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.

Dublin, Oct. 10, 2024 (GLOBE NEWSWIRE) -- The "Decoding L'Oreal's YouTube Advertising Strategy" report has been added to ResearchAndMarkets.com's offering. The report on L'Oreal's advertising strategies on YouTube from August 2023 to July 2024, focuses on products and campaigns such as EverPure Bond Repair, Bright Reveal Daily SPF 50 Lotion, L'Oreal Paris Midnight Cream, L'Oreal Paris Colorsonic, EverPure Purple and more. It analyzes the core themes, messaging strategies, and product benefits portrayed in t ...

CALABASAS, CALIFORNIA - APRIL 19: The exterior of an ULTA Beauty store photographed on April 19, ... [+] 2022 in Calabasas, California. (Photo by Jeremy Moeller/Getty Images) Getty Images Given its better prospects, we believe that L'Oréal stock (OTCMKTS: LRLCY) is a better pick than its peer Ulta Beauty stock (NASDAQ: ULTA). LRLCY stock trades at a higher valuation multiple of 5.2x trailing revenues, versus 1.6x for ULTA stock. Investors have assigned a higher valuation multiple for L'Oréal, given its supe ...

High-quality consumer staples, who wouldn't want these in their portfolio? It provides a certain stability and lets you sleep well at night. However, quality usually comes with a price and this is exactly the case with I am a Dutch manual therapist (MSc) and a passionate retail investor. My investment journey started in 2021 and from that point my love for investing has begun. Nearly from the start i had a strong preference for dividend growth investing.My investment goal is to retire early with the dividen ...

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].

美妆之后来做一个展开我们是德光社群101然后就是首先是我们可以看到最近欧莱雅集团只有发布它的一个QR的一个业绩我们看今年上半年整个营收是大概只有7.5的一个增速今年乱的话大概是有8.89的一个增速同时抖音7月份的一个数据也都出了那么我们结合这几个维度对美妆版化再做一个更新首先是我们看欧莱雅的这个财报数据来看 其实会发现我们可以得到几个趋势第一个趋势是包括可以看到功效护肤这块人员表现会非常好在各个部门领域中实现一个领先在上半年的时候公司皮肤科学美容事业部的销售额大概有16.4%左右的一个增速这个速度是领先于大众化妆品事业部的8.9%以及专业美妆护肤的5.7%的一个增速 高档美妆化妆品只有2.3的一个增速首先皮肤科学美容事业部的话它主要分为几个品牌包括修丽可、施洛夫、李福泉、威之这些品牌那这个事业部的话在沙打国家、新加坡市场以及北亚地区都取得两位数以上的增长其中在中国地区保持一个高速增长中国地区增长来自于两方面原因 一方面是在三月份休利可推出了一个国研的一个照院针作为一个首类的首个三类医疗器械的一个产品公司通过这个产品是布局医美领域第二方面是施洛夫在六月份的时候联合屈臣氏推出Derma Center同时也发布了一 ...

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]

Core Insights - The beauty industry is increasingly scrutinized for its environmental impact, necessitating L'Oreal to align its operations with consumer demand for sustainability and ethical practices [1] - L'Oreal's diversified business model and strong brand portfolio position it well for growth despite recent macroeconomic challenges, with an 11% sales increase in 2023 [7][24] - The company has a strong focus on research and innovation, investing €1,288 million in 2023 and filing 610 patents [33] Financial Performance - L'Oreal generated total revenue of €41,182 million in 2023, achieving an operating margin of 19.8%, one of the highest in the beauty industry [24] - The company is currently fairly valued, with a stock value of €411, close to its current stock price of €408 [5] - A simple DCF model indicates a projected revenue growth rate of 7% and a constant operating margin of 19.10% over the forecast period [49] Competitive Landscape - L'Oreal is the dominant player among companies that solely manufacture beauty products, outperforming competitors like Shiseido and Coty in terms of revenue and diversification [12][13] - The company faces competition from local brands in key markets like China, which are gaining market share due to improved quality and consumer preferences [40][64] - L'Oreal's acquisition strategy has been successful, allowing it to expand its portfolio and capitalize on emerging consumer trends [65] Market Strategy - L'Oreal's business is divided into four divisions: Consumer Products, Luxe, Dermatological Beauty, and Professional Products, with skincare accounting for 40% of total revenue [27][28] - The company emphasizes a strategy of Universalisation and Singularisation, adapting its brands to local markets while catering to individual consumer preferences [58] - Proximity to production centers enhances L'Oreal's responsiveness to market demands and reduces lead times [20] Industry Trends - There is a growing consumer preference for eco-friendly and ethically sourced beauty products, which L'Oreal must prioritize to maintain market share [68] - The beauty industry is characterized by rapid technological changes and the emergence of new brands, necessitating continuous innovation from L'Oreal [63]