Core Viewpoint - L'Oreal reported lower-than-expected sales in Q4 due to ongoing weakness in the Chinese beauty market and a slowdown in demand in the U.S. [1][3] Group 1: Financial Performance - L'Oreal's Q4 sales reached 11.08 billion euros ($11.49 billion), reflecting a 2.5% increase on a like-for-like basis, but falling short of the 11.1 billion euros estimated by analysts [2] - Full-year sales amounted to 43.48 billion euros, slightly exceeding the forecast of 43.33 billion euros [2] Group 2: Market Challenges - The company has faced challenges with weaker consumer demand in recent quarters, particularly in the crucial Chinese market, a trend also affecting high-end luxury brands [3]

AGREEMENT BETWEEN L’ORÉAL AND SANOFI FOR THE REPURCHASEBY SANOFI OF 2.3% OF ITS OWN SHARES HELD BY L’ORÉAL Clichy, February 3, 2025 – L’Oréal announces today that it has agreed to sell approximately 29.6 million of Sanofi shares to Sanofi for €101.5 per share, for a total consideration of €3 billion. Upon completion of the transaction and cancellation of the repurchased shares, L’Oréal will own 7.2% of Sanofi’s share capital and 13.1% of its voting rights1. L’Oréal remains an important shareholder of Sanofi ...

Company Overview - L'Oréal is a leading cosmetics and beauty company with a market capitalization exceeding 180 billion [1] - The company employs over 90,000 individuals and operates in more than 150 countries with 37 global brands [1] - L'Oréal has been in operation for nearly 115 years, showcasing its long-standing presence in the industry [1]

Group 1 - L'Oréal S.A. has not had its best year in terms of shareholder returns, but the business continues to perform well [3] - The company maintains a beneficial long position in its shares, indicating confidence in its future performance [3] - The article expresses the author's personal opinions and does not involve compensation from any business relationship with L'Oréal [3]

Company and Industry Overview * **Company**: L'Oréal S.A. (OTCPK:LRLCF) * **Industry**: Beauty and Personal Care * **Timeframe**: 9-Month Sales Conference Call, October 22, 2024 Key Points Overall Performance * **Like-for-like growth**: +6% for the first 9 months of 2024, outperforming the global beauty market. * **External challenges**: Multiple external factors impacted the third quarter, including normalization of beauty market growth in Europe and North America, and negative trends in North Asia, particularly in China. * **Bright spots**: Robust underlying growth trends in Europe, North America, and emerging markets; strong performance in fragrance and hair care; gradual recovery in makeup. Divisional Performance * **Fragrance and Hair Care**: Strong growth across all regions, with hair care performing exceptionally well. * **Makeup**: Gradual recovery, fueled by new product launches. * **Dermatological Beauty**: Growth slowed in the third quarter due to factors like realignment between sell-in and sell-out, sun care effect, and lack of innovation on certain brands. * **Mass Market**: L'Oréal Paris performed well, maintaining its position as the number one beauty brand in China. Market Outlook * **Global beauty market**: Expected to grow at pre-COVID levels in 2025. * **Beauty stimulus plan**: L'Oréal is preparing a plan to stimulate demand through innovation and creativity. * **Emerging markets**: Remain a significant growth driver, with strong performance in Latin America, SAPMENA, and SSA. Other Important Points * **Luxury market**: L'Oréal Luxe outperformed the luxury market globally, with strong performance in Europe, Latin America, and Japan. * **China**: The Chinese market remains challenging, with negative trends in luxury and travel retail. L'Oréal is gaining share in certain divisions and channels. * **U.S. market**: The market is normalizing, with mid-single-digit growth. L'Oréal is confident in its ability to navigate the evolving landscape. * **Amazon**: L'Oréal has successfully launched luxury brands on Amazon, with positive results in terms of brand exposure and consumer acquisition. * **French tax**: L'Oréal expects an additional tax burden of €250 million in 2024 due to proposed changes to the French tax regime.

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Dublin, Aug. 19, 2024 (GLOBE NEWSWIRE) -- The "Decoding L'Oreal Paris's YouTube Advertising Strategy" report has been added to ResearchAndMarkets.com's offering. The report on L'Oreal Paris's advertising strategies on YouTube from July 2023 -June 2024, focuses on key products such as Bright Reveal UV Fluid, L'Oreal Midnight Cream, L'Oreal Paris Ever Pure Clarify & Restore, L'Oreal Paris Bright Reveal Niacinamide Serum and more. It analyzes the core themes, messaging strategies, and product benefits portraye ...

SEOUL, SOUTH KOREA - August 07: Singer and actress IU attends ESTEE LAUDER pop-up store opening ... [+] event at Lotte Avenel Jamsil in Songpa-gu on August 07, 2024 in Seoul, South Korea. (Photo by iMBC/Imazins via Getty Images) ImaZins via Getty Images Estée Lauder stock (NYSE: EL) currently trades at $92 per share, around 75% below the level seen in December 2021. In comparison, L'Oréal (OTCMKTS: LRLCY) saw its stock decline 13% over the same period. EL stock was trading much higher at around $255 in earl ...

Summary of the Conference Call Industry Overview - The discussion focuses on the beauty industry, specifically referencing L'Oréal Group's recent performance metrics [1]. Key Points and Arguments - L'Oréal Group reported a revenue growth of approximately 7.5% for the first half of the year, indicating a slowdown compared to the previous year's growth rate of about 8.89% [1]. - Data from Douyin (the Chinese version of TikTok) for July has also been released, which will be considered in the analysis of the beauty market [1]. Additional Important Content - The analysis aims to provide an updated perspective on the beauty sector by integrating L'Oréal's financial performance and Douyin's data [1].

Financial Data and Key Metrics - Sales increased by 7.5%, with a negative 2.3% impact from foreign exchange and a positive 2.5% from changes in consolidation scope [4][5] - Like-for-like growth was 7.3%, with units contributing 2.6% and value contributing 4.7% (3.3% price, 1.4% mix) [5] - Gross margin improved by 50 basis points to 74.8%, with underlying gross margin improvement of 70 basis points [4][8] - Operating margin increased by 10 basis points to 20.8%, a first-half record [4] - Net profit rose by 8.8% to €3.65 billion [4] Business Line Performance - Professional Products grew 5.7%, Consumer Products grew 8.9%, Luxe grew 2.3%, and Dermatological Beauty grew 16.4% [6] - Consumer Products profitability improved by 100 basis points to 22%, Professional Products by 90 basis points to 22.1%, and Dermatological Beauty by 50 basis points to 28.9% [10] - Luxe margin stood at 21.9%, down 130 basis points from last year [10] Market Performance - Europe grew 11.1%, North America grew 7.8%, and emerging markets grew 14.7% [6][7] - North Asia declined by 1.7%, primarily due to weakness in Mainland China, though the company gained market share in three of four divisions [7][19] - Emerging markets accounted for 16% of sales and 30% of growth [18] Strategy and Industry Competition - The company remains confident in outperforming the global beauty market, which is expected to grow by 4.5% in 2024 [21] - Key growth drivers include premiumization in haircare and fragrances, with emerging markets playing a crucial role in recruiting new consumers [22][23] - The company plans to expand its presence in emerging markets, particularly in India and SAPMENA, by introducing new brands and leveraging e-commerce growth [23][24] Management Commentary on Operating Environment and Future Outlook - Management highlighted balanced growth between value and volume, with online sales growing faster than offline, particularly in emerging markets [14][15] - The company expects continued growth in Europe and North America, with emerging markets maintaining double-digit growth [22] - In North Asia, particularly Mainland China, the market is expected to remain slightly negative in the second half, with Travel Retail gradually improving [21][22] Other Important Information - Research and innovation expenses increased by 7.1% to €667 million, representing 3% of sales [9] - Advertising and promotional expenses increased by 6.4% to €427 million, with A&P as a percentage of sales at 32.1%, down 40 basis points [9] - The company’s sustainability efforts were recognized by Moody’s, and its decarbonization targets were validated by the Science Based Targets initiative [21] Q&A Summary Question: Growth balance between H1 and H2, sustainability of haircare and fragrance premiumization [31] - The company expects global beauty market growth of 4.5% in 2024, with H2 growth around 4% [32] - Haircare and fragrance growth is driven by structural factors, including younger consumers and premiumization trends [33][34] Question: China market outlook and derma growth [37][38] - Mainland China is expected to remain slightly negative in H2, with consumer confidence being a key driver [39][41] - Dermatological Beauty grew 16% in H1, though growth slowed in Q2 due to poor suncare season and U.S. market slowdown [43][44] Question: Emerging markets growth slowdown [49] - Emerging markets growth slowed to 13%, impacted by Argentina’s economic issues and boycotts in SAPMENA, costing 2 points of growth [51][52] Question: Europe’s pricing normalization and sustainable growth rate [54] - Pricing contributed mid-single digits to Europe’s growth in H1, with volume increases compensating for slower pricing growth in H2 [55][57] - Europe’s growth is expected to remain above historical levels, driven by consumer confidence and market sophistication [58][59] Question: Gross margin and A&P spending outlook [63] - Gross margin improvement in H2 will be less pronounced due to lower input cost benefits and slower valorization [64] - A&P spending will continue to increase in absolute terms, with a focus on productivity gains through AI tools [65][66] Question: Aesop integration and India market progress [68] - Aesop’s integration is on track, with 38 new stores opened since acquisition, and new product launches planned for 2025 [69][70] - CeraVe’s launch in India is progressing, with a focus on building credibility with the medical community before scaling [71][72] Question: Luxe division in China and premiumization trends [73] - The company continues to gain market share in China’s Luxe segment, driven by innovation and unique product offerings [74][75] - Premiumization trends remain strong, though the company is adapting to consumer price sensitivity with smaller formats and refills [76][77] Question: Amazon’s impact in the U.S. and Asia Travel Retail dynamics [84] - Amazon has been a growth accelerator in the U.S., helping recruit new customers and clean up gray market sales [85][86] - Asia Travel Retail dynamics are being closely monitored, with daigou activity shifting to markets like Japan and Korea [87][88]