In This Article:
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Revenue: Consolidated sales increased by 5.6%, reaching EUR43.5 billion.
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Like-for-Like Growth: 5.1% growth, marking market outperformance.
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Gross Margin: Reached a record high of 74.2%, up 30 basis points from last year.
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Operating Profit Margin: Increased 20 basis points to 20%.
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Operating Net Cash Flow: EUR6.6 billion, up close to 9%.
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Professional Products Growth: 5.3% like-for-like growth.
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Consumer Products Growth: 5.4% like-for-like growth.
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L'Oreal Luxe Growth: 2.7% like-for-like and 4.5% reported growth.
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Dermatological Beauty Growth: 9.8% increase in sales, reaching EUR7 billion.
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Regional Performance - Europe: Advanced by 8.2%.
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Regional Performance - North America: Growth of 5.5%.
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Regional Performance - Emerging Markets: 11.7% growth.
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Regional Performance - North Asia: Sales declined by 3.2% like-for-like.
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Fragrances Growth: 14.1%, the most dynamic category.
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Haircare Growth: 12.7%, driven by premiumization.
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Net Profit (Excluding Nonrecurring Items): EUR6.8 billion.
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Diluted Earnings Per Share: EUR12.66, up by 5%.
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Dividend Proposal: Increase of 6.1% to EUR7 per share.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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L'Oreal SA (LRLCF) achieved a record year in 2024 with like-for-like growth of 5.1%, outperforming the market.
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The company's gross margin reached an all-time high of 74.2%, and the operating profit margin increased to 20% for the first time.
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L'Oreal SA (LRLCF) reported a strong cash flow with operating net cash flow at EUR6.6 billion, up nearly 9%, indicating a cash conversion of over 100%.
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The Dermatological Beauty Division reported a 9.8% increase in sales, reaching EUR7 billion for the first time, with a profit margin of 26.1%.
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The Professional Products Division grew by 5.3%, driven by premium haircare and a successful omnichannel strategy, achieving a market share of 26%.
Negative Points
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Sales in North Asia declined by 3.2% on a like-for-like basis, primarily due to weakness in Mainland China and Travel Retail.
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The Chinese beauty market continued to decelerate, with total market growth deteriorating from minus 2% in the first half to minus 4% for the full year.
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The Travel Retail business in Asia faced challenges, with sales in Hainan and Korea down 35% from 2022 levels.
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CeraVe experienced a slowdown in the US, partly due to the law of big numbers, despite being the second biggest brand in the US.
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The Consumer Products Division's growth of 5.4% was slightly below the market, impacted by a slower market in China and a soft makeup market in the US.