non-allocated11 |
-424.4 |
2.3% |
-925.1 |
2.4% |
-470.5 |
2.3% |
Group |
3,745.5 |
20.4% |
7,456.9 |
19.5% |
4,258.8 |
20.7% |
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 21.2%, in line with the
first half of 2022.
The profitability of the Consumer
Products Division increased from 20.0% to 21.0%.
The profitability of Luxe
decreased by 80 basis points, to 23.2%.
The profitability of the Dermatological
Beauty Division improved by 70 basis points to 28.4%.
Net profit excluding non-recurring
items
Consolidated profit and loss account: from
operating profit to net profit excluding non-recurring items.
€m |
30/6/22 |
31/12/22 |
30/06/23 |
ChangeH1-2023 vs. H1-2022 |
Operating profit |
3,745.5 |
7,456.9 |
4,258.8 |
+13.7% |
Financial revenues and expenses, excluding Sanofi dividends |
-16.4 |
-73.0 |
-45.3 |
|
Sanofi dividends |
468.2 |
468.2 |
420.9 |
|
Profit before tax and associates excluding non-recurring items |
4,197.3 |
7,852.1 |
4,634.4 |
|
Income tax excluding non-recurring items |
-943.0 |
-1,793.4 |
-1,013.2 |
|
Net profit excluding non-recurring items of equity consolidated
companies |
+1.1 |
+1.5 |
- |
|
Non-controlling interests |
-1.3 |
-6.1 |
-4.6 |
|
Net profit excluding non-recurring items, after
non-controlling interests12 |
3,254.0 |
6,054.1 |
3,616.6 |
+11.1% |
EPS13 (€) |
6.05 |
11.26 |
6.73 |
+11.2% |
Diluted average number of shares |
537,541,538 |
537,657,548 |
537,136,456 |
|
Overall financial expenses came
out at 45.3 million euros.
Sanofi dividends amounted to
420.9 million euros.
Income tax excluding non-recurring
items came out at 1,013.2 million euros, i.e. a tax rate
of 21.9%.
Net profit excluding non-recurring items
after non-controlling interests came out at 3,616.6
million euros.
Earnings per share, at 6.73
euros, increased by +11.2% compared with the first half of
2022.
Net profit
Consolidated profit and loss account: from net profit excluding
non-recurring items to net profit.
€m |
30/6/22 |
31/12/22 |
30/6/23 |
Net profit excluding non-recurring items,
after non-controlling
interests12 |
3,254.0 |
6,054.1 |
3,616.6 |
Non-recurring items |
-31.2 |
-347.4 |
-257.6 |
of which: |
|
|
|
- other income and expenses
|
-34.5 |
-241.5 |
-321.7 |
|
+3.3 |
-105.9 |
+64.1 |
|
|
|
|
Net profit after non-controlling interests |
3,222.8 |
5,706.6 |
3,359.0 |
Non-recurring items amounted to 257.6 million euros net of
tax.
Operating cash flow and balance
sheet
Gross cash flow amounted to 4,378 million
euros, an increase of 14.5%.
The change in working capital amounted to
-1,556 million euros.
Investments, at 724 million euros, represented
3.5% of sales.
Operating cash flow14 amounted to 2,097 million
euros, an increase of 56.9%.
At 30 June 2023, after taking into account finance lease
liabilities for 1,567million euros, net debt
amounted to 4,822million 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.”
This is a free translation into English of the news
release issued in the French language and is provided solely
for the convenience of English-speaking readers. In case of
discrepancy, the French version prevails.
About L’Oréal
For over 110 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
inclusive, ethical, generous and committed to social and
environmental sustainability. With our broad portfolio of 36
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 87,400 committed employees, a balanced geographical
footprint and sales across all distribution networks(e-commerce,
mass market, department stores, pharmacies, hair salons, branded
and travel retail), in 2022 the Group generated sales amounting to
38.26 billion euros. With 20 research centres
across 11 countries around the world and a dedicated Research and
Innovation team of over 4,000 scientists and 5,500 tech and digital
professionals, 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
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+33 (0) 1 47 56 70 00
Individual shareholders and market
authorities
Pascale Guerin+33 (0)1 49 64 18 89pascale.guerin@loreal.com
Eva Quiroga+33 (0)7 88 14 22 65eva.quiroga@loreal.com
Journalists
Noëlle Camilleri+33 (0)6 79 92 99
39noelle.camilleri@loreal.com
Christine Burke+33 (0)6 75 54 38
15christine.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 2022/2023 (€
million)
|
2022 |
2023 |
First quarter |
9,060.5 |
10,380.4 |
Second quarter |
9,305.8 |
10,193.7 |
First half total |
18,366.3 |
20,574.1 |
Third quarter |
9,575.2 |
|
Nine months total |
27,941.5 |
|
Fourth quarter |
10,319.1 |
|
Full year total |
38,260.6 |
|
Appendix 2: Compared consolidated income
statements
€ millions |
1st half 2023 |
1st half 2022 |
2022 |
Net sales |
20,574.1 |
18,366.3 |
38,260.6 |
Cost of
sales |
-5,291.5 |
-4,935.8 |
-10,577.4 |
Gross profit |
15,282.6 |
13,430.6 |
27,683.3 |
Research & innovation expenses |
-622.8 |
-539.6 |
-1,138.6 |
Advertising and promotion expenses |
-6,682.6 |
-5,793.3 |
-12,059.0 |
Selling, general and administrative expenses |
-3,718.5 |
-3,352.2 |
-7,028.8 |
Operating profit |
4,258.8 |
3,745.5 |
7,456.9 |
Other
income and expenses |
-321.7 |
-34.5 |
-241.5 |
Operational profit |
3,937.1 |
3,711.0 |
7,215.4 |
Finance
costs on gross debt |
-80.7 |
-14.0 |
-70.4 |
Finance
income on cash and cash equivalents |
65.6 |
29.0 |
69.8 |
Finance costs, net |
-15.1 |
15.0 |
-0.6 |
Other
financial income and expenses |
-30.2 |
-31.4 |
-72.3 |
Sanofi
dividends |
420.9 |
468.2 |
468.2 |
Profit before tax and associates |
4,312.7 |
4,162.8 |
7,610.6 |
Income
tax |
-949.1 |
-940.0 |
-1,899.4 |
Share
of profit in associates |
- |
1.1 |
1.4 |
Net profit |
3,363.6 |
3,224.0 |
5,712.6 |
Attributable to: |
|
|
|
|
3,359.0 |
3,222.8 |
5,706.6 |
- non-controlling interests
|
4.6 |
1.2 |
6.0 |
Earnings per share attributable to owners of the company
(euros) |
6.27 |
6.02 |
10.65 |
Diluted
earnings per share attributable to owners of the company
(euros) |
6.25 |
6.00 |
10.61 |
Earnings per share attributable to owners of the company, excluding
non-recurring items (euros) |
6.75 |
6.07 |
11.30 |
Diluted
earnings per share attributable to owners of the company, excluding
non-recurring items (euros) |
6.73 |
6.05 |
11.26 |
Appendix 3: Consolidated statement of comprehensive
income
€ millions |
1st half 2023 |
1st half 2022 |
2022 |
Consolidated net profit for the period |
3,363.6 |
3,224.0 |
5,712.6 |
Cash flow hedges |
-47.9 |
-38.0 |
288.5 |
Cumulative translation adjustments |
-359.3 |
680.9 |
195.1 |
Income tax on items that may be reclassified to profit or loss
(1) |
6.3 |
6.9 |
-58.0 |
Items that may be reclassified to profit or
loss |
-400.9 |
649.8 |
425.6 |
Financial assets at fair value through other comprehensive
income |
972.6 |
913.2 |
152.1 |
Actuarial gains and losses |
57.8 |
342.1 |
395.6 |
Income tax on items that may not be reclassified to profit or loss
(1) |
-45.0 |
-116.9 |
-111.5 |
Items that may not be reclassified to profit or
loss |
985.4 |
1,138.4 |
436.2 |
Other comprehensive income |
584.5 |
1,788.2 |
861.8 |
Consolidated comprehensive income |
3,948.1 |
5,012.2 |
6,574.4 |
Attributable to: |
|
|
|
|
3,943.7 |
5,010.8 |
6,567.6 |
- non-controlling interests
|
4.4 |
1.4 |
6.8 |
(1) The tax effect is as
follows:
€ millions |
1st half 2023 |
1st half 2022 |
2022 |
Cash flow hedges |
6.3 |
6.9 |
-58.0 |
Items that may be reclassified to profit or
loss |
6.3 |
6.9 |
-58.0 |
Financial assets at fair value through other comprehensive
income |
-30.6 |
-28.5 |
-6.1 |
Actuarial gains and losses |
-14.4 |
-88.4 |
-105.5 |
Items that may not be reclassified to profit or
loss |
-45.0 |
-116.8 |
-111.5 |
TOTAL |
-38.7 |
-110.0 |
-169.5 |
Appendix 4: Compared consolidated balance
sheets
Assets
€ millions |
30.06.2023 |
30.06.2022 |
31.12.2022 |
Non-current assets |
33,536.2 |
32,578.9 |
32,794.5 |
Goodwill |
11,362.0 |
11,353.9 |
11,717.7 |
Other
intangible assets |
3,610.9 |
3,501.0 |
3,640.1 |
Right-of-use assets |
1,443.0 |
1,491.8 |
1,482.7 |
Property, plant and equipment |
3,626.7 |
3,441.0 |
3,481.7 |
Non-current financial assets |
12,710.3 |
11,956.5 |
11,652.8 |
Investments accounted for the equity method |
18.2 |
10.9 |
18.4 |
Deferred tax assets |
765.2 |
823.8 |
801.1 |
Current assets |
17,571.6 |
14,590.0 |
14,049.6 |
Inventories |
4,258.0 |
3,988.3 |
4,079.4 |
Trade
accounts receivable |
5,483.6 |
5,064.6 |
4,755.5 |
Other
current assets |
2,668.9 |
2,399.6 |
2,423.2 |
Current
tax assets |
164.2 |
150.3 |
173.9 |
Cash
and cash equivalents |
4,996.9 |
2,987.4 |
2,617.7 |
TOTAL |
51,107.9 |
47,168.9 |
46,844.2 |
Equity & Liabilities
€ millions |
30.06.2023 |
30.06.2022 |
31.12.2022 |
Equity |
27,961.6 |
25,932.4 |
27,186.5 |
Share
capital |
107.2 |
107.3 |
107.0 |
Additional paid-in capital |
3,368.7 |
3,265.6 |
3,368.7 |
Other
reserves |
14,215.5 |
12,085.9 |
11,675.6 |
Other
comprehensive income |
7,348.6 |
6,845.8 |
6,404.4 |
Cumulative translation adjustments |
-443.2 |
401.7 |
-83.8 |
Treasury shares |
- |
- |
- |
Net
profit attributable to owners of the company |
3,359.0 |
3,222.8 |
5,706.6 |
Equity attributable to owners of the company |
27,955.7 |
25,929.1 |
27,178.5 |
Non-controlling interests |
5.9 |
3.3 |
8.0 |
Non-current liabilities |
6,027.2 |
5,527.3 |
5,937.9 |
Provisions for employee retirement obligations and related
benefits |
447.0 |
62.1 |
457.9 |
Provisions for liabilities and charges |
68.3 |
61.9 |
67.7 |
Non-current tax liabilities |
245.7 |
290.9 |
275.6 |
Deferred tax liabilities |
849.5 |
896.5 |
905.6 |
Non-current borrowings and debt |
3,250.2 |
3,009.4 |
3,017.6 |
Non-current lease debt |
1,166.5 |
1,206.5 |
1,213.5 |
Current liabilities |
17,119.0 |
15,709.2 |
13,719.6 |
Trade
accounts payable |
6,074.9 |
6,467.6 |
6,345.6 |
Provisions for liabilities and charges |
1,149.4 |
1,245.0 |
1,205.6 |
Other
current liabilities |
4,251.9 |
3,821.1 |
4,484.6 |
Income
tax |
239.9 |
396.1 |
264.2 |
Current
borrowings and debt |
5,002.0 |
3,336.4 |
1,012.8 |
Current
lease debt |
400.9 |
443.0 |
407.0 |
TOTAL |
51,107.9 |
47,168.9 |
46,844.2 |
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 |
Equity |
At 31.12.2021 |
535,412,360 |
111.5 |
3,265.6 |
23,689.3 |
5,738.6 |
-8,940.2 |
-279.1 |
23,585.7 |
6.9 |
23,592.6 |
Impact of
the application of the IFRIC decision on SaaS contracts |
|
|
|
-151.2 |
|
|
|
-151.2 |
|
-151.2 |
At 01.01.2022 (1) |
535,412,360 |
111.5 |
3,265.6 |
23,538.1 |
5,738.6 |
-8,940.2 |
-279.1 |
23,434.5 |
6.9 |
23,441.4 |
Consolidated net profit for the period |
|
|
|
5,706.6 |
|
|
|
5,706.6 |
6.0 |
5,712.6 |
Cash flow hedges |
|
|
|
|
229.7 |
|
|
229.7 |
0.8 |
230.5 |
Cumulative translation adjustments |
|
|
|
|
|
|
195.3 |
195.3 |
-0.2 |
195.1 |
Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
229.7 |
|
195.3 |
425.0 |
0.6 |
425.6 |
Financial assets at fair value through other comprehensive
income |
|
|
|
|
146.1 |
|
|
146.1 |
|
146.1 |
Actuarial gains and losses |
|
|
|
|
290.0 |
|
|
290.0 |
0.1 |
290.1 |
Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
436.1 |
|
- |
436.1 |
0.1 |
436.2 |
Consolidated comprehensive income |
|
|
|
5,706.6 |
665.8 |
|
195.3 |
6,567.6 |
6.8 |
6,574.4 |
Capital
increase |
1,317,073 |
0.3 |
103.1 |
-0.2 |
|
|
|
103.2 |
|
103.2 |
Cancellation of Treasury shares |
|
-4.8 |
|
-9,437.7 |
— |
9,442.5 |
— |
- |
— |
- |
Dividends
paid (not paid on Treasury shares) |
|
|
|
-2,601.2 |
— |
— |
— |
-2,601.2 |
-4.4 |
-2,605.6 |
Share-based payment |
|
|
|
169.0 |
— |
— |
— |
169.0 |
— |
169.0 |
Net
changes in Treasury shares |
-1,542,871 |
|
|
— |
— |
-502.3 |
— |
-502.3 |
— |
-502.3 |
Changes
in scope of consolidation |
|
|
|
— |
— |
— |
— |
- |
— |
- |
Other
movements |
|
|
|
7.7 |
— |
— |
— |
7.7 |
-1.2 |
6.5 |
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 |
(1) After taking account of the IFRIC final
decision in April 2021 on setup and customization costs for
SaaS-type contracts software.
Changes in first-half 2022
€ millions |
Common shares outstanding |
Share capital |
Additional paid-in capital |
Retained earnings and
net profit |
Othercomprehensive
income |
Treasury shares |
Cumulative translation adjustments |
Equity attributableto
owners of the
company |
Non-controlling
interests |
Equity |
At 31.12.2021 |
535,412,360 |
111.5 |
3,265.6 |
23,689.3 |
5,738.6 |
-8,940.2 |
-279.1 |
23,585.7 |
6.9 |
23,592.6 |
Impact of
the application of the IFRIC decision on SaaS contracts |
|
|
|
-152.5 |
|
|
|
-152.5 |
|
-152.5 |
At 01.01.2022 (1) |
535,412,360 |
111.5 |
3,265.6 |
23,536.8 |
5,738.6 |
-8,940.2 |
-279.1 |
23,433.2 |
6.9 |
23,440.1 |
Consolidated net profit for the period |
|
|
|
3,222.8 |
|
|
|
3,222.8 |
1.2 |
3,224.0 |
Cash flow hedges |
|
|
|
|
-31.2 |
|
|
-31.2 |
0.1 |
-31.1 |
Cumulative translation adjustments |
|
|
|
|
|
|
680.8 |
680.8 |
0.1 |
680.9 |
Other comprehensive income that may be reclassified to
profit and loss |
|
|
|
|
-31.2 |
|
680.8 |
649.6 |
0.2 |
649.8 |
Financial assets at fair value through other comprehensive
income |
|
|
|
|
884.7 |
|
|
884.7 |
|
884.7 |
Actuarial gains and losses |
|
|
|
|
253.7 |
|
|
253.7 |
|
253.7 |
Other comprehensive income that may not be reclassified to
profit and loss |
|
|
|
|
1,138.4 |
|
|
1,138.4 |
- |
1,138.4 |
Consolidated comprehensive income |
|
|
|
3,222.8 |
1,107.2 |
— |
680.8 |
5,010.8 |
1.4 |
5,012.2 |
Capital
increase |
868,249 |
0.2 |
|
-0.2 |
|
|
|
- |
|
- |
Cancellation of Treasury shares |
|
-4.5 |
|
-8,935.8 |
|
8,940.2 |
|
- |
|
- |
Dividends
paid (not paid on Treasury shares) |
|
|
|
-2,601.2 |
|
|
|
-2,601.2 |
-4.4 |
-2,605.6 |
Share-based payment |
|
|
|
86.8 |
|
|
|
86.8 |
|
86.8 |
Net
changes in Treasury shares |
|
|
|
|
|
|
|
- |
|
- |
Changes
in scope of consolidation |
|
|
|
|
|
|
|
- |
|
- |
Other
movements |
|
|
|
-0.6 |
|
|
|
-0.6 |
-0.5 |
-1.1 |
AT 30.06.2022 |
536,280,609 |
107.3 |
3,265.6 |
15,308.6 |
6,845.8 |
— |
401.7 |
25,929.1 |
3.3 |
25,932.4 |
(1) After taking account of the IFRIC final
decision in April 2021 on setup and customization costs for
SaaS-type contracts software.
Appendix 6: Compared consolidated statements of cash
flows
€ millions |
1st half 2023 |
1st half 2022 |
2022 |
Cash flows from operating activities |
|
|
|
Net
profit attributable to owners of the company |
3,359.0 |
3,222.8 |
5,706.6 |
Non-controlling interests |
4.6 |
1.2 |
6.0 |
Elimination of expenses and income with no impact on cash
flows: |
|
|
|
•
depreciation, amortisation, provisions and non-current tax
liabilities |
911.3 |
626.8 |
1,536.1 |
•
changes in deferred taxes |
-5.0 |
-57.3 |
-96.5 |
•
share-based payment (including free shares) |
81.3 |
86.8 |
169.0 |
•
capital gains and losses on disposals of assets |
2.9 |
-0.5 |
7.6 |
Other
non-cash transactions |
24.2 |
-53.6 |
-38.7 |
Share
of profit in associates net of dividends received |
- |
-1.1 |
-0.5 |
Gross cash flow |
4,378.3 |
3,825.1 |
7,289.6 |
Changes
in working capital |
-1,556.6 |
-1,849.8 |
-1,011.3 |
Net cash provided by operating activities (A) |
2,821.7 |
1,975.4 |
6,278.3 |
Cash flows from investing activities |
|
|
|
Purchases of property, plant and equipment and intangible
assets |
-724.1 |
-638.3 |
-1,343.2 |
Disposals of property, plant and equipment and intangible
assets |
1.7 |
3.6 |
9.2 |
Changes
in other financial assets (including investments in
non-consolidated companies) |
-41.9 |
-54.2 |
-142.8 |
Effect
of changes in the scope of consolidation |
-159.4 |
-10.2 |
-746.9 |
Net cash from investing activities (B) |
-923.7 |
-699.1 |
-2,223.8 |
Cash flows from financing activities |
|
|
|
Dividends paid |
-3,398.2 |
-2,641.2 |
-2,689.9 |
Capital
increase of the parent company |
- |
- |
103.2 |
Capital
increase of subsidiaries |
- |
- |
- |
Disposal (acquisition) of Treasury shares |
- |
- |
-502.3 |
Purchase of non-controlling interests |
- |
- |
- |
Issuance (repayment) of short-term loans |
2,218.2 |
-1,216.6 |
-3,563.8 |
Issuance of long-term borrowings |
2,015.4 |
2,997.8 |
3,019.9 |
Repayment of long-term borrowings |
-29.9 |
- |
- |
Repayment of lease debt |
-211.2 |
-216.7 |
-446.9 |
Net cash from financing activities (C) |
594.2 |
-1,076.7 |
-4,079.9 |
Net
effect of changes in exchange rates and fair value (D) |
-113.0 |
73.9 |
-70.7 |
Change in cash and cash equivalents (A+B+C+D) |
2,379.2 |
273.5 |
-96.1 |
Cash and cash equivalents at beginning of the period
(E) |
2,617.7 |
2,713.8 |
2,713.8 |
CASH AND CASH EQUIVALENTS AT THE
END OF THE PERIOD (A+B+C+D+E) |
4,996.9 |
2,987.4 |
2,617.7 |
1 Like-for-like: based on a comparable structure and identical
exchange rates.2 Diluted earnings per share, excluding
non-recurring items, after non-controlling interests.3 The L'Oréal
Universal Registration Document filed with the AMF (Autorité des
Marchés Financiers) on 16 March 2023 includes, on page 352, 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.4 Formerly known as the Active Cosmetics
Division.5 SAPMENA–SSA: South Asia Pacific, Middle East, North
Africa, Sub-Saharan Africa.6 Formerly known as the Active Cosmetics
Division.7 The Asian Travel Retail business unit was relocated on
1st July 2022, which generated anticipated invoicing of €90
million in the first half of 2022.8 SAPMENA – SSA: South Asia
Pacific, Middle East, North Africa, Sub-Saharan Africa.9 NOT FOR
RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR
INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA.10
Formerly known as the Active Cosmetics Division.
11 Non-allocated expenses = Central Group
expenses, fundamental research expenses, free grant of shares
expenses and miscellaneous items.12 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.13 Diluted net profit per share,
excluding non-recurring items, after non-controlling interests.14
Operating cash flow = Gross cash flow + changes in working capital
- capital expenditure.
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